Analyst upgrades:

• Deutsche Bank upgraded Vale SA (NYSE: VALE) to Buy from Hold on expectations the company will benefit from higher realized prices. The firm raised its target on shares to $30 from $23.
• Soleil upgraded Education Management (NASDAQ: EDMC) to Buy from Gradually Accumulate following the company's Q1 results and raised its target on shares to $34 from $32.
• Credit Suisse upgraded Medtronic (NYSE: MDT) to Outperform from Neutral. The firm also added the stock to its Focus List and raised its target on shares to $49 from $41. Credit Suisse believes Medtronic's base business is stabilizing and the stock's risk/reward is compelling.
• Medivation (NASDAQ: MDVN) was upgraded to Buy from Hold at Roth Capital.
• Martha Stewart (NYSE: MSO) was upgraded to Buy from Hold at Morgan Joseph.
• Dominion Resources (NYSE: D) was upgraded to Hold from Underperform at Jefferies.

"One way to build an inflation hedge into your investment cash flows is to focus on stocks that are likely to boost their dividends on a regular basis," explains dividend specialist Chuck Carlson.

In his The DRIP Investor, which focuses on blue chip companies offering dividend reinvestment programs, he notes, "Since dividends are paid with cold cash, they can't be faked. Either you pay the dividend or you don't. They can't be some figment of accounting magic." Here, he looks at three favorite blue chips with strong dividend records.

Analyst upgrades:

• Keefe Bruyette upgraded Intercontinental Exchange (NYSE: ICE) to Outperform from Market Perform on expectations that derivatives trading will increase in the coming quarters.
• NutriSystem (NASDAQ: NTRI) was upgraded to Buy from Neutral by Janney Montgomery, which believes that the company's earnings have hit bottom, while the company could report better-than-expected Q1 results.
• Harley-Davidson (NYSE: HOG) was upgraded to Outperform from Sector Perform at RBC Capital. The firm thinks the company is an early-cycle story that has significant upside potential.
• UBS upgraded Walgreen (NYSE: WAG) to Buy from Neutral citing cost cutting efforts and slowing store growth.
• Google (NASDAQ: GOOG) was upgraded to Buy from Hold at Benchmark Co.
• Safeway (NYSE: SWY) was upgraded to Buy from Hold by BB&T.
• Needham upgraded Targacept (NASDAQ: TRGT) to Buy from Hold.
• Sierra Wireless (NASDAQ: SWIR) was raised to Buy from Hold at Jesup & Lamont.

Analyst upgrades:

• Kaufman Bros. upgraded American Superconductor (NASDAQ: AMSC) to Buy from Hold as it believes the follow-on contract from Sinovel has positive implications. The firm has a $36 price target on shares.
• Goldman upgraded Nike (NYSE: NKE) to Buy from Neutral citing valuation, visible long-term growth, and signs of sales stabilization. The firm has a $75 target on shares.
• Deutsche Bank upgraded Huntington Bancshares (NASDAQ: HBAN) to Buy from Hold on valuation following the recent underperformance. The firm raised its target on shares to $5.50 from $4.
• Novartis (NYSE: NVS) was upgraded to Buy from Hold at Citigroup.
• eHealth (NASDAQ: EHTH) was upgraded to Buy from Accumulate at ThinkEquity.
• China Precision Steel (NASDAQ: CPSL) was upgraded to Hold from Sell at Roth Capital.

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

• American Eagle Outfitters Inc. (NYSE: AEO) Q2 profit fell short of estimates as same-store sales declined.
• Ann Taylor Stores Corp. (NYSE: ANN) Q2 earnings beat very low expectations and same-store sales fell.
• Big Lots Inc. (NYSE: BIG) reported better-than-expected numbers for Q2, sending shares upward.
• Burger King Holdings Inc. (NYSE: BKC) posted a better-than-expected Q4 profit though revenue declined.
• China Petroleum & Chemical Corp. posted a record Q2 profit after restrictions on fuel prices were lifted.
• Dell Inc. (NASDAQ: DELL) said its Q2 earnings declined, but they still topped analysts' expectations.

