Option investors are pushing call option prices higher in the Information & Delivery Services industry and are pushing put option prices higher in the Telecom Services - Domestic industry today.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Analyst upgrades

• Deutsche Bank upgraded Sonoco Products (SON) to buy from hold after the company reported Q1 results and raised guidance. The firm upped its target for shares to $38 from $32.
• Baird upgraded Western Digital (WDC) to outperform from neutral following the solid Q3 report and guidance. The firm raised its target to $50 from $48.
• Goldman upgraded Qwest (Q) to neutral from sell. Qwest is being acquired by CenturyLink (CTL).
• Hershey (HSY) was upgraded to neutral from underweight at JPMorgan.
• Principal Financial (PFG) was upgraded to neutral from sell at UBS.
• Monster Worldwide (MWW) was upgraded to market perform from underperform at Wells Fargo.

March PPI rose 0.7%, but core prices rose only 0.1%. The annual rate of inflation fell marginally to 0.9% in March versus 1.0% in February. That was much higher a year ago. Today's news gave the Fed a reason to stand pat on no rate hikes. The other good news is those pesky jobless claims showed the first drop in 3 weeks by 24,000 down to 456,000. Even the continuing claims (the long-lived army of the unemployed) fell 40,000 to 4,646,000.

And despite more calls for more regulation from the Obama administration, stocks staged a much better close than they indicated this morning before the open, even if the Black-Red verdict was not evident until the final minutes of the day.

Here were today's closing bell levels:

Dow 11,134.29 +9.37 (0.08%)
S&P 500 1,208.67 +2.74 (0.23%)
Nasdaq 2,519.07 +14.46 (0.58%)

Top Day Trader Alerts

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

• Abercrombie & Fitch Co. (ANF) lower Q4 earnings topped estimates and same-store sales also declined.
• Campbell Soup Co. (CPB) reaffirmed its earnings outlook but lowered its revenue forecast for the full year.
• Daimler AG (DAI) provided guidance for the year that included slashing its dividend, sending shares lower.
• Dell Inc. (DELL) lower Q4 earnings beat estimates by a penny but it didn't offer guidance, sending shares lower.
• Goodyear Tire & Rubber Co. (GT) easily topped Q4 earnings estimates and revenue increased as well.

Here's another one of those stocks that I didn't buy and then found myself sadly watching from the sidelines as it rose higher. A year ago, I proffered a bearish reading on the prospects for telecom entity Qwest Communications (Q). Well, shares of Qwest have done well over the last twelve months. Should I now allocate some investment capital to this idea?

One might argue yes. After all, the company is up at the time of this writing on the Q4 numbers. However, I just don't feel compelled to buy. Especially not after all the declines I see in the release.

Analyst Upgrades

• Deutsche Bank upgraded PNC Financial (PNC) to buy from hold on valuation as it believes the recent pullback in shares provides a buying opportunity. The firm raised its target on shares to $57 from $45.
• Kaufman Bros. upgraded Expedia (EXPE) to buy from hold on valuation as it finds the risk/reward on shares attractive following the company's Q4 results and believes revenue margin concerns are overblown. The firm has a $27 price target on the stock.
• Jesup & Lamont upgraded Chipotle Mexican Grill (CMG) to hold from sell following the company's Q4 results to reflect its improving traffic trends. The firm raised its target on shares to $96 from $81. Shares were also upgraded at BofA/Merrill to buy from neutral.
• Rio Tinto (RTP) was upgraded to outperform from neutral at Credit Suisse.
• FirstEnergy (FE) was upgraded to hold from underperform at Jefferies.
• Marriott (MAR) was upgraded to perform from underperform at Oppenheimer.

Analyst upgrades:

• FBR Capital upgraded Ann Taylor (NYSE: ANN) to Outperform from Market Perform to reflect a recovery in the missy sector and the company's product improvement. The firm raised its target on shares to $19 from $13.
• Roth Capital upgraded Marvell Tech (NASDAQ: MRVL) to Buy from Hold based on product cycle strength in wireless and Ethernet, HDD share gains, and a return of PC growth. Target is $22.
• Goldman upgraded Colgate (NYSE: CL) to Buy from Neutral citing valuation and expectations for a pick-up in unit growth. The firm raised its price target to $85 from $83. Note that Goldman downgraded Clorox to Neutral from Buy.
• Cadbury (NYSE: CBY) was upgraded to Neutral from Underweight at HSBC.
• Garmin (NASDAQ: GRMN) was upgraded to Buy from Underperform at BofA/Merrill.
• Qwest (NYSE: Q) was upgraded to Market Weight from Underweight at Thomas Weisel.

