TheStreet.com's Jim Cramer says the action that is linked to the futures markets, such as oil, is distorting rational analysis.

Maybe one day we can escape the commodity linkage and begin to trade on the fundamentals again, something that seems more distant now than any time I can recall. We are totally marching to gold, to oil, to copper, and not the fundamentals.

Throughout the era in which China has become a superpower and hedge funds have become the super arbiters or what goes up or down, we have been stuck with this fairly bogus linkage that corrupts trading and makes a mockery out of some of the most important financial analysis out there, the actual attempts to discover what's really happening at companies.

Lately, the Japanese pharma industry has flexed its M&A muscle, trying to find opportunities in global markets. And, the latest deal came this week: Dainippon Sumitomo Pharma agreed to shell out $2.6 billion for Sepracor Inc. (NASDAQ: SEPR). The deal is all-cash.

Why all the interest? There are several drivers. First, the strong yen has made deals fairly cheap. Next, the Japanese market is expected to be slow because of government mandates. And finally, Japanese pharma companies are coming up against expirations of major drugs.

Today would have been an exciting day with positive and mixed economic data, a big draw in oil inventories, and the FOMC minutes coming out. But the trading volume is drying up as the A-Team traders are throwing in the towel and not coming back to work until next Tuesday. This was one of those days where there was no feel for an up or down day literally until right at the closing bell.

Here were today's unofficial closing bell levels:

Dow 9,277.27 -33.33 (-0.36%)
S&P 500 994.53 -3.51 (-0.35%)
Nasdaq 1,966.70 -2.19 (-0.11%)

Top Analyst Upgrades and Downgrades
Top Day Trader Alerts

Analyst upgrades:

• Citigroup upgraded Kraft Foods (NYSE: KFT) to Buy from Hold as it believes the company's domestic retail business is improving while input cost inflation pressures are beginning to moderate. Citi raised its target on shares to $32 from $28.
• Jefferies upgraded Sybase (NYSE: SY) to Buy from Hold as it believes slowing core IPG licenses in the second half of 2009 are now reflected in guidance. The firm raised its target on shares to $41 from $34.
• Canaccord said Apple's (NASDAQ: AAPL) decision to ad video functionality into the iPod lineup is "very positive" as it expands its market into the low-end camcorder area. The firm, which upgraded shares to Buy from Hold and raised its target to $200 from $150, also views the launch of iPhone 3GS in all countries by the end of Q4 as another catalyst.
• Rio Tinto (NYSE: RTP) was upgraded to Buy from Hold at Societe Generale.
• Renasant Corp. (NASDAQ: RNST) was upgraded to Overweight from Equal Weight at Stephens.
• America Movil (NYSE: AMX) was upgraded to Neutral from Sell at Pali Capital.

Sepracor (NASDAQ: SEPR) is recently down $2.89 to $15 in pre-open trading. SEPR announced that SEP-225289 failed to meet its primary endpoint in a pivotal Phase 2 trial in patients with major depressive disorder. SEPR also announced the FDA has put two Lunesta pediatric studies on hold due to concerns about non-clinical data that could be relevant to the use of Lunesta in children. SEPR over all option implied volatility of 48 is below its 26-week average of 57, according to Track Data, suggesting decreasing price movement.

NASDAQ 100 - QQQQ overall implied volatility at 26; 26-week average is 33.

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

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If you don't want to spend countless hours trying to understand not just financials, but scientific and technical jargon that biotech companies harbor, exchange-traded funds (ETFs) may be the better choice for investing in the biotechnology industry.

An ETF is similar to buying a share of a company, but instead of getting one particular company you're investing in a bundle of companies within a particular field or specialty. It's a great way to invest in something you believe in while still hedging your bets and having a bit of diversity.

Analyst upgrades:

• Goldman upgraded Baidu (NASDAQ: BIDU) to Buy from Neutral and added shares to its Conviction Buy List. The analyst expects Baidu to benefit from growth in paid search in China, where growth is expected to be 30% annually.
  
• Friedman Billings upgraded shares of Corporate Office Properties (NYSE: OFC) to Outperform from Market Perform to reflect the company's exposure to the "sound" Washington, D.C., market and "favorable" liquidity position.
  
