Avon Products Inc. (NYSE: AVP) Cut to Sell at UBS.

Bank of America Corporation (NYSE: BAC) Cut to Market Underperform at JMP Securities.

Best Buy Co. (NYSE: BBY) Cut to Hold at BB&T.

Boeing Co. (NYSE: BA) Raised to Buy at Argus.

Donaldson Company. Inc. (NYSE: DCI) Reiterated Outperform and raised estimates at Credit Suisse.

Facebook, Inc. (NASDAQ: FB) Started as Positive at Susquehanna.

Goldman Sachs Group Inc. (NYSE: GS) Cut to Market Underperform at JMP Securities.

Herbalife Ltd. (NYSE: HLF) Reiterated Buy at Argus.

Kirkland’s, Inc. (NASDAQ: KIRK) named Bear of the Day at Zacks.

Morgan Stanley (NYSE: MS) Cut to Market Underperform at JMP Securities.

Myriad Genetics (NASDAQ: MYGN) Raised to Outperform at Leerink Swann.

Nuance Communications (NASDAQ: NUAN) Started as Neutral with $25 target at Goldman Sachs.

Petrobras (NYSE: PBR) Raised to Buy at Societe Generale.

Robert Half International (NYSE: RHI) named as Bull of the Day at Zacks.

Ross Stores, Inc. (NASDAQ: ROST) Cut to Hold at Canaccord Genuity.

Safeway (NYSE: SWY) Raised to Buy at Citigroup.

Splunk, Inc. (NASDAQ: SPLK) Started as Overweight at Barclays.

TJX Companies (NYSE: TJX) Cut to Hold at Canaccord Genuity.

Zebra Technologies (NASDAQ: ZBRA) Cut to Neutral at JPMorgan.

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JON C. OGG

The unofficial closing bells put the DJIA down nearly 97 points to 12,835.44 (-0.75%), the NASDAQ fell more than11 points (-0.39%) to 2,934.71, and the S&P 500 fell 0.67% or more than 9 points to 1,354.61.

There were several analyst upgrades and downgrades today, including American International Group Inc. (NYSE: AIG) raised to ‘buy’ at Goldman Sachs; ConocoPhillips (NYSE: COP) resumed as ‘neutral’ at Credit Suisse; The Hershey Co. (NYSE: HSY) raised to ‘buy’ at Argus; Phillips 66 (NYSE: PSX) started as ‘outperform’ at Credit Suisse; and Demand Media Inc. (NYSE: DMD) raised to ‘buy’ at Citigroup.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: AOL Inc. (NYSE: AOL) is up 3.8% at $26.55; Agrium Inc. (NYSE: AGU) is down -2.2% at $82.69 (more coverage here); Dollar Thrifty Automotive Group Inc. (NYSE: DTG) is up 0.2% at $80.68; Macy’s Inc. (NYSE: M) is down -3.6% at $38.07 (more coverage here); Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is down -0.2% at $13.96; Toyota Motor Corp. (NYSE: TM) is up 3.1% at $80.58; and SodaStream International Ltd. (NASDAQ: SODA) is up 28% at $37.35.

On Wednesday we are scheduled to get earnings from AMC Networks Inc. (NASDAQ: AMCX), ArcelorMittal (NYSE: MT), Express Scripts Holding Co. (NASDAQ: ESRX), Molycorp Inc. (NYSE: MCP); Nordstrom Inc. (NYSE: JWN); Nuance Communications Inc. (NASDAQ: NUAN); Harvest Natural Resources Inc. (NYSE: HNR); Kohl’s Corp. (NYSE: KSS); and Pacific Ethanol Inc. (NASDAQ: PEIX).

Other standouts from today include the following stocks:

Cost Plus Inc. (NASDAQ: CPWM) is up 21.9% at $21.92 after posting a new 52-week high earlier today. The company is being acquired by Bed Bath & Beyond Inc. (NASDAQ: BBBY) for $495 million.

Amyris Inc. (NASDAQ: AMRS) is down -21.7% at $1.98 after posting a new 52-week low of $1.89 earlier today. The biofuels and biotech company posted much higher-than-expected shortfalls in both EPS and revenues.

Arch Coal Inc. (NYSE: ACI) is up 10.1% at $8.37. The coal miner had no news today, but investors are piling in at a very low price. Volume today topped 25 million shares, more than double Arch’s daily average.

