Special Reports

StreetInsider.com Notable Analyst Rating Changes:

UPGRADES:
Cowen & Co. upgrades L-3 Communications (NYSE: LLL) from Neutral to Outperform, calling the stock an "oversold safe haven."

Citi upgrades Arch Coal Inc. (NYSE: ACI) and Peabody Energy Corp. (NYSE: BTU) from Hold to Buy.

Soleil Securities upgrades Alcoa (NYSE: AA) from Sell to Hold with a $40 price target, citing valuation.

For daily real-time Upgrades go to http://www.streetinsider.com/Upgrades

DOWNGRADES:
Goldman Sachs downgrades Health Net Inc. (NYSE: HNT) from Neutal to Sell.

Goldman Sachs downgrades Aetna Inc. (NYSE: AET) from Neutral to Sell.

JP Morgan, Needham & Co and Longbow Research downgrade NVIDIA (Nasdaq: NVDA) after Q2 warning.

For daily real-time Downgrades go to http://www.streetinsider.com/Downgrades

NEW COVERAGE:
Friedman Billings initiates coverage on ESCO Technologies (NYSE: ESE) with an Outperform rating and $60 price target.

Soleil Securities initiates coverage on GeoEye (NASDAQ: GEOY) with a Buy rating and a $23 price target.

Stanford initiates coverage on Consolidated Communications (Nasdaq: CNSL) with a Hold. Price target $16.

For daily real-time New Coverage go to http://www.streetinsider.com/New+Coverage

StreetInsider.com Notable Mergers and Acquisitions of the Day:

• Penn National Gaming, Inc. (Nasdaq: PENN) confirmed that it has entered into an agreement with Fortress Investment Group LLC (NYSE: FIG) and Centerbridge Partners, L.P. to terminate the proposed merger agreement whereby Penn National Gaming was to be acquired by PNG Acquisition Company for $67.00 per share.
  
  In connection with the termination of the merger agreement, Penn National Gaming will receive $1.475 billion, which will consist of a $225 million cash termination fee and the purchase of $1.25 billion of Penn National Gaming's redeemable preferred equity due 2015, by affiliates of Fortress, affiliates of Centerbridge, affiliates of Wachovia, and affiliates of Deutsche Bank.
  
  
• Responding to an unsolicited proposal from Tang Capital Partners for $2.25 per share, Northstar Neuroscience, Inc., (NASDAQ: NSTR) today announced that its Board will review and consider the offer consistent with its fiduciary duties. The Company also announced that the Board has engaged Leerink Swann to assist in the evaluation of strategic alternatives.
  
  
• Cognex Corporation (NASDAQ: CGNX) announced that it has sold its lane departure warning business (LDW) to TK Holdings Inc. (Takata Corporation Group), a leading supplier of automotive safety systems based in Tokyo, Japan. Under the terms of the deal, Takata has acquired all of the assets of the LDW business for $3.15 million in cash.
  
  

StreetInsider.com Pre-Open Movers:

NVIDIA Corporation (Nasdaq: NVDA) 26% LOWER; sees Q2 revenue of $875 million to $950 million, below the consensus of $1.1 billion. The estimated decrease in revenue and gross margin is due to several reasons: end-market weakness around the world, the delayed ramp of a next generation MCP, and price adjustments of our GPU products to respond to competitive products.

Acme Packet, Inc. (NASDAQ: APKT) 20% LOWER; sees Q2 revenues between $24.5 million and $25.5 million and Non-GAAP EPS of $0.02. The Wall Street consensus is $33.6 million and $0.09.

TranS1 Inc. (Nasdaq: TSON) 18% LOWER; announced that revenues for the second quarter of 2008 are expected to be approximately $5.9 to $6.0 million, lower than previously announced guidance of $6.3 to $6.5 million.

Chindex International Inc. (NASDAQ: CHDX) 17% HIGHER; received long-awaited approval from the State Food and Drug Administration of the People's Republic of China to introduce new products, including the daVinci S Surgical System manufactured by Intuitive Surgical and the AlexLaser manufactured by Candela Corporation.

ARYx Therapeutics, Inc., (NASDAQ: ARYX) 13% LOWER; announced the results of an important cardiac safety study on its prokinetic agent, ATI-7505. The overall results of a Thorough QT (TQT) study designed to demonstrate whether electrocardiographic effects are seen at therapeutic and supra therapeutic doses and conducted under a collaboration agreement with Procter & Gamble Pharmaceuticals (P&G) were negative, supporting the favorable cardiac safety profile of the agent. ATI-7505 is a prokinetic agent in Phase 2 clinical trials for chronic constipation and functional dyspepsia. Seperatly, ARYx Therapeutics announced that Procter & Gamble Pharmaceuticals, Inc. (P&G) has utilized a one-time thirty day cancellation option linked to the completion of a Thorough QT (TQT) study to end the collaboration agreement between the companies covering the late-stage development and commercialization of ATI-7505, a prokinetic agent in Phase 2 clinical trials for chronic constipation and functional dyspepsia.

