Analyst Comments

Earlier, one Morgan Stanley analyst recommended investors use the recent pullback in commodities as a buying opportunity. The analyst cited rising demand for raw materials such as copper, platinum and oil.

“The global economy is in much better shape today and, with economic growth back on track, we view this as a strong buying opportunity for commodities.”

Stocks in the Energy complex are among the strongest performing today. With about one hour left in the trading session, the sector, as a whole, is up about 2.4%.

Related ETF's:

• Energy Select Sector SPDR (NYSE: XLE) up 2.4%
  
• ProShares Ultra Basic Materials (NYSE: UYM) up 6.3%
  
• US Oil Fund (NYSE: USO) up 3%
  
• SPDR Gold Trust (NYSE: GLD) up 1.4%
  
• DWS Global Commodities Stock Fund (NYSE: GCS) up 2.6%
  
• Vanguard Energy ETF (NYSE: VDE) up 2.5%

JPMorgan issued a note on the airline sector this morning following UAL's (Nasdaq: UAUA) better-than-expected January traffic results last night. While maintaining its Overweight rating, the firm boosted its FY10 EPS estimate on UAL from $1.23 to $1.99 -- much higher than the $0.19 profit the Street is currently looking for.

JPMorgan said it is very close to upgrades on UAL, AMR Corp. (NYSE: AMR) and US Airways (NYSE: LCC). The firm also expects shares of Continental (NYSE: CAL), Delta (NYSE: DAL) and Alaska Air (NYSE: ALK) to rally, but believes that these three stocks are "already reasonably valued."

The airline sector is rallying on the back of the UAL monthly results even as hundreds of flights are being canceled across the country due to a winter storm sweeping over the east coast and Midwest. The Claymore/NYSE Arca Airline ETF (NYSE: FAA) is now up almost 5%.

S&P lowered its rating outlook on Bank of America (NYSE: BAC) and Citigroup (NYSE: C) today from Stable to Negative, citing uncertainty about the U.S. government's willingness to provide additional extraordinary support in a way that will benefit debt holders.

Analyst John Bartko stated, "We believe markets are beginning to stabilize and the U.S. government is seeking ways to reduce the potential for moral hazard and systemic risk associated with large financial institutions."

Bartko notes that one such effort to reduce these risks is evident in the House bill (H.R. 4173) passed in mid-December that would specifically preclude the government from company-specific bailouts, and would allow it to use public funds to assist in winding down an ailing financial institution, but only if that entity's debt holders incurred losses.

The proposed Financial Crisis Responsibility Fee further underscores the extent to which the political climate affects bondholders of these companies adversely, Bartko explains.

On Bank of America, S&P affirmed all ratings, including its 'A/A-1' counterparty credit rating and ratings on all related entities.

On Citigroup, S&P affirmed its counterparty credit and debt ratings on Citi (A/A-1). The firm raised the ratings on its hybrid capital issues to 'BB-' from 'B+', excluding its preferred stock, which was affirmed at 'C'.

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S&P revises outlook on Citigroup (NYSE: C) from Stable to Negative

Wedbush maintains an 'Outperform' rating on Electronic Arts (Nasdaq: ERTS), lowers price target from $23 to $20.

Wedbush analyst says, "We are lowering our FY:10 pro forma estimates for revenue to $4.15 billion from $4.20 billion, and for EPS to $0.44 from $0.55...EA has missed expectations badly for two years running, and we think that company guidance is realistically conservative...We are maintaining our OUTPERFORM rating, but are lowering our 12-month price target to $20, reflecting a multiple of 22x our adjusted FY:11 EPS estimate of $0.70/share, plus $5/share in cash."

To see all the upgrades/downgrades on shares of ERTS, visit our Analyst Ratings page.

Electronic Arts Inc. (EA develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles.