AECOM Technology Corporation (NYSE: ACM) Cut to Underperform at BofA/ML.

Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) Started as Overweight at JPMorgan.

Biogen Idec Inc. (NASDAQ: BIIB) Reiterated Buy with $145 target at Argus.

BP plc (NYSE: BP) Cut to Underweight at Barclays.

Capital One Financial Corp. (NYSE: COF) Raised to Hold from Sell at Argus.

China Petroleum & Chemical (NYSE: SNP), or Sinopec, named Bear of the Day at Zacks.

Cognizant Technology Solutions (NASDAQ: CTSH) Raised to Outperform at R.W. Baird.

Electronic Arts Inc. (NASDAQ: EA) Raised to Buy at Needham.

El Paso Pipeline Partners, LP (NYSE: EPB) Started as Outperform with $38 target at Credit Suisse.

Embraer SA (NYSE: ERJ) Cut to Neutral at Citigroup.

Ford Motor Co. (NYSE: F) maintained Buy with $19 target at Argus.

Louisiana-Pacific Corporation (NYSE: LPX) Raised to Buy at Deutsche Bank.

Manulife Financial (NYSE: MFC) named Bull of the Day at Zacks.

Millennial Media Inc. (NYSE: MM) Started as Neutral at Goldman Sachs; Started as Equal-weight at Morgan Stanley; Started as Equal-weight at Barclays.

Rackspace Hosting, Inc. (NYSE: RAX) maintained Neutral with $57 target at Goldman Sachs.

Synacor Inc. (NASDAQ: SYNC) Cut to Underperform at BofA/ML.

Vertex Pharmaceuticals (NASDAQ: VRTX) Raised to Equal-weight at Morgan Stanley.

Wynn Resorts Ltd. (NASDAQ: WYNN) Maintained Outperform with $166 target at Credit Suisse.

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JON C. OGG

The unofficial closing bells put the DJIA up about 65 points to 13,029.19 (0.5%), the NASDAQ fell more than 7 points (-0.24%) to 3.000.45, and the S&P 500 rose 0.12% or nearly 2 points to 1,378.53.

There were several analyst upgrades and downgrades today, including Bank of America Corp. (NYSE: BAC) cut to ‘sell’ at Credit Agricole; Chesapeake Energy Corp. (NYSE: CHK) cut to ‘market perform’ at Wells Fargo; Boston Beer Co. Inc. (NYSE: SAM) started as ‘neutral’ at UBS; Embraer SA (NYSE: ERJ) cut to ‘neutral’ at Goldman Sachs; and Plains All American Pipeline L.P. (NYSE: PAA) started as ‘overweight’ at Barclays.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: General Electric Co. (NYSE: GE) is up 1.4% at $19.41 (more coverage here); McDonald’s Corp. (NYSE: MCD) is up 0.7% at $95.90 (more coverage here); Kimberly-Clark Corp. (NYSE: KMB) is up 1.6% at $76.50 after posting a new 52-week intraday high of $77.09 (more coverage here); Alaska Air Group Inc. (NYSE: ALK) is down -0.4% at $34.55; Altera Corp. (NASDAQ: ALTR) is down -8.1% at $35.38; Capital One Financial Corp. (NYSE: COF) is up 0.05% at $53.96; Hanesbrands Inc. (NYSE: HBI) is up 11.7% at $30.09 (more coverage here); Sandisk Corp. (NASDAQ: SNDK) is down -12.2% at $35.55 (more coverage here); KeyCorp (NYSE: KEY) is down -0.06% at $7.87; American Electric Power Co. Inc. (NYSE: AEP) is up 1.1% at $38.29; Canadian Pacific Railway Ltd. (NYSE: CP) is up 0.8% at $77.08 (more coverage here); Cell Therapeutics Inc. (NASDAQ: CTIC) is flat at $1.16; and Royal Caribbean Cruises Ltd. (NYSE: RCL) is down -7.8% at $26.61.

