The U.S. dollar index is trading down 0.14% today, now at 82.563. The GSCI commodity index is down 1.5% at 600.97. WTI crude oil closed up 1.2% today, at $XX a barrel. Brent crude trades 1.77% at $100.39 a barrel. Natural gas is up 4.8% today at about $4.40 per million BTUs, after the weekly storage report showed a smaller-than-expected build in inventories (more coverage here). Gold settled up 0.7% today at $1,392.50 an ounce.

The unofficial closing bells put the DJIA down more than 79 points to 14,539.14 (-0.54%), the NASDAQ fell more than 38 points (-1.20%) to 3,166.36, and the S&P 500 fell -0.67% or more than 10 points to 1,541.63.

There were a several analyst upgrades and downgrades today, including Qiagen NV (NASDAQ: QGEN) started as ‘sell’ at Citigroup; Potash Corp. of Saskatchewan (NYSE: POT) started as ‘overweight’ at HSBC; HollyFrontier Corp. (NYSE: HFC) raised to ‘buy’ at BofA/Merrill Lynch; American International Group Inc. (NYSE: AIG) started as ‘outperform’ with a price target of $50 at BMO Capital Markets; and FedEx Corp. (NYSE: FDX) cut to ‘underperform’ at RBC Capital Markets.

Earnings reports since markets closed last night resulted in some price moves today, including these as of the last half hour of trading: American Express Co. (NYSE: AXP) is up 1.7% at $65.20 (more coverage here); SanDisk Corp. (NASDAQ: SNDK) is down 6.7% at $52.00 (more coverage here); eBay Inc. (NASDAQ: EBAY) is down 5.6% at $52.98 (more coverage here); Kinder Morgan Inc. (NYSE: KMI) is up 0.4% at $37.95 (more coverage here); AutoNation Inc. (NYSE: AN) is up 1.7% at $43.22 (more coverage here); Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is up 0.3% at $28.09; Morgan Stanley (NYSE: MS) is down 4.7% at $20.47 (more coverage here); Nucor Corp. (NYSE: NUE) is down 0.4% at $XX; Peabody Energy Corp. (NYSE: BTU) is up 8.2% at $20.58 (more coal coverage here); PepsiCo Inc. (NYSE: PEP) is up 2.8% at $81.08 after posting a new 52-week high of $83.44 earlier today (more coverage here); Philip Morris International Inc. (NYSE: PM) is down 2.5% at $91.65 (more coverage here); and Verizon Communications Inc. (NYSE: VZ) is up 3% at $51.01 after posting a new 52-week high of $51.67 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear earnings reports from Advanced Micro Devices Inc. (NYSE: AMD), Capital One Financial Corp. (NYSE: COF), Chipotle Mexican Grill Inc. (NYSE: CMG), E*Trade Financial Corp. (NASDAQ: ETFC), Google Inc. (NASDAQ: GOOG), International Business Machines Corp. (NYSE: IBM), General Electric Co. (NYSE: GE), Honeywell International Inc. (NYSE: HON), McDonald’s Corp. (NYSE: MCD), Rockwell Collins Inc. (NYSE: COL), and Schlumberger NV (NYSE: SLB).

Some standouts among heavily traded stocks today include:

Nokia Corp. (NYSE: NOK) is down 12.6% at $3.13. The mobile phone maker posted weak first quarter results. There’s no mercy in the markets. More coverage here.

Rite Aid Corp. (NYSE: RAD) is up 6.2% at $2.39. The drug store chain accepted the resignation of board member Jean Coutu, who has been reducing his group’s stake in the company. More coverage here.

Apple Inc. (NASDAQ: AAPL) is down 2.7% at $392.06. The tech giant’s shares will close below $400 for the first time in more than a year.

Stay tuned for Friday. Fed Governor Jeremy Stein is giving a speech. There are no other events on tomorrow’s schedule.

KMI will pay a first-quarter cash dividend of $0.38 per share, up from $0.32 in the same period a year ago and significantly more than the consensus estimate of $0.31 per share. Revenues totaled $3.06 billion, up from $1.86 billion in the same period a year ago and higher than the consensus estimate of $2.92 billion. Revenue was slightly lower sequentially, however.

