Analyst Upgrades

• Marriott (MAR) to outperform from market perform at Wells Fargo.
• Quest Diagnostics (DGX) and Owens-Illinois (OI) to outperform from neutral at Credit Suisse.
• FirstMerit (FMER) to outperform from perform at Oppenheimer.
• Safeway (SWY) to hold from sell at Citigroup.
• Babcock & Wilcox (BWC) to buy from neutral, as well as Jacobs Engineering (JEC) and W. R. Berkley (WRB) to neutral from sell, at Goldman.
• Pioneer Natural (PXD) to overweight from equal weight at Barclays.
• Teekay Tankers (TNK) to buy from underperform at BofA/Merrill.

Stocks opened lower after a downbeat report from Cisco Systems on its guidance. The G20 meeting of leaders of the industrial and developing countries in Seoul, South Korea, is beginning discussions on world trade and currencies. The currency markets are roiled again, with the US dollar gaining strength against the Euro, primarily on fears that the European Union will have to do something about Ireland's debt. Something like a bailout similar to the Greek bailout of earlier this year.

Here are the unofficial closing bell levels:

Dow Jones 11,283.10 -73.94 (-0.65%)
S&P 500 1,213.54 -5.17 (-0.42%)
Nasdaq 2,555.52 -23.26 (-0.90%)

Top Stock Analyst Calls

Dendreon (DNDN - option chain) stock is trading lower today after Medicare administrators said they will take a full year to determine whether the government should cover DNDN's expensive prostate cancer treatment Provenge. 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 bearish hedged play on DNDN, which will give us a chance to make money on DNDN while this decision remains pending.

This morning, DNDN opened at $28.18. So far today the stock has hit a high of $29.76 and a low of $28.01. As of 12:10, DNDN is trading at $28.87, down $3.46 (-10.7%). The chart for DNDN looks bearish.

Analyst Upgrades

• Deutsche Bank upgraded Southern Copper (SCCO) to buy from hold to reflect valuation and positive near-term catalysts. The firm raised its target for shares to $38 from $35.
• JMP Securities upgraded Ultimate Software (ULTI) to outperform from market perform. The firm cites the company's expanding employee base for the upgrade. The firm has a $40 target on the stock.
• Piper Jaffray upgraded Aeropostale (ARO) to neutral from underweight following the company's Q4 results and raised its target for shares to $31 from $24.
• Kennametal (KMT) was upgraded to sell from conviction sell at Goldman.
• Lifetime Brands (LCUT) was upgraded to outperform from market perform at Barrington.
• Volvo (VOLVY) was upgraded to overweight from underweight at JPMorgan.

Qualcomm (QCOM) rallied 6.7% to $37.93 after approving a 12% increase in its quarterly dividend and authorizes a new $3 billion share buyback program. March put option implied volatility is at 32, April puts are at 31; near its 26-week average of 31 according to Track Data, suggesting non-directional price movement.

Dendreon (DNDN) closed at $33.26. Dendreon's provenge (a drug that prolongs the lives of advanced prostate-cancer patients) has a PDUFA on May 1, 2010, by which time it will respond to Dendreon's amended Biologics License Application (BLA). March put option implied is at 74, May puts are at 92; verses its 26-week average of 76, according to Track Data, suggesting larger price movement this spring.

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

Dendreon (DNDN - option chain) shares are rising today after company officials said there is no indication that an FDA review will take place of the company's prostate cancer drug. DNDN shares were down 5% in early trading on reports that the FDA review would take place, but since have risen more than 6%. 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 DNDN.

DNDN opened this morning at $30.97. So far today the stock has hit a low of $30.81 and a high of $35.27. As of 12:50, DNDN is trading at $34.52 up $2.01 (6.2%). The chart for DNDN looks bullish.

Today's economics were dominated more by an extension of TARP and on creative ways of getting after cash bonuses for bankers than anything of real substance from government reporting agencies. Healthcare enjoyed a solid day in insurers as the public option seems to be out of the healthcare, ergo health insurance reform.

Here are today's unofficial closing bell figures:

Dow 10,337.13 +51.16 (0.50%)
S&P 500 1,095.79 +3.85 (0.35%)
Nasdaq 2,183.73 +10.74 (0.49%)

Top 10 Analyst Calls
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Biotechs are fascinating. They have such great promise, yet very few of them actually turn those promises into money. Cures for all types of cancers always seem imminent with promising (there's that word again) results from mice or small control groups. Phase I testing is completed and all kinds of good stuff seems possible. Then something usually happens. Usually not very good things.