We have a preview of next week’s big earnings reports here.

Other standouts from today include the following stocks:

Patriot Coal Corp. (NYSE: PCX) is down -8% at $6.19. The coal miner announced another mine closure today, along with a lowered production estimate. Patriot is scheduled to report earnings after markets close today.

Riverbed Technology Inc. (NASDAQ: RVBD) is down -28.6% at $19.89. The network equipment maker missed earnings expectations. More coverage here.

Rambus Inc. (NASDAQ: RMBS) is down -12% at $4.92. The dhip maker missed EPS estimates today and offered a lower-than-expected forecast.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

• 11:30 a.m. – 3- and 6- month bill auction

Have a great weekend.

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Paul Ausick

Altera Corporation (NASDAQ: ALTR) Cut to Neutral at Citigroup.

Bank of America Corporation (NYSE: BAC) Cut to Sell from Underperform at Credit Agricole.

Boston Beer Co. Inc. (NYSE: SAM) Started as Neutral at UBS.

Chesapeake Energy Corporation (NYSE: CHK) Cut to Market Perform at Wells Fargo; called “a stock to avoid on more ‘off balance sheet’ debt and ‘Founders Well’ issues” by Argus.

Cirrus Logic Inc. (NASDAQ: CRUS) Started as Buy at Stern Agee.

Embraer SA (NYSE: ERJ) Cut to Neutral at Goldman Sachs.

EZCORP, Inc. (NASDAQ: EZPW) Cut to Underperform at Stern Agee.

Gran Tierra Energy, Inc. (AMEX: GTE) Started as Outperform at Credit Suisse.

Ixia (NASDAQ: XXIA) Raised to Buy at Wunderlich.

Lumber Liquidators Holdings, Inc. (NYSE: LL) Cut to Neutral at Goldman Sachs.

Myriad Genetics Inc. (NASDAQ: MYGN) Raised to Outperform at Cowen.

Nexen Inc. (NYSE: NXY) Raised to Outperform at Credit Suisse.

ONEOK Inc. (NYSE: OKE) Raised to Buy at UBS.

Plains All American Pipeline, L.P. (NYSE: PAA) Started as Overweight at Barclays.

Riverbed Technology, Inc. (NASDAQ: RVBD) Cut to Neutral at JPMorgan; Cut to Perform at Oppenheimer; downgrades and price target and estimates have been cut at multiple boutique firms.

SanDisk Corporation (NASDAQ: SNDK) Cut to Hold at Deutsche Bank; downgraded or estimate and price targets cut at several other boutique firms.

Syntroleum Corporation (NASDAQ: SYNM) Started as Market Outperform with $1.80 price target at JMP Securities.

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JON C. OGG

24/7 Wall St. has focused on the ratings with a “positive” outlook from Standard & Poor’s, Moody’s and/or Fitch with a bias towards nations that investors can easily invest in via ADR shares, closed-end funds, and exchange-traded funds (ETFs). The featured nations that may be upgraded in 2012 are Brazil, Chile, China (with Hong Kong), Indonesia, Peru, Russia, South Korea, and Turkey.

Read: Nations Set For Credit Ratings Beyond Upgrades, Beyond The Euro Crisis

There is another slew of countries for which S&P has a “positive” outlook stance: Azerbaijan, Bolivia, Ecuador, Honduras, Latvia, Panama, and Sri Lanka. Unfortunately, these nations are almost impossible for Americans to invest in due to their size, the small number of public companies, and a lack of ETFs or mutual funds covering them.

The 24/7 Wall St. list is presented alphabetically and features relevant ratings. Also included are economic details and important developments to consider. Lastly, we have provided a list of the key closed-end funds, ETFs, and ADRs specific to each nation. Population estimates and purchasing power parity GDP for 2010 were taken from the CIA World Factbook.

