Analyst Upgrades

• Siemens (SI) to buy from hold at Deutsche Bank.
• Diamond Offshore (DO) to market perform from underperform at FBR Capital.
• MeadWestvaco (MWV) to conviction buy from neutral at Goldman.
• TD AmeriTrade (AMTD) and Cabot Oil & Gas (COG) to buy from neutral at BofA/Merrill.
• Janus Capital (JNS) to hold from sell at Citigroup.
• Motorola Mobility (MMI) to buy from neutral at UBS.
• Frontier Communications (FTR) to neutral from underperform at Macquarie.
• Humana (HUM) to buy from hold at Argus.

Analyst Upgrades

• KeyBanc upgraded Las Vegas Sands (LVS) to hold from underweight based on Singapore performance and a potential revaluation of the yuan.
• ThinkEquity upgraded Seattle Genetics (SGEN) to buy from hold based on the positive SGN-35 HL data. The firm raised its price target to $16 from $12.
• Merriman upgraded Applied Signal (APSG) to buy from neutral with a $28 to $31 valuation range, citing greater confidence in earnings estimates and the company's recent contract wins.
• Siliconware Precision (SPIL) was upgraded to neutral from underperform at Macquarie.
• Pulte Group (PHM) was upgraded to neutral from sell at Goldman.
• Greenbrier (GBX) was upgraded to outperform from market perform at Morgan Keegan.

Analyst Upgrades

• FBR Capital upgraded Pioneer Natural (PXD) to outperform from market perform and raised its price target for shares to $85 from $60. The firm upgraded shares on expectations that returns from the company's Spraberry field will increase materially.
• Baird upgraded Acroda Therapeutics (ACOR) to outperform from neutral based on valuation and a new survey that indicates a strong uptake for Ampyra and improvements on the reimbursement front. The firm has a $40 target on the stock.
• Morgan Stanley upgraded Nokia (NOK) to overweight from underweight based on checks that indicate strong orders and less than expected discounting for its upcoming N8 smartphone.
• GlaxoSmithKline (GSK) and British American Tobacco (BTI) were upgraded to buy from neutral at BofA/Merrill.
• Quality Systems (QSII) was upgraded to outperform from market perform at William Blair.
• Siemens (SI) was upgraded to buy from neutral at UBS.

Alcoa (AA) closed at $10.34. AA is expected to report Q2 EPS on July 11. Overall option implied volatility of 45 is near its 26-week average according to Track Data, suggesting nondirectional movement.

Siemens (SI) closed at $89.69. SI overall option implied volatility of 41 is above its 26-week average of 51, according to Track Data, suggesting larger price movement.

MSCI Emerging Markets Index (EEM) is recently up 48 cents to $38.05 in pre-open trading. EEM overall option implied volatility of 35 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

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

Analyst Upgrades

• Sterne Agee upgraded Wynn Resorts (WYNN) to buy from neutral and has a $115 price target on the stock. The firm believes Encore Macau will drive further share gains near-term.
• Deutsche Bank upgraded PPL Corp. (PPL) to buy from hold and said the equity offering and the the stipulation reached in the KY utilities' rate cases removes important overhangs. The firm has a $30 price target on the stock.
• UBS upgraded CarMax (KMX) to buy from neutral based on forecasts for higher consumer forecast income and positive used car trends. The firm has a $28 target on the stock.
• Aeropostale (ARO) was upgraded to outperform from underperform at Oppenheimer.
• Cardinal Financial (CFNL) was upgraded to neutral from underperform at Baird.
• Pinnacle West (PNW) was upgraded to overweight from equal weight at Barclays.

Siemens (SI - option chain) shares are rising on news that it has won two major contracts. SI will deliver turbines for gas-fired power plants to Nextera (FPL), a Florida-based utility, and also won a contract for a 500M euro power grid project in the North Sea. 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 SI.

SI opened Monday morning at $94.41. So far the stock has hit a low of $93.96 and a high of $95.43. As of 12:05, SI was trading at $94.90 up 4.40 (4.9%). The chart for SI looks bearish, but with a possible trend reversal.

If you do business with Iran, it's probably going to be harder to get insurance coverage. Regulators and lawmakers in the U.S. are looking for stiffer penalties to thrust upon companies that do business with Iran. And insurers, likely acutely aware of how risk can spread, are starting to pull back.

Munich Re (0KFE) and Allianz (AZSEY) announced that they are suspending business in Iran, according to a report by Business Insurance. Neither company, however, stands to lose much. For Allianz, the lost premium is "negligible," and for Munich Re, it's only around $13.6 million.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"iShares MSCI Germany (EWG) has bounced back in 2009 from an especially rotten 2008," says exchange-traded fund specialist Mark Salzinger.

In his The ETF Investor's Report, he explains, "We think Germany's major export-oriented stocks are poised to perform well again in 2010, despite concerns about domestic spending."

Philips Electronics (PHG) closed at $27.59, close to a 13-month high. Philips will be displaying its diagnostic imaging products at The Radiological Society of North America (RSNA) 2009 Annual Meeting on November 29. December option implied volatility is at 37, below a level of 73 from a year ago and below its 26-week average of 46, according to Track Data, suggesting decreasing price movement.

SPDR Gold Trust (GLD) overall implied volatility at 24; 26-week average is 24.

Siemens (SI) closed at $98.59. Siemens will be displaying its diagnostic imaging products at The Radiological Society of North America (RSNA) 2009 Annual Meeting on November 29. December option implied volatility of 37 is below a level of 70 from a year ago and below its 26-week average of 40, according to Track Data, suggesting decreasing price movement.

