Analyst upgrades:

• Goldman said International Paper (NYSE: IP) is its top pick in the group citing leverage to early cycle containerboard. The firm upgraded shares to Conviction Buy from Buy and has a $26 target on the stock.
• Morgan Keegan upgraded Healthcare Realty Trust (NYSE: HR) to Outperform from Market Perform citing valuation and better-than-expected Q2 results.
• William Blair upgraded Harbin Electric (NASDAQ: HRBN) to Outperform from Market Perform as it believes the Chinese economy is likely to accelerate and the company's balance sheet is strengthened following the retirement of debt.
• Allstate (NYSE: ALL) was upgraded to Buy from Neutral at BofA/Merrill.
• VeriSign (NASDAQ: VRSN) was upgraded to Outperform from Neutral at Credit Suisse.
• Commercial Vehicle Group (NASDAQ: CVGI) was upgraded to Overweight from Underweight at JPMorgan.

Cardiome Pharma (NASDAQ: CRME) closed at $8.66 Monday.

Phase 2b data is expected soon for a oral formulation of Kynapid (vernakalant), a drug to restore normal heart rhythm in patients with arterial fibrillation.

CRME July option implied volatility of 195 is above its 26-week average of 131 according to Track Data, suggesting larger price movement.

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

Freddie Mac (NYSE: FRE) is trading up about 7% on better-than-expected earnings.

Cardiome Pharma (NASDAQ: CRME) is up 9% on a good quarter.

Whole Foods (NASDAQ: WFMI) is selling off 9% on weak quarterly numbers.

Under Armour (NYSE: UA) is up 3% on news that S&P MidCap 400.

Douglas A. McIntyre is an editor at 247wallst.com.

While there was economic data today, everyone knew what today was about: the imploding takeunder of The Bear Stearns Companies, Inc. (NYSE: BSC). While the markets were down miserably in pre-market trading, the U.S. did much better than overseas markets. Also, oil came down significantly closing out down $4.21 at $106.00. In fact, if you watched the news last night as the big "takeunder" became formalized, you really wouldn't believe the tape today. The NY Empire Manufacturing index for March came in at -22.2, down from the -11.7 reading in February; and Industrial Production for February came in at -0.5%, down from -0.1% in the prior reading. Below are the unofficial closes:

• DJIA 11,972.25 (+21.16; +0.18%)
• S&P500 1,276.60 (-11.54; -0.90%)
• NASDAQ 2,177.01 (-35.48; -1.60%)
• 10YR-TBond 3.314% (-0.107%)

As JPMorgan Chase & Co. (NYSE: JPM) is getting most of these assets on the cheap, it was the standout of DJIA components today with a large rise of 10.3% to $40.31. But here are the ones that Wall Street is most scared about, and you'll see it in the price. Bear Stearns (NYSE: BSC) also rubbed off on other banks and brokers that were leveraged:

• Lehman Brothers Holdings, Inc. (NYSE: LEH) fell 19% to $31.75.
  
• UBS AG (USA) (NYSE: UBS) fell 11% to $24.66.
  
• MF Global Ltd. (NYSE: MF) fell a sharp 65% to $6.05.
• In addition, UBS downgraded many names in the sector this morning.

MOST NOTEWORTHY: Sony, FiberTower and Cardiome Pharma were today's noteworthy downgrades:

• Goldman lowered its rating on Sony (NYSE: SNE) to Neutral from Buy, citing the yen strength and the economic slowdown.
• Merriman downgraded shares of FiberTower (NASDAQ: FTWR) to Neutral from Buy following the CEO resignation due to added uncertainty. They do not anticipate the valuation to improve from current levels until a permanent CEO is named.
• Cardiome Pharma (NASDAQ: CRME) was downgraded to Neutral from Buy at Merrill following the FDA's decision to delay the Kynapid drug.

OTHER DOWNGRADES:

• American Express (NYSE: AXP) was downgraded to Hold from Buy at Citigroup.
• JC Penney (NYSE: JCP) was downgraded to Neutral from Buy at Piper.
• Merrill added Deutsche Bank (NYSE: DB) to its Bank Least Preferred List.