• Bank of America/Merrill (NYSE:BAC) downgraded a number of semiconductor companies, expecting a modest inventory correction, even as economies improve and demand for electronics rises.  Four shares were downgraded to neutral, including Intel (NASDAQ:INTC), Texas Instruments (NYSE:TXN), Marvel Technology Group (NASDAQ:MRVL) and LSI Corp (NYSE:LSI).  The form lowered Maxim Integrated Products (NASDAQ:MXIM), National Semiconductor (NYSE:NSM), Power Integrations (NASDAQ:POWI) and Microchip Technology (NASDAQ:MCHP) to underperform

• Advanced Micro Devices (NYSE:AMD) rose 10.6% yesterday. The firm announced a private debt offering of $500 million of senior notes. This morning's news saw FBR Research raising its price target to $9 from $8, while maintaining a "market perform" opinion

• Goldman Sachs (NYSE:GS) reiterated its "buy" rating on CVS Caremark (NYSE:CVS), saying the shares are cheap at current levels.  The firm said at $30, CVS is selling at just 10.6 times 2010 estimates, below a two year, 14x average, with long-term growth of 13% anticipated

• Reports

The Dow Jones industrial average moved up 132 points on Tuesday and all major indicators rose more than 1% as the Australian central bank’s decision to raise interest rates boosted optimism about the world economy.   Investors' show of confidence ahead of a flood of corporate earnings reports came as Australia became the first major country to raise interest rates since the onset of the financial crisis last year.  The move signals that policymakers see that country's economy as strong enough to withstand higher borrowing costs. That touched off hopes that other economies might also be growing.

Australia's decision dented demand for the U.S. dollar, which, in turn, raised commodities prices.  US energy and materials stocks moved up, oil also rose, and gold reached a record high.  Stock investors cheered the drop in the dollar because it boosts corporate profits by making U.S. goods cheaper for overseas buyers.

Continued optimism and new signs that the economy is showing signs of resilience pushed stocks higher Monday with the major indexes recording broad based gains and the S&P 500 index zooming off to its highest level since November.  Just a little over a week ago, weak unemployment numbers, weaker-than-expected retail sales and disappointing confidence data had investors worrying and talks of a second stimulus package started to gain ground.  However, impressive earnings numbers, robust outlook from companies and a number of analyst upgrades have boosted investor confidence as they have appeared increasingly eager to participate in riskier bets.   

On Monday stocks hit their highest levels since November 5, as all ten industry groups on the S&P500 moved higher during the session, led by consumer, commodity and industrial stocks.  The gains were led by basic materials (+2.4%), industrial (+1.9%) and oil and gas (+1.5%).  The DJIA added 1.2% or 104

Although the expectations remain for a V-shaped recovery, in the absence of any catalyst and mounting worries over the economic situation investors are increasingly heading towards risk aversion.  Sentiments are more cautious as last week’s employment scare is still fresh in the minds of investors.  Perhaps, the wait-and-watch stance is likely to continue before the earnings start to peak next week.  Therefore, in an economy that is reeling under unprecedented pressures of unemployment and dwindling consumer spending, prospects for a second stimulus package are gaining traction. In an interview Thursday, Warren Buffett joined those advocating a second stimulus package.  Nevertheless, Wall Street will now turn its focus to companies as they report quarterly numbers.   

Traders were in the pause mode yesterday but indexes managed to end the day in positive territory.  The Dow Jones industrial average edged up 4.76 points, or 0.06%, to 8,183.17 points.  The S&P 500 index

• Chevron (NYSE:CVX) is the only DJIA component expected to report its earnings today.  Analysts expect the company to report second-quarter earnings of $1.27 per share, down from $2.90 a year ago

• AIG (NYSE:AIG) is reportedly in early talks with rival MetLife (NYSE:MET) to sell its Alico unit, which could bring in as much as $15 billion

• Credit Suisse (NYSE:CS) raised its rating on KB Homes (NYSE:KBH) to "outperform"

• Bank of America/Merrill (NYSE:BAC) upgraded Goldman Sachs (NYSE:GS) to "buy," on expectations of better-than-estimated second quarter earnings, due out next week. Analysts upped the price target from $144 to $175, increasing estimates for 2009 and 2010 as well

• Among same-store-sales numbers: Less-worse numbers were posted by Zumiez (NASDAQ:ZUMZ), with a 19.3% decline versus estimates of a 20.4% drop. Worse-than-expected results were posted by Limited (NYSE:LTD) down 12% versus estimates of a 7.9% drop, and Wet Seal (NASDAQ:WTSLA) with a 11.1% drop

US stocks plunged Tuesday on lingering concerns about the prospects of an economic rebound and worries second-quarter earnings would fail to lift sentiments on the Street.  Although the second quarter began on a high note with stocks surging to multi-month highs, the rally lost steam in mid-June as a slew of bleak economic data failed to provide a direction.  Last week’s shaky unemployment report added to mounting worries and investors pressed the sell button.  Crude prices fell to their lowest in seven weeks.

The Dow Jones industrial average closed at its lowest level since April 28, plunging 161 points, or 1.9%, to close at 8,163.60.  Among DJIA components, only four managed to register gains yesterday.  The S&P 500 index dropped below its 200-day moving average, losing 18 points or 2%, to close at its lowest point since May 1.  The Nasdaq declined 41 points, or 2.3%, to close at

US stocks pared early losses to end the day mixed as a fall in commodities and oil prices worried investors, but a late rally in some blue chips sent conflicting signs about the strength of an economic recovery.  Mood was cautious on the Street Monday as markets looked for fresh direction ahead of the second-quarter earnings which begin this week. 

The Dow Jones industrial average rose 44.13 points, or 0.5%, to 8,324.87, and the broader Standard & Poor's 500 index edged up 2.30 points, or 0.3%, to 898.72. The technology-laden Nasdaq declined 9.12 points, or 0.5%, to 1,787.40.  Among DJIA components, 19 closed higher while six of the ten S&P 500 industry groups advanced.  On the New York Stock Exchange, declining issues beat advancing ones by a three-to-two margin.

Among DJIA components, American Express (NYSE:AXP), up 5.6% and Merck (NYSE:MRK), up 3.3% led on the upside.  American

U.S. stocks advanced the most in three weeks, helped by optimism about the retail sector and Fed Chairman Ben Bernanke's defense of the central bank's role in Bank of America/Merrill (NYSE:BAC) deal.  Stocks got a boost from Bed Bath and Beyond's (NASDAQ:BBBY) improved quarterly earnings and a JC Penney (NYSE:JCP) upgrade.  The S&P 500 index jumped 2.1% and went into positive territory for the year.  Tech-heavy Nasdaq jumped 37 points, or 2.1%, and the Dow Jones Industrial Average matched S&P and Nasdaq's advance.  Treasury prices went sharply higher after a successful $27 billion 7-year notes auction.  Volume on the NYSE remained light with only 1.2 billion shares exchanging hands and advancing shares outpaced declining issues by a five-to-one margin.  The Vix volatility index dropped to its lowest since September 11, easing 9.3% to 26.36.     

Today's premarket futures suggest a mixed opening on news that Australian airliner Quantas Airways