Penn National Gaming Inc. (Nasdaq: PENN) 10% LOWER; According to reports from CNBC's David Faber, Penn National Gaming Inc. has reached an agreement with private equity firms Fortress and Centerbridge to terminate the pending merger agreement. As part of the deal, Penn National will receive $1.475 billion, which includes a cash termination fee and an equity infusion.

Health Net Inc. (NYSE: HNT) 8% LOWER; Goldman cuts to Sell

Zoran Corp. (Nasdaq: ZRAN) 3.8% LOWER; Rumored suitor, NVIDIA, warned after the close.

Aetna Inc. (NYSE: AET) 3% LOWER; Goldman cuts to Sell

Advanced Micro Devices (NYSE: AMD) 2.8% LOWER; NVIDIA warning.

Alpha Natural Resources Inc. (NYSE: ANR) 2.8% LOWER; Continues today's 16% sell-off related to global profit-taking in commodities

Yahoo! Inc. (Nasdaq: YHOO) 2.8% HIGHER; Reports from WSJ the company pursues talks with new partners.

Abbott (NYSE: ABT) 1.5% HIGHER; announced that the FDA approved the XIENCE V Everolimus Eluting Coronary Stent System for the treatment of coronary artery disease. XIENCE V is the only drug eluting stent to have demonstrated superiority over Boston Scientific's TAXUS paclitaxel-eluting coronary stent system in two randomized head-to-head clinical trials. XIENCE V will be launched in the United States immediately.

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StreetInsider.com After-Hours Movers:

NVIDIA Corporation (Nasdaq: NVDA) 21% LOWER; sees Q2 revenue of $875 million to $950 million, below the consensus of $1.1 billion. The estimated decrease in revenue and gross margin is due to several reasons: end-market weakness around the world, the delayed ramp of a next generation MCP, and price adjustments of our GPU products to respond to competitive products.

TranS1 Inc. (Nasdaq: TSON) 18% LOWER; announced that revenues for the second quarter of 2008 are expected to be approximately $5.9 to $6.0 million, lower than previously announced guidance of $6.3 to $6.5 million.

ARYx Therapeutics, Inc., (NASDAQ: ARYX) 13% LOWER; announced the results of an important cardiac safety study on its prokinetic agent, ATI-7505. The overall results of a Thorough QT (TQT) study designed to demonstrate whether electrocardiographic effects are seen at therapeutic and supra therapeutic doses and conducted under a collaboration agreement with Procter & Gamble Pharmaceuticals (P&G) were negative, supporting the favorable cardiac safety profile of the agent. ATI-7505 is a prokinetic agent in Phase 2 clinical trials for chronic constipation and functional dyspepsia. Seperatly, ARYx Therapeutics announced that Procter & Gamble Pharmaceuticals, Inc. (P&G) has utilized a one-time thirty day cancellation option linked to the completion of a Thorough QT (TQT) study to end the collaboration agreement between the companies covering the late-stage development and commercialization of ATI-7505, a prokinetic agent in Phase 2 clinical trials for chronic constipation and functional dyspepsia.

Zoran Corp. (Nasdaq: ZRAN) 3.8% LOWER; Rumored suitor, NVIDIA, warned after the close.

Advanced Micro Devices (NYSE: AMD) 2.8% LOWER; NVIDIA warning.

Alpha Natural Resources Inc. (NYSE: ANR) 2.8% LOWER; Continues today's 16% sell-off related to global profit-taking in commodities

Abbott (NYSE: ABT) 1.5% HIGHER; announced that the FDA approved the XIENCE V Everolimus Eluting Coronary Stent System for the treatment of coronary artery disease. XIENCE V is the only drug eluting stent to have demonstrated superiority over Boston Scientific's TAXUS paclitaxel-eluting coronary stent system in two randomized head-to-head clinical trials. XIENCE V will be launched in the United States immediately.

StreetInsider.com Trading Radar:

Before Market Opens:
Economics:
8:30 AM ET

• Initial Jobless Claims for the week of 6/28 - Street expects 385K, compared to 384K last week
  
• Nonfarm Payrolls for June - Street expects down 60K, compared to down 49K in May
  
• Unemployment Rate - Street expects 5.4%

• ISM Services for June - Street expects 51.0, compared to 51.7 in May