Markets were mixed into the closing bell today and down to the wire as indexes fluctuated between positive and negative. The FOMC kept rates at zero and committed to ongoing quantitative easing measures, which includes reinvesting monies coming in from its existing securities portfolio. Retail and electronics were weak based on an earnings disappointment.

Here were today's unofficial closing bell levels:

Dow Jones 11,476.62 +48.06 (0.42%)
S&P 500 1,241.58 +1.12 (0.09%)
Nasdaq 2,627.72 +2.81 (0.11%)

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In the middle of the summer with the stock market smoldering from the economic aftershocks of the BP (BP) oil spill, I decided to post a contrarian story emphasizing a very common refrain among value investors, "my pal Warren" being head of the class: buy on fear (sell on greed). This notion is continuing to work for what I called the toxic stock portfolio.

This is the third update to my ranting five months ago that six of the most reviled and most highly traded stocks featured by daily bad press as a group would outperform the overall market. It has, with the big winner rising from being one of the biggest losers.

The markets looked like they were set for a bad day this morning, after the solid jobs data that was expected turned into a weakening jobs data. TrimTabs actually disputed that data and stocks rallied. The deficit panel also failed to win a super-majority vote. Amazingly, the markets rallied at the end of the day. That, and the rally of the two prior days, made this the best week in a month.

Here were the unofficial closing bell levels:

Dow Jones 11,382.09 +19.68 (0.17%)
S&P 500 1,224.71 +3.18 (0.26%)
Nasdaq 2,591.46 +12.11 (0.47%)

Some may think that this was a full day for investors. It wasn't. Many investment professionals were still heading back after a long Thanksgiving weekend. Overseas markets were soft and many question the bailout in Ireland. Oil rose on the day after dollar weakness and the U.S. markets managed a serious comeback after dollar weakness that almost took markets from deep in the red-zone to almost positive before late-day sellers showed up. Maybe that DJIA 11,000 matters after all...

Here were today's closing bell levels:

Dow Jones 11,052.49 -39.51 (-0.36%)
S&P 500 1,187.76 -1.64 (-0.14%)
Nasdaq 2,525.22 -9.34 (-0.37%)

In a move intended to help it cover costs related to the oil spill in the Gulf of Mexico, BP (BP) has agreed to sell its 60% stake in Pan American Energy in South America. BP will collect more than $7 billion over the next year and the sale will give joint-venture partner Bridas Group control of the company.

This deal is the most recent in a series of BP asset sales intended to raise funds to cover the estimated $40 billion cost of the Deepwater Horizon disaster. BP says it has spent more than $5 billion so far. The company is estimated to have shrunk by nearly a quarter since the oil spill began last spring.

Analyst Upgrades

• Goldman upgraded BP (BP) to buy from neutral.
• STEC (STEC) was upgraded to buy from hold at Needham.
• MCG Capital (MCGC) was upgraded to buy from hold at BB&T.
• Corporate Office (OFC) was upgraded to market perform from underperform at FBR Capital.
• Citigroup upgraded K-Sea Transportation (KSP) and Post Properties (PPS) to hold from sell.
• BofA/Merrill upgraded Embraer (ERJ) to buy from underperform.
• Wilmington Trust (WL) was upgraded to neutral from underperform at Macquarie.
• Parkway Properties (PKY) was upgraded to hold from sell at Stifel Nicolaus.

Today was a day that was media-heavy on election day as the markets were pricing in some Republican party recovery in the House and Senate. That remains to be known until tonight, barring any recounts or run-offs. The other issue that added support was the hope of a large quantitative easing measure tomorrow at 2:15 PM EST. Much of that is supposed to be priced in and the verdict is still out. Either way, this was a solid day where stocks rose, bond prices rose, oil rose, and gold all rose.

