The first thing that the public needs to know is that nations do steal and try to steal each others military and defense secrets all the time. This is common practice and the U.S. does it as well. It used to be cloak and dagger theft, then there was bribery. Now the data is being stolen through corporate intranet intrusions and other forms of hack attacks. If US defense contractors are spending billions and billions each year on R&D, arguably more than just on at least some of the taxpayer’s dime, will they be able to go after China in any meaningful way?

All of these hacks have a real business impact on Lockheed Martin Corp. (NYSE: LMT), L-3 Communications Holdings Inc. (NYSE: LLL), Northrop Grumman Corp. (NYSE: NOC), Raytheon Co. (NYSE: RTN), and likely every other defense contractor firm in America. These companies are collectively spending billions upon billions of dollars in R&D only to have the details of the end product and advanced findings stolen by China. Can you imagine a knock-off Patriot missile? Or what about a knock-off joint strike fighter or stealth bomber?

Read Also: The 10 Most Expensive Weapons Systems in the World

China is stealing so much and so openly that it is really hard to imagine what defense contractors will do. For starters, the defense contractors do not want to admit that they have been hacked nor that their secrets have been stolen. They obviously cannot nor would not bother filing suit in China because they would be laughed out of the country on the spot. They also cannot just physically use their advanced weaponry to directly attack facilities building and studying the stolen designs. So what can they do?

At a minimum they can petition all relevant international courts and regulatory bodies to stop any international sales of any products with stolen military technology. Will this work? It seems unlikely but maybe there is the Bob Dole answer: “Depends.” U.S. defense contract companies also have to be operating under the belief that many outside the U.S. could care less about the military secrets of the U.S. being stolen and knocked-off.

Defense contractors could try some crazy class action suit against Chinese defense firms here in America. Even if a judgment were handed in their favor, they have to know there is no way to collect any money. So then that leaves the International Court of Justice or other bodies. Again, it feels like more than just a stretch to expect any positive resolution. Then there is the U.S. International Trade Commission or even the federal courts. Yet again, what good will it do?

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If you want to know what is being ripped off, the answer is simple. If it is advanced or valuable, they are stealing it or are trying to steal it.

The F-35 joint strike fighter has been touted as the most expensive jet fighter system ever made, with details of its advanced systems being stolen. In our own “most expensive systems” projection the total cost was over $325 billion yet that is expected to ultimately cost well over $1 trillion to implement. The advanced Patriot missile system secrets have also been targeted. Another target was the Littoral Combat Ship as a multi-billion close to shore operations effort that has been under controversy over costs.

Another concern was the theft of secrets such as THAAD, the Terminal High Altitude Area Defense, a system for shooting down ballistic missiles. Another missile system was the Aegis ballistic defense missile defense system under the Navy.

Unfortunately, this is one of those crimes that is nearly impossible to crack down upon. The military cannot directly respond, because that would suddenly be war. We also have the conundrum in place that the Chinese want to steal our designs but they have nothing to steal in return. We can’t exactly use their blueprint for how to make labor cheaper domestically. We don’t want their “pollution control” secrets, nor do we want their secrets on how use dangerous chemicals in every day household products.

Read Also: Goldman Sachs Positive on Select Defense Firms

As an American I am upset about this. The problem is that all governments (and many companies) use corporate espionage and many methods to extract government or technology secrets. It is a game that has existed since the dawn of civilization and since discoverers started creating grand inventions.

Many nations envious of the United States probably feel the same way that the army using bronze felt against the first army using iron. Those who first figured out that iron was superior knew they would only have that advantage for a limited time. That being said, what can be done to stop this in the day of electronic communications?

Tell us what you think if you have real suggestions or solutions. This is a serious issue, and one day it may matter more than any of care to think about.

Lockheed Martin Corp. (NYSE: LMT) was covered on this morning’s top analyst upgrades and stocks to buy because this stock was moved up to the prized Conviction Buy List. The firm’s price target is now $127, for about 20% in implied upside. Be advised that the consensus price target is $100.60 as of now, and that is about $7 lower than the current share price. This $127 now counts as the street-high analyst price target.

Other Goldman Sachs research calls for defense and warfare stocks were as follows:

• Communications Holdings Inc. (NYSE: LLL) was raised to Buy from Neutral with a $102 price target.
• Northrop Grumman Corp. (NYSE: NOC) was raised to Buy from Neutral with a $95 target.
• Raytheon Co. (NYSE: RTN) was raised only to Neutral with only a $70 price target, but that removes the Sell rating that the firm had in place.

The basis for the upgrades is that the worst may have been seen from spending cuts and sequestration. Valuations in the sector are low and under the S&P 500 index, and the Goldman Sachs research team now feels that the defense sector could outperform the broader stock market for a period of several years.

We have expanded our list of American companies that provide counterterrorism and of public companies selling to law enforcement and to the Department of Homeland Security.

Some things are going to be obvious. Airport security and security at public events will be now be on higher alert. If the trends of terrorism and sabotage keep escalating, Americans almost certainly will have to deal with more audio and video surveillance, hazardous materials suits being shown in the news, and increased monitoring of all sorts. These trends are likely to bring increased orders for companies that serve the intelligence and law enforcement communities.

The companies we have identified manufacture and sell products or offer services that fall under law enforcement and under Homeland Security. Some of these are spread into other areas, and we did not include the big corporate giants that have 2% or so tied to these markets. Note that some of these companies are very small, and some have declining revenue due to lower security expenses in recent years.

Alliant Techsystems Inc. (NYSE: ATK) may be thought of for rocket boosters and propulsion for air and space technologies, but the company also happens to be the largest bullet manufacturer in America for the military, law enforcement and Joe Public. The company supplies bullets and ammunition to the Department of Justice, FBI, Department of Homeland Security, Armed Forces and others. ATK operates the Lake City Army Ammunition Plant and recently announced the delivery of 2 billion 7.62 mm rounds to the U.S. Army. ATK’s value is almost $2.4 billion, and it is expected to generate about $4.3 billion in sales in 2013.

American Science & Engineering Inc. (NASDAQ: ASEI) scans for bombs and weapons in transportation systems. It is also involved in mail room screening as well, and any more ricin poison being sent in the mail should increase its public exposure. That being said, revenue has been in decline. This company has a market value of about $492 million, and 2012 annual sales were $203.5 million and expected to drop ahead.

Command Security Corp. (NYSEMKT: MOC) is tiny, as its market value is only about $16 million, but sales in fiscal 2012 were $141 million. The company claims to have 6,000 highly trained personnel for airport security, banks, government offices, health care facilities and other corporate and enterprise security.

FLIR Systems Inc. (NASDAQ: FLIR) handles various degrees of imaging via night-time vision, thermal imaging, chemical and biological detection, explosives detection and more. With a market value of about $3.5 billion, it has expected sales for 2013 projected to be more than $1.5 billion.

Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is considered to be a national security technology player selling products, services and solutions for security in the United States. While diversified, Kratos recently announced contracts to deploy specialized security systems for mass transportation, rail and critical infrastructure awards. The company has a market value of about $285 million, and it is expected to have sales of close to $975 million in 2013.

L-3 Communications Holdings Inc. (NYSE: LLL) is an amalgamation of command, control, communications, intelligence, surveillance and reconnaissance products and services. The company has made many acquisitions over the past decade, and it is involved in many other defense applications. L-3 has a market value of about $7.3 billion, and it is expected to generate $12.6 billion in sales in 2013.

Lakeland Industries Inc. (NASDAQ: LAKE) is very small, but it makes chemical protective clothing, disposable protective clothing, safety gloves, turnout gear, high visibility clothing, flame and heat-resistant clothing and other items. Its value is a mere $19 million, and this one is often skipped or overlooked because of its size and liquidity. Sales are running at just under $100 million per year.

NICE Systems Ltd. (NASDAQ: NICE) is a software company that captures and analyzes interactions and transactions in order to realize intent and to extract and leverage insights real-time. Technically this is not an American company, as it is based in Israel, but the company claims that about 25,000 organizations in 150 countries are direct or indirect clients. Its market value is $2.1 billion, and 2012 sales were almost $880 million, but note that the company is diversified in many segments.

OSI Systems Inc. (NASDAQ: OSIS) is a real player involved in homeland security, health care, defense and aerospace industries. In this aspect, it is known well for its Rapiscan Systems for security screening in airports, ports and buildings. OSI has a market value of about $1.1 billion and is expected to have 2013 sales of more than $830 million.

Raytheon Co. (NYSE: RTN) may still best be known for its Patriot Missiles and their more modern replacements, but it is also involved in integrated communications and intelligence. This ranges from seeing through walls and to communications monitoring via its Applied Signal Technology acquisition in recent years for its advanced intelligence, surveillance and reconnaissance systems and services. Raytheon is worth about $18.7 billion, and sales are expected to be about $23.8 billion in 2013.

Smith & Wesson Holding Corp. (NASDAQ: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR) are the two public company gun leaders in America. It sure seems that recent events may drive yet another round of strong gun demand. Gun control legislation also remains up in the air after 14 people were stabbed at a college in Houston and with two bombs going off in Boston. It is possible that the argument against gun ownership may have lost some of its bite. Smith & Wesson is worth about $560 million, and the expected 2013 sales are about $580 million. Sturm Ruger has a market value of about $934 million and is expected to have sales of about $514 million in 2013.

TASER International Inc. (NASDAQ: TASR) makes the tasers, or stun guns, for law enforcement. It is hard to know if terror scares will lift its unit orders, and this company’s glory days were in 2003 to 2005, when the stock went from less than $5 to $30 briefly. Its shares have traded sideways since for the most part, and it is very thinly covered by Wall St. TASER’s market value is still more than $410 million, and sales were almost $115 million in 2012.

Many of these companies have been beneficiaries in the past due to Homeland Security orders, counterterrorism and increased sales to law enforcement and enterprises. We are not trying to pick winners here, nor are we signaling that these are all stocks to buy. We strongly suggest that any investors looking to capitalize on this trend do some serious, deep-dive research of their own on these and other companies before taking any action.

Needless to say, you can bet that airport security and security at public events will be now be alerted and higher. If the trends do manage to escalate, America likely will have to deal with more audio and video surveillance, hazardous materials suits and more and more monitoring of all sorts. The long and short of the matter is that this will translate to increased orders for companies that serve the intelligence and law enforcement communities.

Alliant Techsystems Inc. (NYSE: ATK) is known for boosters and propulsion for air and space technologies, but the company also happens to be the largest bullet manufacturer in America for military, law enforcement and retail. It supplies bullets and ammunition to the Armed Forces, Department of Justice, FBI, Department of Homeland Security and others, and it operates the Lake City Army Ammunition Plant. The company even announced the delivery of 2 billion 7.62 mm rounds to the U.S. Army last September. ATK’s value is almost $2.4 billion and it is expected to generate about $4.3 billion in sales in 2013.

FLIR Systems Inc. (NASDAQ: FLIR) has remained independent and it handles various degrees of imaging via night-time vision, thermal imaging, chemical and biological detection, explosives detection and more. With a market value of more than $3.5 billion today, its expected sales for 2013 are projected to be more than $1.5 billion.

Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is a national security technology company providing products, services and solutions for security in the United States. While diversified, Kratos recently announced contracts to deploy specialized security systems for mass transportation, rail and critical infrastructure awards. The company has a market value of about $285 million and it is expected to have sales of close to $975 million in 2013.