Chairman and CEO Richard Kinder had this to say about KMI:

KMI’s growth will continue to be driven by its ownership of the general partners of KMP and EPB, which generate stable and increasing cash flow from their diversified assets. … We currently have identified more than $12 billion in expansion and joint venture investments across the Kinder Morgan companies, and we are pursuing customer commitments for many more projects.

He also commented on KMP’s performance. It is virtually identical to his comment on KMP’s results in the fourth quarter:

We see exceptional growth opportunities across all of our business segments, as there is a need to build additional midstream infrastructure to move or store oil, gas and liquids from the prolific shale plays in the United States and the oilsands in Alberta, along with increasing demand for export coal and CO2. We currently have identified more than $11 billion in expansion and joint venture investments at KMP and we are pursuing customer commitments for many more projects.

What’s missing is Kinder’s reference to expansion and investment that the company plans to wrap up soon. KMP expects to complete its acquisition of Copano Energy LLC (NASDAQ: CPNO) early next month. The $5 billion acquisition was announced in late January.

KMI still expects to declare 2013 cash dividends of $1.57 per share. KMP expects to distribute $5.28 per common unit in 2013.

Shares of KMI are up about 0.1% in after hours trading at $37.80 in a 52-week range of $30.51 to $39.39.

Shares of KMP are down about 1.4% in after-hours trading, at $89.26 in a 52-week range of $74.15 to $90.60.

The U.S. dollar index is trading up 1.06% today, now at 82.613. The GSCI commodity index is up 0.2% at 609.91. WTI crude oil closed down 2.3% today, at $86.68 a barrel after small drop in the EIA’s inventory report (more coverage here). Brent crude trades down 2.1% at $100.39 a barrel. Natural gas is up 1.2% today at about $4.19 per million BTUs. Gold settled down 0.3% today at $1,382.70 an ounce.

The unofficial closing bells put the DJIA down nearly 139 points to 14,618.13 (-0.94%), the NASDAQ fell about 60 points (-1.84%) to 3,204.67, and the S&P 500 fell -1.43% or nearly 23 points to 1,552.00.

There were a several analyst upgrades and downgrades today, including Wells Fargo & Co. (NYSE: WFC) reiterated as ‘sell’ at Argus; Lululemon Athletica Inc. (NASDAQ: LULU) started as ‘overweight’ with a price target of $85 at Barclays; Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) started as ‘overweight’ with a price target of $38 at Barclays; Deere & Co. (NYSE: DE) cut to ‘neutral’ at Macquarie; and Gilead Sciences Inc. (NASDAQ: GILD) reiterated as ‘outperform’ and price target raised to $59 at Oppenheimer.

Earnings reports since markets closed last night resulted in some price moves today, including these as of the last half hour of trading: CSX Corp. (NYSE: CSX) is up XX% at $XX (more railroad coverage here); Intel Corp. (NASDAQ: INTC) is up XX% at $XX (more coverage here) United Rentals Inc. (NYSE: URI) is up XX% at $XX; Yahoo! Inc. (NASDAQ: YHOO) is up XX% at $XX (more coverage here); Bank of America Corp. (NYSE: BAC) is up XX% at $XX (more coverage here); and Abbott Laboratories (NYSE: ABT) is up XX% at $XX (more coverage here).

Before markets open tomorrow morning we are scheduled to hear earnings reports from American Express Co. (NYSE: AXP), SanDisk Corp. (NASDAQ: SNDK), eBay Inc. (NASDAQ: EBAY), Kinder Morgan Inc. (NYSE: KMI), AutoNation Inc. (NYSE: AN), Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Morgan Stanley (NYSE: MS), Nucor Corp. (NYSE: NUE), Peabody Energy Corp. (NYSE: BTU), PepsiCo Inc. (NYSE: PEP), Philip Morris International Inc. (NYSE: PM), Nokia Corp. (NYSE: NOK), and Verizon Communications Inc. (NYSE: VZ).

Some standouts among heavily traded stocks today include:

Magnum Hunter Resources Corp. (NYSE: MHR) is down XX% at $XX after posting a new 52-week low of $2.43 earlier today. The struggling oil & gas producer fired its auditing firm, PricewaterhouseCoopers, last night after the auditors asked for additional information that might have a material impact on the company’s financial statements.

Apple Inc. (NASDAQ: AAPL) is down XX% at $XX. The tech giant’s shares fell below $400 for a moment today. More coverage here.

