The unofficial closing bells put the DJIA down nearly 11 points to 13,268.65 (-0.08%), the NASDAQ rose more than 9 points (0.31%) to 3,059.85, and the S&P 500 fell -0.25% or more than 3 points to 1,402.31.

There were several analyst upgrades and downgrades today, including Chesapeake Energy Corp. (NYSE: CHK) cut to ‘neutral’ at R.W. Baird; ConocoPhillips (NYSE: COP) cut to ‘underperform’ at BofA/ML and started as ‘overweight’ at JPMorgan; RadioShack (NYSE: RSH) raised to ‘buy’ at Auriga; STMicroelectronics NV (NYSE: STM) raised to ‘buy’ at Goldman Sachs and raised to ‘neutral’ at Citigroup; and Assurant Inc. (NYSE: AIZ) 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: Barrick Gold Corp. (NYSE: ABX) is down -2.8% at $39.30 (more coverage here); Marathon Oil Corp. (NYSE: MRO) is down -4.4% at $28.85; Mastercard Inc. (NYSE: MA) is down -0.8% at $452.14; Allergan Inc. (NYSE: AGN) is down -4.3% at $92.29; Yamana Gold Inc. (NYSE: AUY) is down -2.6% at $14.36; Time Warner Inc. (NYSE: TWX) is down -1.6% at $37.30; The Clorox Co. (NYSE: CLX) is down -3.3% at $67.74; Rowan Companies Inc. (NYSE: RDC) is up 1.3% at $34.97; R.R. Donnelley & Sons Co. (NASDAQ: RRD) is down -7% at $11.79; Martha Stewart Living Omnimedia Inc. (NYSE: MSO) is down -1.2% at $3.41; and IAC/InterActiveCorp. (NASDAQ: IACI) is up 3.3% at $50.34 after posting a new 52-week high of $52.77 earlier today.

Tomorrow we get earnings from First Solar Inc. (NASDAQ: FSLR), Diana Shipping Inc. (NYSE: DSX), Corinthian Colleges Inc. (NASDAQ: COCO), Apache Corp. (NYSE: APA), Orbitz Worldwide Inc. (NYSE: OWW), and Western Refining Inc. (NYSE: WNR) among many others.

Other standouts from today include the following stocks:

Chesapeake Energy is down -13.5% at $16.95 after posting a new 52-week low of $15.86 earlier today. The natural gas producer reported weak results and more troubles for CEO Aubrey McClendon. More coverage here.

Comcast Corp. (NASDAQ: CMCSA) is down -1% at $30.29. The cable company reported good earnings this morning. More coverage here.

Savient Pharmaceuticals Inc. (NASDAQ: SVNT) is down -18.8% at $1.51. An analyst has said that the company insolvent. More coverage here.

Stay tuned for Thursday. Philadelphia Fed President Charles Plosser, Atlanta Fed President Dennis Lockhart, and San Francisco Fed President John Williams are speaking at a conference. We have noted the following events on the schedule (all times Eastern):

• 7:30 a.m. – Challenger job cut report
• 8:30 a.m. – New claims for unemployment benefits
• 8:30 a.m. – Productivity and costs report
• 10:00 a.m. – ISM non-manufacturing index
• 10:30 a.m. – EIA weekly natural gas storage report
• 4:30 p.m. – Federal Reserve balance sheet and money supply

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Paul Ausick

Assurant Inc. (NYSE: AIZ) Cut to Underperform at BofA/ML.

Cerner Corporation (NASDAQ: CERN) named as Bull of the Day at Zacks.

Chesapeake Energy Corporation (NYSE: CHK) Cut to Neutral at R.W. Baird.

China Life Insurance (NYSE: LFC) named Bear of the Day at Zacks.

ConocoPhillips (NYSE: COP) Cut to Underperform at BofA/ML; Started as Overweight at JPMorgan.

Flextronics International Ltd. (NASDAQ: FLEX) Raised to Neutral at BofA/ML.

Genworth Financial (NYSE: GNW) Raised to Neutral at BofA/ML.

Herbalife Ltd. (NYSE: HLF) Raised to Buy at Auriga.

RadioShack (NYSE: RSH) Cut to Underweight at Morgan Stanley.

STMicroelectronics NV (NYSE: STM) Raised to Buy at Goldman Sachs; Raised to Neutral at Citigroup.

Terex Corporation (NYSE: TEX) Started as Outperform at Credit Suisse.