L-3 Communications Holdings Inc. (NYSE: LLL) has made many acquisitions after the 2001 to 2003 period, and it offers command, control, communications, intelligence, surveillance and reconnaissance products and services. It is also involved in many other defense applications. L-3 has a market value of about $7.3 billion, and it is expected to generate $12.6 billion in sales in 2013.

Lakeland Industries Inc. (NASDAQ: LAKE) is very small, but it makes chemical protective clothing, disposable protective clothing, safety gloves, turnout gear, high visibility clothing, flame and heat-resistant clothing and other items. Its value is a mere $19 million, and we would point out that this one is often skipped or overlooked because of its size and liquidity. Sales are running at just under $100 million per year.

OSI Systems Inc. (NASDAQ: OSIS) covers the homeland security, health care, defense and aerospace industries, but it is known for its Rapiscan Systems for security screening in airports, ports and buildings. It has a market value of about $1.1 billion and is expected to have 2013 sales of more than $830 million.

Raytheon Co. (NYSE: RTN) may still best be known for its Patriot Missiles and their more modern replacements, but do not forget some of its other outfits involved in integrated communications and intelligence. This ranges from seeing through walls to much more. Raytheon also acquired Applied Signal Technology in recent years for its advanced intelligence, surveillance and reconnaissance systems and services. Raytheon is worth some $18.7 billion, and sales are expected to be about $23.8 billion in 2013.

Smith & Wesson Holding Corp. (NASDAQ: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR) are the two gun leaders in America and allied nations. We cannot help but wonder what this does for renewing gun demand ahead of gun control legislation. It seems that after 14 people were stabbed at a college in Houston just last week, and with two bombs going off, that the argument against gun ownership may have lost some of its bite. Smith & Wesson is worth about $560 million, and the expected 2013 sales are about $580 million. Sturm Ruger has a market value of about $934 million and is expected to have sales of about $514 million in 2013.

TASER International Inc. (NASDAQ: TASR) makes what you would call Tasers, or stun guns, for law enforcement. Whether its orders will increase as a result is probably up for debate, but its shares enjoyed glory days from 2003 to 2005, when the stock went from less than $5 to $30 briefly. Its shares have traded sideways for the most part, and it is very thinly covered by Wall St. TASER’s market value is still more than$410 million, and sales were almost $115 million in 2012.

There are many other companies that will stand to benefit if the spending around terrorism, homeland defense, surveillance and espionage rises in the near future. We are not trying to pick winners here by any means. Many information technology, service holding companies and larger defense and warfare companies have many overlaps in homeland security.

The U.S. dollar index is trading up 0.28% today, now at 82.7286. The GSCI commodity index is down 0.8% at 628.26, as commodities markets continues to struggle (more coverage here). WTI crude oil closed up 0.7% today, at $93.36 a barrel. Brent crude trades up 0.6% at $104.68 a barrel. Natural gas is down 0.9% today at about $4.09 per million BTUs. Gold settled down 0.2% today at $1,572.10 an ounce.

The unofficial closing bells put the DJIA up more than 48 points to 14,613.48 (0.33%), the NASDAQ rose more than 18 points (0.57%) to 3,222.25, and the S&P 500 rose 0.63% or nearly 10 points to 1,563.07.

There were a several analyst upgrades and downgrades today, including Johnson & Johnson (NYSE: JNJ) cut to ‘neutral’ at J.P. Morgan; Vale SA (NYSE: VALE) raised to ‘buy’ at Canaccord Genuity; L-3 Communications Inc. (NYSE: LLL) cut to ‘underweight’ at J.P. Morgan; Rubicon Technology Inc. (NASDAQ: RBCN) raised to ‘buy’ with a price target of $12 at Argus; and Vail Resorts Inc. (NYSE: MTN) cut to ‘neutral’ at Credit Suisse.

No earnings of note were released before markets opened today.