Nokia Corp. (NYSE: NOK) is up XX% at $XX. The mobile phone maker reports earnings tomorrow morning, and the struggles at Apple are assumed to be good news for Nokia.

Stay tuned for Thursday. Minneapolis Fed President Narayana Kocherlakota and Fed Governor Sarah Bloom Raskin are giving speeches. We have also noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – New claims for unemployment benefits
• 10:00 a.m. – Philadelphia Fed survey
• 10:00 a.m. – Leading indicators
• 10:30 a.m. – EIA weekly petroleum status report
• 1:00 p.m. – 5-year Treasury Inflation-Protected Securities (TIPS) auction
• 4:30 p.m. – Fed balance sheet and money supply

Master limited partnerships (MLPs) outperformed the S&P 500 during mid-2004 and mid-2007, the most recent period of rising interest rates in the past 20 years. MLPs lagged the performance of utilities during that time and were roughly in line compared to REITs. All of these income-oriented equities outperformed bonds. The outperformance relative to the S&P 500 in the 2004 to 2007 period does not necessarily mean MLPs would outperform again should interest rates increase. However, other factors currently in place lead the Credit Suisse analysts to believe that MLPs would outperform again should interest rates rise.

MLPs have done a solid job building on their January gains. Following January’s 12.6% rise, the market-cap weighted MLP AMZX index held up quite well in February with a gain of 0.9%, though the index lagged the S&P 500, which gained 1.4% for the month. In March, the AMZX has moved sideways, gaining 0.66% while the Cushing MLP index has added 1.24%. For the year, the AMZX has gained 14.2% year-to-date, far outpacing the 9.5% gain for the S&P 500 but trailing the Cushing MLP Index’s 15.4% year-to-date gain. The Credit Suisse team still believes that an increased focus on crude oil infrastructure should drive performance, given the boom in North American crude oil production.

Given the historical performance of MLPs in a rising rate environment, the Credit Suisse MLP list of stocks to buy and own for the next three to five years may offer outstanding total return performance.

Plains All American Pipeline L.P. (NYSE: PAA) still tops the list at Credit Suisse, with a price target of $60. The Thomson/First Call consensus target is $57. The Plains distribution is 4.20% paid quarterly. Remember, MLP distributions can include return of principal.

Houston-based Kinder Morgan Inc. (NYSE: KMI) owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments and is truly one of the most diversified MLPs. The Credit Suisse price target on this powerhouse is $44. The consensus target is $41. Kinder Morgan pays a 4.10% distribution.

Because of their corporate diversity, Kinder Morgan Management LLC (NYSE: KMR) also makes the list of top MLP names. The price target at Credit Suisse is $97. The consensus target is $88.12.

Magellan Midstream Partners L.P. (NYSE: MMP) transports, distributes and stores petroleum products in the United States. The Credit Suisse price target for this top name is $55. The consensus target is $51.50. Magellan pays a 4% distribution.

The last name on the list of core holdings for three to five years is Enterprise Products Partners L.P. (NYSE: EPD). Another Houston-based MLP leader, Enterprise Products provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals in the United States and internationally. The price target at Credit Suisse for this one is $60.50. The consensus estimate is in line at $61. The distribution rate at Enterprise is 4.70%.

Investors are well advised to review their portfolio and look for stocks, exchange traded funds or mutual fund holdings that could suffer in the face of rising interest rates. We have written on many occasions that it is not a question of if rates will rise, it is simply a question of when.

About a month ago, analysts at Credit Suisse AG (NYSE: CS) touted several master limited partnerships (MLPs) with Overweight ratings and raised price targets. The companies in that list included Targa Resources Corp. (NYSE: TRGP), Genesis Energy L.P. (NYSE: GEL), Access Midstream Partners L.P. (NYSE: ACMP) and Plains All American Pipeline L.P. (NYSE: PAA). Today, the Credit Suisse analysts looked at the other side of the coin. The payouts remain solid, but some are not as lofty as they have been.

El Paso Pipeline Partners L.P. (NYSE: EPB) was downgraded from Outperform to Neutral based on valuation. The analysts see decelerating distribution growth as the company absorbs the drop-downs associated with the acquisition of El Paso Corp. by Kinder Morgan Inc. (NYSE: KMI). The price target was raised by $1.00 to $44.00, and the total return was forecast at 9% to 13%.

