Analyst upgrades:

• Deutsche Bank upgraded Portland General Electric (NYSE: POR) to Buy from Hold on valuation as it finds the risk/reward on shares attractive at current levels. The firm raised its target price to $22 from $20.
  
• FBR Capital upgraded Abercrombie & Fitch (NYSE: ANF) to Outperform from Market Perform after channel checks indicated recent sales are driving increased traffic and easing market share losses. The firm raised its target price on shares to $37 from $21.
• Barclays upgraded Yahoo (NASDAQ: YHOO) to Overweight from Equal Weight as it believes the company is well positioned for a rebound in advertising and that the valuation is compelling at current levels. The firm raised its target on shares to $20 from $15.
• Kohl's (NYSE: KSS) was raised to Overweight from Market Weight at Thomas Weisel.
  
• U.S. Steel (NYSE: X) and CB Richard Ellis (NYSE: CBG) were upgraded at Goldman to Neutral from Sell.
  
• Dolby Laboratories (NYSE: DLB) was upgraded at JP Morgan to Overweight from Neutral.

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

• Alcoa Inc. (NYSE: AA) kicked off the new season with a larger-than-expected loss due to the economic slump.
• Allscripts-Misys Healthcare Solutions (NASDAQ: MDRX) reported better-than-expected Q2 earnings.
• Apollo Group Inc. (NASDAQ: APOL) share price soared after its strong Q1 earnings and guidance.
• Apple Inc. (NASDAQ: AAPL) earnings prospects without CEO Steve Jobs led to an analyst's downgrade.
• Autodesk Inc. (NASDAQ: ADSK) lowered its guidance as business slows at an unprcedented rate.
• Bank of America Corp. (NYSE: BAC) reported terrible Q4 results and receivbed additional TARP money.
• Bunge Ltd. (NYSE: BG) lowered its 2008 earnings estimate due to soft soybean commodity markets.
• Citigroup Inc. (NYSE: C) posted a much bigger-than-expected loss and said it would split in two.
• Coventry Health Care Inc. (NYSE: CVH) offered full-year guidance that was less than analysts expectations.
• CSX Corp. (NYSE: CSX) forecast Q4 earnings would come in below analysts' expectations.
• CVS Caremark Corp. (NYSE: CVS) increased its quarterly dividend despite the recent lowered guidance.
• Deutsche Bank (NYSE: DB) reported a net loss for Q4 and the full year, dragging down the sector.
• Genentech Inc. (NASDAQ: DNA) revenue and earnings surged but were lower than analysts estimated.
• Intel Corp. (NASDAQ: INTC) Q4 results were in line with low expectations as the gross margin declined.
• JPMorgan Chase & Co. (NYSE: JPM) reported a huge drop in Q4 earnings but it stayed in the black.
• Lexmark International Inc. (NYSE: LXK) slashed its Q4 outlook and announced job cuts.
• Pentair Inc. (NYSE: PNR) efforts to limit an earnings decline led to a buy recommendation.
• Precision Cast Corp. (NYSE: PCP) earnings prospects following the recent rally led to an analyst's downgrade.

Coventry Health Care (NYSE: CVH - option chain) stock is falling today after the company forecast 2009 adjusted earnings of $2.00 per share, below analysts' estimates of $2.28 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CVH.

This morning, CVH opened at $10.07. So far today the stock has hit a low of $10.78 and a high of $11.74. As of 12:10, CVH is trading at $11.36, down $0.68 (-5.7%). The chart for CVH looks neutral and S&P gives CVH a 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an April bear-call credit spread above the $15 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in three months as long as CVH is below $15 at April expiration. Coventry would have to rise by more than 31% before we would start to lose money. Learn more about this type of trade here.

CVH hasn't been above $15 by more than a few cents since October and shown resistance around $14 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CVH.

Analyst upgrades:

• Jefferies upgraded shares of Genentech (NYSE: DNA) to Buy from Hold and raised its target to $100 from $95 on increased likelihood of an acquisition after Roche (OTC: RHHBY) reaffirmed commitment to its $100/share offer.
  
• Baird expects Broadcom (NASDAQ: BRCM) to gain market share in 2009 in mobile phones, IPTVs, and digital TVs. Shares were upgraded to Outperform from Neutral.
  
• Keefe Bruyette upgraded shares of Torchmark (NYSE: TMK) to Outperform from Market Perform as they see limited earnings risk and an attractive risk/reward.
• Apple (NASDAQ: AAPL) was raised to Buy from Add at Calyon.
  
• Tellabs (NASDAQ: TLAB) was upgraded to Buy from Neutral at UBS and to Hold from Underperform at Jefferies.
  
• Goldman upgraded AK Steel (NYSE: AKS) to Neutral from Sell and Steel Dynamics (NASDAQ: STLD) to Buy from Neutral.

Analyst downgrades:

Analyst upgrades:

• Goldman upgraded shares of BP Plc (NYSE: BP) to Buy from Neutral on valuation as they believe the recent pullback provides an attractive entry point.
  
• VF Corp. (NYSE: VFC) was raised to Outperform from Neutral at Credit Suisse citing its acquisition platform and international growth. The company's target was increased to $100 from $88.
  
• Deutsche Bank upgraded shares of Tenet Healthcare (NYSE: THC) to Buy from Hold and increased its target to $8.50 from $7 to reflect increased confidence in the company's ability to beat expectations over the next 12 months and reduce its net debt.
• US Steel (NYSE: X) was raised to Sector Outperformer from Sector Performer at CIBC.
  
• United Technologies (NYSE: UTX) was upgraded at UBS to Buy from Neutral.

Analyst downgrades:

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

• CarMax Inc. (NYSE: KMX) Q1 profits tumbled despite its aggressive expansion program.
• Chiquita Brands International Inc. (NYSE: CQB) warned it would miss earnings due to cost hikes.
• Circuit City Stores Inc. (NYSE: CC) Q1 loss widened as same-store sales dwindled.
• Commercial Metals Co. (NYSE: CMC) Q3 profits declined despite strong demand, but beat estimates.
• Coventry Healthcare Inc. (NYSE: CVH) lowered its Q2 and full-year outlooks after a disappointing April.
• FedEx Corp. (NYSE: FDX) missed estimates on higher fuel prices and offered lackluster guidance.
• Ford Motor Co. (NYSE: F) warned that 2008 full-year results would be worse than those of 2007.
• General Electric Co. (NYSE: GE) was downgraded by JP Morgan because of risk to earnings.
• J.M. Smucker Co. (NYSE: SJM) missed Q4 earnings expectations despite acquisitions-based growth.
• La-Z-Boy Inc. (NYSE: LZB) said it swung to a Q4 loss due to diminishing retail sales.
• Lehman Brothers Holdings Inc. (NYSE: LEH) CEO expressed his disappointment in the Q2 results.
• Merrill Lynch & Co. (NYSE: MER) profit warnings and write-downs hit the rumor mill.
• Morgan Stanley (NYSE: MS) beat low expectations despite a hefty decline in Q2 profits (see transcript).
• Pier 1 Imports Inc. (NYSE: PIR) narrowed its Q1 loss but still fell short of expectations.
• Winnebago Industries Inc. (NYSE: WGO) posted dismal Q3 results but still beat low expectations.

More earnings highlights from this week: Goldman Sachs, Best Buy, General Mills, Carnival and others

Cigna (NYSE: CI) shares are falling today after competitor Coventry Health Care (NYSE: CVH) lowered its fiscal 2008 earnings forecast to a range between $3.65 and $3.75 for the year, well below the $4.43 per share expected by analysts. Investors are really punishing CVH today and the stock is down 22% currently. Cigna is getting caught in the crossfire as investors worry that similar stocks may also disappoint come earnings time. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CI.

After hitting a one-year high of $56.98 in January, the stock hit a one-year low of $36.75 in March. This morning, CI opened at $38.24. So far today the stock has hit a low of $36.28 and a high of $38.34. As of 12:15, CI is trading at $36.86, down 2.84 (-7.1%). The chart for CI looked neutral and improving until today's drop, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in four months as long as CI is below $45 at October expiration. Cigna would have to rise by more than 19% before we would start to lose money.

