MOST NOTEWORTHY: Lam Research, Deutsche Telekom and France Telecom were today's noteworthy upgrades:

• Credit Suisse upgraded Lam Research (NASDAQ:LRCX) to Outperform from Neutral citing margin expansion and valuation. Lam was named the firm's top pick in SCE names for 2H08.
  
• JP Morgan upgraded shares of Deutsche Telekom (NYSE:DT) to Overweight from Neutral as they expect a stronger second half of the year for the industry.
  
• France Telecom (NYSE:FTE) was upgraded to Buy from Neutral at Merrill and to Buy from Hold at Societe Generale after the company walked away without bidding for Sweden's TeliaSonera.

OTHER UPGRADES:

• UBS upgraded American Express (NYSE:AXP), Capital One (NYSE:COF) and Discover (NYSE:DFS) to Neutral from Sell.
  
• New York Times(NYSE:NYT) was raised to Hold from Sell at Deutsche Bank.
  
• RBC Capital raised Sanmina (NASDAQ:SANM) to Sector Perform from Underperform.
  
• Merrill upgraded Sirius Satellite (NASDAQ:SIRI) to Buy from Neutral.

Deutsche Telekom (NYSE:DT) was upgraded to "overweight" from "neutral" at JP Morgan, according to MarketWatch. The financial news site also reports that France Telecom (NYSE:FTE) was upped to "buy" from "neutral" at Merrill Lynch.

Stifel Nicolaus & Co reiterated its "hold" rating on Campbell Soup (NYSE:CPB) ahead of the company annual meeting according to the AP.

Merrill Lynch resumed coverage of Home Depot (NYSE:HD) with an "underperform" rating, according to Briefing.com. The news service also reports that JP Morgan initiated Comcast (NASDAQ:CMCSA) with an "overweight" rating.

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

Before the bell: Futures higher with Lehman, AIG in focus

Futures reversed course and are now lower as investors still await Lehman's results.

Deutsche Telekom AG (NYSE: DT)'s T-Mobile will sell Apple Inc (NASDAQ: AAPL)'s 3G iPhone for as little as 1 euro ($1.54) for the 8-gigabyte version together with a 69 euro monthly contract, it said on Monday. Under the new agreements where carriers don't have to share call revenue with Apple, iPhones sales might increase as carriers would subsidise them. It's interesting to note that some carriers have said iPhone users consume 30 times as much data as users of other Internet-enabled phones.

The New York Times reported that Kirk Kerkorian will meet with top executives of Ford Motor Co. (NYSE: F) next week to show support for management and the automaker's turnaround plan. This is after, of course, Kerkorian's Tracinda Corp completed a tender offer on Friday to acquire 20 million shares of Ford for $170 million.

Shares of General Electric (NYSE: GE), already under pressure lately, are down 1.3% in premarket trading after J.P. Morgan Securities downgraded the industrial conglomerate to Neutral from Overweight and cut its 2009 earnings forecast from $2.40 to $2.30 saying GE has more earnings risk and lack of visibility.

"The ongoing renaissance of Eastern Europe is generating tremendous economic activity, boosting profits for companies across the continent," says Nick Lanyi in High Yield International.

He explains, "As Europe's largest economy, Germany is well positioned to continue benefiting from this growth." And within Germany, his current top pick is Deutsche Telekom (NYSE: DT), which offers a dividend yield of 6.7%.

"German stocks are currently available at historically low valuations. The country's DAX Index is trading at only about 12 times 2008 earnings estimates, with an average dividend yield of 3.4%.

"One of the world's largest telecommunications companies, Deutsche Telekom is much more than the descendant of Germany's monopoly local phone utility. It generates more than half its revenue from outside Germany -- from diversified operations across Europe and in the U.S.

"Outside of Germany, DT garners more growth from its wireless operations in Eastern Europe, the U.K. and the U.S. Most of these operate under the well-known T-Mobile brand. Overall, worldwide wireless activities account for about 55% of the company's revenue.

EDS (NYSE:EDS) is up 2% on news of a takeover by Hewlett-Packard (NYSE:HPQ) with most of the gain coming yesterday afternoon when rumors surfaced.

HP is off 1.2% after a sharp drop near the end of the close yesterday.

Deutsche Telekom (NYSE:DT) is off 3% on continuing rumors that it might buy in to Sprint (NYSE:S).

Hoku Scientific (NASDAQ:HOKU) is off 7% on weak earnings.

Douglas A. McIntyre is an editor at 247walls.com and author of the Ten Stocks Under $10 letter.

Stock futures were higher early Monday morning as the dollar strengthened and oil prices retreated. Investors may be coming into the market looking for bargains as a result of the recent selloff, meanwhile digesting news of a profit warning from FedEx, upbeat outlook from HSBC and Cableivision may be close to buying Newsday.

On Friday, stocks tanked after oil kept setting new highs, passing the $126 per barrel level. Losses from American International Group -- a Dow component -- also contributed to the bearish sentiment as many had hoped financials were on their way to a recovery. The Dow industrials lost 120 points, or 0.94%, the Nasdaq Composite declined 5 points, or 0.23%, and the S&P 500 declined 9 points, or 0.67%.

