Analyst Upgrades

• Polo Ralph Lauren (RL) to neutral from underperform at BofA/Merrill.
• Sigma-Aldrich (SIAL) to outperform from market perform at Leerink.
• Petrobras (PBR) to overweight from equal weight at Barclays.
• Silvercorp Metals (SVM) to buy from neutral at UBS.
• PROS (PRO) to buy from hold at Jefferies.
• Power Integrations (POWI) and Monolithic Power (MPWR) to buy from neutral at Roth Capital.
• Diodes (DIOD) to outperform from neutral at RW Baird.
• Whole Foods (WFMI) to hold from sell at Hapoalim.
• Sinclair Broadcast (SBGI) to overweight from neutral at JPMorgan.
• Sappi (SPP) to outperform from neutral at Macquarie.
• Alpha Natural (ANR) to buy from hold at BB&T.
• Watts Water (WTS) to buy from hold at Brean Murray.

Coca-Cola (KO) has more than $13 billion in cash.

The top five companies (according to market cap) are:

• Exxon Mobil (XOM): $398.3 billion
• Apple (AAPL): $309.0 billion
• Microsoft (MSFT): $237.5 billion
• General Electric (GE): $215.0 billion
• Berkshire Hathaway (BRK.A): $202.5 billion

CNOOC Limited (CEO) announced that it's buying into several shale oil and gas leases in the U.S. owned by Chesapeake Energy Corporation (CHK) for $570 million. CHK overall option implied volatility of 31 is below its 26-week average of 35, according to Track Data, suggesting decreasing price movement.

Alpha Natural Resources (ANR) and Massey Energy Company (MEE) announced that they signed a definitive agreement for Massey stockholders to receive 1.025 shares of Alpha common stock and $10 in cash for each share of Massey common stock. Massey options were active on Jan. 28 with 134,000 contracts trading and overall option implied volatility at 58, above its 26-week average of 50, according to Track Data.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Alpha Natural Resources (ANR - option chain) stock is trading lower today after the company announced over the weekend that it will acquire Massey Energy (MEE) in a $7.1 billion cash and stock deal. Under the deal, MEE shareholders will receive 1.025 shares of ANR plus $10 in cash for each MEE share held. Since this deal values MEE about 10% higher than its closing price from Friday, ANR stock is headed lower since it is essentially overpaying to buy Massey.

This kind of movement is typical of a buyout situation, and ANR would not enter the deal if they didn't think it was a good idea in the long-term. However, the short-term is a different story, and if you think this stock won't be rising too far in the coming months, then it could be a good time to look at a short-term bearish hedged play on ANR.

Analyst Upgrades

• Yingli Green (YGE) to outperform from market perform at Wells Fargo.
• National Semiconductor (NSM) to outperform from market perform at FBR Capital.
• DuPont (DD) to buy from hold at Citigroup.
• Blackboard (BBBB) to overweight from neutral at JPMorgan.
• Kindred Healthcare (KND) to buy from hold at Jefferies.
• Peabody Energy (BTU) to outperform from market perform at BMO Capital.
• Savvis (SVVS) to buy from neutral and InterActiveCorp (IACI) to neutral from underperform at BofA/Merrill.

Massey Energy (MEE) closed up $4.80 to $46.94 on reports that Alpha Natural (ANR) may buy the company, DJ says. December and January 55 calls are active on total call volume of 58K contracts, compared to put volume of 23K puts. November call option implied volatility is at 53 and January is at 48, compared to its 26-week average of 52. Increasing option volume suggests traders are positioning for price movement.

CBOE Volatility Index (VIX) closed down 29 cents to $18.23, near a six-month low after EPS, elections, FOMC meeting and October employment report.

CBOE option volume leaders today: Bank of America (BAC), Las Vegas Sands (LVS) JPMorgan (JPM) and Citigroup (C).

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Friday was one of those days that we finally got jobs creation of more than double the expected rate, with 151,000 jobs reported. Unfortunately, that was somewhat expected and the jobs data was before the election, before QE2, and before administration negotiation hopes on taxes. Banks tried to continue their surge along with technology, which needs to happen for the rally to continue.

Here were today's unofficial closing bell levels:

Dow Jones 11,444.08 +9.24 (0.08%)
S&P 500 1,225.85 +4.79 (0.39%)
Nasdaq 2,578.98 +1.64 (0.06%)

Top Analyst Calls
Next Week's Top Earnings

Analyst Upgrades

• Wells Fargo upgraded PG&E (PCG) to outperform from market perform and raised its range for shares to $50 to $52 from $44 to $46, citing the proposed settlement in the company's 2011 General Rate Case.
• Jefferies upgraded Huntsman (HUN) to buy from hold and raised its price target for shares to $17 from $12, citing valuation and the likelihood for favorable earnings revisions.
• RBC Capital upgraded Jack in the Box (JACK) to outperform from sector perform with a $28 target, citing checks showing improved fast food sales in recent months and easy comps.
• Sonic (SONC) was upgraded to outperform from sector perform at RBC Capital and $12 price target.
• Synaptics (SYNA) was upgraded to overweight from neutral at JPMorgan and $40 price target.
• Excel Maritime (EXM) was upgraded to buy from hold at Cantor and raised its price target to $7 from $5.

Analyst Upgrades

• JPMorgan upgraded AstraZeneca (AZN) to neutral from underweight after the company's U.S. Crestor patent was ruled valid. The firm believes the ruling could lead to AstraZeneca announcing a sizeable share buyback program. AstraZeneca was also upgraded to buy from neutral at BofA/Merrill and to hold from underperform at Jefferies.
• Deutsche Bank upgraded Peabody Energy (BTU) to buy from hold, citing valuation and attractive fundamentals in the coal sector. The firm has a $57.50 price target for shares, and also maintains buy ratings on Arch Coal (ACI) and Alpha Natural (ANR).
• Oppenheimer upgraded NextEra Energy (NEE) to outperform from perform, citing valuation and an improving regulation outlook in Florida. The firm maintains a $55 price target for shares.
• Eaton Vance (EV) was upgraded to buy from neutral at BofA/Merrill.
• Dynamex (DDMX) was upgraded to overweight from equal weight at Stephens.
• Soleil upgraded RPM (RPM) to buy from gradually accumulate.

Analyst Upgrades

• Wells Fargo upgraded Home Properties (HME) to outperform from market perform. The firm thinks that rental rate in the Northeast and mid-Atlantic are poised to increase, while Home Properties provides relatively cheap access to these markets.
• Deutsche Bank upgraded VeriSign (VRSN) to buy from hold after the company sold its authentication business to Symantec (SYMC). The firm upped its target for VRSN shares to $35 from $25.
• Macquarie upgraded Nexen (NXY) to outperform from neutral following the company's divestiture of its noncore heavy-oil properties in Western Canada.
• UPS (UPS) was upgraded to buy from hold at Stifel Nicolaus.
• Dell (DELL) was upgraded to buy from hold at Standpoint Research.
• Emerson Electric (EMR) was upgraded to outperform from market perform at Bernstein.

Analyst upgrades:

• Stephens upgraded Quidel (QDEL) to equal weight from underweight on valuation following the recent pullback in shares. The firm keeps a $16 price target on the stock.
• UBS upgraded Clearwire (CLWR) to neutral from sell, citing the company's funding, which increases opportunities. The firm raised its price target to $6 from $3.
• Oppenheimer upgraded Mattson Technology (MTSN) to outperform from perform on expectations the company will benefit from a cyclical recovery in memory capex spending in 2010. The firm raised its target on shares to $4 from $3.
• Eli Lilly (LLY) was upgraded to sell from conviction sell at Goldman.
• Kinross Gold (KGC) was upgraded to overweight from neutral at JPMorgan.
• Limited Brands (LTD) was upgraded to hold from sell at Soleil.

Analyst upgrades:

• Wells Fargo upgraded Prudential (PRU) to outperform from market perform. The firm thinks the company is in a better position than its peers and will be able to more effectively exploit M&A opportunities.
• UBS upgraded Reliance Steel (RS) to buy from neutral based on potential growth through M&A and valuation. The firm raised its target to $50 from $49.
• Deutsche Bank upgraded Eastman Chemical (EMN) to buy from hold on expectations the company's portfolio transformation will drive higher normalized earnings power, which the firm believes is not fully reflected in consensus estimates. Deutsche raised its target price on shares to $70 from $62.
• Amylin Pharma (AMLN) was upgraded to overweight from equal weight at Barclays.
• Cephalon (CEPH) was upgraded to buy from hold at Jefferies.
• Acuity Brands (AYI) was upgraded to outperform from perform at Oppenheimer.

Analyst upgrades:

• Barclays upgraded Dollar Tree (NASDAQ: DLTR) to Overweight from Equal Weight and raised its target to $64 from $48 following the better-than-expected Q2 report.
• Cowen upgraded Whirlpool (NYSE: WHR) to Outperform from Neutral. The firm cites stabilizing demand trends and recovering margins for the upgrade.
• Susquehanna upgraded Isle of Capri (NASDAQ: ISLE) citing weakness following the weak quarter. The firm, which has a $13 target on shares, expects regional operators to benefit from improving macro trends quicker than destination markets.
• Senior Housing (NYSE: SNH) was upgraded to Outperform from Market Perform at Wells Fargo.
• Barclays (NYSE: BCS) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• CGI Group (NYSE: GIB) was upgraded to Buy from Speculative Buy at Canaccord.

Analyst upgrades:

• Citigroup upgraded Brightpoint (NASDAQ: CELL) to Buy from Hold on expectations global handset units will trough in 2009, leading to a higher multiple for the stock. Citi raised its target on shares to $9 from $6.50.
• FBR Capital upgraded Rosetta Resources (NASDAQ: ROSE) to Outperform from Market Perform on valuation and believes drilling results in Q3 and Q4 should serve as near-term catalysts. The firm raised its target on shares to $15.
• Piper Jaffray upgraded Echelon (NASDAQ: ELON) to Neutral from Underweight following the company's contract announcement with Duke Energy (NYSE: DUK). The firm raised its target on shares to $10 from $6.
• Smith & Nephew (NYSE: SNN) was upgraded to Equal Weight from Underweight at Morgan Stanley.
• Schawk (NYSE: SGK) was upgraded to Neutral from Underperform at Baird.
• Alpha Natural (NYSE: ANR) was upgraded to Outperform from Market Perform at BMO Capital.

Analyst upgrades:

• UBS upgraded Wendy's/Arby's (NYSE: WEN) to Buy from Neutral and raised its target to $5.50 from $4.90 based on improving sales momentum at Wendy's and potential improvements at Arby's.
• Goldman upgraded 3M (NYSE: MMM) to Buy from Neutral and raised its target to $85 from $78. The firm cites 3M's short-cycle exposure and relative valuation for the upgrade.
• Thomas Weisel upgraded JCPenney (NYSE: JCP) to Market Weight from Underweight citing comfort in the company's intermediate-term recovery potential.
• UBS AG (NYSE: UBS) was upgraded to Buy from Hold at ING Group.
• Gap (NYSE: GPS) was upgraded to Overweight from Equal Weight at Barclays.
• Alliance Healthcare (NYSE: AIQ) was upgraded to Outperform from Market Perform at Wells Fargo.