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JON C. OGG

For the first quarter 2012, ST-Ericsson expects a very significant sequential decline in net sales, resulting from a combination of higher inventory at some of our customers, further weakening of legacy product sales, the effect of first quarter seasonality as well as the reduction, in the short term, of new product sales with one of our largest customers.

Though unnamed, Nokia is believed to be the customer ST-Ericsson is referring to here.

There is also a belief that Nokia will have to cut its rich 8.6% dividend yield as the company tries to conserve cash for the coming launch of its new smartphones using the Windows Phone 8 operating system from Microsoft Corp. (NASDAQ: MSFT). Lagging sales of the company’s cheaper feature phones aren’t helping either.

Nokia’s ADRs are down nearly -7.5% today at $5.31 in a 52-week range of $4.46-$11.75.

Paul Ausick

BHP Billiton (NYSE: BHP) Cut to Hold at Societe Generale; Cut to Neutral at HSBC.
BP plc (NYSE: BP)Started as Neutral at Nomura.
Chimera Investment Corporation (NYSE: CIM) Cut to Underperform at Stern Agee.
DryShips, Inc. (NASDAQ: DRYS) Started as Equal-Weight at Barclays.
Fifth Third Bancorp (NASDAQ: FITB) Reiterated Outperform at Credit Suisse.
Gafisa S.A. (NYSE: GFA) named as Value stock of the day at Zacks.
Huntington Bancshares Inc. (NASDAQ: HBAN) Cut to Perform at Oppenheimer.
j2 Global Communications (NASDAQ: JCOM) Raised to Outperform as Bull of the Day at Zacks.
JB Hunt Transport Services Inc. (NASDAQ: JBHT) Started as Overweight at Barclays.
LM Ericsson Telephone Co. (NASDAQ: ERIC) Reiterated Buy with $19 target at Argus.
Morgan Stanley (NYSE: MS) maintained Underperform as Bear of the Day at Zacks.
Pall Corporation (NYSE: PLL) added to U.S. Focus List at Credit Suisse.
PetSmart, Inc. (NASDAQ: PETM) Cut to Market Perform at Wells Fargo.
Seagate Technology PLC (NASDAQ: STX) Raised to Outperform at Baird; Raised to Buy at ThinkEquity.
STMicroelectronics (NYSE: STM) Raised to Hold at S&P Equity Research.
Synaptics Inc. (NASDAQ: SYNA) Raised to Buy at Stern Agee; Raised to Hold at Needham.

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JON C. OGG

AEGON N.V. (NYSE: AEG) maintained “Buy” but removed from Conviction Buy List at Goldman Sachs.
Alcoa Inc. (NYSE: AA) Started as Outperform with $20 target at Credit Suisse.
Agrium Inc. (NYSE: AGU) Reiterated Buy as Value at Zacks.
Ardea Biosciences Inc. (NASDAQ: RDEA) Raised to Outperform as Bull of the Day at Zacks.
CenturyLink Inc. (NYSE: CTL) Cut to Underperform as Bear of the Day at Zacks.
Cerner Corporation (NASDAQ: CERN) Added to Conviction Buy List at Goldman Sachs.
ConocoPhillips (NYSE: COP) Reiterated Buy at Argus.
CONSOL Energy Inc. (NYSE: CNX) Started as Outperform with $62 target at Credit Suisse.
Diamond Foods, Inc. (NASDAQ: DMND) Cut to Hold at Deutsche Bank.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) Started as Buy at BofA/ML; Started as Outperform at Credit Suisse.
Google Inc. (NASDAQ: GOOG) Reinstated as Buy at Needham; Reiterated Buy with $800 target at Canaccord Genuity.
ICICI Bank Ltd. (NYSE: IBN) Cut to Neutral at Credit Suisse.
JPMorgan Chase & Co. (NYSE: JPM) Reiterated Hold at Argus.
Newmont Mining Corp. (NYSE: NEM) Started as Neutral with $65 target at Credit Suisse.
Peabody Energy Corp (NYSE: BTU) Started as Outperform at Credit Suisse.
Stillwater Mining Company (NYSE: SWC) Started as Outperform with $24 target on Focus List at Credit Suisse.
STMicroelectronics NV (NYSE: STM) Cut to Equal-Weight at Morgan Stanley.
Transocean Ltd. (NYSE: RIG) Raised to Buy at Jefferies.
Vical Inc. (NASDAQ: VICL) Reiterated Buy with $8 target at Canaccord Genuity.