Stay tuned for Thursday. Fed Chairman Ben Bernanke and Minneapolis Fed President Naryana Kocherlakota are giving speeches. We have noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – International trade report
• 8:30 a.m. – New claims for unemployment benefits
• 10:30 a.m. – EIA weekly natural gas storage report
• 1:00 p.m. – 30-year note auction
• 2:00 p.m. – Treasury budget
• 4:30 p.m. – Federal Reserve balance sheet and money supply

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Paul Ausick

The top earnings we are looking at are as follows: Dendreon Corporation (NASDAQ: DNDN); Electronic Arts Inc. (NASDAQ: EA); Rackspace Hosting Inc. (NYSE: RAX); The Walt Disney Co. (NYSE: DIS); Cisco Systems, Inc. (NASDAQ: CSCO); Macy’s Inc. (NYSE: M); Priceline.com Incorporated (NASDAQ: PCLN); and Nuance Communications Inc. (NASDAQ: NUAN).

We have taken estimates and price targets from Thomson Reuters consensus estimates and have added in color on each.

The shape of the biotech sector is likely to hinge based on the earnings of Dendreon Corporation (NASDAQ: DNDN).  VIVUS Inc. (NASDAQ: VVUS) also reports on Monday but Dendreon has many things that biotech investors want: a product on the market, a controversial story, a stock way off its post-approval highs, a history of soft sales with the promise of better times ahead, and a rather large short interest.  This is a sales story rather than an earnings story: Thomson Reuters expects sales of $81.2 million for the last quarter, $90.1 million for the quarter ahead (the quarter we are in now, and $378.3 million in 2012.  These sales are all from Provenge for late-stage prostate cancer.  This is the one that will set the tone for biotech during the week and this stock is back down closer to $11 after having popped to $15 from $8 earlier this year.

Electronic Arts Inc. (NASDAQ: EA) is no longer the leading game company for investors, but it is one of the largest game makers in the world.  Its earnings are also ahead of the larger video game giant Activision Blizzard Inc. (NASDAQ: ATVI) which reports later in the week.  This is also considered one of the throw-away quarters of the video game sector.  Thomson Reuters expects E.A. to report $0.17 EPS on $959.56 million in sales, with next quarter expected to be -$0.32 EPS on $580.9 million in sales.  This will mark the year-end report and the growth in the year ahead is expected to go to $1.13 EPS from $0.84 EPS expected and sales are expected to grow to $4.5 billion from $4.17 billion expected.

Akamai Technologies, Inc. (NASDAQ: AKAM) is down 5.5% this morning at $36.60 on over 100,000 shares.  The media and content accelerator beat earnings estimates even though earnings were down 15%.  Despite a revenue gain, the company announced that its CEO would step down from the company by the end of 2013.

Cirrus Logic, Inc. (NASDAQ: CRUS) rose 11% ahead of the close to $23.09 today, but shares are up another 8% or so on over 500,000 shares since the market closed after reporting revenues and earnings ahead of estimates.  This will mark a 52-week high.

Citrix Systems, Inc. (NASDAQ: CTXS) beat earnings and raised guidance; the stock was up 6.5% last night and shares are now up 8.3% at $23.09 on almost 50,000 shares.

Crocs, Inc. (NASDAQ: CROX) had a 32% earnings gain is being trumped with an outlook that is not as robust as investors were hoping.  Shares were down over 8% last night but the stock is down only about 4.5% at $21.04 this morning.

Electronic Arts Inc. (NASDAQ: EA) is trading up almost 8% at $16.20 and we have seen almost 500,000 shares trade hands.  There is a rumor of a buyout or of some sort of deal involving the company but details are not that clear as of yet.

Equinix, Inc. (NASDAQ: EQIX) won on an earnings gain yet again and shares were up 7.6% last night; now shares are up 8.5% at $162.21 and that is a new 52-week high above $161.56 if it holds.

Heartware International, Inc. (NASDAQ: HTWR) is up over 15% at $80.10 on more than 100,000 shares; the company received a favorable FDA Advisory Committee vote for its Ventricular Assist System to bridge  transplant for patients with end-stage heart failure.

H&R Block, Inc. (NYSE: HRB) claimed a record year in total tax clients the company is shedding some 350 jobs and is shutting some 250 stores in order to save money.  Shares were down over 10% last night and are now down 13.9% at $14.41 pre-market.

Logitech International SA (NASDAQ: LOGI) reported earnings, but this is up because of a change made in its executive management in what investors will hope is a solid turnaround.  Shares are up over 13% at $8.85 in thin pre-market trading.

Nuance Communications, Inc. (NASDAQ: NUAN) issued guidance that appears to be above expectations and shares are continuing their surge.  This is up almost 13% on almost 200,000 shares pre-market.