In its announcement Delta said that it would replace Boeing 757s and 767s, as well as Airbus A320s with the new 737-900ER. Delta lists a total of 183 of the 757 models and 95 of the 767s in its fleet. There are also 126 Airbus 319s and 320s in Delta’s fleet.

Also Read: Dark Clouds Hang Over Biggest Apparel Retailers

The new 737s use an updated version of an engine made by CFM International, a 50-50 joint venture between General Electric Co. (NYSE: GE) and France’s Snecma, part of Safran Group. Boeing ordered 200 of the engines (2 for each plane) at a list price totaling $2.2 billion.

Both Embraer and Bombardier are left hanging by Delta’s decision to purchase the Boeing jets. Embraer, especially, has been in talks with Delta to add up to 100 smaller, narrow-body jets to its fleet. A decision from Delta on the order is not expected now until sometime next year.

Delta will begin taking delivery of the new planes in the second half of 2013 and deliveries will continue into 2018. The list price for each plane is about $86 million, but Delta will receive a discount to that price.
Short-Selling Selling Gyrate
Still unsolved is whether the 737 will get a new, more efficient engine in an upgrade that would allow the plane to replace the discontinued Boeing 757 or whether Boeing will choose to design a replacement from the wheels up. Airbus has opted to put a new engine on its A320 and dubbed the new aircraft the A320neo. Delta alone owns and operates more than 300 757s, so there is still some money to be made here if the airlines decides to replace the whole 757 fleet.

Also Read: Is Gold Market Too Hot For Gold Fields To Handle

Delta shares are down about -5%, at $6.88, in a 52-week range of $6.41-$14.54. Boeing’s shares are also down, about -1%, at $61.18, in a 52-week range of $56.01-$80.65. Embraer’s shares are down about -2%, at $23.13, in a 52-week range of $20.98-$35.41. The lightly owned and lightly traded Guggenheim Airline ETF (NYSE: FAA) is also down about -1.3% just before noon at $26.81, in a 52-week range of $26.19-$43.64.

Paul Ausick

American International Group, Inc. (NYSE: AIG) Started as Buy at Deutsche Bank; Started as Equal-Weight at Barclays.
BJ’s Wholesale Club Inc. (NYSE: BJ) Cut to Equal-Weight at Barclays.
BorgWarner Inc. (NYSE: BWA) Reiterated Outperform at Wells Fargo.
CIENA Corporation (NASDAQ: CIEN) Maintained Outperform but cut target to $37 at Credit Suisse; Reiterated Buy with $30 target at Argus.
Elan Corp. plc (NYSE: ELN) Raised to Buy at UBS.
Embraer S.A. (NYSE: ERJ) Reiterated Strong Buy as Value and as Bull of the Day at Zacks.
Ferrellgas Partners (NYSE: FGP) maintained Underperform as Bear of the Day at Zacks.
3M Co. (NYSE: MMM) Started as Outperform at William Blair.
Macy’s, Inc. (NYSE: M) Raised to Overweight at Barclays.
McDonald’s Corporation (NYSE: MCD) Reiterated Outperform and raised estimates at Credit Suisse.
The Medicines Co. (NASDAQ: MDCO) Raised to Buy with $25 target at Argus.
Nasdaq OMX Group Inc. (NASDAQ: NDAQ) Raised to Buy at Stifel Nicolaus.
Research in Motion Ltd. (NASDAQ: RIMM) Cut to Hold at Citi.
Sealed Air Corporation (NYSE: SEE) Raised to Buy at Jefferies.
Texas Instruments Inc. (NYSE: TXN) Reiterated Buy but cut target to $41 at Gleacher & Co.
UnitedHealth Group, Inc. (NYSE: UNH) Reiterated Outperform and raised target to $69 at Credit Suisse.
United Technologies Corporation (NYSE: UTX) Started as Outperform at William Blair.

