Norfolk Southern Corp. (NSC) February 65 calls and March 70 calls are active on total call volume of 14K contracts compared to 2K puts. January call option implied volatility is at 18, February and March is at 23. This is below its 26-week average of 28, according to Track Data, suggesting decreasing price movement.

Intel Corporation (INTC) is expected to report Q4 EPS on January 13. January call option implied volatility is 31, March is at 22, April is at 23. That's compared to its 26-week average of 29, according to Track Data, suggesting decreasing price movement after EPS.

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

I've liked the railroad sector for a while, and CSX Corp. (CSX), which I first wrote about on May 1, 2009, at a price of $30.56, looks likely to continue to move higher. Here's why:

CSX's volumes should increase and overall prices for transport services should firm, albeit with some softness in selected price categories, as the U.S./global economic recoveries gain momentum in 2010. Basic materials transport, including coal and scrap, should also experience healthy business gains in 2010, and the company's increased efficiency adds to the positive story.

Analyst upgrades:

• Keefe Bruyette upgraded Blackstone Group (BX) to outperform from market perform following the company's Q3 results and maintains an $18.50 price target on shares.
• Baird upgraded Astec (ASTE) to outperform from neutral citing relative valuation and upside from new multi-year U.S. highway funding legislation. The firm raised its target to $33 from $27.
• Goldman upgraded Abercrombie & Fitch (ANF) to conviction buy from neutral citing "significant" long-term growth drivers that include international growth. The firm raised its target to $45 from $36.
• Ariad Pharmaceuticals (ARIA) was upgraded to overweight from neutral at JPMorgan.
• Energizer (ENR) was upgraded to overweight from equal weight at Morgan Stanley.
• AstraZeneca (AZN) was upgraded to buy from hold at RBS.

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.

This post is part of a series on some of the most memorable companies that have disappeared.

Inspired by what must have been a less than luxurious train ride from Buffalo to New York in the early 1860s, George Pullman founded the Pullman Palace Car Company in Illinois in 1867. The company had a long and illustrious business cycle that spanned more than a century. Starting from humble beginnings based solely upon the vision of one man , the company rose to grandeur via the railroad boom of the early 1900s. At one point, Pullman even owned it's own "company town." The town, called Pullman, was located 14 miles south of downtown Chicago and was home to nearly 9,000 men, women, and children at its peak under the control of Pullman.

As one would expect, just when things were in high gear for Pullman, the government intervened. In the interest of antitrust laws, Pullman Inc. was ordered by the Justice Department to divest itself of either the Pullman Company (operating) or the Pullman-Standard Car Manufacturing Company (manufacturing). After three years of negotiation, the Pullman Company was sold to a railroad consortium for approximately $40 million. In much the same way, the Justice Department is making trouble on the rails again today.

The Pullman Co. didn't vanish as much as it was fractured and absorbed. It began with the 1944 sell off of passenger car operating rights and continuing through until 1987 when subway car manufacturing, performed under the name Pullman Technology, was sold to Candian conglomerate, Bombardier. The merger and acquisition history of Pullman from 1981 through today reads like a who's who of transportation, oil, engineering, and associated technologies. In fact, I believe that George Pullman would be amazed to discover that the original thread of the Pullman name was still active in manufacturing as late as 2004, when Pullman is reported to have been manufacturing "rubberized" automotive parts under the control of Tenneco Automotive.

Let us know in the comments what you miss about Pullman. And be sure to check out other Companies That Have Vanished.

MOST NOTEWORTHY:

• Lehman upgraded Lincoln Educational (NASDAQ: LINC) to Overweight from Equal Weight based on improving student enrollment growth and valuation.
  
• Merriman upgraded Sonus Networks (NASDAQ: SONS) to Buy from Neutral on the company's strong AT&T (NYSE: T) outlook and near-term upside potential from Japan. They believe shares can trade towards the $5-$6 range.
  
• Bernstein raised Novartis (NYSE: NVS) to Outperform from Market Perform as they believe the company's diversification position it well to withstand future generic expiries.

• Goldman Sachs added Burger King (NYSE: BKC) to its Conviction Buy List.
  
• Credit Suisse upgraded Imperial Tobacco (NYSE: ITY) to Outperform from Neutral.
  
• FreightCar America (NASDAQ: RAIL) was upgraded at Jefferies to Buy from Hold.