Tesoro Logistics L.P. (NYSE: TLLP) was downgraded from Outperform to Neutral because the analysts believe the company is fairly valued. The target price on the common units was raised from $49 to $53. Credit Suisse sees a compound annual growth rate of 17.3% over the next five years.

EQT Midstream Partners L.P. (NYSE: EQM) also was downgraded from Outperform to Neutral on a valuation basis. The unit price has increased 25% so far in 2013, which Credit Suisse considers to be the company’s fair value. The target price was raised from $39 to $41 on a total return potential of 7% to 14%.

CVR Refining L.P. (NYSE: CVRR) has been upgraded from Neutral to Outperform based on a comparison with its MLP peers, and the distribution forecast was raised to $6.15 per common unit, which is near the upper end of the company’s $5.30 to $6.30 guidance. Credit Suisse raised the price target to $34.00, which the analysts believe could be conservative if the WTI-Brent spread widens.

We have noted before that the S&P 500 outperformed the Alerian MLP Index (AMZX) in 2012 and that the MLPs are making up some ground so far in 2013. Both the Alerian MLP Index ETN (NYSEMKT: AMJ) and the Kayne Anderson MLP Investment Co. (NYSE: KYN) closed-end fund are outperforming the S&P 500 by about 4% or so since the beginning of the year. But all MLPs are not created equal, as Credit Suisse pointed out today.

Baker Hughes Inc. (NYSE: BHI) saw short interest rise by 8% to 12.9 million shares, which is 2.9% of the company’s total float.

BP PLC (NYSE: BP) short interest rose by 58.4% to 12.68 million shares, or 0.4% of the company’s float.

Chesapeake Energy Corp. (NYSE: CHK) saw a 1.7% rise in short interest to 87.07 million shares, which represents about 13.3% of the firm’s float.

Chevron Corp. (NYSE: CVX) short interest fell by 6.1% to 16.66 million shares, which is 0.9% of the company’s float.

ConocoPhillips (NYSE: COP) saw a 5.9% rise in short interest to 24.1 million shares, or 2.1% of the firm’s float.

Short interest in Enterprise Products Partners L.P. (NYSE: EPD) increased by 66.8% to 1.81 million shares, 0.3% of the company’s total float.

Exxon Mobil Corp. (NYSE: XOM) saw short interest fall 1.6% to 35.38 million shares. That is 0.8% of the float.

Kinder Morgan Inc. (NYSE: KMI) short interest rose 1.1% to 11.11 million shares, which represents 2.5% of the company’s float.

National Oilwell Varco Inc. (NYSE: NOV) saw short interest rise by 13.9% to 4.86 million shares, or about 1.1% of the company’s total float.

Phillips 66 (NYSE: PSX) saw a 41.2% decline in short interest to 5.07 million shares, which is 0.8% of the firm’s float.

Schlumberger Ltd. (NYSE: SLB) short interest rose by 4.5% to 12.8 million shares, which represents 1% of the float.

Transocean Ltd. (NYSE: RIG) saw a 6.4% decrease in short interest to 3.47 million shares, or about 1% of the firm’s float.

Valero Energy Corp. (NYSE: VLO) saw a 10.3% drop in short interest to 13.53 million shares, which represents 2.5% of the firm’s float.

Short interest in BP continues to climb, up 58% in this two-week period after climbing 11% in the first two weeks of February. The beginning of the latest trial related to the disaster in the Gulf of Mexico in April 2010 seems to indicate no settlement is on its way, adding to uncertainty about what BP ultimately will have to pay. Short interest in refiners has dropped significantly following more good news on earnings and an outlook for continued strong refining margins.

Baker Hughes Inc. (NYSE: BHI) saw short interest fall by 0.4% to 11.95 million shares, which is 2.7% of the company’s total float.

BP PLC (NYSE: BP) short interest rise by 11.1% to 8 million shares, or 0.3% of the company’s float.

Chesapeake Energy Corp. (NYSE: CHK) saw an 11% rise in short interest to 85.63 million shares, which represents about 13.1% of the firm’s float.

Chevron Corp. (NYSE: CVX) short interest fell by 6.1% to 16.66 million shares, or 0.9% of the company’s float.