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

Even for a company the size of Nokia (NYSE: NOK), a quarterly loss of $834 million is still a big deal. And, this is what the company posted for its Q3 report (it's the first net loss since 1996).

OK, the main reason for the red ink was the write-down of a joint venture with Siemens that develops network equipment. No doubt, the business has been brutal. But, Nokia somehow thinks there's potential for growth.

Analyst upgrades:

• Citigroup upgraded Cooper Industries (NYSE: CBE) to Buy from Hold on valuation as it believes commercial construction concerns are well known. The firm raised its target on shares to $40 from $37, and coupled the upgrade with a downgrade of Rockwell Automation (NYSE: ROK) to Sell from Hold.
• Credit Suisse upgraded BJ Services (NYSE: BJS) to Neutral from Underperform following its acquisition by Baker Hughes (NYSE: BHI). The firm raised its target to $17.
• Credit Suisse also upgraded Amkor Technology (NASDAQ: AMKR) to Outperform from Neutral and raised its target to $8 from $7. The firm expects Amkor to benefit from near-term strength in the supply chain and the mix shift towards higher value packaging.
• Textron (NYSE: TXT) was upgraded to Conviction Buy from Neutral at Goldman.
• Siemens (NYSE: SI) was upgraded to Neutral from Sell at UBS.
• Stanley Works (NYSE: SWK) was upgraded to Buy from Neutral at Janney Montgomery.

What's the next bubble? Perhaps it's the global spending on infrastructure.

No doubt, there will be some big-time winners, especially large engineering companies. One example: Siemens AG (NYSE: SI), which is the largest engineering operator in Europe.

Interestingly enough, the company said that – over the next three years – it will win about $21 billion in projects from the stimulus bonanza. Something else, roughly 40% of the projects will involve environmental technologies.

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

• American Express Co. (NYSE: AXP) earnings tumbled in Q4 but came in just short of expectations.
• Best Buy Inc. (NYSE: BBY) earnings prospects and cash flow led to an analyst's upgrade.
• Bristol-Myers Squibb Co. (NYSE: BMY) topped analysts Q4 expectations, sending shares higher.
• Colgate-Palmolive Co. (NYSE: CL) posted a better-than-expected Q4 profit despite the weak economy.
• Delta Air Lines Inc. (NYSE: DAL) reported a big quarterly loss due to merger costs and bad fuel hedges.
• Eaton Corp. (NYSE: ETN) Q4 earnings fell on lower exchange rates and charges related to an acquisition.
• E*Trade Financial Corp. (NASDAQ: ETFC) narrowed its Q4 net loss but fell short of expectations.

General Electric (NYSE:GE) has looked to Asia as an engine for growth in its infrastructure business, which is the company's largest division. Management has repeatedly talked about offsetting slowing growth in the U.S. and the EU with increased business in developing nations, with China, the world's most populated country, out in front. Despite its GDP growth, China is still behind many other countries in building large projects to provide energy and transportation.

GE's plans got a blow when its most direct global competitor, Siemens, (NYSE: SI), announced that its business was being hurt because of cutback in spending in China. According to The Wall Street Journal, "Heavy government spending on infrastructure to boost economic growth has the potential to benefit Siemens because its portfolio includes transformers for ultrahigh voltage power lines, control systems for high-speed trains, and oil and gas equipment." But now it sees those orders slowing quickly.

The news has to be a significant blow to GE. As the recession spreads, its entertainment business, NBCU, is likely to be hurt along with its huge medical devices business. Its financial arm is already experiencing trouble due to the credit crisis.

The last hope for rapid earnings growth was the world's continuing need to upgrade infrastructure. It appears that opportunity is walking out the door with the rest of GE's business.

Douglas A. McIntyre is an editor at 247wallst.com.

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

• Agilent Technologies Inc. (NYSE: A) topped estimates but offered an outlook below expectations.
• Best Buy Co. (NYSE: BBY) warned that it many not be able to maintain its earnings momentum.
• Charlotte Russe Holding Inc. (NASDAQ: CHIC) was upgraded because of its growth potential.
• Focus Media Holding Ltd. (NASDAQ: FMCN) shares tumbled after it reported Q3 numbers.
• HLS Systems International (NASDAQ: HOLI) earnings prospects and management impressed an analyst.
• JCPenney Co. Inc. (NYSE: JCP) reported a lower Q3 profit and lowered its guidance due to the recession.
• KKR Financial Holdings (NYSE: KFN) disappointing Q3 results led to analyst downgrades.
• MercadoLibre Inc. (NASDAQ: MELI) doubled its Q3 profit and beat earnings expectations.
• Nortel Networks Corp. (NYSE: NT) swung to a Q3 net loss and unveiled further restructuring measures.
• Perry Ellis International Inc. (NASDAQ: PERY) posted preliminary Q3 results and lowered its outlook.
• Siemens (NYSE: SI) Q4 net loss widened and it warned about meeting its profit target for the year.
• Starbucks Corp. (NASDAQ: SBUX) Q4 earnings were hurt by restructuring costs, revenue rose slightly.
• Toll Brothers Inc. (NYSE: TOL) posted dismal Q4 results and declined to offer guidance for next year.
• Tyson Foods Inc. (NYSE: TSN) solid Q4 results fell short of estimates and it offered a shaky outlook.
• Wells Fargo & Co. (NYSE: WFC) earnings prospects following its equity offering led to an analyst's upgrade.