Skechers U.S.A., Inc. (NYSE: SKX) is up 16% at $17.34 in thin pre-market trading despite a huge drop in sales and despite a loss as the cleaning out of inventory and restructuring is taking hold with pairs sold on the rise.

Stamps.com Inc. (NASDAQ: STMP) is up 11.3% at $31.50 in thin volume pre-market after it grew handily:  27% in its core PC postage revenues and up 41% in non-GAAP earnings per share.

TriQuint Semiconductor, Inc. (NASDAQ: TQNT) rose over 7% yesterday as an Apple-winner, but shares are down huge as guidance fell short of estimates.  Maybe Apple drove too hard of a bargain.  The drop was over 13% last night and the drop this morning is 14.6% at $4.71 on over 350,000 shares.

Xilinx, Inc. (NASDAQ: XLNX) showed a net income drop but its outlook for the current quarter is signaling improvements are on the way.  Shares were up over 7% last night and that is the same today with a gain of 7.36% to $36.85 on more than 50,000 shares in the pre-market.

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JON C. OGG

Amgen Inc. (NASDAQ: AMGN) Cut to Market Perform at Bernstein.

Annaly Capital Management, Inc. (NYSE: NLY) Cut to Market Perform at Wells Fargo.

Genuine Parts Co. (NYSE: GPC) named as Bull of the Day at Zacks.

Google Inc. (NASDAQ: GOOG) Started as Buy at Nomura.

LifePoint Hospitals Inc. (NASDAQ: LPNT) Raised to Neutral at Credit Suisse.

Lululemon Athletica Inc. (NASDAQ: LULU) Cut to Hold on valuation at Argus.

Nuance Communications Inc. (NASDAQ: NUAN) Started as Market Perform at Wells Fargo.

Sunoco, Inc. (NYSE: SUN) named Bear of the Day at Zacks.

Yahoo! Inc. (NASDAQ: YHOO) Started as Neutral at Nomura.

Yandex N.V. (NASDAQ: YNDX) Started as Neutral at UBS.

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JON C. OGG

We have compiled earnings preview on each company using Thomson Reuters consensus estimates and added color on each if applicable.  Some of these are market moving, some are sector moving, and some are just interesting for traders to watch around the earnings reports.

Activision Blizzard Inc. (NASDAQ: ATVI) estimates are $0.56 EPS and $2.2 billion in revenues. At $12.55, the maker of World of Warcraft has been very range bound.

Bunge Ltd. (NYSE: BG) estimates are $1.57 EPS and $13.73 billion in revenues.

Carbonite Inc. (NASDAQ: CARB) estimates are -$0.23 EPS and $16.78 million in revenues. This will be a first real look of a full quarter and unfortunately this one has been cut in half as investors have tempered expectations for the personal data backup service provider.

Nuance has been thought of as a potential takeover name for Microsoft Corporation (NASDAQ: MSFT) and for Apple Inc. (NASDAQ: AAPL) on and off for some time.  This may not change the speculation status much.  But what this does accomplish is a new platform to “easily find content by speaking channel numbers, station names, show and movie names.”  This would allow for searching by content, actor, and genre.  The notion that this allows for staying connected through Twitter, Facebook and Skype may just be gravy.

Dragon TV was unveiled as a voice and natural language understanding platform for TV, device and set-top box OEMs and service operators geared toward making it easy to find and access the TV show that a subscriber wants to watch.

If Nuance can open this up to cable outfits Comcast Corporation (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC), and to AT&T INc. (NYSE: T) for its uVerse, let alone DIRECTV, Inc. (NASDAQ: DTV) and Dish Network Corporation (NASDAQ: DISH) for satellite, then Nuance may get a much wider footprint.

How this gets monetized is up for anyone’s guess.  Nuance projected that about 1.6 billion TVs should be connected to the web by 2014 according to Strategy Analytics.  It even notes the difficulty in finding what is on television.  How many times have you been looking for a televised game or show and have no idea what channel it is on?

This will allow OEMs and service operators to deliver TVs, set-top boxes and applications that let consumers find and experience content with Nuance’s leading voice technologies.

Again, the trick is on the monetization.  If it can get a piece of a upcharge for the service then this may open up millions and millions more in revenues per month.  If it is a promotional feature, then this may just be a another brand building effort.

JON C. OGG

2012 Picks in Semiconductors from analyst Bobby Burleson:

Analog Devices Inc. (NYSE: ADI) reiterated Buy with $38 price target; Integrated Device Technology, Inc. (NASDAQ: IDTI) reiterated Buy with $7.00 price target.