Most of the time, it's discovered that what works in mice doesn't work in men (or women). Or that the group was too small for meaningful data and when a larger group is studied, the efficacy isn't there. Or as soon as there's a bounce in the stock price, much more stock is issued and dilution occurs.

Dendreon Corp. (NASDAQ: DNDN) shares more than doubled in early morning trading. But this may be somewhat misleading as the 100% surge is following Tuesday's 45% decline that caused a halt in trading.

As promised, on Tuesday, Dendreon released detailed results of its innovative prostate cancer drug Provenge. Ahead of the results, the stock plunged some 45% to $11.81 before trading was halted at 1:27 p.m. following two minutes of high volatility. Trading resumed last night and the Nasdaq said it would let stand all the trades.

Dendreon (NASDAQ: DNDN) closed at $21.55. DNDN will report detailed Phase 3 IMPACT (Immunotherapy for Prostate AdenoCarcinoma Treatment) this afternoon. DNDN May call option implied volatility is at 211, puts are at 190 according to Track Data, suggesting large price movement.

streetTracks Gold Shares (NYSE: GLD) is recently down 70 cents to $88.31 in pre-open trading. Gold is recently down 1.10% to $898.65 according to Bloomberg. GLD May option implied volatility is at 29; June is at 30; below its 26-week average of 38, according to Track Data, suggesting decreasing price movement.

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

Analyst upgrades:

• Merriman upgraded Dendreon (NASDAQ: DNDN) to Buy from Neutral on expectations shares will react positively to the full IMPACT data release on April 28. The firm thinks Provenge could represent the first cancer immunotherapy approved in the U.S. and raised its valuation range on the stock to $33-$34 from $18-$19.
• Piper Jaffray upgraded Andersons (NASDAQ: ANDE) as it believes the valuation is attractive, investor expectations are low, and the company's fertilizer and rail segments could recovery in FY10. The firm has a $19 target on shares. Goldman upgraded the auto sector to Neutral from Cautious and added Ford (NYSE: F) to its Conviction Buy list. The analyst does not believe Ford will have to declare bankruptcy and sees the company benefiting from Chrysler share declines and GM's (NYSE: GM) reduced product offerings. Ford's price target is $6
• Banc of America/Merrill upgraded U.S. Airways (NYSE: LCC) to Buy from Underperform.
• Broadcom (NASDAQ: BRCM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
• Caterpillar (NYSE: CAT) was raised to Overweight from Neutral at JP Morgan.

Today's late-day rally had a common theme throughout the day: less-bad economic data. This went from better housing data and CPI not showing any deflation fears. The Beige Book was also showing that some of the 12 Fed regions are seeing a decline in the slowdown. Here are today's unofficial closing levels, which were essentially around the highs of the day:

Dow 8,029.62 +109.44 (1.38%)
S&P 500 852.06 +10.56 (1.25%)
Nasdaq 1,626.80 +1.08 (0.07%)

Top 10 Analyst Calls

Today was just a day of selling the news. We had weak retail sales and we had lower than expected PPI data showing no inflation. But after a 5-week straight rally, investors were selling into earnings despite many estimates looking excessively easy to hit.

Here are today's unofficial closing bell levels:

Dow 7,918.11 -139.70 (-1.73%)
S&P 500 841.87 -16.86 (-1.96%)
Nasdaq 1,626.40 -26.91 (-1.63%)

Top Analyst Upgrades
Top Analyst Downgrades

Dendreon Corp. (NASDAQ: DNDN) shares more than tripled today soaring from a previous close of $7.30 to $22.10. By noon DNDN traded up over 130% to around $17 a share. The company reported this morning that its experimental prostate cancer treatment, Provenge, was significantly successful in prolonging patient survival. This may clear the way for the long-awaited regulatory approval for the drug.

Dendreon plans to submit additional information to the FDA in the fourth quarter as part of its new drug application, meaning approval could come with six months, by mid- 2010.

Dendreon (NYSE: DNDN) was halted at $7.30. DNDN is reporting top-line data from the ongoing Phase 3 IMPACT (Immunotherapy for Prostate AdenoCarcinoma Treatment) this morning. DNDN April 7 straddle is priced at $1.87, May 7 straddle is priced at $6.60 according to Track Data, suggesting large price movement.

NASDAQ 100 (NASDAQ:QQQQ) overall implied volatility at 36; 26-week average is 43. CBOE Volatility Index S&P 500 Options-VIX at 37.81; 10-day moving average is 40.82.

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