Apple Inc. (NASDAQ: AAPL) has reportedly been downgraded this morning by a boutique firm called First Global to a rating of “Market Perform.”

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JON C. OGG

China is expected to contribute nearly 11% of international growth and 14% of domestic growth in 2014. Whether those Chinese passengers fly on planes built in the US, Europe, China, or elsewhere will define the winners and losers among air carriers in the next few years. Aircraft makers Boeing Co. (NYSE: BA) and EADS (OTC: EADSY), maker of the Airbus family of planes, will be facing competition from a new Chinese competitor, Commercial Aircraft Corp. of China, or Comac, as well as Canada’s Bombardier Inc. (OTC: BDRBF) and possibly Brazil’s Empresa Brasileira de Aeronautica SA (NYSE: ERJ), known as Embraer.

US domestic carriers will haul 671 million passengers by 2014, which represents some growth of less than 5%. US carriers’ international traffic will reach 215 million passengers in 2014. Both are still the largest total numbers, but growth rates are not in the top five.

As China’s domestic passenger traffic increases, the country’s domestic carriers will also be growing. Air China Ltd. (OTC: AIRYY), China Southern Airlines Co. (NYSE: ZNH) and China Eastern Airlines Corp. (NYSE: CEA) are the country’s three largest airlines and are among the Chinese carriers responsible for taking about 22% of Airbus’s and 15% of Boeing’s 2010 production of A320s and 737s, respectively.

Comac late last year announced orders for 100 of its C919 passenger planes, currently scheduled for first customer deliveries in 2016. The company also said that demand for passenger planes in China would reach 4,265 new planes by 2030 and that Comac plans to sell the country’s airlines more than 2,000 of those planes.

The Comac C919 will use engines provided by a joint venture between General Electric Co. (NYSE: GE) and Safran Group, a French conglomerate. GE has also set up a joint venture with a Chinese company to manufacture avionics systems for the new plane. A list of suppliers for the C919 is available at airframer.com.

The IATA estimates that half of global airline profits, about $4.6 billion, will be made in Asia in 2010. The association also notes that the five largest airlines by market cap in 2010 are all based in Asia.

In December, the IATA characterized airline profits as “pathetic,” noting that in 2010 net margins were just 2.7%. Over the past 40 years, IATA says, airline margins come to a truly pathetic 0.1%.

The overall bleak outlook for carriers is particularly bleak for those airlines that don’t have a foothold in Asia. Established aircraft makers could be okay until Comac gets its C919 into the air, and even if that doesn’t happen by 2016, Comac will eventually put pressure on Boeing and Airbus.

GE and other component providers could do best in the Asian aircraft market. Most have established joint ventures with Chinese companies and can expect to see growth as China’s aircraft makers grow.

Paul Ausick

AllianceBernstein Holding L.P. (NYSE: AB) Cut to Neutral and $26 target at BofA/ML.
Applied Materials, Inc. (NASDAQ: AMAT) Raised target to $15 at BofA/ML.
ARM Holdings plc (NASDAQ: ARMH) Reiterated Neutral on overvaluations at BNP Paribas.
AT&T Inc. (NYSE: T) Reiterated Buy at Argus.
EMBRAER (NYSE: ERJ) Raised to Conviction Buy List at Goldman Sachs.
Hasbro Inc. (NASDAQ: HAS) Started as Buy at Jefferies.
IAC/InterActiveCorp. (NASDAQ: IACI) Cut to Neutral at Goldman Sachs.
Intel Corporation (NASDAQ: INTC) Reiterated Outperform and $28 target but raised estimates at Credit Suisse; Reiterated Buy at Argus; Maintained Buy with $27 target at Gleacher & Co.; Maintained Buy at Gabelli & Co.
KLA-Tencor Corporation (NASDAQ: KLAC) Raised target to $48 at BofA/ML.
Mattel Inc. (NASDAQ: MAT) Started as Buy at Jefferies.
Merck & Co., Inc. (NYSE: MRK) Maintained Buy on weakness at Argus.
Novellus Systems, Inc. (NASDAQ: NVLS) Raised target to $38 at BofA/ML.
Potash Corp. of Saskatchewan (NYSE: POT) Reiterated Outperform but Raised target to $189 at Credit Suisse.
Safeway Inc. (NYSE: SWY) Cut to Sell at S&P Equity Research (late-Thursday call).
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) Cut to Market Perform at BMO.
Varian Semiconductor Equipment Associates Inc. (NASDAQ: VSEA) Raised to Neutral with $45 target at BofA/ML.

