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All three of the major indexes finished Tuesday in the red, but there were several big names that moved up to new 52-week highs in Tuesday's trading.

Walgreen Co. (NYSE: WAG): The drugstore giant had a really good day on Wall Street after posting better than expected earnings in the morning before the market opened. The company posted earnings of 44 cents per share versus analyst estimates of 39 cents. The stock set a new 52-week high of $38.44 and closed the day up 9.2% at $37.35.

Out of the chute this morning, the S&P/Case-Shiller index rose 1.2% in July and gave the market a nice uptick for a while. Then came the report from the Conference Board that its consumer confidence index for September fell to 53.1 from 54.5 in August. What was worse is that economists had estimated a rise to 57 for the month. The soft confidence number is almost certainly due to people worried about losing their jobs. Right now, it could be that traders are waiting for Friday's unemployment report before jumping one way or the other. The negative news won out and the indexes traded down most of the day.

The numbers:

Dow

S&P 500

Nasdaq

TheStreet.com's Jim Cramer says managers are being judged on their exposure to this rally.

Did Abbott Laboratories (NYSE: ABT) (Cramer's Take) scare the shorts? Or was it so easy to get people to buy winners and sell losers at the end of the quarter that the market had to go higher? What makes a thin market levitate rather than decline?

I got to thinking about this and the incredibly bullish comments by one of my favorite strategists, Byron Wien -- comments that are even more bullish than usual for him -- and concluded that the single best thing that the bulls have going for them is that the market is up big and you look like a real knucklehead if you aren't invested or haven't made any money on the long side going into the fourth quarter.

Traders had on their rally caps today, and the DJIA moved as high as 9,823 as it renewed its ascent toward 10,000. The index moved back down a bit at the end of the day as traders got lazy during a session in which most of the news came before the bell.

Abbott Laboratories (NYSE: ABT) and Xerox Corporation (NYSE: XRX) both announced deals today that pumped some air into the M&A business. Financial shares are mostly moving higher because increased M&A activity generally means more fees for financial services companies. Trading volume was light, mostly due to the Yom Kippur holiday today.

Today's numbers:

Dow 9,789.44 +124.25 (1.29%)
S&P 500 1,062.88 +18.50 (1.77%)
Nasdaq 2,130.74 +39.82 (1.90%)

In the global tech industry, the services business has become a strategic asset. Last week, Dell (NASDAQ: DELL) agreed to shell out a whopping $3.9 billion for Perot Systems (NYSE: PER).

Now, there's another biggie deal: Xerox (NASDAQ: XRX) has agreed to pay $6.4 billion for Affiliated Computers Services (NASDAQ: ACS). Just like Dell, Xerox's core hardware business is undergoing lots of pressure. So why not expand into something else?

Affiliated Computer (NYSE: ACS) will be acquired by Xerox (NYSE: XRX) for $63.11 per share in cash and XRX stock. ACS shareholders will receive $18.60 per share in cash plus 4.935 XRX shares for each ACS share they own. ACS closed at $47.25. ACS October option implied volatility is at 27, November is at 28; below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.

US Airways (NYSE: LCC) closed of $4.96. WTI Crude futures are recently down .48% to $65.70 according to Bloomberg. LCC October option implied volatility is at 93, December is at 107; below its 26-week average of 120 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Today felt like one of those slow long pre-holiday trading days where many gainers and losers were seen with low volume. There was no real economic data to absorb and no real earnings reports to pick apart.

That let us only react to a small recovery from the fears that the US could ultimately have the same credit rating fears that were brought up about England yesterday. Here were today's unofficial closing bell levels:

Dow 8,278.04 -14.09 (-0.17%)
S&P 500 887.33 -1.00 (-0.11%)
Nasdaq 1,693.91 -1.34 (-0.08%)

Top Analyst Upgrades & Downgrades

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) reported better-than-expected Q1 results due to cost cutting.
• Best Buy Inc. (NYSE: BBY) received several upgrades ahead of its Q4 report on the demise of Circuit City.
• Blockbuster Inc. (NYSE: BBI) crushed analyst's expectations for Q4 as same-store sales rose.
• China Direct Industries Inc. (NASDAQ: CDII) Q4 earnings prospects resulted in an analyst's dowgrade.
• Darden Restaurants Inc. (NYSE: DRI) posted better-than-expected Q3 earnings and lifted its 2009 guidance.
• Energy Conversion Devices Inc. (NASDAQ: ENER) was downgraded after it lowered its guidance.
• FedEx Corp. (NYSE: FDX) fell short of Q3 earnings and revenue expectations due to economic conditions.

