OmniVision (OVTI - option chain) stock is trading sharply lower today after Sony (SNE) CEO Howard Stringer said late Friday that his company is supplying camera components to Apple (AAPL). This could pose a threat to OVTI's AAPL business, as OVTI had been the main supplier of image sensors for the iPhone. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on OVTI.

This morning, OVTI opened at $34.06. So far today the stock has hit a high of $34.10 and a low of $32.20. As of 12:15, OVTI is trading at $33.15, down $3.04 (-8.4%). The chart for OVTI looks neutral and S&P gives OVTI a neutral 3 STARS (out of 5) hold ranking.

Today brought a recovery rally as no more solid developments came out of Libya despite the continuous turmoil. A lower revision to GDP came from state spending and a University of Michigan confidence reading at a 3-year high that came out was from before the Libya situation exploded.

Here were today's unofficial closing bell levels:

Dow Jones 12,130.45 +61.95 (0.51%)
S&P 500 1,319.88 +13.78 (1.06%)
Nasdaq 2,781.05 +43.15 (1.58%)

Analyst Upgrades

• Wells Fargo (WFC) to conviction buy from neutral at Goldman.
• Adobe (ADBE) to buy from neutral at UBS.
• Fifth Third Bancorp (FITB) to outperform from market perform at FBR Capital.
• Vail Resorts (MTN) and Goldcorp (GG) to buy from hold at Deutsche Bank.
• OmniVision (OVTI) to overweight from neutral at JPMorgan.
• Penn Virginia (PVA) to hold from sell at Canaccord.
• Hub Group (HUBG) to outperform from market perform at Morgan Keegan.

Analyst Upgrades

• First Solar (FSLR) to conviction buy from buy at Goldman.
• NYSE Euronext (NYX) to outperform from market Perform at Wells Fargo.
• GSI Commerce (GSIC) and Cabela's (CAB) to overweight from neutral, as well as NovaMed (NOVA) to neutral from underweight, at Piper Jaffray.

Analyst Downgrades

• St. Jude Medical (STJ) to market perform from outperform at Wells Fargo.
• OmniVision (OVTI) to neutral from outperform at RW Baird.
• J & J Snack Foods (JJSF) to neutral from buy at Janney Capital.

Analyst Upgrades

• Google (GOOG) to outperform from neutral at Wedbush.
• Nike (NKE) to buy from neutral at UBS.
• Apollo Group (APOL) to market perform from underperform at FBR Capital.
• JDSU (JDSU) to overweight from neutral at Piper Jaffray.
• NetApp (NTAP) to overweight from equal weight and Verigy (VRGY) to equal weight from underweight at Barclays.
• RSC Holdings (RRR) to outperform from neutral at RW Baird.
• Exelon (EXC) to buy from hold at Jefferies.
• Aon (AON) and Willis Group (WSH) to outperform from market perform at Keefe Bruyette.
• BMC Software (BMC) to outperform from neutral at Cowen.

U.S. stock futures are lower, this morning as investors are awaiting economic data. Futures for the Dow Jones Industrial Average are down 10 points to 11,029.00, while those for the S&P 500 are down 0.60 point to 1,185.90. Futures for the Nasdaq 100 index lost 1.50 points to 2,144.00.

U.S. stock markets closed lower yesterday, with the Dow losing 0.36%.

Economic data on Case-Shiller home prices for September and the Chicago PMI index for November business activity are due at 9:00 a.m. and 9:45 a.m. ET, respectively. The Conference Board is set to release November consumer-confidence data at 10 a.m. ET.

"The headline-grabbing iPhone 4 from Apple has generated a lot of buzz, including a wave of interest in Omnivision Technologies (OVTI)," says growth stock specialist Mike Cintolo.

The editor of Cabot Top Ten Report explains, "The company is a designer and manufacturer of tiny cameras that turn smart phones into image recorders. As iPhone sales soar, so does OmniVision, which has been confirmed as the maker of the phone's five-megapixel sensor.

OmniVision Technologies (OVTI - option chain) shares are rising today after the company announced better than expected Q4 results yesterday after the close of trading. OVTI announced EPS of $0.18 per share, above the $0.17 analysts were expecting to see. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on OVTI.

OVTI opened this morning at $20.00. So far today the stock has hit a low of $19.04 and a new 52-week high of $20.32. As of 12:15, OVTI is trading at $19.24 up $1.02 (5.6%). The chart for OVTI looks bearish and S&P gives OVTI a negative 2 STARS (out of 5) sell ranking.