Medtronic (NYSE: MDT), a manufacturer of a whole host of medical devices involved with the management of diabetes and cardiovascular disease, released its Q1 data on Tuesday. Revenues increased 6%, and adjusted earnings per share came in at 79 cents (some of the adjustments were related to restructuring and litigation issues).

The company was able to grow the adjusted-per-share bottom line by 10%. In addition, according to Reuters, Medtronic beat estimates by a penny. Shareholders should keep in mind, however, that the quarter benefited from an extra week.

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

• Apollo Group Inc. (NASDAQ: APOL) reported that Q4 revenue soared despite the recession.
• Baidu Inc. (NASDAQ: BIDU) posted strong annual revenue, but at a slowing growth rate.
• Career Education Corp. (NASDAQ: CECO) easily topped Q4 earnings expectations, lifting shares up.
• Comcast Corp. (NASDAQ: CMCSA) Q4 earnings beat expectations and it increased its dividend.
• CVS Caremark Corp. (NYSE: CVS) shares jumped after it reported higher earnings in Q4.
• Digital River Inc. (NASDAQ: DRIV) shares soared on better-than-expected Q4 earnings and revenue.
• Expedia Inc. (NASDAQ: EXPE) reported dismal results due to a huge good will write down.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted a greater-than-expected Q4 net loss and announced job cuts.
• Hormel Foods Corp. (NYSE: HRL) exceeded Q1 earnings expectations due to the popularity of SPAM.

Shares of medical device maker Medtronic Inc. (NYSE: MDT) surged on Tuesday in an otherwise lousy market after the company said tighter cost controls and new demand for spinal implants helped it exceed Wall Street's expectations. Shares have been slipping, however, since Tuesday, from a high of $35.39 to $34.44 mid-morning Thursday.

For the quarter Medtronic earned $723 million, or 65 cents per share, on revenue of $3.49 billion.

After adjusting for in-process research and development charges of $72 million, or 6 cents per share, non-GAAP net earnings came in at $795 million, or 71 cents per share, an increase of 12% and 13%, respectively, from a year ago, and one penny ahead of Street estimates.

Among all the negative economic data that came out last week was a positive surprise: retail sales were higher in January. A fluke or a glimmer at the end of the tunnel? That may depend on whether we see any positive surprises arising from items on this week's economic calendar:

• Consumer Analyst Group of New York Conference: Monday through Friday
• NY Empire Manufacturing Index (Feb. 2009): Tuesday, 8:30 AM
• NAHB Housing Market Index (Feb. 2009): Tuesday, 1:00 PM
• Fed's Bullard speaks before National Association of Business Economists: Tuesday, 1:00 PM
• Housing starts (Jan. 2009): Wednesday, 8:30 AM
• Fed's Pianalto speaks before Commercial Developers Power Breakfast: Wednesday, 9:00 AM
• Industrial production (Jan. 2009): Wednesday, 9:15 AM
• Fed's Bernanke speaks before National Press Club Luncheon: Wednesday, 12:30 PM

Analyst upgrades:

• Merriman upgraded shares of Google (NASDAQ: GOOG) to Neutral from Sell as they believe consensus estimates for Q4 and FY09 are no longer too high. In addition, the firm believes Google's slowing capex spend will improve margins and their recent channel checks indicate the company's ad coverage has increased significantly during Q4.
  
• Oppenheimer upgraded shares of Apple (NASDAQ: AAPL) to Outperform from Perform following yesterday's disclosures regarding Steve Jobs' health. The firm has a $135 price target on Apple shares.
  
• UBS upgraded BMC Software (NYSE: BMC) to Buy from Neutral and raised its target to $31 from $28 citing easier booking comps in the March quarter.
• YRC Worldwide (NASDAQ: YRCW) was raised to Market Perform from Underperform at Wachovia.
  
• Goldman removed Hewitt (NYSE: HEW) from its Conviction Sell List.

