Analyst upgrades:

• Credit Suisse upgraded Hewlett-Packard (NYSE: HPQ) to Outperform from Neutral and raised its target to $55 from $44 based on earnings momentum and a bottom in the Imaging and Printing segment. Note that Dell was downgraded to Neutral from Outperform.
• Jefferies upgraded Covance (NYSE: CVD) to Buy from Hold as it believes investor expectations are more reasonable following the company's conference presentation and that its Late Stage segment should continue to post strong results. The firm raised its target on shares to $65 from $5.
• Stephens upgraded Home Bancshares (NASDAQ: HOMB) to Overweight from Equal Weight to reflect improved capital levels and a better-than-expected near-term outlook. The firm raised its target on shares to $27 from $24.
• Citigroup upgraded Macy's (NYSE: M) to Buy from Hold after meeting with management as it believes the My Macy's localization is gaining traction. The firm raised its target on shares to $30 from $15.
• Gymboree (NASDAQ: GYMB) was upgraded to Outperform from Market Perform at FBR Capital.
• DISH Network (NASDAQ: DISH) was upgraded to Outperform from Market Perform at Wells Fargo.
• Baytex Energy (NYSE: BTE) was upgraded to Sector Outperformer from Sector Performer at CIBC.

Analyst upgrades:

• Goldman upgraded Gerdau AmeriSteel (NYSE: GNA) to Buy from Neutral and has a $5.50 target on shares. Shares were upgraded due to the potential impact from infrastructure spending. Note that Goldman downgraded Steel Dynamics (NYSE: STLD) and Olympic Steel (NYSE: ZEUS) to Neutral from Buy.
  
• Banc of America/Merrill upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Neutral and raised the price target to $18 from $15. The firm the strong Q1 report gives them greater confidence in shares.
  
• Roth Capital upgraded Halozyme (NASDAQ: HALO) to Buy from Hold due to increased clarity into Roche programs, the discontinuation of the chemophase program, and progress on insulin delivery.
• American Movil (NYSE: AMX) was raised to Overweight from Neutral at JP Morgan and to Hold from Sell at Citigroup.
  
• Barclays (NYSE: BCS) and Lloyds TSB Group (NYSE: LYG) were upgraded at HSBC to Overweight from Neutral.

MOST NOTEWORTHY: Walgreen, Crown Castle and Brunswick were today's noteworthy initiations:

• Thomas Weisel started shares of Walgreen (NYSE: WAG) with an Overweight rating and $43 target. The firm is positive on WAG's steady cash flow and solid growth profile.
  
• Merriman believes Crown Castle (NYSE: CCI) is a core wireless holding given its high-margin, predictable recurring revenue model. They believe shares can trade to the $49-$51 range assuming management continues to execute on its free cash flow growth target. Shares were assumed with a Buy rating.
  
• KeyBanc initiated Brunswick (NYSE: BC) with a Hold rating and expects the recreational marine market to be challenging given weakening consumer spending trends.

OTHER INITIATIONS:

• Citigroup initiated Gerdau AmeriSteel (NYSE: GNA) with a Buy rating and $21 target.
  
• Piper assumed Teradyne (NYSE: TER) with a Neutral rating and $14 target.
  
• International Speedway (NASDAQ: ISCA) was initiated at Stephens with an Overweight rating and $50 target.

Nucor Corp. (NYSE: NUE) opened at $61.05. So far today the stock has hit a low of $61.05 and a high of $62.49. As of 10:55, NUE is trading at $62.46, up $2.38 (4.0%).

After hitting a one year high of $69.93 on June 1, the stock dropped sharply over the next four weeks before rebounding at the end of the month. NUE is jumping this morning as a buyout in the sector is lifting all the steel stocks. Gerdau Ameristeel (NYSE: GNA) announced yesterday after the close that it will buy Chaparral Steel (NASDAQ: CHAP) for $4.22 billion. Technical indicators for NUE are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread above the $55 range. A bull-put credit spread is an options position that combines the purchase and sale of call options to hedge risk and leverage returns. For this particular trade, we will make a 9.9% return in less than 2 months as long as NUE is above $55 at August expiration. NUE would have to fall by more than 11% before we would start to lose money.

NUE hasn't been below $55 for more than a few days since October and has shown support around $57 recently. This trade could be risky if the company's earnings (due out July 19) disappoint, but even if that happens, it looks like this position could be protected by some support the stock has around $55.

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 NUE, CHAP, or GNA.