The OECD expresses concerns that Europe could slip into a deep recession. (Reuters)

The EU debt crisis pushes global shares lower. (Reuters)

Morgan Stanley (NYSE: MS) cuts its Facebook (NASDAQ: FB) ratings just before the IPO. (Reuters)

Sony (NYSE: SNE) and Samsung try to get retailers to discount their TVs less. (WSJ)

AOL’s (NYSE: AOL) Patch local website project continues to draw the ire of investors. (WSJ)

The Congressional Budget Office says that gridlock in DC could cause a recession in 2013. (WSJ)

SAP (NYSE: SAP) will buy Ariba (NASDAQ: ARBA) for $4.3 billion. (WSJ)

South Korea will continue to import oil from Iran despite U.S. and EU sanctions over the Iran weapon’s program. (WSJ)

The International Monetary Fund says the UK needs to create stimulus programs. (WSJ)

Dell’s (NASDAQ: DELL) earnings are hurt as it attempts to move beyond PCs as its major line of sales. (WSJ)

Ford’s (NYSE: F) credit rating is upgraded from “junk” status. (WSJ)

CalSTRS, the second-largest U.S. public pension fund, will vote against Walmart (NYSE: WMT) directors in the wake of a bribery scandal. (FT)

EU banks would be damaged if Greece leaves the eurozone, as they have almost $1.2 trillion in debt from Spain, Portugal, Italy and Ireland. (FT)

Mazda and Fiat to build a sports car. (Bloomberg)

Douglas A. McIntyre

Moody’s went on to note that Ford’s Corporate Family and Probability of Default Ratings, as well as its Speculative Grade Liquidity rating, are withdrawn.   Where this rating gets interesting is that Ford’s secured credit facility was lowered to Baa3 from Baa2 in anticipation of the imminent fall away of the bank agreement’s security interest.  Moody’s said, “This fall away, which would be consistent with the facility’s terms, would result in any outstandings being pari passu with Ford’s other senior unsecured debt.”

Today’s upgrade is based on Ford’s position in North America, as well as its robust liquidity position and the expectation that the company will continue to embrace sound operating and financial disciplines.

Moody’s even made some inference that Ford will weather the storm: “We believe that these strengths will enable Ford to maintain an investment grade profile in the face of the sector’s ongoing cyclicality and weakness in the European market.”

Ford closed down 0.1% at $10.19 but the stock was up 1.2% at $10.33 in the after-hours session.

JON C. OGG

The fall-off of Facebook shares can be traced to a number of things — whether or not they are legitimate. The first is that a some traders believe Morgan Stanley (NYSE: MS) and Facebook decided, at the last minute, to flood the market with stock to raise more money for the social network. There is a rumor that Morgan Stanley cut Facebook revenue forecasts right before the IPO. Major trading issues in the Nasdaq (NASDAQ: NDAQ) system, which delayed orders and rattled investors, might have been another cause. Two days before the IPO, General Motors (NYSE: GM) pulled its ads from Facebook. That seemed to be a bit of revenge, although no one can figure out why. And, perhaps most damaging, analysts attacked Facebook’s inability to make money on its mobile presence, which raised the question of its long-term viability as a growth company.

Zynga faced none of these problems. Its only trouble was being tethered to Facebook because it gets so much revenue from the social network. Facebook’s mobile strategy eventually could effect Zynga, but the balance of the long list of reasons Facebook shares declined really do not apply to the game firm. Zynga‘s shares may have fallen consistently since mid-April, but Wall St. had begun to warm to the company after its recent, better-than-expected earnings. Citigroup (NYSE: C) started coverage of the game firm with a “buy” and a $12 price target.

The Zynga share drop is no different from the reaction traders have when they sell Ford (NYSE: F) because of poor GM earnings, or drop Yum! Brands (NYSE: YUM) when McDonald’s (NYSE: MCD) announces poor earnings. As often as not, two companies in a related sector have very different financial results, for good reasons most of the time. GM has strong sales in China; Ford does not. Yum!’s operations in the U.S. do poorly; America is a stronghold for McDonald’s. Pairings like Walmart (NYSE: WMT) and Target (NYSE: TGT) or Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD) are often not pairs at all. If they really were parallel in almost every way, management skills would make no difference to results.

Zynga and Facebook may trade as a pair, but they are not one.

Douglas A. McIntyre

Read: America’s Hottest Brands

Generally, most brand analysis done by the business press is biased toward dollar valuations and contributions to corporate earnings. Obviously, financial success is one factor that demonstrates how well a brand is regarded by consumers. But brand valuation is a financial view, and not one that relies entirely on consumer perception. Based on analysis performed by brand expert company CoreBrand, 24/7 Wall St. wanted to see brands through the eyes of the consumer. For this reason, Corebrand examined brands from the standpoint of favorability and familiarity.