Before markets open tomorrow morning we are scheduled to hear from Alcoa Inc. (NYSE: AA) (more coverage here), as another earnings season gets underway.

Some standouts among heavily traded stocks today include:

Advanced Micro Devices Inc. (NYSE: AMD) is up 13.1% at $2.59. The chipmaker got a big boost from reports that Microsoft Corp. (NASDAQ: MSFT) will use AMD chips in the next Xbox.

Weatherford International Ltd. (NYSE: WFT)) is up 3.4% at $12.45. The oil field services firm’s shares are reacting to this morning’s announcement of the $3.3 billion acquisition of Lufkin Industries Inc. (NASDAQ: LUFK) by General Electric Co. (NYSE: GE) (more coverage here).

MGIC Investment Corp. (NYSE: MTG) is up 8.8% at $5.38. The mortgage loan insurer was among four companies that settled allegations of illegal kickback payments today with the Consumer Financial Protection Bureau.

Stay tuned for Tuesday. Richmond Fed President Jeffrey Lacker is giving a speech. We have also noted the following events on the schedule (all times Eastern):

• 7:30 a.m. – National Federation of Independent Business optimism index
• 10:00 a.m. – Wholesale trade
• 11:30 a.m. – 4-week bill auction
• 1:00 p.m. – 3-year note auction

These are some of this Monday’s top analyst upgrades, downgrades and initiations seen from select Wall St. research calls.

Johnson & Johnson (NYSE: JNJ) cut to Neutral from Overweight on valuation at J.P. Morgan.

Juniper Networks Inc. (NYSE: JNPR) raised to Buy with $22 target at Argus.

L-3 Communications Inc. (NYSE: LLL) cut to Underweight from Neutral at J.P. Morgan.

Moody’s Corp. (NYSE: MCO) named Bull of the Day at Zacks.

Northrup Grumman Corp. (NYSE: NOC) raised to Neutral from Underweight at J.P. Morgan.

Public Service Enterprise Group Inc. (NYSE: PEG) cut to Hold at Argus.

Rubicon Technology Inc. (NASDAQ: RBCN) raised to Buy with $12 target at Stern Agee.

Read Also: Analysts Project 50% to 100% Upside in These 19 Stocks

SAP A.G. (NYSE: SAP) added to European Focus List and raised target by more than 6% in ordinary shares at Credit Suisse.

Silver Spring Networks (NYSE: SSNI) initiated in new coverage as quiet period ends: Outperform with $26 target at Credit Suisse, Outperform with $22 target at Baird, Neutral at Goldman Sachs and Neutral at Piper Jaffray.

The Children’s Place Retail Stores Inc. (NASDAQ: PLCE) named as Bear of the Day at Zacks.

Tile Shop Holdings Inc. (NASDAQ: TTS) started as Outperform with $26 target at Credit Suisse.

Vail Resorts Inc. (NYSE: MTN) cut to Neutral at Credit Suisse.

Vale S.A. (NYSE: VALE) raised to Buy from Hold with $21 price target at Canaccord Genuity.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) started as Hold at Canaccord Genuity.

Deutsche Bank also provided its list of stocks to buy now, even if you have missed the bull market so far.

Here are the nine most promising big turnarounds of 2013.

Click here to see the companies profiting most from war

These companies have benefited tremendously from the growth in military spending in the U.S., which by far has the largest military budget in the world. In 2000, the U.S. defense budget was approximately $312 billion. By 2011, that figure had grown to $712 billion. Arm sales grew alongside general defense spending growth. SIPRI noted that between 2002 and 2011, arms sales among the top 100 companies grew by 51%.

However, the trend has reversed recently. In 2011, the top 100 arms dealers sold 5% less compared to 2010. Susan Jackson, a defense expert at SIPRI, said in an email to 24/7 Wall St. that austerity measures in Western Europe and the U.S. have delayed or slowed down the procurement of different weapons systems. Austerity concerns have exacerbated matters since 2011. The U.S. federal government budget cuts that took effect beginning this month — commonly known as sequestration — mean that military spending could contract by more than $500 billion over the coming decade unless some of the cuts are reversed.

