Analyst Upgrades

• Credit Suisse views Bank of America (BAC) as the "cheapest" large-cap bank and said the recent TARP repayment removes a significant overhang. The firm upgraded shares to outperform from neutral and raised its target to $21 from $17.
• Piper Jaffray upgraded Bed Bath & Beyond (BBBY) to neutral from underweight following the company's better-than-expected Q3 results. The firm has a $43 price target on the stock.
• Caris upgraded Zumiez (ZUMZ) to above average from average following the company's better-than-expected December sales report. The firm raised its target on shares to $17 from $14.
• Humana (HUM) was upgraded to equal weight from underweight at Barclays.
• Zimmer (ZMH) was upgraded to buy from neutral at BofA/Merrill.
• Applied Industrial (AIT) was upgraded to buy from hold at KeyBanc.

Analyst Upgrades

• Stephens upgraded Martin Marietta (MLM) to overweight from equal weight on valuation and expectations that infrastructure and highway spending will increase. The firm raised its target on shares to $105 from $95.
• Janney Montgomery upgraded Shutterfly (SFLY) to buy from neutral to reflect valuation and a reduced pricing overhang after Kodak (EK) raised its 4x6 prices. The firm raised its target on shares to $21 from $18.
• Thomas Weisel upgraded Entropic Communications (ENTR) to overweight from market weight. The firm thinks the company is well-positioned for revenue growth in 2010, partly due to MoCA deployments from new customers and design wins for its silicon tuner product. The firm set a $5 target.
• T. Rowe Price (TROW) was upgraded to buy from hold at Jefferies.
• Dick's Sporting Goods (DKS) was upgraded to buy from neutral at BofA/Merrill.
• Massey Energy (MEE) was upgraded to overweight from neutral at JPMorgan.

Analyst upgrades:

• Credit Suisse upgraded Sprint Nextel (S) to outperform from neutral and raised its target to $6 from $4. The firm believes Sprint Nextel's core business is turning and that valuation is attractive. Credit Suisse also added Sprint Nextel to its Focus List.
• Goldman expects Nordstrom (JWN) to benefit from a recovery in the high-end consumer. The firm upgraded shares to buy from neutral and raised its target to $41 from $39.
• Deutsche Bank remains cautious on the Dry Bulk sector long-term but expects increased Q4 day rates. The firm upgraded Genco (GNK) to buy from hold and raised its target to $31 from $24; the firm also upgraded Eagle Bulk (EGLE) to hold from sell.
• Steelcase (SCS) was upgraded to buy from hold at BB&T.
• United Rentals (URI) was upgraded to outperform from perform at Oppenheimer.
• GLG Partners (GLG) was upgraded to outperform from market perform at Keefe Bruyette.
• Ladish (LDSH) was upgraded to outperform from market perform at FBR Capital.

Analyst upgrades:

• FBR Capital upgraded M&T Bank (NYSE: MTB) to Market Perform from Underperform following the Q3 results to reflect the company's improved earnings outlook and better credit trends. The firm has a $70 price target on shares.
• Kaufman Bros. upgraded Autodesk (NASDAQ: ADSK) to Buy from Hold as it believes a bottom has been reached in the manufacturing and construction industries. The firm raised its target on shares to $30 from $26.
• Goldman upgraded Caterpillar (NYSE: CAT) to Neutral from Sell and raised its target to $64 from $48 citing improved cost controls and construction outlook.
• Pentair (NYSE: PNR) was upgraded to Buy from Hold at KeyBanc.
• Lexmark (NYSE: LXK) was upgraded to Neutral from Underweight at JPMorgan.
• Stryker (NYSE: SYK) was upgraded to Neutral from Underperform at BofA/Merrill.

One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."

In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.

The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.

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.

Analyst upgrades:

• Wells Fargo transferred coverage of Cooper Industries (NYSE: CBE) with an Outperform rating, upgraded from the previous analysts' Market Perform rating. The firm believes commercial construction will be of less of a headwind for the company than the Street thinks, and has a $38-$41 valuation range on the stock.
• Kaufman Bros. upgraded SuccessFactors (NASDAQ: SFSF) to Buy from Hold after channel checks indicated demand trends picked up in July. The firm raised its target on shares to $15 from $12.
• UBS upgraded eBay (NASDAQ: EBAY) to Buy from Neutral and believes Marketplace transaction growth is "turning the corner." Additionally, the firm believes the secondary market represents a long-term opportunity for the company. The firm raised its target to $28 from $24.
• Novartis (NYSE: NVS) was upgraded to Buy from Hold at Jefferies.
• Arcelor Mittal (NYSE: MT) was upgraded to Buy from Hold at Citigroup.
• Cardinal Health (NYSE: CAH) was upgraded to Buy from Neutral at Goldman.
• Yahoo! (NASDAQ: YHOO) was upgraded to Outperform from Market Perform AMC Monday at Bernstein.

One of the complaints we often hear is that the private insurance companies are gouging customers, second guessing doctors, and cutting corners at every turn to increase profit margins. A great deal of this is true and I would not debate that this dilutes the quality of health care in the United States.

Is the corollary that the government intends to run a health care program that does not make a profit?

That is a very probable outcome. If that is the case then how is it possible that the government will be able to fund something that is a money loser from the get go?