• Soleil upgraded Sunoco (NYSE: SUN) to Buy from Hold and raised its target to $45 from $38 on the strength of the company's non-refining segment.
• Mosaic (NYSE: MOS), Potash (NYSE: POT), Intrepid Potash (NYSE: IPI) and Terra Industries (NYSE: TRA) were upgraded to Buy from Neutral at Merrill Lynch.
  
• Kroger (NYSE: KR) was upgraded to Neutral from Underweight at JP Morgan.

Analyst downgrades:

• Jefferies downgraded shares of Bronco Drilling (NASDAQ: BRNC) to Underperform from Hold and lowered its target to $4.50 from $7.50 on valuation and their expectations for a rig decline in U.S. drilling activity.
  
• Morgan Stanley cut Credit Suisse (NYSE: CS) to Equal Weight from Overweight into reporting season on concerns of further impairment charges.
  
• Deutsche Bank downgraded Ericsson (NASDAQ: ERIC) to Sell from Hold to reflect challenges in the handset market.
• Alcatel-Lucent (NYSE: ALU) was lowered to Sell from Hold at WestLB.
  
• BT Group (NYSE: BT) was slashed at JP Morgan to Underweight from Neutral.
  
• Sovereign Bancorp (NYSE: SOV) was downgraded to Market Perform from Outperform at Keefe Bruyette.

Analyst initiations:

Analyst upgrades:

• JP Morgan upgraded Altria (NYSE: MO), citing the company's 25% cash return to shareholders by 2010 and its market leadership.
  
• RBC Capital upgraded Core Laboratories (NYSE: CLB) based on its solid balance sheet and liquidity, strong market positions, and technology-driven products.
  
• RBC Capital believes Schlumberger's (NYSE: SLB) earnings will decrease the least vs. its peers through 2010 and notes its breadth of products/services.
• Tellabs (NASDAQ: TLAB) upgraded to Overweight from Equal Weight at Barclays.
  
• Bally Tech (NYSE: BYI) upgraded to Buy from Neutral at Goldman.
  
• Best Buy (NYSE: BBY) upgraded to Buy from Neutral at Piper Jaffray.

Analyst downgrades:

• Goldman downgraded Apple (NASDAQ: AAPL) citing consumer spending concerns and valuation.
  
• Merrill downgraded JP Morgan (NYSE: JPM) citing expectations for credit costs to get worse in the US.
  
• Wachovia downgraded a handful of names, including Chesapeake (NYSE: CHK), in the Exploration & Production space as they believe natural gas prices have more downside in order to balance supply/demand fundamentals.

Analyst upgrades:

• Baird upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Outperform from Neutral following strong Q2 results as they expect comps momentum, operating leverage, and potentially favorable chicken wing costs to support healthy trends in 2H08.
  
• RBC Capital upgraded Myriad Genetics (NASDAQ: MYGN) to Outperform from Sector Perform citing solid core molecular diagnostics growth and increased confidence that the spin-out will generate better shareholder value.

Analyst downgrades:

• Citigroup downgraded shares of Wyeth (NYSE: WYE) to Sell from Hold following the disappointing bapineuzumab data and lowered their target to $39 from $49.
• Molson Coors (NYSE: TAP) was downgraded to Neutral from Overweight at JP Morgan.
  
• UBS lowered Affymetrix (NASDAQ: AFFX) and Sepracor (NASDAQ: SEPR) to Neutral from Buy.
  
• Sony (NYSE: SNE) was downgraded to Underweight from Neutral at HSBC.

Analyst initiations:

• Citigroup initiated Intercontinental Exchange (NYSE: ICE) with a Hold rating and $112 target. The firm believes regulatory concerns and a potential deceleration in energy trading volumes could limit upside in the stock near-term.
  
• Banc of America assumed Walgreen Co. (NYSE: WAG) with a Buy rating and $38 target and believes fewer new pharmacies openings removes an impediment to higher ROIC.

MOST NOTEWORTHY: DuPont, eBay, Google and Philips Electronics were today's noteworthy downgrades:

• Oppenheimer believes DuPont's (NYSE: DD) guidance will be difficult to achieve given the potential recession and notes recent share strength. The firm lowered its rating to Underperform from Perform.
  
• Citigroup downgraded shares of eBay (NASDAQ: EBAY) to Hold from Buy and lowered their target to $31 from $49 following the EBAY's Q4 results, as they believe its outlook is more uncertain following the company's cautious macro comments.
  
• Stanford downgraded Google (NASDAQ: GOOG) to Hold from Buy citing slowing e-commerce and search volume growth, along with the global slowdown.
  