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JON C. OGG

First Solar Inc. (NASDAQ: FSLR) is the world’s leading maker of thin-film solar modules with an annual capacity of around 1,400 megawatts. A few competitors have emerged, including General Electric Co. (NYSE: GE), but First Solar’s position in the thin-film market is essentially unchallenged. Unless one counts the falling cost of crystalline silicon wafer-making and the huge investments planned by the leading providers, which will drive costs down even more.

Chinese wafer-maker GT-Poly Energy Holdings Ltd and Korean maker OCI Co. expect to nearly double polysilicon capacity this year to about 88,000 metric tons even though prices fell by about 32% in the second quarter of the year. Solar module makers like JA Solar Holdings Co., Ltd. (NASDAQ: JASO), Suntech Power Holdings Co., Ltd. (NYSE: STP) and Trina Solar Ltd. (NYSE: TSL) are expanding module manufacturing capacity and JA Solar is also boosting its output of polysilicon this year in an effort to grab market share.

Daqo New Energy Corp. (NYSE: DQ), China’s fourth-largest polysilicon maker, is building a new plant to produce 3,000 metric tons in addition to the 4,300 metric tons it already produces. These increases far outstrip planned expansion by non-Chinese wafer makers like MEMC Electronic Materials Inc. (NYSE: WFR) and Norway’s Renewable Energy Corp.

The bet here is that the crashing prices came as a result of cuts to government subsidies in Europe, which caused orders for new panels to tumble. But now that the market has had a chance to absorb and react to the cuts, market conditions look to be improving.

Italy’s energy firm Enel SpA (OTC: ENLAY) agrees. The company is joining forces with STMicroelectronics N.V. (NYSE: STM) and Sharp Corp. (OTC: SHCAY) to build a 160-megawatt capacity thin-film plant in Sicily. Capacity is expected to rise to 480 megawatts by the end of 2014 and could reach 1,000 megawatts if demand warrants. Competing directly against First Solar in Italy does not appear to be the wisest course, but Enel does have a downstream component to absorb output from the new plant, which will reduce the company’s reliance on Chinese suppliers.

There will be more jostling in the the solar PV sector in the months to come and the ability of U.S. and European solar PV makers to compete with their Asian counterparts on price will be sorely tested. We’ve written before about possible consolidation in the solar industry and these big expansions by some of the world’s largest firms are likely to speed up that consolidation.

Paul Ausick

BP plc (NYSE: BP) Cut to Hold at Societe Generale.
CIENA Corporation (NASDAQ: CIEN) Cut to Neutral at BofA/ML.
International Gaming Technology (NYSE: IGT) Raised to Hold at Argus.
JA Solar Holdings Co., Ltd. (NASDAQ: JASO) Cut to Neutral at Collins Stewart.
Marathon Oil Corporation (NYSE: MRO) Raised to Overweight at Morgan Stanley.
MBIA Inc. (NYSE: MBI) Raised to Hold at S&P Equity Research (late Tuesday call)..
Red Hat, Inc. (NYSE: RHT) Raised to Buy at Stifel Nicolaus.
Salesforce.com (NYSE: CRM) Raised to Buy at Roth Capital.
Seagate Technology PLC (NASDAQ: STX) Raised to Buy at BofA/ML.
STMicroelectronics NV (NYSE: STM) Cut to Sell at S&P Equity Research.
Strayer Education Inc. (NASDAQ: STRA) Cut to Underperform and listed as Bear of the Day at Zacks.
Tellabs Inc. (NASDAQ: TLAB) Cut to Underperform at BofA/ML.
Tesoro Corporation (NYSE: TSO) Raised to Outperform and called Bull of the Day at Zacks.
Verizon Communications Inc. (NYSE: VZ) Raised to Buy at Goldman Sachs.
Western Digital Corporation (NYSE: WDC) Raised to Buy at BofA/ML.

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JON C. OGG

At the same time, Sharp Corp. (OTC:SHCAY), one of Japan’s largest solar cell makers, Italy’s Enel, and STMicroelectronics N.V. (NYSE:STM) have formed a joint venture called 3Sun to jump into the thin-film solar PV market. This at a time when Chinese thin-film maker Trony Solar withdrew its IPO due to unfavorable market conditions, and semiconductor equipment maker Applied Materials Inc. (NASDAQ:AMAT) was downgraded by UBS from ‘buy’ to ‘neutral’ following its firing of 500 employees and the decision to eliminate its solar wafer-specific equipment line.

First, the Solarfun deal. Hanwha will buy nearly 36.5 million ordinary shares of Solarfun for about $78 million and about 122 million more shares owned by two companies controlled by Solafun’s chairman, valued at about $290 million. In exchange, Hanwha gets 49.99% of Solarfun, three of seven board seats, and Solarfun’s existing management. The deal puts a value on Solarfun of about $740 million, about $80 million higher than its market cap even with today’s 12% jump in the share price.