Analyst Upgrades

• Thomas Weisel upgraded Deckers Outdoor (DECK) to overweight from market weight following channel checks. The firm also raised its target for shares to $170 from $162.
• Deutsche Bank upgraded Amerigroup (AGP) to buy from hold as it believes the company is well positioned to benefit from health care reform. The firm upped its target for shares to $42 from $38.
• Cowen upgraded Cubist Pharmaceuticals (CBST) to outperform from neutral, citing increased conviction in Cubicin's patent exclusivity.
• OmniVision (OVTI) was upgraded to strong buy from buy at Needham.
• Take-Two (TTWO) was upgraded to buy from hold at ThinkEquity.
• Wells Fargo (WFC) was upgraded to buy from neutral at Sterne Agee.

Analyst Upgrades

• Credit Suisse upgraded Blackrock (BLK) to outperform from neutral and added shares to its U.S. Focus List. The firm cites valuation for the upgrade. The firm raised its target to $280 from $270.
• Keefe Bruyette upgraded Greenhill & Co. (GHL) to outperform from market perform following the company's acquisition of Caliburn. The firm raised its price target for shares to $110 from $82.
• Deutsche Bank upgraded Athenahealth (ATHN) to buy from hold, citing the removal of the company's accounting overhang and a strong long-term outlook. The firm raised its price target for shares to $51 from $40.
• Ann Taylor (ANN) was upgraded to neutral from underperform at BofA/Merrill.
• Jacobs Engineering (JEC) was upgraded to sell from conviction sell at Goldman.
• Sterling Bancorp (STL) was upgraded to outperform from market perform at BMO Capital.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aeropostale Inc. (ARO) strong Q3 results topped analysts expectations, and it offered Q4 earnings guidance.
• Cascade Corp. (CASC) reported a surprise Q3 profit but lower revenue fell short of expectations.
• Collective Brands Inc. (PSS) reported strong Q3 earnings as well as same-store sales growth.
• Cost Plus Inc. (CPWM) narrowed its net loss in Q3 but revenue and same-stores sales declined.
• Del Monte Foods Co. (DLM) posted strong Q2 results and raised its earnings outlook for the full year.
• Diamond Foods Inc. (DMND) posted better-than-expected Q1 earnings, but said that revenue declined.

OmniVision Technologies (OVTI) shuffled into the earnings spotlight Monday night, and the stock is getting punished as a result. While the company managed to exceed analysts' second-quarter earnings expectations, traders seem utterly dismayed by OmniVision's soft revenue guidance for the current quarter.

Specifically, the maker of semiconductor image sensors banked a second-quarter profit of $8.1 million, or 16 cents per share, reversing its year-ago loss of $5.3 million, or 10 cents per share. Excluding items, earnings arrived at 27 cents per share, compared to Wall Street's consensus forecast for a profit of 16 cents per share. Revenue for the second quarter jumped 12% to $183.3 million, easily outpacing analysts' expectations for $163.9 million.

Technology sector expert Paul McWilliams offers an intriguing look at the new iPhone from Apple (NASDAQ: AAPL) to uncover what tech companies are supplying components.

In his Next Inning -- a newsletter that focuses solely on high tech stocks -- the advisors offers a look at the players inside the iPhone.

McWilliams explains, "A few interesting notes have come from the folks busily tearing down the new Apple iPhone 3G S since its launch.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) reported better-than-expected Q1 earnings, lifting shares.
• AutoZone Inc. (NYSE: AZO) posted a better-than-expected Q3 profit said it will continue to buy back shares.
• Bank of Montreal (NYSE: BMO) reported lower Q2 earnings and also announced 1,100 layoffs.
• Big Lots Inc. (NYSE: BIG) higher Q1 earnings topped estimates even though same-store sales fell.
• BioMed Realty Trust Inc. (NYSE: BMR) earnings prospects after the recent capital raise led to a downgrade.

OmniVision Technologies, Inc. (NASDAQ: OVTI) stepped into the earnings spotlight last night, with the company reporting a fourth-quarter loss of $20.1 million, or 40 cents per share.

Excluding items, the quarterly loss would have been 30 cents per share. Revenue for the period fell 47% to $89.1 million, while gross margin contracted from 27.2% to 17%. Analysts were expecting a wider loss of 46 cents per share on slimmer revenue of $68.3 million.

Looking ahead, OVTI expects a fiscal first-quarter adjusted loss of seven cents to 16 cents per share, with revenue ranging between $90 million and $100 million. The forecast was unexpectedly upbeat; analysts surveyed by Thomson Reuters are expecting a first-quarter loss of 23 cents per share on $74 million in revenue.