Analyst downgrades:

• Stephens downgraded Emergency Medical Services (NYSE: EMS) to Equal Weight from Overweight on valuation, as they believe the stock is fairly valued at current levels. The firm maintains a $39 price target.
  
• Merriman downgraded Super Micro Computer (NASDAQ: SMCI) to Neutral from Buy after Super Micro pre-announced a Q2 miss to reflect the company's "challenging" outlook.
  
• Baird downgraded Celgene (NASDAQ: CELG) to Neutral from Outperform citing Revlimid growth concerns following their most recent survey and potential pressures on the European business and on Thalomid.
• Medtronic (NYSE: MDT) was lowered to Market Perform from Outperform at Leerink.
  
• Intercontinental Exchange (NYSE: ICE) was cut at Goldman to Neutral from Buy.
  
• Devon Energy (NYSE: DVN) was downgraded to Equal Weight from Overweight at Barclays.

Analyst initiations:

• Merriman believes Itron (NASDAQ: ITRI) is well-positioned to benefit from the upgrade to Advanced Metering Infrastructure by tier one utilities and finds the stock attractively valued. Shares were initiated with a Neutral rating.
  
• Oppenheimer assumed Jones Lang LaSalle (NYSE: JLL) with a Perform rating and expects the company's growth to slow in 2009 given global credit concerns and the economic slowdown.
  
• Citigroup started Telmex (NYSE: TMX) with a Sell rating and $15 target. The firm believes the company's inability to offer 3-play services could lead to accelerated market share loss in 2009.
• Netflix (NASDAQ: NFLX) was initiated at Janney Montgomery with a Neutral rating and $31 fair value estimate.
  
• Arthur J. Gallagher (NYSE: AJG) was initiated with a Neutral rating at Piper Jaffray.
  
• Jesup & Lamont assumed UTi Worldwide (NASDAQ: UTIW) with a Buy rating and $18 target.

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

• Barnes & Noble Inc. (NYSE: BKS) swung to a Q3 loss as same-store sales fell, and it lowered its outlook.
• Corning Inc. (NYSE: GLW) forecast lower profits due to weaker glass sales but has a strong cash position.
• Fortress Investment Group (NYSE: FIG) swung to a Q3 loss as investors requested redemptions.
• Gap Inc. (NYSE: GPS) profit beat estimates despite the decline in sales, and it reaffirmed its outlook.
• HJ Heinz Co. (NYSE: HNZ) strong Q2 results topped expectations but didn't impress the market.
• Intuit Inc. (NASDAQ: INTU) reported solid results and offered modest growth for the next quarter.
• Limited Brands Inc. (NYSE: LTD) Q3 profits and same-store sales fell and it lowered its guidance.
• Macy's Inc. (NYSE: M) fell short of Q3 expectations and said it would reduce capital expenditures in 2009.
• Medtronic Inc. (NYSE: MDT) fell short of Q2 expectations and lowered its full-year guidance.
• PepsiCo Inc. (NYSE: PEP) reaffirmed its previously announced full-year earnings guidance.
• Salesforce.com Inc. (NYSE: CRM) said Q3 earnings and revenue grew sharply, beating expectations.
• Target Corp. (NYSE: TGT) posted weak Q3 numbers and discontinued its share buyback activity.
• Walt Disney Co. (NYSE: DIS) was downgraded on the belief that consensus estimates may be too high.

Yesterday, in response to Chasing Value: ISRG is falling and I'm buying I received the following comment from Beltway Greg, "You're a brave dude. Why? I've watched this stock for awhile and I worry about possible entry by other folks into the market."

Brave perhaps, even foolish on occasion, but I still think this is the time to be selectively buying equities.