After days of rallying, the market decided that bank stocks had gone much too far. With no first quarter earnings out, the fact is that the current quarter could still be tough. Financial shares could still reset lower. The market reacted accordingly.

The unofficial numbers for the day broke out like this:

Dow 7,278.38 -122.42 (-1.65%)
S&P 500 768.54 -15.50 (-1.98%)
Nasdaq 1,457.27 -26.21 (-1.77%)

TOP ANALYST CALLS

Analyst upgrades:

• Citigroup upgraded WebMD (NASDAQ: WBMD) shares to Buy from Hold on valuation following the company's Q4 results and outlook. The firm maintains a $25 target on the stock.
  
• Goldman upgraded Verizon (NYSE: VZ) and AT&T (NYSE: T) to Buy from Neutral based on valuation and expectations for 2010 earnings growth.
• Roth upgraded Maxwell Tech (NASDAQ: MXWL) to Buy from Hold following the company's Q4 results to reflect strong ultracapacitor sales growth and gross margin improvement. The firm maintains a $12 target on the stock.
• Nara Bancorp (NASDAQ: NARA) was raised to Market Perform from Underperform at Friedman Billings.
• Cubic (NYSE: CUB) was upgraded to Neutral from Overweight at JP Morgan.
  
• Terex (NYSE: TEX) was lifted to Outperform from Market Perform at Wachovia.

U.S. stocks are poised to open lower as investors were spooked by bearish economic data from the U.K. that showed the economy there is in its worst shape since 1980 when Margaret Thatcher was Prime Minister. Concerns continue to linger about the U.S. economy and the potential nationalization of banks.

Markets may be bolstered by the in-line earnings report from General Electric Co. (NYSE:GE). Chief Executive Jeff Immelt reaffirmed the company's commitment to a "AAA" rating and its dividend. Investors were skeptical that either would be maintained. The conglomerate's results overall were poor.

Profit from continuing operations fell 43% to $3.87 billion, or 36 cents per share. Revenue fell 4.8% to $46.2 billion. Bloomberg News notes that GE shares traded at their lowest level since 1996 as investors worried about the impact of the economic slowdown on the company, in particular GE Finance.

Other stocks that may move include Google Inc. (NASDAQ: GOOG), which reported better-than-expected earnings allaying concerns that decliniing advertising spendnig would hurt the world's largest search engine. Whether the company will continue to weather the storm well remains to be seen. Google has been cutting costs as well, recently eliminating some recruiter postions and closing offices.

The litany of job cut announcements continue. Harley-Davidson Inc. (NYSE: HOG) plans to cut 1,100 over the next two years. after reporting worse-than-expected earnings. Playboy Enterprises Inc. (NYSE: PLA) is firing an unspecified number of workers to cut costs. There is no word if this move includes founder Hugh Hefner's former girlfriends from "The Girls Next Door." Xerox Corp. (NYSE: XRX) reported disappointing results after taking a big writedown for layoffs.

This week's rough week is not going to get any easier.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Eagle Outfitters Inc. (NYSE: AEO) saw lower Q3 results in the tough retail envirnoment.
• Analog Devices Inc. (NYSE: ADI) Q4 profit surged but it lowered its Q1 forecast due to slowing orders.
• Borders Group Inc. (NYSE: BGP) had dismal Q3 results and said it had ceased its quest to sell itself.
• Campbell Soup Co. (NYSE: CPB) solid Q1 results beat estimates but shares fell despite a market rally.
• Deere & Co. (NYSE: DE) fell short of Q4 profit expectations and guidance was below estimates.
• Dollar Tree Inc. (NASDAQ: DLTR) had a bigger-than-expected Q3 profit and raised its full-year outlook.
• D.R. Horton Inc. (NYSE: DHI) reported a wider Q4 loss as home sales revenue declined by 50%.
• Hewlett-Packard Co. (NYSE: HPQ) posted strong Q4 numbers that didn't quite match the preliminary results.
• Salesforce.com Inc. (NYSE: CRM) had strong results and an optimistic forecast despite economic conditions.
• Starbucks Corp. (NASDAQ: SBUX) lowered its fiscal 2009 forecast and warned of further restructuring.
• Tiffany & Co. (NYSE: TIF) Q3 earnings declined but topped expectations, and it announced staff reductions.
• Warner Music Group Corp. (NYSE: WMG) Q4 earnings beat expectations though revenues fell slightly.
• Xerox Corp. (NYSE: XRX) forecast a full-year profit in line with estimates and said it is confident in its liquidity.