One of the most notable results of the analysis is the high ranking of brands not normally present on most highly valued brands list. When they are evaluated through the consumers’ eyes, however, brands that belong to companies that are struggling financially can still be high on a consumer-perception weighted list. These brands, naturally, are used by a large number of people. More than that, the consumer interaction with the product and services associated with the brand is positive.

Dell (NASDAQ: DELL) and Avon (NYSE: AVP) would not appear high on most brand valuations lists. The two have struggled too much as companies and in the stock market to be high on any business-weighted brand list. They are, however, at the top of the list of brands with high favorability and familiarity. The Avon lady and Dell laptops still carry weight with consumers.

Financial success does not exclude consumer success; they usually go together. Google (NASDAQ: GOOG), Apple (NASDAQ: AAPL), Ford (NYSE: F) and Microsoft (NASDAQ: MSFT) do extremely well according to CoreBrand’s ranking. Each of these corporations has posted large profits over the past few years. Their shareholders have also done well. The products and services from the companies have boosted sales fairly consistently.

24/7 Wall St. examined the “hottest” brands list from independent brand valuation firm CoreBrand. CoreBrand looked at the largest brands where both favorability and familiarity increased, measured by overall reputation, perception of management and investment potential. 24/7 Wall St. then ranked the six brands with the greatest increases in favorability from the fourth quarter of 2010 to the fourth quarter of 2011.

These are America’s hottest brands.

Tesla, which missed both top- and bottom-line estimates last night soothed shareholders with word that the company’s new sedan, the Model S, will ship in June, a month ahead of schedule. The company claims that more than 10,000 customers have ordered the new $70,000 sedan. Tesla has sold about 2,250 of the 2,500 Roadsters it has built since 2008. By way of comparison, GM sold nearly 2,300 Chevy Volts in the month of March alone.

Despite the tiny sales numbers and a larger-than-expected EPS loss of -$0.76 last quarter, Tesla shares are rising on the news about the Model S and a small bump to revenue guidance for the rest of the year. Revenue totaled $30.2 million, below the consensus estimate of $32 million and down from $49 million in the same period last year.

For 2012 the company guided revenue to $560-$600 million, moving the low end up $10 million from a previous estimate. That’s a big quarterly hike based on first quarter numbers.

Investors appear to have great faith in Tesla’s ability to fill a high-end niche for EVs because the shares are up 11.6% today, at $33.55 in a 52-week range of $21.50-$39.95.

Paul Ausick

Toyota said profits in the first quarter of 2012 were up four times what they were last year to $1.5 billion. Profits for the entire year are expected to be $9.5 billion. The figures stand out, in part, because the recession in Europe and a slowing of automobile sales in China have undermined profit growth at several of the world’s largest car manufacturers. Recent earnings reports by General Motors (NYSE: GM) and Ford (NYSE: F) confirmed the extent of those problems.

The last survey of global brand value by BrandZ, one of the leading analysts of the subject, puts Toyota ahead of all other auto manufacturers in the world. At $24.2 billion, it ranked ahead of companies such as BMW, Mercedes and Honda (NYSE: HMC). A similar study by Interbrand also put Toyota at the head of all global car companies.

Toyota also has maintained its reputation for quality in the United States, ranking at or near the top of quality surveys conducted by research firms such JD Power. Toyota’s market share in the U.S. rose to 15% in April from 13.8% in the same month a year ago. And consumers had a wide set of alternatives among competitors because of a rise in the production of new models from formerly bankrupt GM and Chrysler, and an increased demand for recently successful Volkswagen and Hyundai.

Part of the reason for Toyota’s sales improvement is pent-up demand for some of its products, particularly the Prius hybrid, the best-selling car in its class worldwide. But, if Toyota had lost its reputation, that demand and the market for many of its other vehicles would have disappeared.

Brand value is more than a number of a piece of paper put out by a research firm.

Douglas A. McIntyre

The unofficial closing bells put the DJIA down more than 76 points to 12,932.01 (-0.59%), the NASDAQ fell more than 11 points (-0.39%) to 2,946.27, and the S&P 500 fell -0.43% or nearly 6 points to 1,363.71.