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JON C. OGG

The old rules did not permit an airline based in the home country of a manufacturer to qualify for export credits when buying a plane from a manufacturer from outside the country. The effect falls hardest on smaller carriers, like Ryanair Holdings plc (NASDAQ: RYAAY), which have used the export credits to reduce the financing costs of buying new aircraft.

Large carriers like Delta Air Lines Inc. (NYSE: DAL) and United Continental Holdings (NYSE: UAL) did not qualify for the credits, and have wanted the rule change for some time.

Under the new rules, export credit providers, like the US Export-Import Bank, will charge fees to those airlines that qualify for the credits that will bring the financing charges more in line with commercial rates. The fees will not rise more than 10% from quarter to quarter. Existing export financing rules will be allowed through the end of 2012.

Ryanair and other members of a group that benefited from the old rules wanted extended financing through the end of 2013. The new rules could effectively double the financing charges for these airlines.

Boeing and Airbus favored the old rules, fearing that the higher financing costs will reduce demand for their passenger planes, which would lead to production cuts. Some critics of the old rules pointed out that the export credits artificially boosted demand for new aircraft during the recent recession, when commercial credit was hard to get.

It remains to be seen what the impact on Boeing and Airbus orders will be, but a good guess would be “not much.” The large airlines should benefit from a more market-driven cost of financing. They were concerned that smaller airlines able to receive the export credits were poaching their routes. Makers of smaller jets should feel no impact, except for the certainty that comes from having an agreement. The major impact will be on carriers like Ryanair, where higher financing costs could stifle growth.

Paul Ausick

Abercrombie & Fitch Co. (NYSE: ANF) Added to Goldman Sachs Conviction Buy List.
Air Products & Chemicals Inc. (NYSE: APD) Reiterated Buy and raised target to $105 at Jefferies.
Amazon.com Inc. (NASDAQ: AMZN) Reiterated Neutral but Raised Target to $165 at Credit Suisse.
Arch Capital Group (NASDAQ: ACGL) Cut to Underweight at JPMorgan.
Buffalo Wild Wings Inc. (NASDAQ: BWLD) Raised to Strong Buy at Raymond James.
Cisco Systems Inc. (NASDAQ: CSCO) Raised to Outperform at Oppenheimer.
Corning Inc. (NYSE: GLW) Reiterated Buy with $24 target at BofA/ML.
Elan Corp. plc (NYSE: ELN) Raised to Buy at UBS.
EMBRAER (NYSE: ERJ) Started as Buy at Goldman Sachs.
Hess Corporation (NYSE: HES) Raised to Market Weight and $80 target at Credit Suisse.
Jacobs Engineering Group Inc. (NYSE: JEC) Raised to Buy at Canaccord.
Leap Wireless International Inc. (NASDAQ: LEAP) Cut to Hold at Auriga.
Motorola Inc. (NYSE: MOT) Reiterated Buy at BofA/ML.
OGE Energy Corporation (NYSE: OGE) Started as Outperform at Wells Fargo.
Royal Bank of Canada (NYSE: RY) Cut to Market Perform at KBW.
Sandridge Energy, Inc. (NYSE: SD) Raised to Buy at Stifel Nicolaus.
Wimm-Bill-Dan (NYSE: WBD) Raised to Neutral at Goldman Sachs.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG