Analyst Upgrades

• Siemens (SI) to buy from hold at Deutsche Bank.
• Diamond Offshore (DO) to market perform from underperform at FBR Capital.
• MeadWestvaco (MWV) to conviction buy from neutral at Goldman.
• TD AmeriTrade (AMTD) and Cabot Oil & Gas (COG) to buy from neutral at BofA/Merrill.
• Janus Capital (JNS) to hold from sell at Citigroup.
• Motorola Mobility (MMI) to buy from neutral at UBS.
• Frontier Communications (FTR) to neutral from underperform at Macquarie.
• Humana (HUM) to buy from hold at Argus.

Analyst Upgrades

• General Growth (GGP) to outperform from neutral at Credit Suisse.
• PPL Corp. (PPL) to outperform from market perform at FBR Capital.
• Hudson City Bancorp (HCBK) to neutral from reduce at Nomura.
• Hologic (HOLX) to conviction buy from buy at Goldman.
• Cognex (CGNX) to overweight from neutral at Piper Jaffray.
• Buckeye Partners (BPL) to outperform from market perform at Wells Fargo.
• Ericsson (ERIC) and Health Care REIT (HCN) to buy from neutral and Olin (OLN) to neutral from sell at UBS.
• Nalco (NLC) to overweight from neutral at JPMorgan.
• Watts Water (WTS) to buy from hold at BB&T.
• McDermott (MDR) to buy from neutral at Pritchard.

Analyst Upgrades

• inContact (SAAS) to buy from neutral at Roth Capital.

Analyst Downgrades

• Ericsson (ERIC) to neutral from buy at Goldman.
• Hovnanian (HOV) to underperform from buy at BofA/Merrill.
• PrivateBancorp (PVTB) to market perform from outperform at BMO Capital.
• Logitech (LOGI) to neutral from outperform at Exane BNP Paribas.

Allergan (AGN - option chain) shares are rising today after the company announced FDA approval of Allergan's Botox for use as a treatment for chronic Migraine headaches on Friday after the close of trading. This opens an entirely new market for that drug, which was almost exclusively used for cosmetic purposes. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AGN.

AGN opened this morning at $71.97. So far today the stock has hit a low of $71.14 and a high of $72.56. As of 12:10, AGN is trading at $72.43 up $3.57 (5.2%). The chart for AGN looks bullish and S&P gives AGN a positive 4 STARS (out of 5) buy ranking.

As the opening bell sounded and stocks got off to a sluggish start, I decided to take a look for stocks that got off to a fast start. One of those stocks is Botox-maker Allergan (AGN). In early trading, the pharmaceutical firm was more than a percentage point higher, so I took to digging to find out why.

The biggest news I found for Allergan was that it entered into an Amended and Restated License, Development and Marketing Agreement with Inspire Pharmaceuticals. The agreement deals with terms related to the Prolacria 2% development program and Inspire's right to receive revenues from Allergan relating to net sales of Restasis and any other human opthalmic formulations of cyclosporine owned or controlled by Allergan. Simply put, Inspire will receive revenues on net sales of Restasis and any related cyclosporine-based medicines.

Drug manufacturer Allergan, Inc. (AGN) will be reporting its second quarter results on Monday, with analysts expecting to see an 8% earnings increase from the same period last year.

Analysts have forecast earnings of $0.81 for the quarter, versus $0.75 during the same period last year.

Allergan has managed to outpace analyst estimates for each of the past six quarters, and has not failed to at least match estimates since the first quarter of 2007.

If you're interested on taking a bet on a potential high-flyer, you might want to take a look at Allergan (AGN).

Goldman Sachs recently said they expect more M&A activity in pharmaceutical and that Allergan is a prime candidate for a takeover. Sanofi-Aventis (SNY) and Eli Lilly & Co. (LLY) are two companies analysts are speculating may be interested in acquiring Allergan.

Goldman also upgraded its price target for Allergan on its Conviction Buy List from $78 to $81.

Alcoa, Inc. (AA) is expected to report Q2 EPS on July 12. AA overall option implied volatility of 52 is above its 26-week average of 46 according to Track Data, suggesting larger movement.

Advanced Micro Devices, Inc. (AMD) is expected to report Q2 EPS on July 15. AMD July put option implied volatility is at 58, August and October is at 53; verses its 26-week average of 52. AMD option volume of 64K contracts compares to put volume of 11K contracts, according to Track Data suggesting traders taking positions for price movement.

It appears that U.S.-based drug makers and cigarette companies caught the attention of traders Tuesday -- at least, that's what they're searching for.

If you want to know what stocks traders are interested in right now at this very second, you need look no further than what's hot in Google.

Here's what's hot Friday:

Allergan (AGN - option chain) shares are rising today after the FDA approved Allergan's drug Botox for treatment of increased muscle stiffness in the elbow, wrist and fingers in adults with upper limb spasticity. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AGN.

AGN opened this morning at $62.60. So far today the stock has hit a low of $61.90 and a high of $62.78. As of 12:00, AGN is trading at $62.42 up $1.07 (1.7%). The chart for AGN looks neutral and S&P gives AGN a neutral 3 STARS (out of 5) hold ranking.

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

• Aetna Inc. (NYSE: AET) reported better-than-expected Q3 earnings and revenue, sending shares higher.
• Allergan Inc. (NYSE: AGN) reported better-than-expected Q3 numbers, sending shares higher.
• Bare Escentuals Inc. (NASDAQ: BARE) Q3 profit easily topped analysts' estimates, and shares surged.
• Cabot Oil & Gas Corp. (NYSE: COG) received an upgrade following the release of its Q3 numbers.
• Estee Lauder Companies Inc. (NYSE: EL) reported strong Q1 results, sending shares higher.
• E*Trade Financial Corp. (NASDAQ: ETFC) reported a smaller-than-expected net loss for Q3.
• Goodyear Tire & Rubber Co. (NYSE: GT) Q3 earnings topped estimates and revenue was up sequentially.

As Jon Ogg reported, Allergan, Inc. (NYSE: AGN - option chain) rallied sharply on Tuesday amid rumors that GlaxoSmithKline (NYSE: GSK) was mulling a takeover bid. Speculative investors jumped all over the news, as option volume on AGN skyrocketed well beyond normal levels yesterday. Interestingly enough, it seems that some traders took advantage of the stock's surge to initiate new bearish positions.

Specifically, AGN on Tuesday saw 15,850 puts cross the tape, which represents about 14.5 times its average daily put trading volume. Meanwhile, 59,943 call contracts changed hands, marking 11.5 times the norm.

Today's lack of a rally came with little surprise. The massive gains yesterday were reminders of the panic buying seen in the past. Profit takers used the strength to unload on the new buyers who chased stocks yesterday.

Confusing housing data caused another brief hope because of an uptick, but that was following a downward revision. The Geithner-Bernanke testimony to Congress today did very little for the markets. Here were today's unofficial closing bell levels:

Dow 7,660.37 -115.49 (-1.49%)
S&P 500 806.37 -16.55 (-2.01%)
Nasdaq 1,518.70 -37.07 (-2.38%)

Top Analyst Upgrades & Downgrades

Merck (NYSE: MRK) is recently trading at $25.54 in pre-open trading, below its close of $26.46. MRK expects 2009 top-line growth will be offset by the effects of a volatile global economy. MRK December option implied volatility of 70 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Allergan (NYSE: AGN) discovers and develops specialty pharmaceutical products. AGN closed at $36.20. AGN's Latisse (Bimatoprost for eyelash growth) PDUFA date is expected in mid-year 2009. AGN December option implied volatility is at 76, July is at 55; above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Celgene (NASDAQ: CELG), a biopharmaceutical company, closed at $52.60. CELG's Revlimid's (non-Hodgkin's lymphoma treatment) incremental Phase 3 data on Revlimid in first line multiple myeloma is expected at the American Society of Hematology (ASH) meeting on December 6 to December 9. CELG December option implied volatility of 75 is above its 26-week average of 53 according to Track Data, suggesting larger price movement.

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

TheStreet.com's Jim Cramer says the exchange rate plus massive undervaluations make the great brands prime targets.

There's always been a groupthink in Europe about currencies. The companies that want to buy American companies have, at times, seemed to care more about the currency, or at least not buying a company in a country whose currency is in decline, than they care about the actual target.

That's what it looks like now that a large German company and now a large Italian company have decided to start splurging. It is no coincidence that Deutsche Tel (NYSE: DT) (Cramer's Take) and Finmeccanica are exploring Sprint (NYSE: S) (Cramer's Take) and DRS (NYSE: DRS) (Cramer's Take). These companies are selling for something like 40% off for those bearing euros, and neither potential acquirer has debt problems or subprime issues, so the deals don't have big borrowing problems.

That's what I am thinking about when I see the better-than-expected figures today from Unilever (NYSE: UL) (Cramer's Take) and the other day from Nestle. These companies are part of that same groupthink. They are looking, no doubt, at a Heinz (NYSE: HNZ) (Cramer's Take) and thinking, "Wait, that's about a $10 billion company that's a global leader."