Option traders are pushing up call option prices in the Diversified Utilities industry and are pushing up put option prices in the REIT - Diversified industry today.

Any time the volatility skews above 1.00, it is an indication that calls are more expensive than puts. Typically, when calls are more expensive than puts, it means the demand for calls is greater than the demand for puts because investors believe the stock is going to rise in the future, and they want to take advantage of that movement by buying calls.

The opposite is also true. Any time a volatility skews below 1.00, it is an indication that puts are more expensive than calls.

Analyst upgrades:

• Barclays upgraded Dollar Tree (NASDAQ: DLTR) to Overweight from Equal Weight and raised its target to $64 from $48 following the better-than-expected Q2 report.
• Cowen upgraded Whirlpool (NYSE: WHR) to Outperform from Neutral. The firm cites stabilizing demand trends and recovering margins for the upgrade.
• Susquehanna upgraded Isle of Capri (NASDAQ: ISLE) citing weakness following the weak quarter. The firm, which has a $13 target on shares, expects regional operators to benefit from improving macro trends quicker than destination markets.
• Senior Housing (NYSE: SNH) was upgraded to Outperform from Market Perform at Wells Fargo.
• Barclays (NYSE: BCS) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• CGI Group (NYSE: GIB) was upgraded to Buy from Speculative Buy at Canaccord.

MOST NOTEWORTHY: Wyeth, 3SBio Inc, Cellcom Israel and Partner Communications were today's noteworthy initiations:

• Citigroup initiated Wyeth (NYSE: WYE) with a Hold rating and $49 target. The firm believes the upside potential from bapineuzumab is masking the company's unfavorable average EPS and revenue growth forecast versus the industry.
  
• Piper believes 3SBio Inc (NASDAQ: SSRX) is the market leader in a largely underpenetrated EPO market in China and sees limited downside risk. Shares were assumed with a Buy rating and $12 target.
  
• RBC Capital initiated Cellcom Israel (NYSE: CEL) and Partner Communications (NASDAQ: PTNR) with Outperform ratings and targets of $40 and $30, respectively. RBC said they have defensive appeal given their predictable earnings stream.

OTHER INITIATIONS:

• HCP (NYSE: HCP), Nationwide Health Properties (NYSE: NHP) and Medical Properties Trust (NYSE: MPW) were initiated with Market Perform ratings at Wachovia.
  
• SanDisk (NASDAQ: SNDK) was assumed with an Above Average rating and $20.50 target at Caris.

MOST NOTEWORTHY: EDO Corp, General Motors, Cameron, Getty Images and Micrus Endovascular were today's noteworthy downgrades:

• EDO Corporation (NYSE: EDO) was downgraded to Neutral from Outperform at Credit Suisse following the acquisition by ITT Corporation (NYSE: ITT). Shares were also downgraded to Market Weight from Overweight at Thomas Weisel and to Hold from Buy at B&T Capital.
  
• Goldman downgraded shares of General Motors Corporation (NYSE: GM) to Neutral from Buy to reflect risk to the company's international and the slowing U.S. economy. Further, Goldman believes expectations for a deal over healthcare costs with unions are now priced into the stock.
  
• Wachovia downgraded Cameron International (NYSE: CAM) to Market Perform from Outperform on valuation.
  
• Kaufman Bros. downgraded shares of Getty Images Inc (NYSE: GYI) to Sell from Hold to reflect reduced expectations following the company's announced price reductions.
  
• CIBC downgraded shares of Micrus Endovascular Corporation (NASDAQ: MEND) to Sector Performer from Outperformer following the company's lowered guidance..

OTHER DOWNGRADES:

• BB&T downgraded Champion Enterprises (NYSE: CHB) and Palm Harbor Homes (NASDAQ: PHHM) to Hold from Buy.
  
• Stifel downgraded HCP Inc (NYSE: HCP) and Medical Properties Trust Inc (NYSE: MPW) to Hold from Buy.
  
• Goldman downgraded E-Trade Financial Corporation (NASDAQ: ETFC) to Neutral from Buy.
  
• Kellwood Company (NYSE: KWD) was downgraded to Neutral from Buy at Broadpoint.

MOST NOTEWORTHY: New York Times Co (NYT), New York Community Bancorp, Inc (NYB), Cadbury Schweppes plc (CSG), International Paper Co (IP) and TurboChef Technologies, Inc (OVEN) were today's noteworthy upgrades:

• JP Morgan upgraded shares of the New York Times Co (NYSE: NYT) to Neutral from Underweight to reflect easier advertising sales comparisons the rest of the year and the possibility for a stepped-up buyback program.

• Friedman Billings upgraded New York Community Bancorp (NYSE: NYB) to Market Perform from Underperform with an $18 target.

• Bernstein upgraded shares of Cadbury Schweppes (NYSE: CSG) to Outperform from Market Perform and revised its sum-of-the-parts and "real options" analysis. The firm still sees major upside and limited downside at these levels.

• Matrix believes higher selling prices and lower costs are improving profit margins at International Paper (NYSE: IP).

• TurboChef Technologies (NASDAQ: OVEN) was upgraded to Sector Perform from Underperform following Q1 results...

OTHER UPGRADES:

• Citigroup upgraded H.J. Heinz Co (NYSE: HNZ) to Buy from Hold with a $52 target.

• AG Edwards raised Corporate Office Properties Trust (NYSE: OFC) to Buy from Hold.

• Baird transitioned coverage of Pike Electric Corp (NYSE: PEC) with an Outperform rating, up from Neutral.

• Medical Properties Trust, Inc (NYSE: MPW) was upgraded to Buy from Hold at Stifel.

• Buckingham raised Eaton Corp (NYSE: ETN) to Strong Buy from Accumulate.

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

MOST NOTEWORTHY: CKE Restaurants. Inc (CKR), Texas Instruments Inc (TXN), SurModics, Inc (SRDX), Nokia Corp (NOK) and DirecTV Group, Inc (DTV) were today's notable initiations:

• Wedbush initiated CKE Restaurants (NYSE: CKR) with a Buy rating and $25 target.

• Wachovia resumed coverage of Texas Instruments Inc (NYSE: TXN) with an Outperform rating, as the firm believes that TXN's fundamentals have bottomed and the valuation is attractive.

• SurModics Inc (NASDAQ: SRDX) was initiated with an Underperform rating and $28 target at Piper Jaffray. Piper doesn't see a near-term catalyst to move shares higher given a lack of visibility regarding new licenses.

• Nokia (NYSE: NOK) was initiated at Nollenberger with a Neutral rating.

• HSBC started DirecTV (NYSE: DTV) with an Underweight rating and $21 target.

OTHER INITIATIONS:

• Stanford initiated Armor Holdings, Inc (NYSE: AH) with a Buy rating and $80 target.

• Wedbush initiated Jack in the Box Inc (NYSE: JBX) with a Hold rating and $68 target, citing the company's operational improvements and benefits from ongoing refranchising and share repurchases are fully reflected in the stock price.

• Canadian Pacific Railway Ltd (NYSE: CP) was initiated with a Sector Performer rating at CIBC.

• Stifel initiated Medical Properties Trust, Inc (NYSE: MPW) with a Hold rating.

• Bear Stearns initiated Teva Pharmaceutical Industries Ltd (NASDAQ: TEVA) with a Peer Perform rating.

• Thomas Wiesel initiated shares of Cepheid (NASDAQ: CPHD) and Luninex Corp (NASDAQ: LMNX) with Overweight ratings.

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