• Credit Suisse downgraded shares of Philips Electronics (NYSE: PHG) to Underperform from Neutral, as they see no near-term catalysts and believe the company's sales growth is vulnerable to any economic slowdown.

OTHER DOWNGRADES:

• Broadpoint lowered its rating on THQ (NASDAQ: THQI) to Sell from Neutral.
  
• Goldman downgraded Sepracor (NASDAQ: SEPR) to Sell from Neutral.
  
• Morgan Stanley lowered Trane (NYSE: TT) to Underweight from Equal Weight.

MOST NOTEWORTHY: Microsoft (MSFT), Sony Corp (SNE), Adobe Systems Inc (ADBE) and the cable sector were today's noteworthy upgrades:

• DA Davidson upgraded Microsoft Corp (NASDAQ: MSFT) to Buy from Neutral, as the firm is no longer concerned the tech giant will acquire Yahoo! (YHOO) following the recent acquisition of aQuantive, Inc (AQNT).

• HSBC upgraded shares of Sony Corp (NYSE: SNE) to Overweight from Neutral to reflect improving profitability at Sony's electronics business.

• Pacific Crest upgraded Adobe Systems (NASDAQ: ADBE) to Outperform from Sector Perform to reflect the strong CS3 outlook and growth in new areas such as mobile.

• Citigroup upgraded their cable sector view as they continue believe cap ex will remain at elevated levels at a time when the marginal cable investor is likely more willing to forego near-term FCF growth to achieve robust EBITDA growth. Along with the raised sector view, Citigroup upgraded Time Warner Cable (NYSE: TWC) and Comcast Corp (NASDAQ: CMCSA) to Buy from Hold. The firm believes investors can benefit from owning both EchoStar Communications (DISH) and cable equities...

OTHER UPGRADES:

• Bear Stearns upgraded Tiffany & Co (NYSE: TIF) to Outperform from Peer Perform.

• RBC Capital raised American Eagle Outfitters (NYSE: AEO) to Outperform from Sector Perform.

• Sepracor Inc (NASDAQ: SEPR) was raised to Neutral from Underperform at Cowen.

• ING upgraded BP plc (NYSE: BP) to Buy from Hold.

• Valero Energy Corp (NYSE: VLO) was added to Goldman's Conviction Buy list.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Tenet Healthcare Corp (THC), Furniture Brands International, Inc (FBN), Sepracor Inc (SEPR), ValueClick, Inc (VCLK) and Altria Group, Inc (MO) were today's noteworthy downgrades:

• Bear Stearns downgraded shares of Tenet Healthcare (NYSE: THC) to Underperform from Peer Peform citing difficulties in California and weak margins.

• Stifel downgraded Furniture Brands (NYSE: FBN) to Sell from Hold citing concerns regarding continued weakness in the housing industry.

• Summer Street downgraded Sepracor (NASDAQ: SEPR) to Sell from Neutral after the HCPCS website indicated Xopenex and Albuterol will have the same code as of July 1.The firm believes this eliminates the optimistic scenarios that Sepracor can garner a minimal-or-no-reimbursement cut.

• RBC downgraded shares of ValueClick (NASDAQ: VCLK) to Underperform from Sector Perform as the firm believes the FTC letter poses a risk to earnings and that the company is unlikely to be acquired.

• Matrix downgraded Altria Group (NYSE: MO) to Buy from Strong Buy to reflect decreasing cigarette sales and increasing valuation...

OTHER DOWNGRADES:

• American Technology cut Autodesk, Inc (NASDAQ: ADSK) to Neutral from Buy.

• Matrix downgraded Fluor Corp (NYSE: FLR) to Sell from Buy.

• Jackson Hewitt Tax Service (NYSE: JTX) was cut to Market Perform from Outperform at William Blair.

• Baird sent Alliance Data Systems Corp (NYSE: ADS) to Neutral from Outperform.

• Roth Capital downgraded shares of Sonic Solutions (NASDAQ: SNIC) to Hold from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: RadioShack Corp (RSH), Juniper Networks, Inc (JNPR), H.B. Fuller Co (FUL) and Sepracor Inc (SEPR) were today's more notable downgrades:

• Morgan Stanley downgraded RadioShack (NYSE: RSH) to Underweight from Equal-Weight on concerns over the company's wireless fundamentals and top-line growth.