In addition, the U.S.’s involvement in conflicts in Iraq and Afghanistan have wound down significantly. The last American convoy in Iraq left the country in December of 2011. Troop withdrawals from Afghanistan also began in 2011. Finally, SIPRI pointed out that sanctions on arms transfers to Libya also played a role in declining arms sales.

Many of these companies are looking overseas to try to make up for slowing sales in the U.S. and Europe. Arms producers are especially keen on areas in Latin America, the Middle East and parts of Asia, Jackson said. For instance, BAE is in the process of securing contracting agreements with Saudi Arabia. Meanwhile, the chief financial officer of Northrop Grumman has recently indicated his company may sell its Global Hawk airplane to South Korea or Japan.

Based on the report, 24/7 Wall St. reviewed the 10 companies with the most arms sales in 2011. Arms were defined as sales to military customers, either for procurement or for export, but do not include sales of general purpose items such as oil or computer equipment to military customers. We also looked at arms sales from 2010, as well as the company’s total sales in 2010. Furthermore, we considered the company’s 2011 total sales, profits and the total number of employees at the company, all provided by SIPRI.

There are the 10 companies profiting the most from war.

The U.S. dollar index fell 0.4% today, now at 79.235. The GSCI commodity index is up 0.8% at 670.51, with commodities prices mostly higher again today. WTI crude oil closed up 0.4% today, at $97.94 a barrel following a sharp increase in crude oil inventories today (more coverage here). Brent crude trades up 0.5% at $114.93 a barrel. Natural gas is up 2.3% today at about $3.23 per million BTUs. Gold settled up 0.5% today at $1,681.60 an ounce.

The unofficial closing bells put the DJIA down 44 points to 13,910.42 (-0.32%), the NASDAQ fell more than 11 points (-0.36%) to 3,142.31, and the S&P 500 fell -0.39% or nearly 6 points to 1,501.96.

There were a several analyst upgrades and downgrades today, including Websense Inc. (NASDAQ: WBSN) cut to ‘sell’ at Topeka Capital; JetBlue Airways Corp. (NASDAQ: JBLU) cut to ‘underperform’ at Raymond James; KB Home (NYSE: KBH) raised to ‘outperform’ at Credit Suisse; Yum! Brands Inc. (NYSE: YUM) cut to ‘market perform’ at Bernstein; and Cisco Systems Inc. (NASDAQ: CSCO) raised to ‘outperform’ at Baird.

Earnings reports since markets closed last night resulted in several price moves today, including these: Amazon.com Inc. (NASDAQ: AMZN) is up 4.4% at $271.84 after posting a new 52-week high of $284.79 earlier today (more coverage here); Broadcom Corp. (NASDAQ: BRCM) is up 0.2% at $33.76 (more coverage here); Ryland Group Inc. (NYSE: RYL) is down 2.6% at $40.24 after putting up a new 52-week high of $42.79 earlier today; Robert Half International Inc. (NYSE: RHI) is up 5.7% at $35.45 after posting a new 52-week high of $35.72 earlier today; The Boeing Co. (NYSE: BA) is up 1.1% at $74.42 (more coverage here); The ADT Corp. (NYSE: ADT) is up 3.6% at $48.17 after posting a new 52-week high of $49.16 earlier today; L-3 Communications Holdings Inc. (NYSE: LLL) is up 0.1% at $77.96; Phillips 66 (NYSE: PSX) is up 1.6% at $60.83 after posting a second consecutive 52-week high of $62.91 earlier today (more coverage here); Northrop Grumman Corp. (NYSE: NOC) is down 0.5% at $66.43 (more coverage here); and Southern Co. (NYSE: SO) is down 0.1% at $44.56.