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

• Applied Materials Inc. (NASDAQ: AMAT) posted a Q1 loss and announced a workforce reduction.
• ArcelorMittal (NYSE: MT) swung to it's first ever quarterly loss due to lower demand and a big write-down.
• Buffalo Wild Wings Inc. (NASDAQ: BWLD) shares surged after it posted strong Q4 results.
• Chipotle Mexican Grill Inc. (NYSE: CMG) posted better-than-expected Q4 earnings as revenue surged.
• Genzyme Corp. (NASDAQ: GENZ) topped Q4 earnings estimates, sending shares higher.
• Global Traffic Network Inc. (NASDAQ: GNET) weaker-than-expected Q2 results led to a downgrade.
• Level 3 Communications Inc. (NASDAQ: LVLT) shares fell despite its upside surprise for Q4.
• Lions Gate Entertainment (NYSE: LGF) posted a bigger-than-expected Q3 loss despite revenue growth.

Fiber-optic entity Qwest Communications (NYSE: Q), whose colleagues include Verizon (NYSE: VZ), AT&T (NYSE: T), and Sprint Nextel (NYSE: S), reported Q4 numbers on Tuesday. Revenues declined by 3%, and adjusted income came in at 12 cents per share, which, according to this article, beat estimates by two pennies.

Well, I have to say, I've been wrong about Qwest. When I last wrote about the tech company, I had a very bearish view. I think Qwest's stock gained a buck since that piece, which is like a huge percentage gain when you consider that the shares closed yesterday at $3.45. The market seems to be liking Qwest's prospects. Going back to that article I cited concerning the earnings beat, I see some positive opinion on Qwest's quarter. I'll agree, it wasn't bad, especially when the economy is considered. The company did well in terms of cash flow: cash from operations for the year was roughly flat while adjusted free cash flow came in at $1.4 billion.

"Investors have been focusing on the shortcomings at Qwest Communications International (NYSE: Q), and to be sure, it has plenty," observes turnaround specialist George Putnam.

In his The Turnaround Letter, he adds, "But the company also has very valuable assets and strong cash flow. In addition, we believe the stock would command a good premium in a takeover." Here's his bullish review.

"Following its IPO in 1995, Qwest expanded via acquisitions and partnerships, and participated in the telecom bubble of the late 1990's.

"Unlike many of the other high-flying telecoms of that era, however, Qwest realized that in addition to a story you needed customers. In 2000, it went out and acquired US West, which gave Qwest the revenue base to survive the bursting of the telecom bubble

"Although the company survived, the shareholders have had a rocky ride during the current decade. The stock peaked around 60 in 2000, dropped to just above 1 in 2002, rebounded to 10 in 2007 and then declined to its present level.

"Management's challenge is too maximize the value of its assets. One of Qwest's greatest assets, and biggest challenges, is its huge traditional landline telephone business. The landline business is in a slow but steady decline as customers move to wireless or Internet telephony.

We recently presented a look at some of the most notorious financial felons of contemporary times.

Since then, news has included the indictment of Mark Cuban for insider trading in a case that is somewhat reminiscent of Martha Stewart's case. According to the SEC, the billionaire entrepreneur asked his broker to sell all his shares of Mamma.com after the company's CEO confidentially told him of an impending stock offering that would dilute the value of all existing shares. By selling before the information became public, Cuban is said to have sidestepped losses of more than $750,000. Cuban insists, though, that no agreement existed to keep the information confidential.

And then there was the indictment in Texas of Vice President Dick Cheney, along with former U.S. Attorney General Alberto Gonzales and others. There seems to be a conflict of interest between the vice president's influence on the federal agency that oversees federal immigration detention centers and his substantial holdings in Vanguard Group, which invests in private prison companies. But does the lame-duck county district attorney, who was a no-show in court, have the authority to bring charges against federal officials with regard to federally run institutions?

This post is part of a feature in which we wonder whatever happened to some notorious financial figures. See the other 17.

As Wall Street implodes around us, the word "hubris" is getting tossed around quite a bit. Hubris -- also known as excessive, overweening pride -- has become the catchall explanation for most of the market's ills. Our financial system has gone up in flames, we're told, simply because so many CEOs and regulators thought they were too smart to fail, no matter how highly leveraged their subprime mortgage portfolios may have been.

Assuming this is true, let's call Joseph Nacchio a trendsetter. As the chief executive of Qwest Communications International (NYSE: Q), Nacchio was determined to construct the world's biggest, best, and most totally awesome fiber-optic network. (Mind you, this was back in the late '90s, when the telecom bubble was just a glimmer in the market's eye.) However, the plucky CEO was driven not by a personal commitment to excellence, but rather by spite.

Nacchio left his old job at AT&T (NYSE: T) because he wasn't granted a plum promotion to president, which he felt he so richly deserved. What better way to show up his former employer than to build a superior network and steal away market share?

Unfortunately, Nacchio's impure motivations were not the best recipe for success. To give you some idea as to how his plans for world telecom domination played out, check out this blog entry I wrote about Qwest and Joseph Nacchio as part of our series on the worst S&P 500 stocks of the past 25 years.