To those that might be concerned about competition for Intuitive Surgical Inc (NASDAQ: ISRG) you will be interested in the following:

• NOTICE TEXT: Department of the Army U.S. Army Medical Command MEDCOM, North Atlantic Regional Contracting Office Subject: Contract prosthetic feet and leg coverings This is a notice of the Governments intent to solicit, negotiate and award a sole source contract (Note 22) contract to Intuitive surgical for Implants based on urgency. This is not a set-aside for small business. This notice is an urgent requirement for Walter Reed Army Medical Center, 6900 Georgia Avenue NW, Washington, DC 20307, contract number W91YTZ-09-P-0147. Parties interested in future announcements shall provide detailed information of their capabilities and certifications to clearly meet the requirements stated above.

It is possible that someday ISRG will have some competition, but there does not seem to be anything on the horizon for now. Furthermore, as the user base expands the barrier to entry increases and the cost of changing systems becomes more challenging.

The most likely scenario for competition would be if another manufacturer were to create a similar system for procedures not yet addressed by ISRG's Di Vinci robotic surgical units. Some of the potential competitors, like Johnson and Johnson (NYSE: JNJ) or Medronic (NYSE: MDT), are actually corporate partners helping to distribute the units world wide. What is most likely from my point of view is that other manufacturers will find a way to partner with ISRG to develop complimentary hardware to expand the capability of the system for more procedures to get to market faster.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

Medtronic (NYSE: MDT - option chain) shares are way lower today after the company posted a second-quarter profit of $571 million, or 51 cents per share. The company's adjusted profit of 67 cents per share missed analysts' estimates of 71 cents per share. MDT also lowered their fiscal-2009 EPS forecast by about 3% on both the high and low ends. None of this is helping the stock today. 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 MDT.

This morning, MDT opened at $34.49. So far today the stock has hit a low of $31.25 and a high of $35.48. As of 12:30, MDT is trading at $32.24, down $4.18 (11.5%). The chart for MDT looks neutral and S&P gives MDT a 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider a January bear-call credit spread above the $42.50 range.

Medtronic (NYSE: MDT) closed at $39.93. MDT is scheduled to report Q2 EPS on November 18. MDT November 40 straddle is priced at $3.50, December 40 is at $5.50. MDT December option implied volatility of 54 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Covidien (NYSE: COV), a medical solutions device provider, closed at $37.07. COV is scheduled to report Q4 EPS on November 17. COV November 40 straddle is priced at $4.40, December 40 straddle is priced at $6.40. COV December option implied volatility of 58 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Abbott Lab (NYSE: ABT) closed at $57.14. ABT December option implied volatility of 42 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Stryker (NYSE: SYK), a medical technology company, closed at $47.70. SYK December option implied volatility of 60 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

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

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

• Big Lots Inc. (NYSE: BIG) Q1 earnings rose 20%, driven by cash-strapped bargain hunters.
• Borders Group Inc. (NYSE: BGP) narrowed its loss in the first quarter though same-store sales fell.
• Costco Wholesale Corp. (NASDAQ: COST) Q3 profits climbed 32%, beating analysts' estimates.
• Dell Inc. (NASDAQ: DELL) posted solid Q1 results that beat analysts' expectations (see the transcript).
• DSW Inc. (NYSE: DSW) Q1 earnings declined, hurt by weak same-store sales.
• H.J. Heinz Co. (NYSE: HNZ) better-than-expected Q4 results sent the stock to a 52-week high.
• Integra LifeSciences Holdings Corp. (NASDAQ: IART) beat Q4 estimates and offered Q1 guidance.
• J. Crew Group Inc. (NYSE: JCG) lowered its full-year forecast, leading to analyst downgrades.
• Joy Global Inc. (NASDAQ: JOYG) Q2 results beat expectations, and it raised its full-year guidance.
• Lions Gate Entertainment Corp. (NYSE: LGF) posted record Q4 revenues but a bigger-than-expected loss.
• Marvell Technology Group (NASDAQ: MRVL) Q1 profits beat estimates and led to analyst upgrades.
• Medtronic Inc. (NYSE: MDT) beat Q4 estimates and offered full-year guidance.
• Novell Inc. (NASDAQ: NOVL) swung to a profit that was in line with analysts estimates.
• Salesforce.com Inc. (NYSE: CRM) Q1 revenues surged on new customers and demand in Asia.