After markets close today and before they open tomorrow morning we are scheduled to hear from Citrix Systems Inc. (NASDAQ: CTXS), ConocoPhillips (NYSE: COP), Electronic Arts Inc. (NASDAQ: EA), Facebook Inc. (NASDAQ: FB), JDS Uniphase Corp. (NASDAQ: JDSU), Las Vegas Sands Corp. (NYSE: LVS), Aetna Inc. (NYSE: AET), Altria Group Inc. (NYSE: MO), AutoNation Inc. (NYSE: AN), Colgate-Palmolive Co. (NYSE: CL), Dunkin’ Brands Group Inc. (NASDAQ: DNKN), Mastercard Inc. (NYSE: MA), PulteGroup Inc. (NYSE: PHM), Time Warner Cable Inc. (NYSE: TWC), and United Parcel Service Inc. (NYSE: UPS).

Some standouts from today include the following stocks:

Research in Motion Ltd. (NASDAQ: RIMM) is down 10.3% at $14.04. The smartphone maker changed its name to BlackBerry and launched two new smartphones today. More coverage here.

Chesapeake Energy Corp. (NYSE: CHK) is up 6.5% at $20.20. The natural gas producer lost its CEO last night — or did the board fire him? More coverage here.

Ventrus Biosciences Inc. (NASDAQ: VTUS) is down 22.9% at $2.53. The development stage pharmaceutical firm priced a secondary offering of 5.8 million shares at $2.50 a share, a discount of 24% to last night’s closing price.

Stay tuned for Thursday. We have noted the following event on the schedule (all times Eastern):

• 7:30 a.m. – Challenger job-cut report
• 8:30 a.m. – New claims for unemployment benefits
• 8:30 a.m. – Personal income and outlays
• 8:30 a.m. – Employment cost index
• 9:45 a.m. – Chicago PMI
• 10:30 a.m. – EIA weekly natural gas storage report
• 3:00 p.m. – Farm prices
• 4:30 p.m. – Fed balance sheet and money supply

The U.S. dollar index fell 0.28% today, now at 79.547. The GSCI commodity index is up 0.4% at 665.33, with commodities prices mostly higher again today. WTI crude oil closed up 1.2% today, at $97.57 a barrel. Brent crude trades up 0.7% at $114.18 a barrel. Natural gas is down 1.9% today at about $3.23 per million BTUs. Gold settled up 0.5% today at $1,660.80 an ounce.

The unofficial closing bells put the DJIA up more than 72 points to 13,954.57 (0.52%), the NASDAQ fell less than 1 point (-0.02%) to 3,153.66, and the S&P 500 rose 0.51% or nearly 8 points to 1,507.84.

There were a several analyst upgrades and downgrades today, including Seagate Technology PLC (NASDAQ: STX) cut to ‘sell’ at Ameriprise and cut to ‘equal weight’ at Evercore Partners; Tyson Foods Inc. (NYSE: TSN) raised to ‘buy’ at BofA/ML; Starbucks Corp. (NASDAQ: SBUX) reiterated as ‘buy’ and price target raised to $64 at Argus; Abercrombie & Fitch Co. (NYSE: ANF) raised to ‘outperform’ at BMO; and Caterpillar Inc. (NYSE: CAT) raised to ‘outperform’ at BMO.

Earnings reports since markets closed last night resulted in several price moves today, including these: Yahoo! Inc. (NASDAQ: YHOO) is down 2.4% at $19.83 (more coverage here); Seagate Technology PLC (NASDAQ: STX) is down 8.9% at $34.06; Steel Dynamics Inc. (NASDAQ: STLD) is up 2.8% at $15.42 (more steel coverage here); Boston Scientific Corp. (NYSE: BSX) is up 3.1% at $7.07 after posting a new 52-week high of $7.43 earlier today (more coverage here); D.R. Horton Inc. (NYSE: DHI) is up 12.3% at $23.93 after posting a new 52-week high of $24.03 earlier today; Ford Motor Co. (NYSE: F) is down 4.7% at $13.14 (more coverage here); Peabody Energy Corp. (NYSE: BTU) is up 5.7% at $26.59; Pfizer Inc. (NYSE: PFE) is up 3.6% at $27.82 after posting a new 52-week high of $27.84 earlier today; and Valero Energy Corp. (NYSE: VLO) is up 12.3% at $43.60 after posting a new 52-week high of $43.77 earlier today (more coverage here).