CI hasn't been above $45 since February and has shown resistance around $42 recently. This trade could be risky if legislation that hurts health insurance companies fails to make it through the government, but even if that happens, this position could be protected by resistance CI might find at its 50-day moving average, which is currently around $42 and falling.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in CI, CVH, or AET.

MOST NOTEWORTHY: UBS AG, Coventry Health, Express Scripts and Medco Health were today's noteworthy downgrades:

• Credit Suisse downgraded shares of UBS (NYSE:UBS) to Neutral from Outperform as they believe UBS will have difficulty rebuilding the franchise and do not expect a quick recovery for its private bank unit.
  
• Wachovia downgraded Coventry Health (NYSE:CVH) to Market Perform from Outperform citing concerns regarding visibility around higher than expected inpatient/outpatient costs following reduced 2008 guidance.
  
• UBS downgraded Express Scripts (NASDAQ:ESRX) and Medco Health to Neutral from Buy citing the Pfizer (NYSE:PFE)/Ranbaxy settlement, which reduces the likelihood of a generic Lipitor launch in 2010.

OTHER DOWNGRADES:

• Goldman downgraded ENI SpA (NYSE:E) to Neutral from Buy and removed the stock from the Pan-Europe Conviction Buy List.
  
• Huntsman (NYSE:HUN) was downgraded to Underperform from hold at Jefferies.
  
• Commercial Metals (NYSE:CMC) was cut at Citigroup to Hold from Buy.

Coventry Health (NYSE: CVH) is recently trading at $32.10 in pre-open trading, below its close of $40.

CVH lowered EPS guidance because of a delayed recognition of higher medical costs.

Stifel Nicolaus says: "Maintain Hold rating as the managed care industry continues a period of transition prior to the 2008 election.

CVH July option implied volatility of 35 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

Before the bell: Futures mixed after selloff

Coventry Health (NYSE: CVH) shares were down nearly 17% in after-hours trading Wednesday after the managed-care provider lowered estimates for second-quarter and full-year earnings due to disappointing April and May results. Wachovia downgraded CVH to Market Perform from Outperform. Other healthcare stocks felt the pressure and were down in after-hours or premarket trading: UnitedHealth (NYSE: UNH) -7%, Aetna (NYSE: AET) -9.9%, WellPoint (NYSE: WLP) -6%, Humana (NYSE: HUM) -5% and Cigna (NYSE: CI) -5%.

Evergreen Solar (NASDAQ:ESLR) is up almost 10% ahead of its analyst meeting.

Huntsman (NYSE:HUN) is down over 30% after Apollo pulled out of a deal to buy the company.

Coventry Health (NYSE:CVH) is down almost 17% after cutting its forecasts.

United Healthcare (NYSE:UNH) is down over 7% on the Coventry news.

Stocks may trade differently in the pre-market than they do in the regular session.

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

Coventry Health Net (NYSE: CVH), a managed healthcare organization, is recently trading at $39 in pre-open trading, below its close of $43.

Humana (NYSE: HUM) lowered Q1 and 2008 guidance this morning and Wellpoint (NYSE: WLP), a health benefits company, lowered its full-year financial outlook on March 11.

CVH overall option implied volatility of 40 is above its 26-week average of 30 according to Track Data, suggesting larger price movement.

Health Net (NYSE: HNT), a managed care organization, is recently trading at $31.43 in pre-open trading, below its close of $34.58.

HNT overall option implied volatility of 45 is above its 26-week average of according to Track Data, suggesting larger price risk.

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

Sellers took control at the open and sent the market lower. The Dow Jones Industrial Average got with striking distance of the August 1st low -- down 200 points -- before rebounding to close down only 31 points.

The NYSE had volume of 4.3 billion shares with 1,279 shares advancing while 2,058 declined for a loss of 14.27 points to close at 9,435.04. On the NASDAQ, 3.2 billion shares traded, 1,309 advanced and 1,792 declined for a loss of 11.6 to 2,544.89.

Eaton Corporation (NYSE: ETN) rose $6.98 (8%) to $93.45. Las Vegas Sands Corp. (NYSE: LVS) fell $7.68 (-7%) to $100.47. Coventry Health Care, Inc. (NYSE: CVH) strengthened $3.26 (6%) to $54.38. Whole Foods Market, Inc. (NASDAQ: WFMI) fell $2.58 (-6%) to $42.27. Darden Restaurants, Inc. (NYSE: DRI) rose $2.15 (5%) to $42.94.

