Analyst Upgrades

• Red Hat (RHT) to outperform from neutral at RW Baird.
• Cogdell Spencer (CSA) to buy from hold at Citigroup.
• Micron (MU) to neutral from reduce at Nomura.
• El Paso Electric (EE) to buy from hold at Jefferies.
• MICROS Systems (MCRS) and Harmony Gold (HMY) to outperform from sector perform at RBC Capital.
• Meridian Bioscience (VIVO) to buy from hold at Canaccord.
• Verso Paper (VRS) to outperform from neutral at Credit Suisse.
• Sony (SNE) to buy from hold at Deutsche Bank.
• Noble Corp. (NE) and Baker Hughes (BHI) to buy from neutral at UBS.
• Tyson Foods (TSN) and Smithfield Foods (SFD) to buy from hold at BB&T.

Analyst Upgrades

• Tyson Foods (TSN) to buy from hold at Deutsche Bank.
• Carmike Cinemas (CKEC) to buy from neutral at Merriman.
• Ambow Education (AMBO) to conviction buy from neutral at Goldman.
• Johnson Controls (JCI) to overweight from equal weight at Barclays.
• Dynex Capital (DX) to outperform from market perform at JMP Securities.
• Ensco (ESV) to outperform from neutral at Credit Suisse.
• York Water (YORW) to buy from hold at Brean Murray.
• Mid-America Apartment (MAA) to market perform from underperform at FBR Capital.
• Cheniere Energy Partners (CQP) to hold from sell at Citigroup.
• Forest Oil (FST) to positive from neutral at Susquehanna.
• Tractor Supply (TSCO) to outperform from neutral at RW Baird.

If, as outlined in December, you took advantage of Tyson Foods' (TSN) dip to about $14.40, you made the correct move. First discussed here on May 11, 2009, at a price of $12.35, Tyson has moved north this winter, but with volatility, to about $19, and I still like the shares here.

In 2011, Tyson's revenue should increase about 3-4%, as food demand rises in-sync with the U.S. and global economic expansions. Chicken and beef margins should widen. Modest pricing power also will continue.

Tyson Foods (TSN) is on the front line of food inflation. While the Federal Reserve holds that inflation is just 2%, Donnie Smith, CEO of Tyson said that "domestic food inflation will likely overtake U.S. government forecasts as crop and animal feed prices continue to rise," The Wall Street Journal reported.

Last week, Tyson reported a profit of $298 million for the quarter to Jan. 1, compared with $160 million a year ago. Per share earnings rose to 78 cents from 42 cents. Revenue was up 15% to $7.6 billion.

Analyst Upgrades

• Boeing (BA) to overweight from neutral at JPMorgan.
• Alcoa (AA) to buy from hold at Deutsche Bank.
• BP (BP) to outperform from market perform at Raymond James.
• Office Depot (ODP) and Staples (SPLS) to buy from neutral at Janney Capital.
• ON Semiconductor (ONNN) to buy from hold at Citigroup.
• Kennametal (KMT) and Polyone (POL) to buy from hold at KeyBanc.
• Airgas (ARG) to outperform from market perform at William Blair.
• EchoStar (SATS) to neutral from underperform at Macquarie.

Food producer Tyson Foods (TSN), first discussed here on May 11, 2009, at a price of $12.35, finally appears to have found some traction, and I obviously still like the shares at this stage.

The shares of Tyson downtrended in bear-hug fashion for much of 2010, walking down to about $15 from $20. However, since then the shares found support at $15 and have since popped back up above $17, including a nice move above the key, 50-day moving average.

Analyst Upgrades

• Sapient (SAPE) to outperform from market perform at Wells Fargo.
• Kroger (KR) to buy from neutral at UBS.
• Harman (HAR) to overweight from neutral and Deutsche Bank (DB) to neutral from underweight at JPMorgan.
• Savient (SVNT) to outperform from market perform at JMP Securities.
• LabCorp (LH) to buy from hold at Deutsche Bank.
• Optimer Pharm (OPTR) and Landstar System (LSTR) to outperform from neutral at RW Baird.
• Essex Property Trust (ESS) to buy from neutral at Janney Capital.
• Tyson Foods (TSN) to neutral from sell at Goldman.
• Host Hotels (HST) to outperform from sector perform at RBC Capital.
• SPX Corp. (SPW) to outperform from market perform at FBR Capital.

Among the quarterly results scheduled for this holiday-shortened week, investors may be thankful for the earnings results from Tyson Foods (TSN). The Arkansas-based poultry and meat producer reported on its sustainability efforts and also was named McDonalds' (MCD) supplier of the year during its fiscal fourth quarter. Analysts polled by Thomson Reuters forecast earnings for that period to have doubled from a year ago to 56 cents per share.

Tyson is also expected to post revenue of $7.8 billion for the three months that ended in September, which is 7.4% more than in the same period of fiscal 2009. And the consensus estimate for the full year calls for earnings of $2.08 per share (+87.0%) and revenue of $28.7 billion (+7.3%). Tyson's earnings have been better than expected in recent quarters, beating consensus estimates by as much as 24 cents per share.

As is often the case, growth and recovery in America begins at ground level. Current upbeat news from regional food producers is signaling good news for many companies, including Deere & Company (DE). While developing industrial bases such as China and India have taken on the lion's share of mid to heavy manufacturing duties, they are also developing increased needs to feed hungry work forces. Indeed, they are also developing the capital to feed those needs.

The spin-off from this morphing consumption dynamic is a surge of growth in America's agricultural and food production sectors. Indications are that the increased demands being put upon American agricultural output is fueling an increased demand for heavy weight farm tractors and is requiring food processing facility expansions. "Sales of 100-horsepower tractors, which cost about $75,000 to $100,000 each, were up 27 percent last month over the same month last year, said Charlie O'Brien, vice president of agricultural services for The Association of Equipment Manufacturers, in an Associated Press interview.

Earnings season has kicked off and Wall Street has decided to ignore the bad jobs numbers from this morning in favor of quantitative easing coming from Ben Bernanke and friends at the Fed. Today we also finally broke 11,000 on the DJIA and are within about 3% of a year high now.

Here were today's closing bell levels:

Dow Jones 11,006.48 +57.90 (0.53%)
S&P 500 1,165.15 +7.09 (0.61%)
Nasdaq 2,401.91 +18.24 (0.77%)

TOP ANALYST CALLS

There seem to be some ruffled feathers in the world of poultry. Shares of Tyson Foods (TSN) lost a hefty 2.75% Monday.

The Chinese government has decided that American chicken is being sold too cheaply in China. To prevent American poultry producers from further chicken "dumping," the commerce ministry is imposing new tariffs -- in some cases exceeding 100% -- on the imported birds for a period of five years. A lower tariff was already introduced earlier this year.

Goldman Sachs recently initiated its coverage of Tyson Foods Inc. (TSN) by placing the stock on its Conviction Sell List, but I think this meat producer may have gotten a raw deal.

Monday morning, Tyson Foods reported its results for the fiscal third quarter of $242 million, or 65 cents per share, up approximately 86% from the same period last year. The company reported strong sales of $7.44 billion and said it expects demand to increase further next year.