With prices for crystalline PV cells falling as efficiencies in photoelectric conversion increases, it’s a bit of stretch to see how Hanwha’s investment will pay off. Solarfun will have to go after the low-margin end of the market and hope to make its profits on volume. That’s never a good place to start from.

Second, the Sharp/Enel/STM joint venture is another head-scratcher. Thin-film solar faces a serious threat from crystalline PV makers as the costs for crystalline PV has come down and conversion efficiencies for crystalline have risen. The JV does include the deep pockets of Sharp, which may be enough for it to succeed. The new company also plans to function as a vertically integrated operation, making the cells at an STM plant in Italy and eventually getting into the independent power producer market, probably starting with Enel in Italy. It’s an ambitious plan, and it could take some time for it to pay off.

Third, the story with Trony Solar, a failed thin-film IPO, is just another chapter in a dismal year so far for renewable energy IPOs. JinkoSolar Holding Co. Ltd. (NYSE:JKS) and biofuel maker Codexis Inc. (NASDAQ:CDXS) concluded disappointing IPOs, and another solar cell maker, Solyndra, had to withdraw its IPO. Investors have decided that these renewable stocks are just too risky, especially given the slow economic recovery that could reduce government subsidies for renewable energy. Even with subsidies, the timetable for generating a return on investment is very long.

An interesting and entertaining day. So far, Solarfun has set a new 52-week high of $12.30, though it is now trading at around $11 for an 8% gain, near a low for the day, on more than three-times average daily volume before noon.

Paul Ausick

Alcatel-Lucent (NYSE: ALU) Maintained Neutral but target lowered to 2.40(EUR) at Goldman Sachs; Started as Buy at Deutsche Bank.
American Electric Power Co., Inc. (NYSE: AEP) Cut to Perform at Oppenheimer.
Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) Cut to Neutral at JPMorgan.
Boyd Gaming Corp. (NYSE: BYD) Raised to Hold at Jefferies.
China Mobile Limited (NYSE: CHL) Started as Neutral at JPMorgan.
China Unicom Hong Kong Limited (NYSE: CHU) Started as Overweight at JPMorgan.
The Coca-Cola Company (NYSE: KO) Raised to Overweight at JPMorgan.
Coventry Health Care Inc. (NYSE: CVH) Raised to Outperform at Leerink Swann.
The J.M. Smucker Company (NYSE: SJM) Cut to Hold at Jefferies.
Fairchild Semiconductor International Inc. (NYSE: FCS) Cut to Neutral at Baird.
Genzyme Corporation (NASDAQ: GENZ) Cut to Hold at Citigroup.
Itron, Inc. (NASDAQ: ITRI) Cut to Underperform at Macquarie.
Micron Inc. (NASDAQ: MU) Cut to Neutral at Baird; Reiterated Buy at Auriga.
STMicroelectronics NV (NYSE: STM) Cut to Neutral at Baird.
Texas Instrumenst Inc. (NYSE: TXN) Cut to Neutral at Baird.

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JON C. OGG

ABB Ltd. (NYSE: ABB) Raised to Buy at Goldman Sachs.
Allscripts-Misys Healthcare Solutions, Inc. (NASDAQ: MDRX) Raised to Overweight at Thomas Weisel.
Boston Scientific Corporation (NYSE: BSX) Maintained Sell at Goldman Sachs, but removed from Conviction Sell List.
DRDGold (NASDAQ: DROOY) Started as Overweight at Morgan Stanley.
Gold Fields Ltd. (NYSE: GFI) Started as Equal-weight at Morgan Stanley.
Harmony Gold Mining Co. (NYSE: HMY) Started as Overweight at Morgan Stanley.
MEMC Electronic Materials Inc. (NYSE: WFR) Cut to Buy from Strong Buy at S&P (late yesterday).
Peabody Energy (NYSE: BTU) Raised to Outperform at BMO Capital.
Potash Corp of Saskatchewan (NYSE: POT) Raised to Buy at UBS.
Pulte Homes (NYSE: PHM) Raised to Hold at Stifel Nicolaus.
Prudential plc (NYSE: PUK) Started as Buy at UBS.
STMicroelectronics NV (NYSE: STM) Started as Buy at Jefferies.
Wendy’s/Arby’s (NYSE: WEN) Raised to Buy at SunTrust.

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JON C. OGG

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