Upcoming earnings releases include Sears (NASDAQ: SHLD), Staples (NASDAQ: SPLS), Aeropostale (NYSE: ARO), Del Monte Foods (NYSE: DLM), Guess (NYSE: GES), Novell (NASDAQ: NOVL), Toll Brothers (NYSE: TOL), Big Lots (NYSE: BIG), Royal Bank of Canada (NYSE: RY).

Visit AOL Money & Finance for more earnings coverage.

There was a short blurb about Xerox (NYSE: XRX) in the news on Monday. Management at the company wanted investors to know that it won't be needing to beg for the green stuff. Cash flow from operating activities, existing credit facilities, and a leaner business will carry the technology company through the current difficult period. Xerox gave a wide earnings range for 2009, saying it should book between $1 and $1.25 per share. Analysts are counting on $1.15 per share.

Well, that range makes it kind of difficult to predict how things will turn out in terms of whether the company will beat Wall Street or not; might as well flip a quarter. The more important thing to focus on is that Xerox will be profitable and that it is confident in its liquidity. The stock was up almost 18% at the close yesterday on nice volume. With the recent rally, should you look at Xerox as an investment, or a trade?

Xerox isn't one of my favorite stocks. I have no interest in it on a long-term basis. It just isn't a leading innovator these days, and there are way better alternatives out there if you want a core, long-term holding in the tech sector. Microsoft (NASDAQ: MSFT), Hewlett-Packard (NYSE: HPQ), and Apple (NASDAQ: AAPL) are three names off the top of my head I'd look at first.

Unemployment in September was 6.1%. That is higher than the 5% or so where it was late last year. But it is not a recession level. During the downturn that began in 1973, the number was closer to 9%.

It is clear that the pace of lay-offs is accelerating. Xerox (NYSE: XRX) laid off 5% of its staff. Rumors are that Goldman Sachs (NYSE: GS) will cut 10%. Given that these companies are at different ends of the spectrum of the U.S. economy, the news speaks volumes.

According to Reuters, "As companies look at their prospects for the final quarter of the year and begin to see increasingly grim outlooks for 2009, they are cutting jobs from many different parts of their businesses."

Total employment in the U.S. is about 144 million people. That means if unemployment rise another 3%, another 4.5 million people could be out of work.

Leaving aside the human suffering, the amount of money the government would have to pay to support these people would be incredible. That number of people out of work would also increase foreclosures, credit card and auto defaults.

Looked at through the prism of the work force the recession is going to be very deep and very long.

Douglas A. McIntyre is an editor at 24/7 Wall St.

U.S. stock futures once again were lower this morning, albeit more moderately, pointing to another lower start and possibly another down day following Wednesday's declines. Investors concern over the economy remained unabated, especially in light of recent and future corporate profits. This morning, weekly initial jobless claims will be released an hour ahead of the opening bell, and the numbers are expected to show yet another increase. Meanwhile, investors will continue to eye oil prices, which rebounded from a 16-month low to above $67, and foreclosures, which grew by 71% in the third quarter compared with the same period in 2007.

Sony Corp. (NYSE: SNE) drastically lowered profit and sales forecasts for the fiscal year Thursday, blaming weaker electronics sales and the stronger yen.

Goldman Sachs Group Inc (NYSE: GS) is joining many other companies recently announcing layoffs as it also plans to cut about 3,260 jobs, representing about 10% of its total staff.

Amazon.com Inc. (NASDAQ: AMZN) reported a 48% climb in profit in the third quarter on strong sales of electronics, beating analyst estimates. But the company reduced its full-year profit outlook. AMZN shares traded down 14% in after-hours action.