Analyst Upgrades

• InterMune (ITMN) to outperform from neutral at RW Baird.
• Huntington Bancshares (HBAN) to buy from neutral at BofA/Merill.
• Halliburton (HAL), Cloud Peak Energy (CLD), Patriot Coal (PCX) and Consol Energy (CNX) to outperform from market perform at FBR Capital.
• Post Properties (PPS) to equal weight from underweight at Barclays.
• Airgas (ARG) to overweight from neutral at Piper Jaffray.
• Hologic (HOLX) to top pick from sector perform and Sunesis Pharma (SNSS) to outperform from sector perform at RBC Capital.

The Financial Times reported on a U.S. investigation that claims that BP (BP) and Halliburton (HAL) knew that the cement used to seal the failed well was unstable.

The lawyers suing BP and Halliburton call this evidence a "game changer" and says it opens up the companies to penalties and court awards running into the billions of dollars.

The case rests on a finding by a U.S. federal panel that the cement used may have caused the fatal explosion on the Deepwater Horizon.

Analyst Upgrades

• Macquarie upgraded Intel (INTC) to outperform from neutral and Advanced Micro (AMD) to neutral from underperform.
• Pfizer (PFE) was upgraded to outperform from market perform at Bernstein.
• Capstead Mortgage (CMO) was upgraded to outperform from market perform at FBR Capital.
• Oppenheimer upgraded Halliburton (HAL) to outperform from perform.
• Gilead (GILD) was upgraded to outperform from sector perform at RBC Capital.
• Skilled Healthcare (SKH) was upgraded to outperform from market perform at JMP Securities.
• Citigroup upgraded CapitalSource (CSE) to buy from hold.

Halliburton (HAL) shares, closed up 0.5% Friday. On Thursday, shares sold off 8% after the National Commission said Halliburton cement at the BP's (BP) Deepwater Horizon well was unstable. Call option volume of 72K contracts compares to put volume of 69K contracts. November put option implied volatility is at 48, December and January is at 43; versus its 26-week average of 41 according to Track Data. Large option volume suggests traders positioning for larger price movement.

Intrepid Potash (IPI) closed up 4% as analysts raised their fertilizer price forecasts. November 37 calls and 40 calls are active with total call option volume of 9K contracts (2K puts). November option implied volatility is at 55, January is at 46; above its 26-week average of 44 according to Track Data. Large call volume suggests traders positioning for large price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

Analyst Upgrades

• Raymond James upgraded Research in Motion (RIMM) to outperform from market perform based on valuation. The firm has a $70 price target on the stock.
• Macquarie upgraded Halliburton (HAL) to outperform from neutral and has a $40 price target on the stock. The firm said recent pressure pumping activity is above their expectations and pricing has firmed.
• Canaccord upgraded Baldor Electric (BEZ) to buy from speculative buy, citing improving business trends and the upcoming mandatory transition to premium efficiency motors. The firm has a $47 price target on the stock.
• Wells Fargo upgraded Williams-Sonoma (WSM) to outperform from market perform.
• Medco Health (MHS) was upgraded to conviction buy from buy at Goldman.
• Repsol (REP) was upgraded to buy from neutral at BofA/Merrill.

During the ongoing environmental disaster caused by BP plc (BP) that is spewing thousands of barrels of oil a day into the Gulf of Mexico (only now reducing the spill rate), there have been many calls to have the federal government take over the cap and recapture effort. This is a very lame idea.

First of all, nobody has more incentive in bringing this disaster to an end then BP because no entity has suffered more financially or seen its reputation eroded faster.

Amex Energy Select (XLE) is recently up 41 cents to $50.94 in pre-open trading. Crude oil futures are recently down 0.43% to $72.27 according to Bloomberg. XLE overall option implied volatility of 35 above its 26-week average of 28 according to Track Data, suggesting larger price movement.

Chicago Board of Options (CBOE) reported May 2010 average daily volume (ADV) of 6.6M contracts was an all-time record.

Stocks with implied volatility increases from June 1st; BP Plc (BP), Anadarko Petroleum (APC), Halliburton (HAL).