• Juniper Networks (NASDAQ: JNPR) was downgraded to Strong Sell from Buy at Matrix USA. The firm sees downside to the intrinsic value calculation of $12 given the company's deteriorating fundamentals.

• H.B. Fuller Co (NYSE: FUL) was cut to Sell from Hold at Gabelli following a meeting with management to reflect the recent management exists and the broker's expectation for a challenging first-half of 2007.

• Sepracor (NASDAQ: SEPR) was cut to Underperform from Market Perform at Friedman Billings, as the firm believes generic availability of Ambien may be a bigger challenge to Seprecor's Lunesta than investors expect.

OTHER DOWNGRADES:

• Jackson Hewitt Tax Service Inc (NYSE: JTX) was cut to Underweight from Market Weight at Thomas Wiesel as they believe the potential near-term competitive trends coupled with potential issues with rising financial product contribution will weigh on valuation.

• Bear Stearns cut Cerner Corp (NASDAQ: CERN) to Peer Perform from Outperform.

• Matrix USA downgraded InfoSpace, Inc (NASDAQ: INSP) to Hold from Buy on valuation.

• Prudential cut Unilever plc (NYSE: UL) to Neutral from Overweight.

• Breen Murray downgraded Century Casinos, Inc (NASDAQ: CNTY) to Hold from Buy.

• Cowen downgraded PeopleSupport, Inc (NASDAQ: PSPT) to Neutral from Outperform based on near-term visibility concerns.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX up 2.30 to 20.43

Sepracor Inc. -(NASDAQ:SEPR) option implied volatility stays low on FDA request for new warnings. SEPR markets Lunesta, a prescription sleep aid and Xopenex, a treatment to prevent bronchospasm. SEPR is down .67 to $48.15. Dow Jones reported "The FDA said Wednesday it's requesting new warnings on 13 drugs such as Ambien and Lunesta." Goldman says "important catalyst for this year include the launch of generic SNY-Ambien on April 21 (which could threaten Lunesta trends) and the initial CMS decision on Xopenex UDV Medicare reimbursement on June 20 (final decision in September)." Goldman has a $55 target on SEPR, down from $59. SEPR call option volume of 3,026 contracts compares to put volume of 9,348 contracts. SEPR April option implied volatility of 35, below its 26-week average of 42 according to Track Data, suggesting decreasing price fluctuations.

Accredited Home Lenders-(NASDAQ:LEND volatility-call volume spikes: LEND rallies on chatter. LEND is a mortgage company originating, financing, securitizing, servicing and selling non-prime mortgages. LEND is recently up $1.61 to $5.61 on unconfirmed M&A chatter. LEND call option volume of 52,058 contracts compares to put volume of 36,681 contracts. LEND April option implied volatility of 210 is above its 26-week average of 63 according to Track Data, suggesting large price fluctuations.

Option volume leaders today were: Accredited Home Lenders (NYSE:LEND), Citigroup (NYSE:C) & Apple (NASDAQ:APPL).

MOST NOTEWORTHY: aQuantive Inc(AQNT) and Vanda Pharmaceuticals Inc (VNDA) were today's most notable initiations:

• CIBC initiated aQuantive Inc (NASDAQ: AQNT) with a Sector Performer rating and $30 target. The firm believes aQuantive's key challenge is margin pressure from the rising cost of talent, but they expect strong fourth-quarter results.

• Friedman Billings is positive on Vanda Pharmaceuticals Inc's (NASDAQ: VNDA) lead drug candidate, atypical antipsychotic iloperidone, which showed positive data in Ph III studies for schizophrenia; Friedman started the company with an Outperform rating and $40 target.

OTHER INITIATIONS:

• Canaccord started Unica Corp (NASDAQ: UNCA) with a Buy rating and $15 target.

• Oppenheimer initiated Community Bancorp NV (NASDAQ: CBON) with a Buy rating and $38 target.

• Bank of America initiated ConAgra Foods Inc (NYSE: CAG) with a Neutral rating and $27 target based on valuation.

• Stephens put a $20 target on ACA Capital Holdings Inc (NYSE: ACA) and started the company with an Overweight rating.

• Friedman Billings says Sepracor Inc's (NASDAQ: SEPR) Lunesta faces generic challenges and that 2007 guidance may be hard to achieve; the firm started Sepracor with a Market Perform rating and $58 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).