After markets close today and before they open tomorrow morning we are scheduled to hear from Amazon.com Inc. (NASDAQ: AMZN) (preview here), Broadcom Corp. (NASDAQ: BRCM), Ryland Group Inc. (NYSE: RYL), Robert Half International Inc. (NYSE: RHI), ADT Corp. (NYSE: ADT), L-3 Communications Holdings Inc. (NYSE: LLL), Phillips 66 (NYSE: PSX) (more coverage here), Northrop Grumman Corp. (NYSE: NOC), and Southern Co. (NYSE: SO).

Some standouts from today include the following stocks:

Keryx Biopharmaceuticals Inc. (NASDAQ: KERX) is up 43% at $8.66 after posting a second-consecutive new 52-week high of $8.79 earlier today. The biopharma company reported better-than-expected results in trials of a new kidney drug on Monday and the glow is still golden.

VMware Inc. (NYSE: VMW) is down 20.9% at $77.80 after posting a new 52-week low of $76.33 earlier today. The enterprise software company posted decent results last night, but the outlook sank shares today. (more coverage here)

OCZ Technology Group Inc. (NASDAQ: OCZ) is down 15.7% at $2.26. The solid-state drive maker crumbled on news that Seagate invested in another solid-state drive maker last night. Hopes had been high that the disk drive giant might acquire OCZ.

Stay tuned for Wednesday. The Federal Open Market Committee (FOMC) concludes its two-day meeting today. We have noted the following event on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
8:15 a.m. – ADP employment report
8:30 a.m. – GDP (consensus estimate calls for growth of 1%)
10:30 a.m. – EIA weekly petroleum status report
1:00 p.m. – 7-year Treasury note auction
2:15 p.m. – FOMC meeting announcement

Lockheed’s board of directors has now just announced this Thursday that it has authorized a fourth quarter 2012 dividend of $1.15 per share. The hike is by $0.15 or 15%. With the coming defense cuts under the fiscal cliff, this is a situation that many defense firms and many investors are watching closely. The company confirmed that this announcement marked the tenth consecutive annual dividend increase, and said that it was the tenth double-digit percentage increase.

A month ago we predicted 12 major dividend hikes before the end of 2012, several of which have already been announced. Lockheed Martin was one of those stocks and we noted:

Lockheed Martin may be in the defense sector and at risk of austerity measures, but its dividend hike of late 2011 was for a yield of 5.2%. That only screens out as about 4.4% now that shares hit a new 52-week high. In the new age of austerity, the $30 billion defense giant might not be able to take the same 33% dividend hike it took in late 2011, but it is still expected to grow earnings, and that $1.00 quarterly payment may get hiked to $1.10 or $1.15 in the next 45 to 60 days.

As far as what the annualized payout of $4.60 means with a $91.80 share price, the old dividend yield of close to 4.4% will now yield 5% to new investors. It is also worth noting that $91.80 share price compares to a 52-week range of $70.37 to $93.99.

Lockheed is blowing away its defense contractor peers on the dividend yields. Here is a list of dividend yields as follows:

Rockwell Collins Inc. (NYSE: COL) at 2.3%

L-3 Communications Holdings In (NYSE: LLL) at 2.8%

General Dynamics Corp. (NYSE: GD) at 3.1%

Northrop Grumman Corporation (NYSE: NOC) at 3.3%

Raytheon Co. (NYSE: RTN) at 3.4%

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JON C. OGG