Here are today's unofficial closing bell levels:

Dow Jones 11,188.72 +64.10 (0.58%)
S&P 500 1,193.57 +9.19 (0.78%)
Nasdaq 2,533.52 +28.68 (1.14%)

Top Analyst Calls

BP's (BP) third quarter profit took a 66.5% hit, down to $1.79 billion, compared to $5.34 billion in the third quarter of 2009. Diluted earnings per share were 9.4 cents, down from 28.2 cents in 2009, according to the Wall Street Journal (subscription required).

BP took another $7.66 billion of charges due to the oil spill. These extra charges stem from costs related to the cost of the spill response, containment, relief well drilling, grants to states, claims paid and federal costs, bringing the total close to $40 billion.

Early Tuesday morning, oil giant BP (BP) is scheduled to release its third-quarter 2010 financial results, the same quarter in which the disastrous Gulf oil spill was finally capped. So what are the analysts surveyed by Thomson Reuters expecting?

During the three months that ended in September, London-based BP also announced post-Gulf spill changes and plans to reinstate its dividend. Its earnings for that period are forecast to come to $1.51 per share, which is about the same as in the year-ago period. But revenue is expected to be 6.8% higher year over year to $72.5 billion.

The Financial Times reported on a U.S. investigation that claims that BP (BP) and Halliburton (HAL) knew that the cement used to seal the failed well was unstable.

The lawyers suing BP and Halliburton call this evidence a "game changer" and says it opens up the companies to penalties and court awards running into the billions of dollars.

The case rests on a finding by a U.S. federal panel that the cement used may have caused the fatal explosion on the Deepwater Horizon.

Halliburton (HAL) shares, closed up 0.5% Friday. On Thursday, shares sold off 8% after the National Commission said Halliburton cement at the BP's (BP) Deepwater Horizon well was unstable. Call option volume of 72K contracts compares to put volume of 69K contracts. November put option implied volatility is at 48, December and January is at 43; versus its 26-week average of 41 according to Track Data. Large option volume suggests traders positioning for larger price movement.

Intrepid Potash (IPI) closed up 4% as analysts raised their fertilizer price forecasts. November 37 calls and 40 calls are active with total call option volume of 9K contracts (2K puts). November option implied volatility is at 55, January is at 46; above its 26-week average of 44 according to Track Data. Large call volume suggests traders positioning for large price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

A very common refrain among value investors, "my pal Warren" being head of the class, is buy on fear (sell on greed), and it is working with the toxic stock portfolio.

This is the second update to my ranting twelve weeks ago that the six most highly traded stocks receiving the most bad press would be a great contrarian investment, and that this group would outperform the overall market without much difficulty.

It was true earlier, and it is still true today as the DJIA topped 11,000 again. The toxic stocks list includes Bank of America (BAC), Citigroup (C), General Electric (GE), BP (BP), Goldman Sachs (GS) and Transocean (RIG).

Stocks to sell that spring to mind right now are probably not in the energy sector. Crude oil prices are up 16% in six weeks. Dividend investors continue to seek out low-risk, high-yield stock picks. So you would think that the major crude oil and energy stocks are good buys right?

Wrong. The fact of the matter is that as we enter another earnings season, the numbers just aren't there for many crude oil blue chips. Even with oil prices improving right now, the ship has sailed on Q3 and those profits are all over but the counting. And as many investors will see soon, those profits may not be as healthy as many crude oil stocks would like.

Oil major BP (BP) could restore its dividend as soon as the first quarter of 2011, according to new CEO Bob Dudley. Speaking on BBC television today, Dudley explained, "The board will get together and talk before the end of the year about restoring a dividend in some form in the first quarter."

The new chief executive went on to clarify, "It's obviously for the board to decide," but added, "I believe we will get there." Dudley also said that he's comfortable with the amount of funds set aside to cover BP's liabilities stemming from the catastrophic Gulf of Mexico spill. "Generally, we're in, I think, good shape," he stated.

Stocks were up by the end of the session, but today's direction felt more whip-saw than set in any solid direction. A record-high gold price and a falling dollar came after consumer confidence managed to come in much weaker than expectations.

Here were the unofficial closing bell levels:

DJIA
S&P500
NASDAQ

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