“While we remain concerned about near-term softness in PCs and communications and acknowledge the potential for another number cut, we believe the worst cuts are behind us. Heading into 2012, we like names with broad-end market exposure and low PC exposure like Analog Devices and Integrated Device Technology.”

2012 Picks in Communications Technology from analyst T. Michael Walkley:

Apple Inc. (NASDAQ: AAPL) reiterated Buy with $560 price target; QUALCOMM Inc. (NASDAQ: QCOM) maintained Buy with $74.00 price target; and Sierra Wireless, Inc. (NASDAQ: SWIR) with a $9.00 price target.

“While we anticipate global handset units will increase by 7% YoY in 2012 to 1.72B units, we anticipate much faster growth trends for the smartphone  market. In fact, we are modeling 481M smartphone units in 2011 ramping to 650M units in 2012, or 35% YoY growth.”

2012 Picks in New Media & Location Technology from analyst Jeff Rath:

Trimble Navigation Limited (NASDAQ: TRMB); Velti PLC (NASDAQ: VELT); KIT Digital, Inc. (NASDAQ: KITD); and Rovi Corporation (NASDAQ: ROVI).

“We fully expect the US Pay-TV service provider eco-system to undergo an accelerating change as cable providers roll out more robust OTT/Hybrid video offerings in response to growing competitive pressures, and in an attempt to stem ongoing losses of its core video subscribers.”

2012 Picks in Enterprise Software from analyst Richard Davis:

Salesforce.com (NYSE: CRM) and Nuance Communications, Inc. (NASDAQ: NUAN).

“Software companies – at least firms with next generation architectures – are in great shape. Cloud software accounts for less than 10% of installed code. Barring horrific economic headwinds, the “revolutionaries” on which we focus our coverage are very likely to gain market share at the expense of legacy competitors”

2012 Picks in Internet from analyst Michael Graham:

Google Inc. (NASDAQ: GOOG) reiterated Buy with $725 price target and Zillow, Inc. (NASDAQ: Z) listed as n attractive acquisition target and the firm has an organic (non-M&A) price target of $32.00 for the stock.

“We believe the underlying drivers will be growth in online advertising, eCommerce, mobile commerce, and social networking adoption.”

These are the picks we have been sent by Canaccord Genuity’s research relations.  The firm has many other picks in technology which did not make the 2012 list.

JON C. OGG

We have earnings previews for the following: Analog Devices Inc. (NYSE: ADI); Brocade Communication Systems Inc. (NASDAQ: BRCD); Hewlett-Packard Co. (NYSE: HPQ); Tyson Foods Inc. (NYSE: TSN); Campbell Soup Co. (NYSE: CPB); Nuance Communications, Inc. (NASDAQ: NUAN); Pandora Media Inc. (NYSE: P); and Deere & Co. (NYSE: DE).  Estimates are from Thomson Reuters and these are broken out by day.

Monday

Analog Devices Inc. (NYSE: ADI) has estimates of $0.64 EPS and $728.17 million in revenue; next quarter estimates are $0.60 EPS and $707.37 million in revenue.  With shares around $35.50, the 52-week range is $29.23 to $43.28.

Brocade Communication Systems Inc. (NASDAQ: BRCD) is not a market mover but it is still way off its year high while some of its peers have been calling things better in their business of late.  Estimates are $0.10 EPS and $527.38 million in revenue; next quarter estimates are $0.11 EPS and $535.6 million in revenue.

Hewlett-Packard Co. (NYSE: HPQ) is hardly even in the midst of a turnaround.  Meg Whitman is still getting her hands around the business and Dell gave a mixed report of late.  Estimates are $1.13 EPS and $32.06 billion in revenue; next quarter estimates are $1.11 EPS and $31.44 billion in revenue. We will be looking at the company’s comments around manufacturing problems for drives for its PC around the flooding in Thailand.

Tyson Foods Inc. (NYSE: TSN) has estimates of $0.31 EPS and $8.19 billion in revenue; next quarter estimates are $0.39 EPS and $8.17 billion in revenue.  At $19.50, its 52-week trading range is $15.46 to $20.12.

Tuesday

Campbell Soup Co. (NYSE: CPB) has estimates of $0.79 EPS and $2.21 billion in revenue; next quarter estimates are $0.66 EPS and $2.16 billion in revenue.  Shares are right at $33.50 and the 52-week range is $29.69 to $35.66.  This one in the middle of a strategy change to get back to more flavorful soups and away from being such low-salt.