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

• Alcatel-Lucent (NYSE: ALU) reported a narrower Q3 net loss and reaffirmed its outlook.
• Barclays (NYSE: BCS) earnings and dividend prospects resulted in an analyst's downgrade.
• Burger King Holdings Inc. (NYSE: BKC) posted its 19th straight quarter of positive growth.
• Choice Hotels International Inc. (NYSE: CHH) better-than-expected Q3 report led to an upgrade.
• Comcast Corp. (NASDAQ: CMCSA) reported strong Q3 numbers and maintained its revenue outlook.
• DreamWorks Animation SKG Inc. (NYSE: DWA) better-than-expected Q3 results driven by Kung Fu Panda.
• Exxon Mobil Corp. (NYSE: XOM) reported another record profit in Q3 driven by record high fuel prices.
• Garmin Ltd. (NASDAQ: GRMN) reported a better-than-expected Q3 profit and offered guidance.
• Hercules Inc. (NYSE: HPC) posted lower Q3 earnings and anounced [regulatory] approval of its buyout.
• Janus Capital Group Inc. (NYSE: JNS) weaker-than-expected results led to an analyst's downgrade.
• Legg Mason Inc. (NYSE: LM) swung to a smaller-than-expected Q2 net loss and shares soared.
• Motorola Inc. (NYSE: MOT) dismal Q3 results managed to beat low earnings expectations.
• Office Depot (NYSE: ODP) Q3 results included lower revenue and a net loss due to economic conditions.
• Qwest Communications International Inc. (NYSE: Q) unimpressive Q3 numbers fell short of estimates.
• Sun Microsystems (NASDAQ: JAVA) swung to a greater-than-expected net loss due in part to competition.
• Texas Roadhouse Inc. (NASDAQ: TXRH) missed Q3 estimates and warned of flat full-year earnings.
• Valero Energy Corp. (NYSE: VLO) strong Q3 results included a gain from a sale of a refinery.
• Visa Inc. (NYSE: V) beat Q4 earnings expectations after adjustment for litigation-related charges.
• Whirlpool Corp. (NYSE: WHR) fell short of revenue estimates and announced job cuts.

Executive compensation gone wild is a major pet peeve of mine. And if seven-figure pay packages plus restricted stock and options and country club memberships aren't bad enough, some executives are now sticking their companies with the losses on homes they bought.

Here's how it works: A company wants to hire a new CEO but she'll have to relocate to take the job. So the company agrees to make up any loss on the sale of the house. In this real estate market, that's becoming more of an issue. Qwest (NYSE: Q) lost $1.8 million on Edward Mueller's old house.

Part of me doesn't think this is such a big deal. If that's what it takes to recruit the executive, and the board is aware of the potential liability, it isn't really any different from a higher salary. Recent SEC rules that require companies to provide a summary compensation table showing the total value of the top officers' pay packages including all perks make this less of an issue.

Of course, some pay critics are using this as an opportunity to jump on the greed of executives and the supine nature of corporate directors. But the focus should remain on corporate governance and the fact that executive pay is too often completely unrelated to performance. Issues like relocation benefits make for good stories, but they're really not the issue.

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

• American International Group Inc. (NYE: AIG) reported a loss of $7.8 billion but raised its dividend.
• Barr Pharmaceuticals Inc. (NYSE: BRL) missed earnings estimates and lowered its guidance.
• D.R. Horton Inc. (NYSE: DHI) posted a larger-than-expected Q2 loss on further write-downs.
• Fannie Mae (NYSE: FNM) posted its third straight quarterly loss on the continuing housing slump.
• Hansen Natural Corp. (NASDAQ: HANS) lower-than-estimated Q1 profit led shares to a 52-week low.
• Lazard Ltd. (NYSE: LAZ) net income dropped 71% on a fall-off of M&A activity and a write-down.
• MGM Mirage Inc. NYSE: MGM) Q1 profits were dragged down by decreased consumer spending.
• Pilgrims Pride Corp. (NYSE: PPC) widened its Q2 loss due to the rising cost of feed.
• Playboy Enterprises Inc. (NYSE: PLA) swung to a Q1 loss as revenue declined in all units.
• Qwest Communications (NYSE: Q) net income and revenue fell in the first quarter.
• Scotts Miracle Gro Co. (NYSE: SMG) blamed a slow start to spring for its Q2 profit decline.
• Teva Pharmaceutical Industries Inc. (NASDAQ: TEVA) posted a Q1 loss due to a charge.
• THQ Inc. (NASDAQ: THQI) posted a loss for its fourth quarter and revenues flat for the year.
• Toyota Motor Corp. (NYSE: TM) posted lower-than-expected Q4 results due to the U.S. economic slump.
• Warner Music Group Corp. (NYSE: WMG) Q2 loss widened and it suspended its quarterly dividend.