Market recap

European Markets:

Up slightly in early morning trading;

Stocks that are components of the Dow:

~HPQ Hewlett-Packard – earnings jump 30% on a 5.6% sales increase, driven by cost cutting and improved results across its portfolio of businesses. Credit Suisse Upgraded from Neutral to Outperform, and Soleil raised the Price Target from $36 to $39, and Deutsche Securities raised target from 28 to 33;

~HON Honeywell - CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform and raised price target from $40 to $48;

~GM - General Motors Downgraded by Bernstein from Outperform to Mkt Perform $35 » $22;

Oil/Gas:

~Oil prices bounced based on positive remarks by Morgan Stanley about the Integrated Oil section - they like XOM, CVH, AHC, OXY, and MRO. XOM target raised to 78 and MRO target raised to 87;

~Baker Hughes – should help the oil sector with it’s good earnings;


~SLB, RIG, DO – upgraded by RBCM;

Breaking News:

~A Cerberus group has emerged as the leading bidder for the majority stake in GMAC that parent GM is seeking to sell.

~Cellphone venture Helio plans to announce an exclusive partnership with MySpace, a popular social-networking Web site.

~Arcelor’s net rose 53% on cost-cutting in Europe and growth in Brazil. The steelmaker raised its dividend 85%, as it tries to fend off rival Mittal's hostile bid.

~Barrons online – They highlighted two small cap companies: MEDX and ALKS;

~XMSR – down 2 points this morning on a resignation – could be a scalp at $22.50;

~AMAT – posted a good quarter and traded higher in Germany;

~Housing Starts were spectacular and CNBC stated that the housing arena continues to suprise and amaze.

~AGT - Smith Barney still favorite large cap;

~CSG - share price up on renued take over talks says WSJ;

Upgrades

• Ticker Company Brokerage Firm Ratings Change Price Target
  
• CBI Chicago Bridge Hibernia Southcoast Capital Hold » Buy $30
  
• OPTN Option Care Jefferies & Co Hold » Buy $13.50 » $17
  
• FADV First Advantage Matrix Research Sell » Buy
  
• DVW Covad Kaufman Bros Hold » Buy $1.50 » $2.50
  
• FIS Fidelity National Information Services Credit Suisse Neutral » Outperform
  
• THC Tenet Healthcare Credit Suisse Neutral » Outperform
  
• SNPS Synopsys HSBC Securities Neutral » Overweight $22 » $27
  
• GENZ Genzyme Thomas Weisel Peer Perform » Outperform
  
• AEA Advance America Cash Jefferies & Co Hold » Buy $16.50
  
• ISLE Isle of Capri Brean Murray Sell » Hold
  
• PNC PNC Bank Bear Stearns Underperform » Outperform
  
  
• ENDP Endo Pharm Lehman Brothers Overweight
  
• ARRY Array Biopharma Merriman Curhan Ford Buy
  
• SVC Stewart & Stevenson Ryan, Beck & Co Outperform $32
  
• AIR AAR Corp Susquehanna Financial Positive
  
• AIQ Alliance Imaging Stanford Research Buy $7
  
  
• PENN Penn Natl Gaming Nollenberger Capital Buy $37 » $38
  
• HPQ Hewlett-Packard Prudential Overweight $38 » $39
  
• CMX Caremark Rx Prudential Overweight $72 » $75
  
• AMAT Applied Materials RBC Capital Mkts Sector Perform $20 » $21
  
• QLGC QLogic RBC Capital Mkts Outperform $37 » $38
  
• NBP Northern Border RBC Capital Mkts Sector Perform $44 » $52
  
• SNPS Synopsys Needham & Co Buy $23 » $24
  
• NTAP Network Appliance Needham & Co Buy $31 » $35
  
• DAKT Daktronics Needham & Co Buy $31 » $38
  
• PNC PNC Bank Banc of America Sec Buy $68 » $75
  
• BLL Ball Corp Banc of America Sec Buy $46 » $48
  
• LAMR Lamar Advertising Banc of America Sec Buy $50 » $54
  
• HPQ Hewlett-Packard Banc of America Sec Buy $33 » $36
  
• CONR Conor Medsystems CIBC Wrld Mkts Sector Outperform $26 » $30
  
• ODP Office Depot FTN Midwest Buy $34 » $40
  
• CMX Caremark Rx First Albany Strong Buy $56 » $58
  
  
• GMRK and TDW - upgraded by RBCM
  
• WMS – upgraded by Bank of America with a 31 target
  
• ATYT – upgraded by Merrill Lynch
  
• PNC – target raised to 82 by Bear Sterns
  

Downgrades:

• EXPE Expedia Soleil Buy » Hold
  
• BDAY Celebrate Express CIBC Wrld Mkts Sector Outperform » Sector Perform
  
• TOT Total S.A. Credit Suisse Outperform » Neutral
  
• CECO Career Education Piper Jaffray Outperform » Market Perform
  
• RWY Rent-Way Matrix Research Buy » Hold
  
• HILL Dot Hill Systems Needham & Co Buy » Hold
  
• FL Foot Locker Credit Suisse Neutral » Underperform
  
• TOA Technical Olympic USA JMP Securities Mkt Outperform » Mkt Perform
  
• EXPE Expedia Lehman Brothers Overweight » Equal-weight
  
• AZR Aztar Morgan Joseph Hold » Sell
  
• AGP Amerigroup CIBC Wrld Mkts Sector Outperform » Sector Underperform $22.50 » $16
  
• MDCO The Medicines Co RBC Capital Mkts Sector Perform » Underperform $19
  
• PENN Penn Natl Gaming Jefferies & Co Buy » Hold $37
  
• RAIL Freightcar America Jefferies & Co Buy » Hold $47 » $65
  
• PFCB PF Chang's CIBC Wrld Mkts Sector Outperform » Sector Perform $52
  
• EMR Emerson CIBC Wrld Mkts Sector Outperform » Sector Perform $91
  
• AZPN Aspen Tech Matrix Research Strong Sell