Nuance Communications, Inc. (NASDAQ: NUAN) is also set for Tuesday and the speech-to-text software leader’s estimates are $0.41 EPS and $393.33 million in revenue; next quarter estimates are $0.38 EPS and $378.78 million in revenue.  At $24.00, the 52-week trading range is $15.56 to $26.97.

Pandora Media Inc. (NYSE: P) is still kicking around after its IPO.  The online music playing company has estimates of -$0.01 EPS and $71.44 million in revenue; next quarter estimates are -$0.03 EPS and $82.25 million in revenue.  Its stock is around $12.55 and the post-IPO range has been $9.33 to $26.00.

Wednesday

Deere & Co. (NYSE: DE) has estimates of $1.43 EPS and $7.87 billion in revenue; next quarter estimates are $1.26 EPS and $6.17 billion in revenue.  At 74.50, Deere has a 52-week range of $59.92 to $99.80.
JON C. OGG

Akamai Technologies Inc. (NASDAQ: AKAM) is up on persistent rumors that it could be a Google takeover target.  After a 5% gan to $24.60, its 52-week range is $18.25 to $54.65.  It would require a much higher price to get a deal done and the current market cap is $4.5 billion.  Other investors have gone on to note, rather than that why not a Level 3 Communications Inc. (NASDAQ: LVLT) or a Limelight Networks, Inc. (NASDAQ: LLNW)?

AOL Inc. (NYSE: AOL) has been called a Yahoo! potential, but now it has also been rumored that private equity firms may be mulling a deal of some sort.  Shares are up 9% at $14.37 and the 52-week range is $10.00 to $27.65.  AOL’s current market cap is $1.5 billion.

Eastman Kodak Co. (NYSE: EK) is rumored to be selling its technology and imaging patents portfolio more often than you can count.  This company is dead without those patents, but oh well.

InterDigital, Inc. (NASDAQ: IDCC) would have to rally nearly 75% to challenge its 52-week high of $82.50 again.  This one is currently in the “looking at strategic alternatives” phase and many feel that its patent portfolio for 2G, 3G, 4G, and IEEE 802 would make the company a prime candidate.  After the Google-Motorola deal, anything is possible but we do not have any real feel here to add much positive or negative at this point.

Motricity, Inc. (NASDAQ: MOTR) has just cratered since its 2010 IPO.  It has been too embarrassing and shares are under $2.00.  In late-September it received $20 million in financing and announced that it was exploring strategic alternatives.  What an embarrassment.

Netflix. Inc. (NASDAQ: NFLX) has started to loosely be discussed about “the value of its assets and clients” by some investors, but it currently feels like a “long and very-very wrong” hope or act of desperation.  At $117.85, its shares are down from over $300 in just over 3 months.  Keep in mind that the market cap is still $6.2 billion and usually imploded stocks have to languish for months before the company gets a large enough shareholder base that owns the stock at a lower level to approve a deal.

Nuance Communications, Inc. (NASDAQ: NUAN) is a name that has come up over and over as a takeover name and it hit a 52-week high of $23.30 today after more than a 4% rise.  This one is the last huge independent voice recognition software player.  It is again trading like a takeover candidate and its $7.1 billion market cap is about 5-times expected sales and about 17-times expected earnings.

Primus Telecommunications Group, Inc. (NASDAQ: PTGI) is still very small and it recently hired Jefferies to explore strategic alternatives.  Its market value is about $155 million and the $11.37 price compares to a 52-week range of $7.35 to $16.25.

Research In Motion Limited (NASDAQ: RIMM) keeps coming up as a rumor mill name for a restructuring, sale review, investor activist, and more.  With all of the problems, ask yourself this… “Who wants to buy another Palm at a premium much higher than the $12 billion RIM is worth today?”… Our guess: not many.

Sony Corporation (NYSE: SNE) has been rumored of late to be interested in buying the LM Ericsson Telephone Co. (NASDAQ: ERIC) stake in the LM-Ericsson handset deal.  Who knows on that one.

Yahoo! Inc. (NASDAQ: YHOO) has been out looking at alternatives and the new latest is that private equity firms like KKR, Blackstone, and a few others could be considering a club-deal.  This is a $20 billion market cap, so a buyout is not so easy for many.  Microsoft denied its interest in re-offering for a buyout and Alibaba is a yes-maybe status as of last look.

Tallying up the rumor mill here would seem silly.  There are too many companies here to count legitimately even if Apple could write a check for all of the companies and start over.  Don’t bet on that happening.  Still, this is how full the rumor mill has been of late.  Some deals may get done, but no way all of these get done.  More important is the consideration that it is possible that none of these rumors come to fruition.

JON C. OGG