ConocoPhillips (NYSE: COP) saw a 26% rise in short interest to 22.75 million shares, which represents 2% of the firm’s float.

Enterprise Products Partners L.P. (NYSE: EPD) saw short interest fall by 60.8% to 1.09 million shares, 0.2% of the company’s total float.

Exxon Mobil Corp. (NYSE: XOM) short interest rose 10.9% to 35.97 million shares, 0.8% of the company’s total float.

Kinder Morgan Inc. (NYSE: KMI) short interest increased 34.8% to 10.99 million shares, which represents 3.2% of the company’s float.

National Oilwell Varco Inc. (NYSE: NOV) saw short interest fall by 1.1% to 4.27 million shares, about 1% of the company’s total float.

Phillips 66 (NYSE: PSX) saw a 6.5% rise in short interest to 8.63 million shares, which represents 1.4% of the firm’s float.

Schlumberger Ltd. (NYSE: SLB) short interest fell by 5.1% to 12.25 million shares. That is 0.9% of the company’s float.

Transocean Ltd. (NYSE: RIG) saw a 10.6% decrease in short interest to 3.71 million shares, which represents 1.1% of the firm’s float.

Valero Energy Corp. (NYSE: VLO) saw a 19.2% drop in short interest to 15.08 million shares, which represents 2.7% of the firm’s float.

Short interest in BP changed direction during these two weeks, and climbed again as the company went to trial on civil charges related to the Gulf of Mexico spill in 2010. The pipeline MLPs got mixed attention from shorts, and services companies generally saw short interest fall. Refiners were also mixed, but Valero’s strong earnings report cooled short interest in the stock.

Baker Hughes Inc. (NYSE: BHI) saw short interest rise by 9% to 11.99 million shares. That is 2.7% of the company’s total float.

BP PLC (NYSE: BP) short interest fall by 33.8% to 7.21 million shares, 0.2% of the company’s float.

Chesapeake Energy Corp. (NYSE: CHK) saw a 17.5% drop in short interest to 77.17 million shares, which represents about 11.8% of the firm’s float.

Chevron Corp. (NYSE: CVX) short interest rose 15.1% to 17.74 million shares, which represents 0.9% of the company’s float.

ConocoPhillips (NYSE: COP) saw a 12.2% drop in short interest to 18.06 million shares, or 1.6% of the firm’s float.

Enterprise Products Partners L.P. (NYSE: EPD) saw short interest rise 4.7% to 2.78 million shares, 0.5% of the company’s total float.

Exxon Mobil Corp. (NYSE: XOM) short interest rose 4.8% to 32.43 million shares, 0.7% of the company’s total float.

Kinder Morgan Inc. (NYSE: KMI) short interest fell 11.8% to 8.15 million shares, which represents 2.7% of the company’s float.

National Oilwell Varco Inc. (NYSE: NOV) saw short interest rise 7.9% to 4.32 million shares, about 1% of the company’s total float.

Phillips 66 (NYSE: PSX) saw a 25% drop in short interest to 8.11 million shares, That represents 1.3% of the firm’s float.

Schlumberger Ltd. (NYSE: SLB) short interest grew by 8.6% to 12.91 million shares, which represents 1% of the company’s float.

Transocean Ltd. (NYSE: RIG) saw a 26.4% decrease in short interest to 4.15 million shares, or about 1.2% of the firm’s float.

Valero Energy Corp. (NYSE: VLO) saw a 6% drop in short interest to 18.66 million shares, which represents 3.4% of the firm’s float.

Short interest in the major integrated oil companies rose, except at BP, which saw a significant drop following its settlement with the U.S. government. The shorts also piled into the services companies, but generally bailed out of the refiners. That makes sense because the demand for drilling and services has waned, causing suppliers to cut prices, while refining margins have been firm.

January has historically been the best month of the year for the Alerian MLP Index (AMZX) and January 2013 appears to have been no exception. The AMZX gained 12.63%, which would qualify as the second best January and second best month of all time, trailing only 2009, which just so happened to be the best year in AMZX history. The index posted a return of 15.25% in January 2009 and finished the year with a 76.41% return. Despite this strong start to the year, the MLP analysts at Credit Suisse Group (NYSE: CS) are forecasting a continued MLP “catch up” trade that could lead to significant outperformance by MLPs compared to the S&P 500.