Without much economic news, investors will focus on the dollar and oil prices. After breaking the $126 per barrel level Friday and settling at $125.96, oil prices retreated Monday in Asia as the dollar strengthened against the euro and yen. Of course, the retreat is relative and oil has been trading around $125.34 recently.
And for the first time since December 2005, futures traders are turning bullish on the dollar, according to Bloomberg. According to two measures of currency trading, it seems traders expect further dollar appreciation, and not only that, that the rally will hold.

Despite Sprint Nextel Corp.'s (NYSE: S) share price being down more than 50% in the past year, shares were up 7.5% last week -- up 46.5% in the past montyh -- on all the buzz surrounding Sprint lately. There are rumors that Deutsche Telekom (NYSE: DT) may buyout Sprint and merge it into T Mobile. Then there were rumors that Sprint may spin off Nextel (i.e., undo its troubled merger). And there's the excitment around a joint venture with Clearwire Corp. (NASDAQ: CLWR) to create a high-speed wireless internet network that covers most of the U.S.

But when Sprint reports its first-quarter results tomorrow, analysts polled by Thomson Financial expect the company to report earnings of a mere penny per share, down from the same period in 2007 when it earned 18 cents per share, and from the previous quarter's 21 cents per share. The company has beat quarterly estimates over the past year -- by 17.3% in the fourth quarter -- and it certainly has plenty of room to best analysts' low expectations for this past quarter.

Overland Park, Kansas-based Sprint Nextel operates a nationwide digital wireless network with more than 50 million subscribers. In the past year, Sprint's revenues were $40.1 billion. The company's long-term EPS growth forecast is 8.22%, which is less than the 8.67% of rival Verizon (NYSE: VZ) and the S&P 500. The consensus recommendation of analysts continues to be to hold Sprint.

Shares closed Friday at $9.39, up from a 52-week low of $5.48 in March, but still well off the 52-week high of 23.42 last June.

For news that could influence these results, see BloggingStocks' Sprint coverage.

TheStreet.com's Jim Cramer says the exchange rate plus massive undervaluations make the great brands prime targets.

There's always been a groupthink in Europe about currencies. The companies that want to buy American companies have, at times, seemed to care more about the currency, or at least not buying a company in a country whose currency is in decline, than they care about the actual target.

That's what it looks like now that a large German company and now a large Italian company have decided to start splurging. It is no coincidence that Deutsche Tel (NYSE: DT) (Cramer's Take) and Finmeccanica are exploring Sprint (NYSE: S) (Cramer's Take) and DRS (NYSE: DRS) (Cramer's Take). These companies are selling for something like 40% off for those bearing euros, and neither potential acquirer has debt problems or subprime issues, so the deals don't have big borrowing problems.

That's what I am thinking about when I see the better-than-expected figures today from Unilever (NYSE: UL) (Cramer's Take) and the other day from Nestle. These companies are part of that same groupthink. They are looking, no doubt, at a Heinz (NYSE: HNZ) (Cramer's Take) and thinking, "Wait, that's about a $10 billion company that's a global leader."

TheStreet.com's Jim Cramer says there's some reason for caution, but no reason to get out of the market here.

There all right there. Don't you feel it? Hundreds of stocks at resistance. Hundreds have formed a nice base. The Transports and the Dow are moving in synch. The earnings period surprisingly great, with so many companies not stung by the raw costs. Three straight up weeks, with all the commodity stocks showing signs of rolling over; most at crucial "must hold" levels except for gold, which has already crashed, making the inflation case much dimmer in the eyes of the traders.

Yet, you simply can't read the papers. They are too awful. The cost to the consumers for everything from food to gasoline is humongous and going higher, according to all the food execs I had on last week. We are getting nowhere near a bottom in housing. The layoffs, while not significant in the Labor Report on Friday, sure seem endless. The two major presidential candidates from the Democratic side want to tax the oil companies into oblivion, the leaders of the last year. Exxon (NYSE: XOM) (Cramer's Take) blew the quarter. So did GE (NYSE: GE) (Cramer's Take).

Too far, too fast, based on those grim items.

To me, this is the first week since the Bear Stearns (NYSE: BSC) (Cramer's Take) bottom that I think seems aimless.

But perhaps there's a "split the difference" way to approach this week: options expiration.

Deutsche Telekom (NYSE: DT) is examining a possible bid for Sprint Nextel (NYSE: S), reported Germany's Der Spiegel.

S closed at $7.89 Friday. S is scheduled to report Q1 EPS on May 12.

S option volume was heavy on May 2, with 42,682 contracts trading. S May option implied volatility went out at 84 on May 2, June at 61. S average option implied volatility over the last 26-weeks is 62 according to Track Data, suggesting larger price movement.

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

U.S. stock futures were lower this morning, indicating stocks could start the day and week on the down side after Yahoo! rejected over the weekend Microsoft's raised bid. With Microsoft withdrawing its bid, shares of Yahoo! are expected to lose the 50% they have gained since the bid talk. Share of Microsoft, though, are expected to rise.

U.S. stocks ended mixed on Friday, but finished the week with gains as stocks rose to four-months highs. The Dow industrials ended Friday up 48 points, or 0.36%, the S&P 500 gained 4 points, or 0.32%, while the Nasdaq Composite ended down 3 points, or 0.15%.

Not much economic news is due out this week, but some indicators may still affect sentiment. Today, April's index will be reported at 10:00 a.m., after the market open, and is expected to show a slight decline in April.
Also, Federal Reserve Chairman Ben Bernanke is due to speak in New York about mortgage delinquencies and foreclosures.
Meanwhile, the dollar lost ground against several other currencies, and oil prices rose on supply worries after an attack on a Shell oil station Nigeria. U.S. crude rose close to $117 a barrel.

MOST NOTEWORTHY: Northrop Grumman, Groupe Danone and MercadoLibre were today's noteworthy upgrades:

• Oppenheimer upgraded shares of Northrop Grumman (NYSE: NOC) to Outperform from Perform after the Pentagon selected the company over Boeing (NYSE: BA) for the newly designated KC-45A Aerial Refueling Tanker with a potential value of $35B.
  
• Citigroup upgraded shares of Groupe Danone (OTC: GDNNY) to Buy from Hold on valuation, as they believe the sell-off on commodity cost concerns is overdone.
  
• MercadoLibre (NASDAQ: MELI) was raised to Outperform from Sector Perform at RBC Capital, as they believe MELI's long-term thesis is more compelling now vs. six months ago and notes favorable reaction to Mercado Pago v2.0.

OTHER UPGRADES:

• Goldman upgraded Societe Generale (OTC: SCGLY) to Neutral from Sell.
  
• Jefferies upgraded Exelon (NYSE: EXC) to Buy from Hold.
  
• Deutsche Telekom (NYSE: DT) was raised to Neutral from Underweight at JP Morgan.

MOST NOTEWORTHY: Pfizer, Dell, Quest Diagnostics, and Societe Generale were today's noteworthy upgrades:

• Lehman upgraded Pfizer (NYSE: PFE) to Equal Weight from Underweight on valuation.
  
• Friedman Billings raised Dell (NASDAQ: DELL) to Outperform from Market Perform, citing expectations for improved margins next quarter, and valuation.
  
• Quest Diagnostics (NYSE: DGX) was upgraded to Outperform from Neutral by Credit Suisse, which cited valuation.
  
• Lehman upgraded shares of Societe Generale (OTC: SCGLY) to Overweight from Underweight to reflect a potential takeover by BNP Paribas and limited downside.

OTHER UPGRADES:

• Bayer (OTC: BAYRY) was raised to Overweight from Equal Weight by Lehman.
• Deutsche Telekom (NYSE: DT) was upgraded to Hold from Sell by Citigroup.
• Public Storage (NYSE: PSA) was raised to Buy from Hold by Deutsche Bank.
• UBS raised Entergy (NYSE: ETR) to Buy from Neutral.

Markets in Europe have gained back most of their sell-offs at 5:40 AM Eastern time.

The FTSE is off 0.1% at 5,571. BHP Billiton (NYSE: BHP) is up 1.9% to 1259. BP (NYSE: BP) is off 1.4% to 512.

The DAXX is off 2% at 6,654. Deutsche Telekom (NYSE: DT) is off 2.7% to 14. Siemens (NYSE: SI) is off 2% to 82.52.

The CAC 40 is down 0.5% to 4,722. BNP Paribas is up 1.4% to 63.56. France Telecom (NYSE: FTE) is down 1.6% to 23.17.

Data from Reuters.

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

MOST NOTEWORTHY: The European insurance industry, Deutsche Telekom and Aruba Networks were today's noteworthy downgrades:

• Bear Stearns downgraded the European insurance industry to Market Weight from Overweight on concerns the companies are exposed to risky assets following the U.S. subprime mortgage collapse. In conjunction with the sector downgrade, Bear Stearns downgraded ING (NYSE: ING) to Underperform from Peer Perform and Prudential plc (NYSE: PUK) to Peer Perform from Outperform.
  
• JP Morgan downgraded shares of Deutsche Telekom (NYSE: DT) to Underweight from Neutral on concerns over increased competition and U.S. market risks.
  
• Jefferies downgraded shares of Aruba Networks (NASDAQ: ARUN) to Hold from Buy and lowered their target to $13 from $21, as they believe recent delays of 802.11n could impact FY09 sales and potential market share gains and that the valuation is rich at current levels.

OTHER DOWNGRADES:

• Lehman downgraded Vodafone (NYSE: VOD) to Equal Weight from Overweight.
  
• B. Riley downgraded Quiksilver (NYSE: ZQK) to Neutral from Buy.
  
• Marshall & Ilsley (NYSE: MI) was downgraded to Sell from Neutral at Merrill Lynch.