IBM (IBM) sells middleware software and technology services such as outsourcing and integration to large and medium sized businesses worldwide, and competes with firms like Oracle (ORCL) and Red Hat (RHT). IBM is also among the global leaders in business systems and competes with hardware vendors like Hewlett-Packard (HPQ) and Dell (DELL) in the server market as well as firms like EMC (EMC) and NetApp (NTAP) in the storage market.

In a recent development, IBM announced the launch of a new software and consulting service targeted at helping companies swiftly adapt to rising customer demands in today's digitally transformed marketplace. The firm chooses to call this new emerging category "Smarter Commerce," keeping in line with its Smarter Planet initiative. We have earlier discussed IBM's focus on its Smarter Planet initiative and how the firm stands to benefit from it. (See IBM's Smarter Planet Initiatives Lay Groundwork for Growth.)

Analyst Upgrades

• Cree (CREE) and Rubicon Technology (RBCN) to buy from neutral at Merriman.
• Children's Place (PLCE) to outperform from market perform at BMO Capital.
• Lockheed Martin (LMT) to neutral from underperform at BofA/Merrill.
• Copano Energy (CPNO) to outperform from market perform at Morgan Keegan.
• Motorola Mobility (MMI) to neutral from reduce at Nomura.
• Parker-Hannifin (PH) to buy from hold at KeyBanc.
• Akamai (AKAM), ShoreTel (SHOR), AMB Property (AMB) and ProLogis (PLD) to buy from hold at Stifel Nicolaus.

As some of you may know, I own Microsoft Corporation (MSFT). I've discussed my position before. It's been a tough ride with this one. And I'm sure I'm not alone in terms of such opinion.

Microsoft has a reputation for being a frustrating stock. It looks like a value; it seems as if it should be trading higher. But as soon as you purchase the shares, they oftentimes disappoint. At least, that's been my experience.

As outlined in November 2010, Hewlett-Packard Company (HPQ), first discussed on April 24, 2009, at a price of $35.80, has made it through its autumn rough-patch, and the stock has since moved further norther this winter to trade at/near $48.

And needless to add, Hewlett is still preferred here, and with a P/E of 10.5, HPQ is still on sale.

Analyst Upgrades

• Hewlett-Packard (HPQ) to buy from neutral at UBS.
• Fluor (FLR) to overweight from neutral at JPMorgan.
• Macy's (M) to outperform from neutral at Credit Suisse.
• Canadian Solar (CSIQ), JA Solar (JASO) and HeartWare (HTWR) to buy from hold at Auriga.
• Ashford Hospitality (AHT) to outperform from market perform at FBR Capital.
• RenaissanceRe (RNR) to buy from neutral at Janney Capital.
• DCT Industrial (DCT) to market perform from underperform at Wells Fargo.
• Coeur d'Alene Mines (CDE) and Silver Standard (SSRI) to buy from hold at Deutsche Bank.
• Weatherford (WFT), Hercules (HERO), GulfMark Offshore (GLF), Tidewater (TDW) and GlaxoSmithKline (GSK) to buy from hold, and Diamond Offshore (DO) to hold from underperform, at Jefferies.
• Ritchie Bros. (RBA) to buy from neutral at BofA/Merrill.
• AstraZeneca (AZN) to buy from hold at Citigroup.

Riverbed Technology (RVBD - option chain) shares are rising today on reports that the company is in negotiations to buy Radware (RDWR) for $47 per share. Rival Hewlett-Packard (HPQ) reportedly has offered $45 per share for RDWR. 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 RVBD.

RVBD opened this morning at $35.50. So far today the stock has hit a low of $34.58 and a high of $36.91. As of 12:20, RVBD is trading at $34.99 up 0.17 (0.5%). The chart for RVBD looks neutral and S&P gives RVBD a neutral 3 STARS (out of 5) hold ranking.

Hewlett-Packard Company (HPQ) was up 2% to $44.19 at the close of today's bell. Unfortunately, that wasn't too close to the 52-week high of $54.75. Then again, it was comfortably above the 52-week low of $37.32. And, volume was super-strong.

Alas, the chart doesn't look too appealing, does it? The equity seems to be in a downtrend, and while traders might be able to make some money, long-term believers had no choice but to consistently add on the dips to improve the cost basis.

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.

Technology giant Hewlett Packard Company (HPQ) will be reporting its fiscal fourth quarter results following the market close Monday, with analysts expecting to see earnings of $1.27 per share.

During the same period last year, the company had earnings of $1.14 per share.

There will definitely be a lot of attention paid to the company's quarterly report, but that does not have so much to do with the company's figures as it does with the company's new CEO, Leo Apotheker.

It was only a month ago I wrote a story comparing Oracle Corp. (ORCL) and Hewlett Packard (HPQ), concluding the latter to be the better opportunity from a value investor's perspective. At the time Oracle was $27.49. Yesterday it closed at a new 52-week high of $29.23 -- a gain of 6.33%.

During this time, Oracle insiders have been selling shares and the trend is negative. In September alone, almost $300 million of the stock was sold off. If you examine Barron's weekly summary of insider activity, as one source, you will find that Oracle has been in the top five companies on the sell side for many weeks. As the stock has been rising, insiders have been selling into strength.

Crude oil futures closed up 1.99% to $81.56 according to Bloomberg. Amex Energy Select (XLE) closed up 75 cents to $56.51. October put option implied volatility is at 22, January is at 27, versus its 26-week average of 27, according to Track Data, suggesting decreasing near-term price movement.

Hewlett-Packard (HPQ) announced the election of Leo Apotheker as CEO and President and Ray Lane, Managing Partner at Kleiner Perkins Caufield & Byers, as nonexecutive chairman. Hewlett-Packard closed down $1.30 to $40.77. Overall option implied volatility of 29 is below its 26-week average of 31, according to Track Data, suggesting slightly decreasing price movement.

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

Never mind the drama in the front office, soap operas are not getting the ratings they used to. Let's take a closer look at the businesses and the stock metrics of Hewlett-Packard (HPQ) and Oracle Corp. (ORCL) that find themselves competing more and more each day. Mark Hurd, fired from HP and just recently installed as president of Oracle, has done nothing yet.

What do the numbers indicate?