Today was simple. It's all about employment. A better than expected labor report sent shares soaring. The notion that a late day report showing that credit to Americans is still declining was largely ignored. The unemployment data was good enough that some might even question it. Either way, it looks like the only group losing droves of jobs now is the group of market bears. Here were today's unofficial closing bell levels:
DJIA:9,730.07(+1.23%)
S&P500:1,010.47(+1.35%)
NASDAQ:2,000.25(+1.37%)
Top 10 Analyst Calls

Opexa Therapeutics, Inc. (NASDAQ: OPXA) sold some stem cell technology to Novartis (NYSE: NVS) for $3 million up front, but it is getting another $1 million over six months and the company could get another $50 million from royalties and milestone hurdles. Shares were up a sharp and whopping 300% at $1.89 right before the close.

In recent stories I have highlighted several health care stocks that I think would be strong candidates for small portfolios (Part 1 and Part 2) that would be safe and pay high yields. These include: Johnson and Johnson (NYSE: JNJ), Abott Laboratories (NYSE: ABT) and Novartis AG ADS (NYSE: NVS). I have been thinking about these companies and how others will fare in the health care debate.

While Washington debates the merits of various health care bills, the health care companies lobby to influence the outcome. Businesses and employees are resistant to taxing current health care benefits but very few people are opposed to taxing those that get big paychecks.

I think we are heading down the wrong path regarding health care "reform" once again. There is no question that most people want to improve health care in many respects, including but not limited to, the quality, cost, and delivery, but the devil is in the details and we may end up no better off than we started except of course with more complexity and greater cost.

Analyst upgrades:

• Canaccord upgraded Imperial Oil (NYSE: IMO) to Buy from Speculative Buy following an increase in crude oil forecast.
• BT Group (NYSE: BT) was upgraded to Outperform from Market Perform at Bernstein.
  
• Novartis (NYSE: NVS) was upgraded to Overweight from Neutral at JP Morgan.
  
• CommVault (NASDAQ: CVLT) was upgraded to Neutral from Sell at Goldman.
  
• AvalonBay (NYSE: AVB) was upgraded to Buy from Hold at Sandler O'Neill.

Amgen (NASDAQ: AMGN - option chain) shares are up big today after the company announced its experimental bone drug, denosumab, was superior to Novartis' (NYSE: NVS) Zometa in preventing complications related to the spread of cancer to bones in a Phase 3 trial. 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 AMGN.

AMGN opened this morning at $60.25. So far today the stock has hit a low of $59.85 and a high of $60.95. As of 11:05, AMGN is trading at $60.46 up $8.23 (15.8%). The chart for AMGN looks neutral and S&P gives AMGN a neutral 3 STARS (out of 5) hold ranking.

I remember Toronto during SARS. As one of the harder hit areas, it was not a happy place. It was the end of winter, but that miserable, cold winter just didn't want to end. People walked the streets in a gloomy haze, afraid to take the subway and giving dirty looks to anyone brazen enough to cough in public. Worse, I couldn't even visit a friend in the hospital. All things considered though, in global pandemic terms, it was over relatively quickly. Let's hope swine flu will be the same.

In the meantime, let's put on our investors hats and see what's in store for some stocks:

Travel and tourist stocks
This is one of the worst hit areas, especially airlines, as people may cancel their travel plans. For example, AMR Corp. (NYSE: AMR) traded over 9 percent lower an hour after the open. Royal Caribbean Cruises (NYSE: RCL) was down over 15 percent. In fact UBS downgraded these airlines and hotels this morning: AMR, Continental Airlines (NYSE: CAL), Host Hotels and Resorts (NYSE: HST), Lasalle Hotel Properties (NYSE: LHO), Marriott (NYSE: MAR), United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC). Carnival Cruise Lines (NYSE: CCL) also declined considerably. Best to stay away from the sector.

Pfizer (NYSE: PFE), a pharmaceutical entity whose colleagues include Merck (NYSE: MRK), Novartis (NYSE: NVS), and Johnson & Johnson (NYSE: JNJ), will be reporting first-quarter earnings Tuesday. As one has come to expect, the market believes that the company will be experiencing a decline in bottom-line income. The call is for 49 cents per share versus 61 cents per share in the year-ago period.

That's a drop of 20%. That might not sound so hot, but the good news is that Pfizer has a solid recent track record when it comes to beating earnings expectations. So shareholders might be justified in feeling confident about that aspect of the game.

Yahoo! Inc. (NASDAQ: YHOO) managed to actually beat estimates and shares traded 5.7% higher in premarket. While the internet portal company reported a fourth-quarter loss of $303 million, it actually withstood the recession better than analysts had expected as excluding charges it would have earned 17 cents per share, better than the 13 cents per share estimated by analysts surveyed by Thomson Reuters. Revenue matched analyst estimates. New CEO, Carol Bartz, can now fully take control. By 11 am, YHOO shares gained 7%.

AT&T Inc. (NYSE: T) said fourth-quarter profit fell 23% to $2.4 billion, or 41 cents per share. This despite higher wireless sales -- revenue rose 2.4% to $31.1 billion -- as it paid high subsidies to support Apple Inc's (NASDAQ: AAPL) popular iPhone and traditional phone users disconnected their service. Excluding items earnings fell to 64 cents a share from 71 cents a share. Results were roughly inline with estimates. Shares were 4.3% higher in premarket trading. By 11 am, T shared declined 2%.