NEW YORK (CNN/Money) - Merrill Lynch cut estimates on General Electric and Luxottica ahead of the open Friday and forecast advertising in the United States to rise in 2003.

In a morning note, Merrill Lynch cut its 2002 earnings estimate on General Electric (GE: Research, Estimates) to $1.51 a share, matching the conglomerate's revised guidance Thursday based on an anticipated $1.4 billion charge, and cut its 2003 estimate to $1.60 a share from $1.65. Shares of GE gained $2.05 to $26.85 Thursday.

Merrill dropped its 2003 earnings estimates for eyewear maker Luxottica (LUX: Research, Estimates) by 11 percent and slashed its 2004 forecast by 10 percent a day after the company and fashion designer Georgio Armani said they will end a longstanding deal. U.S. shares of Luxottica slipped $2 to $12 Thursday.

The firm increased its price target on Flextronics (FLEX: Research, Estimates) to $15 a share from $13, saying the firm thinks the company continues to offer attractive valuation. Shares of Flextronics gained $1.01 to $10.50 Thursday.

Also, based on a survey the firm conducted, Merrill Lynch forecast that U.S. advertising will rise 4 percent in 2003.

J.P. Morgan upgraded Serena Software (SRNA: Research, Estimates) to "neutral" from "underweight, " citing the company's "healthy quarter." Shares of Serena gained 55 cents to $17.86.

The firm also raised its rating on Schlumberger (SLB: Research, Estimates) to "overweight" from "neutral," citing the company's valuation. Shares of the information technology provider for the energy industry rose$1.38 to $43.88 Thursday.

UBS Warburg downgraded graphic and communications processor maker nVidia (NVDA: Research, Estimates) to "reduce" from "hold." Shares of the company fell $1.13 to $15.01 in pre-market trading.

Salomon Smith Barney downgraded Siebel (SEBL: Research, Estimates) citing license revenue issues, and also downgraded rival business software maker PeopleSoft (PSFT: Research, Estimates). Shares of Siebel slid 57 cents to $8.10 in pre-market trading.