MLPs underperformed the S&P 500 in 2012 for the first time since 1999, with the AMZX gaining 4.8% vs. 16.1% for the broader market. MLPs have made up some ground thus far in 2013, as the S&P 500 gained 5.03% in January vs. 12.5% for the AMZX and 9.8% for the Cushing MLP Index. With comprehensive tax reform likely off the table, Credit Suisse believes that tax fears will weigh less on MLPs. And while the analysts are still positive on the oil infrastructure MLP stocks, they also think that some of the smaller cap names and/or higher beta names such as MLP refiners or one-off newer issues as well as double-digit growers could extend the rally we have seen in January.

It is not surprising that all of their top names have strong exposure to what they see as the coming oil boom. We have represented these as being “yields” for simplification purposes, but this is a “yield equivalent” for investors as it combined a return of capital along with income. Those top names include:

• Plains All American Pipeline L.P. (NYSE: PAA) yield 4.30%.
• Magellan Midstream Partners L.P. (NYSE: MMP) yield 3.90%.
• Enbridge Energy Partners L.P. (NYSE: EEP) yield 7.30%.
• Enterprise Products L.P. (NYSE: EPD) yield 4.70%.
• Genesis Energy L.P. (NYSE: GEL) yield 4.80%.

In addition, they like all three names under the Kinder Morgan umbrella: Kinder Morgan Management LLC (NYSE: KMR); Kinder Morgan Energy Partners L.P. (NYSE: KMP) which yields 5.80%; and Kinder Morgan Inc. (NYSE: KMI).

The advantage to owning MLPs in an investor portfolio is that they often present one of the best total return opportunities. Investors seeking diversification in the space may want to look at the Kayne Anderson MLP Investment Co. (NYSE: KYN) or the more aggressive Cushing MLP Total Return Fund (NYSE: SRV). Both are exchange traded funds (ETFs) that offer a basket of MLP names.

With strong growth in domestic production and firm pricing in the oil markets, it seems possible that this sometimes overlooked asset class can return to its market leadership position.

Baker Hughes Inc. (NYSE: BHI) saw short interest fall by 5.9% to 11 million shares, 2.5% of the company’s total float.

BP PLC (NYSE: BP) short interest rise by 2.5% to 10.88 million shares, 0.3% of the company’s float.

Chesapeake Energy Corp. (NYSE: CHK) saw a 6.4% rise in short interest to 93.57 million shares, which represents about 14.3% of the firm’s float.

Chevron Corp. (NYSE: CVX) short interest rose 13.8% to 15.41 million shares, which represents 0.8% of the company’s float.

ConocoPhillips (NYSE: COP) saw an 11.9% drop in short interest to 220.56 million shares, which represents 1.8% of the firm’s float.

Enterprise Products Partners L.P. (NYSE: EPD) saw short interest fall 20% to 2.65 million shares, or 0.5% of the company’s total float.

Exxon Mobil Corp. (NYSE: XOM) saw short interest rise 12.5% to 30.94 million shares, 0.7% of the company’s total float.

Kinder Morgan Inc. (NYSE: KMI) short interest rose 22% to 9.24 million shares, which represents 2.3% of the company’s float.

National Oilwell Varco Inc. (NYSE: NOV) saw short interest rise 2.6% to 4 million shares, about 0.9% of the company’s total float.

Phillips 66 (NYSE: PSX) saw an 11.2% drop in short interest to 10.81 million shares, which represents 1.7% of the firm’s float.

Schlumberger Ltd. (NYSE: SLB) short interest rise by 1.1% to 11.9 million shares, which represents 0.9% of the company’s float.

Transocean Ltd. (NYSE: RIG) saw a 54.7% increase in short interest to 5.64 million shares, which represents 1.6% of the firm’s float.

Valero Energy Corp. (NYSE: VLO) saw a 12.5 drop in short interest to 19.85 million shares, which represents 3.6% of the firm’s float.

The sharpest increases in short interest came in the services sector, with Transocean experiencing a leap in short interest. That is likely due to two causes. First, Transocean has cleared up its liability related to the April 2010 Gulf of Mexico disaster, and second from the disclosure that Carl Icahn has now amassed a 5.61% stake in the company and is demanding a $4 per share dividend. Neither factor should keep shares near 52-week highs.