The unofficial closing bells put the DJIA down nearly 65 points to 13,199.55 (-0,49%), the NASDAQ fell more than 6 points (-0.20%) to 3,113.57, and the S&P 500 fell -0.41% or nearly 6 points to 1,413.29.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) started as buy at Auriga and target raised to $715 at Morgan Stanley; Express Scripts Inc. (NASDAQ: ESRX) started as ‘overweight’ at JPMorgan; Goldcorp Inc. (NYSE: GG) started as ‘neutral’ at Citigroup; Netflix Inc. (NASDAQ: NFLX) cut to ‘equal weight’ at Barclays; and Schlumberger Ltd. (NYSE: SLB) raised to ‘buy’ at Sterne Agee.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Comverse Technology Inc. (NASDAQ: CMVT) is down -6.4% at $6.41; International Speedway Corp (NASDAQ: ISCA) is down -0.14% at $28.31; and Frisch’s Restaurants Inc. (AMEX: FRS) is down -0.04% at $27.29. After markets close today we get earnings from Team Inc. (NYSE: TISI) and Mitcham Industries Inc. (NASDAQ: MIND) markets. Before markets open tomorrow we’ll get earnings from Monsanto Co. (NYSE: MON) and Acuity Brands Inc. (NYSE: AYI).

Other standouts from today include the following stocks:

SmartHeat Inc. (NASDAQ: HEAT) is up 93% at $5.29. The Chinese maker of heat exchangers reported weak earnings, but promised to cut costs and do better. More coverage here.

First Solar Inc. (NASDAQ: FSLR) is down about -8% at $22.56 after posting a new 52-week low of $22.42 earlier today. The solar panel maker is simply dying a slow death. More coverage here.

Vringo Inc. (AMEX: VRNG) is up 5.8% at $3.28 after posting a new 52-week high of $4.05 earlier today. The ringtone company is merging with a patent protection firm and this is the second day in a row that shares have posted a new high. Here’s our story from yesterday.

A123 Systems Inc. (NASDAQ: AONE) is down more than -16% at $0.85, the second consecutive day for the shares to put up a new 52-week low. The battery maker is still getting walloped over a recall and its relationship with Fisker Automotive. Here’s our story from yesterday.

Merge Healthcare Inc. (NASDAQ: MRGE) is down more than -16% at $4.95. The healthcare kiosk provider has agreed to sell $2.75 million worth of kiosks to a company controlled by Merge’s chairman.

Conn’s Inc. (NASDAQ: CONN) is up about 14.5% at $18.88 after posting a new 52-week high of $19.75. The regional electronics retailer busted through earnings expectations.

Stay tuned for Wednesday. San Francisco Fed President John Williams is giving a speech. We have also noted the following events on the schedule (all times Eastern):

• 7:00 a.m. – Mortgage Bankers’ Association purchase applications
• 7:30 a.m. – Challenger Gray & Christmas layoff report
• 8:15 a.m. – ADP employment report
• 10:00 a.m. – Institute for Supply Management non-manufacturing index
• 10:30 a.m. – EIA weekly petroleum status report

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Paul Ausick

The company reported diluted EPS of $0.47, compared with $0.60 in the same period a year ago and a consensus analysts’ estimate of $0.53. Revenue totaled $11.35 billion in the quarter, essentially flat with a year ago, and lower than the estimate of $11.52. This is a pretty woeful showing for a retailer that competes directly with such smaller companies as RadioShack Corp. (NYSE: RSH), hhgregg, Inc. (NYSE: HGG), and Conns Inc. (NASDAQ: CONN).

Those much smaller companies aren’t Best Buy’s biggest problem. That comes from the massive players it really competes with: Wal-Mart Stores Inc. (NYSE: WMT), Amazon.com (NASDAQ: AMZN), among others. Best Buy said that sales of tablets, eReaders, and appliances rose but that sales of televisions, game controllers, digital media devices, and physical media (blank CDs and DVDs) were lower and offset other gains.

Perhaps worse, the company’s sales of mobile phones fell -5%, but it wasn’t Best Buy’s fault. The company said the decline was “due to industry softness driven by the lack of significant new phone launches during the quarter” when compared to same period a year ago. The facts notwithstanding, Best Buy said that it “believes that it continued to grow share in mobile phones in the second quarter.” Whatever.

In order to get investors to believe that line, the company touted its buyback of $358 million worth of its stock during the quarter, bringing its total buyback for the year to $863 million. Best Buy expects to buy back $1.5 billion of its stock in the 2012 fiscal year, which the company says adds $0.20-$0.25 of “annual EPS benefit.”

Then in a fit of honesty, Best Buy notes that if you back out the buyback benefit, the company’s EPS range is $3.30-$3.55, unchanged since its original FY2012 forecast in March. Analysts were expecting full-year EPS of $3.48.

From a high of around $32/share in mid-June, Best Buy shares have fallen by about -25%. That’s the primary reason the stock is getting a little pre-market boost this morning — the results weren’t terrible and there’s plenty of room for the stock to go up. Of course with the bar set very low, lukewarm results don’t look so bad.

Best Buy’s shares are up about 0.75%, at $25.15, at 40 minutes before the market opens this morning. That tiny bump is not likely to last.

Paul Ausick

Affymetrix Inc. (NASDAQ: AFFX) announced preliminary revenues of about$75.0 million vs. $90 million expected from First Call consensus.  Thecompany said global sales fell below expectations for the quarter asincreased competition for academic research funding and continuedsoftness in industrial spending.

BE Aerospace Inc. (NASDAQ: BEAV) is seeing its shares tradeup on a large order announcement from Airbus.  The maker of airplaneinteriors raised earnings guidance for this past quarter to $0.54 per share vs. $0.50estimates, but it lowered guidance in Q4 to $0.50 vs. $0.57estimates.  Due to issues in the airline sector and delays in aircraftorders and building delays, the company is also lowering 2009 and 2010expectations.

Coherent, Inc. (NASDAQ: COHR) expects revenue of $141 million to$142.5 million rather compared with its prior range of $154 million to $157 million.The photonics-based solutions provider company is also closing itsexcimer laser site in Munich, Germany and will consolidate thoseoperations in Goettingen, Germany.

Conn’s, Inc. (NASDAQ: CONN) said Hurricanes Ike and Gustav took outroughly 144 store days of performance for the quarter.  The companysaid it will update guidance in November, but for all practicalpurposes this is a light version of an earnings warning from theelectronics and home appliances retailer with operations throughoutLouisiana, Texas, and Oklahoma.

NBTY Inc. (NYSE: NTY) issued preliminary guidance of $602 million inrevenue, rather than the $614.7 million estimates.  The company saidorganic growth in US wholesale nutrition sales were up 12%, butEuropean sales were down 14%.  It also noted that same-store sales inthe US were down 10%.  No indications have been seen on this one yet.

Orbotech Ltd. (NASDAQ: ORBK) has issued lower guidance for thirdquarter revenues with a lower range of $90 to $95 million rather thanthe $104.5 million consensus as certain PCB customers have deferreddeliveries for its PCB systems.

Jon C. Ogg
October 13, 2008