February 15th — Wednesday Morning

February 15th — Wednesday Morning

European Markets:

CAC40: -0.46%

DAX: -0.10%

FTSE100: -0.07%

Sector News:

~Mortgage applications were lower this month which may hurt the Homebuilders.

Stocks that are components of the Dow:

~UTX - may be hurt by the U.S. Senate killing the Asbestos Fund bill. UTX also announced they will produce parts for the GE jet engine which should show in 2007.

~HPQ - positive comments from Cowan;

Breaking News:

~The Dow Industrials finished above 11000 for the first time in a month, gaining 136.07 points, or 1.25%. The Nasdaq composite rose 1%. Oil prices fell below $60 a barrel.

~Tests confirmed Bird Flu in two dead swans in northern Germany, in the country's first known cases of H5N1, German experts said. Verification by an EU lab is expected later this week.

~CSCO - announced a 9.7% stake in SNDA;

~SNDK - signs partnership with VRSN and RSAS to limit online theft of corporate data.;

~AMGN - has increased their notes;

~SHLD - Legg Mason and Atticus add to their position in Sears;

~U.S. Senate kills Asbestos Fund - This could hurt OI, OWENQ, HAL, GRE, SEE, USG;

~Barrons Highlighted two technology stocks: INFA and WITS;

Upgrades:

• Ticker Company Brokerage Firm Ratings Change Price Target
  
• WW Watson Wyatt Matrix Research Hold » Buy
  
• CEPH Cephalon Jefferies & Co Hold » Buy $85
  
• OMC Omnicom CIBC Wrld Mkts Sector Perform » Sector Outperform $88 » $98
  
• RIO Comp Vale Do Rio Bear Stearns Peer Perform » Outperform
  
• BEN Franklin Resources Morgan Stanley Equal-weight » Overweight
  
• COF Capital One Jefferies & Co Hold » Buy $75 » $100
  
• WMS WMS Industries Banc of America Sec Neutral » Buy $28 » $31
  
• MWV MeadWestvaco Banc of America Sec Neutral » Buy $28 » $31
  
• UDR United Dominion Stifel Nicolaus Hold » Buy $30
  
• AEM Agnico-Eagle Mines CIBC Wrld Mkts Sector Perform » Sector Outperform $34 » $39
  
• DGIN Digital Insight Jefferies & Co Hold » Buy $37
  
• BOBJ Business Objects UBS Neutral » Buy
  
• ABPI Accentia Biopharmaceuticals Jefferies & Co Hold » Buy $7 » $11
  
• FLS Flowserve Robert W. Baird Neutral » Outperform $38 » $55
  
• WCN Waste Connections Thomas Weisel Peer Perform » Outperform
  
• Ticker Company Brokerage Firm Ratings Change Price Target
  
  
  
  
• NIHD NII Holdings Lehman Brothers Overweight
  
• SVC Stewart & Stevenson Friedman Billings Outperform
  
• CDWC CDW Corp Bear Stearns Peer Perform
  
• SHPGY Shire Pharm Goldman Sachs Outperform
  
• ICON Iconix Brand Brean Murray Strong Buy $18
  
• THC Tenet Healthcare Bear Stearns Peer Perform
  
• CNXT Conexant CIBC Wrld Mkts Sector Perform
  
• ENSI EnergySouth, Inc. AG Edwards Buy $31
  
  
  
  
• Ticker Company Brokerage Firm Ratings Change Price Target
  
• LVS Las Vegas Sands Prudential Overweight $56 » $59
  
• PRAA Portfolio Recovery Assoc. Brean Murray Hold $40 » $46
  
• RCKY Rocky Shoes & Boots Brean Murray Accumulate $22 » $25
  
• SKX Skechers USA Brean Murray Strong Buy $20 » $24
  
• BWS Brown Shoe Brean Murray Strong Buy $47 » $49
  
• DVA DaVita Deutsche Securities Buy $60 » $64
  
• MSSR McCormick & Schmick's RBC Capital Mkts Outperform $25 » $27
  
• PLA Playboy RBC Capital Mkts Outperform $15 » $16
  
• LVS Las Vegas Sands Stifel Nicolaus Buy $46 » $60

Downgrades:

• Ticker Company Brokerage Firm Ratings Change Price Target
  
• TSAI Transaction Systems Matrix Research Sell » Strong Sell
  
• IM Ingram Micro Prudential Overweight » Neutral
  
• SNE Sony HSBC Securities Overweight » Neutral
  
• OCAS Ohio Casualty KeyBanc Capital Mkts / McDonald Buy » Hold
  
• CHH Choice Hotels CIBC Wrld Mkts Sector Perform » Sector Underperform
  
• GWR Genesee & Wyoming Bear Stearns Outperform » Peer Perform
  
• CSR Credit Suisse Deutsche Securities Buy » Hold
  
• SSCC Smurfit-Stone Banc of America Sec Buy » Neutral $15 » $14
  
• TIN Temple-Inland Banc of America Sec Buy » Neutral $50 » $46
  
• ZIPR Ziprealty Thomas Weisel Outperform » Peer Perform
  
• CD Cendant Thomas Weisel Outperform » Peer Perform