There were several analyst upgrades and downgrades today, including Ford Motor Co. (NYSE: F) maintained as ‘buy’ with a target price of $19 at Argus; Wynn Resorts Ltd. (NASDAQ: WYNN) maintained ‘outperform’ with a target price of $166 at Credit Suisse; Capital One Financial Corp. (NYSE: COF) raised to ‘hold’ at Argus; BP plc (NYSE: BP) cut to ‘underweight’ at Barclays; and Synacor Inc. (NASDAQ: SYNC) cut to ‘underperform’ at BofA/ML.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Charter Communications Inc. (NASDAQ: CHTR) is down up 5.5% at $65.24 after posting a new 52-week high of $66.18 earlier today (more coverage here); Hecla Mining Co. (NYSE: HL) is up 4.1% at $4.04 (more coverage here); OfficeMax Inc. (NYSE: OMX) is up 10.5% at $4.85; Tenet Healthcare Corp. (NYSE: THC) is up 1.4% at $5.11; The Wendy’s Co. (NASDAQ: WEN) is down -4.3% at $4.66 (more coverage here); Rosetta Stone Inc. (NYSE: RST) is up 18.4% at $12.64; and Pioneer Drilling Co. (NYSE: PDC) is up 5.5% at $8.03.

On Wednesday we are scheduled to get earnings from AOL Inc. (NYSE: AOL), Agrium Inc. (NYSE: AGU), CenturyLink Inc. (NYSE: CTL), Dollar Thrifty Automotive Group Inc. (NYSE: DTG), Macy’s Inc. (NYSE: M), Melco Crown Entertainment Ltd. (NASDAQ: MPEL), News Corp. (NASDAQ: NWS), Cisco Systems Inc. (NASDAQ: CSCO), Tesla Motors Inc. (NASDAQ: TSLA), Toyota Motor Corp. (NYSE: TM), and priceline.com Inc. (NASDAQ: PCLN).

Other standouts from today include the following stocks:

Fossil Inc. (NASDAQ: FOSL) is down -36.8% at $79.50. The fashion accessories company revealed a weak forecast today. More coverage here.

Dendreon Corp. (NASDAQ: DNDN) is down -24.6% at $8.81. The drug maker’s earnings were not as strong as expected. More coverage here.

Avalon Rare Metals Inc. (AMEX: AVL) is down -24% at $1.67 after posting a new 52-week low of $1.58 earlier today. The rare earths miner is delaying a feasibility study. More coverage here.

Stay tuned for Wednesday. Cleveland Fed President Sandra Pianalto and Philadelphia Fed President Charles Plosser are giving speeches. We have noted the following events on the schedule (all times Eastern):

• 10:00 a.m. – Wholesale trade report
• 10:30 a.m. – EIA weekly petroleum status report
• 1:00 p.m. – 10-year note auction

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Paul Ausick

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

James H. Hance, Jr., Sprint’s chairman, is as much to blame for the company’s problems as Hesse. He has been on the board since 2005. That means he helped pick Hesse. It also means he has been part of all board discussions about how Sprint might turnaround its loss of market share to AT&T (NYSE: T) and Verizon Wireless. Hance was also a critical player in the board’s decision to block an $8 billion deal to merge with MetroPCS (NYSE: PCS), which Hesse has championed.

Hance is poorly qualified to lead the Sprint board. He is what many corporate governance experts call a “serial board member.” He sits on the boards of directors of Cousins Properties (NYSE: CUZ), Morgan Stanley (NYSE: MS), Ford Motor (NYSE: F) and Duke Energy (NYSE: DUK). Shares in Duke are up 15% over the last year, but those in Morgan Stanley are off 35% and Ford shares are down 30%. Shares in Cousins are off 10% during that period. And Sprint’s shares are 55% lower over the same period, as well as off by nearly 90% since Hance joined the board.

Hance ought to have his hands full with Sprint. The balance of his board work can only be a distraction.

Sprint has not been a viable standalone company for many years. The board should have played the most significant part in remedying that. Sprint has needed a marriage or sale for some time. Hance clearly has not provided leadership as Sprint tries to get a reasonable return to shareholders via the few means available.

Hesse is in the headlines every time Sprint’s fortunes falter. Hance should be there, too.

Douglas A. McIntyre

GM said that its earnings fell to $1 billion last quarter from $3.2 billion in the quarter a year ago. Revenue rose modestly to $37.8 billion to $36.2 billion.

GM Europe (GME) reported an EBIT-adjusted loss of $0.3 billion compared with break-even results in the first quarter of 2011.

The firm did a bit better in the US. GM North America (GMNA) reported EBIT-adjusted of $1.7 billion, including restructuring costs of $0.1 billion, an improvement of $0.4 billion compared with the first quarter of 2011.

GM has opened the door to one option in Europe. It has formed a joint venture with PSA Peugeot Citroen under which GM bought a 7% stake in the EU company, and agreed to combined factory operations.

Douglas A. McIntyre