With the market plunging on the open, the options were active. There were 8.8 million puts and 8.3 million calls traded for a put/call open interest ratio of 1.07. Garmin Ltd. (NASDAQ: GRMN) saw heavy volume on the August 45 calls (GQRHI) with over 259,000 options trading. The August 75.0 Garmin calls (GQRHO) moved 121,000 options. Most of this option volume is dividend arbitration in anticipation of the 0.75 cent dividend Monday.

Apple Computer, Inc. (NASDAQ: AAPL) saw heavy volume on the August 130 calls (APVHF) with over 55,000 options trading. Financial Sector SPDR ETF (NYSE: XLF) saw heavy volume on the September 34 puts (XLFUH) with over 234,000 options trading. The other strikes were active as well and they investors were likely trying to protect investments capital. PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the September 45 puts (QQQUS) moving 171,000. Put index options can work as an insurance policy against market falls.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

MOST NOTEWORTHY: Merck (MRK), McMoRan Exploration (MMR), TheStreet.com (TSCM), Goodrich Petroleum (GDP) and Coventry Health (CVH) were today's noteworthy upgrades:

• Cowen is optimistic on Merck's (NYSE: MRK) business momentum, key products, and pipeline, and upgraded the pharmaceutical giant to Outperform from Neutral.

• JP Morgan believes the recent discoveries have created a lower risk profile for McMoRan Exploration (NYSE: MMR), upgrading shares to Overweight from Neutral.

• Needham upgraded shares of TheStreet.com (NASDAQ: TSCM) to Strong Buy from Buy on the Corsis acquisition as they believe the deal strengthens the company's advertising business.

• Jefferies upgraded shares of Goodrich Petroleum (NYSE: GDP) to Buy from Underperform as they believe success at the James Lime development program will grow production and cash flow.

• Banc of America upgraded Coventry Health (NYSE: CVH) to Neutral from Sell as they believe the company's three recent acquisitions will accelerate growth beginning next year...

OTHER UPGRADES:

• WestLB upgraded Nokia (NYSE: NOK) to Buy from Add.

• Bear Stearns upgraded Take-Two Interactive Software (NASDAQ: TTWO) to Peer Perform from Underperform and Electronic Arts (NASDAQ: ERTS) to Outperform from Peer Perform.

• Citigroup raised AnnTaylor Stores (NYSE: ANN) to Hold from Sell.

• Buckingham upgraded DirecTV (NYSE: DTV) to Neutral from Underperform.

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

MOST NOTEWORTHY: The more noteworthy downgrades today included eFunds Corp (EFD), Halliburton Co (HAL), Coventry Health Care, Inc (CVH), Fording Canadian Coal Trust (FDG) and US Steel Corp (X):

• Citigroup downgraded shares of eFunds Corp (NYSE: EFD) to Sell from Hold to reflect an unfavorable risk/reward as they see little upside if the company sells itself and significant downside due to recent operational issues if the company is not sold.

• Goldman cut Halliburton Co (NYSE: HAL) to Neutral from Buy based on valuation.

• Bear Stearns cut Coventry Health (NYSE: CVH) to Peer Perform from Outperform based on valuation.

• BMO Capital downgraded Fording Canadian Coal Trust (NYSE: CFG) to Underperform from Market Perform on valuation...

• UBS cut US Steel Group (NYSE: X) to Reduce from Neutral based on valuation.
  

OTHER DOWNGRADES:

• Goldman downgraded the coal sector, citing the potential for fundamentals to disappoint. The firm downgraded Arch Coal (NYSE: ACI) to Sell from Buy, Foundation Coal Holdings (NYSE: FCL) to Sell from Neutral, and Alpha Natural Resources (NYSE: ANR) to Neutral from Buy.

• Matrix cut CBRL Group (NASDAQ: CBRL) to Sell from Hold.

• CE Unterberg downgraded Atheros Communications (NASDAQ: ATHR) to Market Perform from Buy.

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