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

Analyst Upgrades

• Bernstein upgraded Boeing (BA) to outperform from market perform, citing valuation. The firm also raised its price target to $81 from $80.
• Wells Fargo upgraded Thomas & Betts (TNB) to outperform from market perform, citing valuation and an expected recovery in North American nonresidential construction.
• RBC Capital upgraded Susquehanna (SUSQ) to outperform from sector perform and has a $14 target on the stock. The firm thinks the stock's valuation is attractive as its decline in response to the European debt crisis and financial regulatory reform has been overdone.
• Priceline.com (PCLN) was upgraded to buy from hold at KeyBanc.
• Genzyme (GENZ) was upgraded to neutral from underweight at JPMorgan.
• RightNow (RNOW) was upgraded to overweight from market weight at Thomas Weisel.

It has been three weeks since a BP (BP) oil rig exploded and sank in the Gulf of Mexico, and still the company has not been able to stop oil from spewing into the gulf. Friday, the companies involved got a earful from President Obama.

The three companies involved in the oil spill are BP, Transocean Offshore (RIG) and Halliburton (HAL).

Analyst Upgrades

• FBR Capital upgraded Halliburton (HAL) to outperform from market perform as it sees less headline risk from the Gulf of Mexico spill following Wednesday's House Energy and Commerce Committee hearing. The firm upped its target for shares to $44 from $35.
• FBR Capital also upgraded Morgan Stanley (MS) to outperform from market perform as it views the valuation as attractive following the recent pullback in shares. The firm maintains a $35 price target for shares.
• Deutsche Bank upgraded Avnet (AVT) to buy from hold on valuation; it views the recent pullback as a buying opportunity. The firm raised its target for shares to $39 from $36.
• U.S. Steel (X) was upgraded to conviction buy from buy at Goldman.
• News Corp. (NWS) was upgraded to buy from hold at Argus.
• Sprint (S) was upgraded to outperform from market perform at Raymond James.

In the wake of the Gulf of Mexico oil crisis and mixed earnings report around the industry, there's a lot of volatility in the energy sector. That uncertainty is causing many investors to rethink the oil stocks in their portfolio.

And when it comes to oil stocks, there's no bigger player than Exxon Mobil (XOM). If you're wondering what to do with this stock, here's some help: Recent news has provided three big reasons to sell.

Analyst Upgrades

• Deutsche Bank upgraded Varian Semi (VARI) to buy from hold following the company's Q2 results and raised its target for shares to $42 from $27.
• Baird upgraded CommScope (CTV) to outperform from neutral following the Q1 report, citing improved visibility and growth. The firm raised its price target to $39 from $28.
• Needham upgraded Build-A-Bear Workshop (BBW) to strong buy from buy. The firm is more positive on the stock following the company's Q1 results and keeps a $13 price target.
• Spirit AeroSystems (SPR) was upgraded to outperform from neutral at Credit Suisse.
• Wynn Resorts (WYNN) was upgraded to neutral from underperform at Macquarie.
• UBS (UBS) was upgraded to market perform from underperform at FBR Capital.

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

• Amazon.com Inc. (AMZN) strong Q1 results beat earnings expectations, and yet shares sold off.
• American Express Co. (AXP) reported better-than-expected Q1 earnings, which lifted shares.
• Apple Inc. (AAPL) shares rose to a new all-time high after it said earnings surged 90% in its Q2.
• Coca-Cola Co. (KO) beat Q1 earnings estimates but weaker-than-expected revenue sent shares lower.
• eBay Inc. (EBAY) shares sold off after Q1 earnings were in line with expectations and guidance was weak.

For investors, there wasn't much to get excited by Halliburton's (HAL) first-quarter results. The company, which is the world's number two oil-services provider, saw its earnings plunge 46% to $206 million, or $0.23 per share.

Then again, this was expected as the company still faces challenges (especially in Latin America). But for investors looking beyond the quarter, Halliburton does offer some promise.

Analyst Upgrades

• Wells Fargo upgraded its sector rating on large-cap U.S. banks to market weight from underweight to reflect improving economic data, valuations in the space and reduced concerns of regulatory changes.
• Soleil upgraded Disney (DIS) to buy from hold, citing better ESPN affiliate fee and cruise ship expectations. The firm upped its target price for shares to $42 from $30.
• Baird upgraded Huron (HURN) to outperform from neutral, citing the company's better-than-expected retention efforts of MDs in core segments and continued stabilization in its more cyclical segments. The firm raised its price target to $30 from $27.
• Schlumberger (SLB) was upgraded to strong buy from outperform at Raymond James.
• Dollar General (DG) was upgraded to outperform from market perform at Wells Fargo.
• UDR Inc (UDR) was upgraded to outperform from sector perform at RBC Capital.