BP PLC (NYSE: BP) closed at $56.64. BP is expected to announce Q3 EPS on October 27. WTI Crude futures are recently down .21% to $81.02 according to Bloomberg. BP November option implied volatility is at 26, January is at 27; below its 26-week average of 29, according to Track Data, suggesting decreasing price movement.

Home Depot (NYSE: HD) closed at $26.72. HD is expected to report Q3 EPS on November 17. HD November option implied volatility is at 27, December is at 30; below its 26-week average of 35 according to Track Data.

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

TheStreet.com's Jim Cramer says don't heed the pundits -- allow yourself to believe things are improving.

Skeptical, or impossible? That's how I am posing the dilemma of the "pull through" argument whether it involves Ford (NYSE: F) (Cramer's Take) and "Cash for Clunkers" or Hovnanian (NYSE: HOV) (Cramer's Take), Lennar (NYSE: LEN) (Cramer's Take), Toll (NYSE: TOL) (Cramer's Take), KB Home (NYSE: KBH) and Pulte (NYSE: PHM) (Cramer's Take) and the $8,000 tax credit.

Right now any time there is a stimulus program of any sort, the pundits/media/money managers all decide the most important single issue isn't what it will do to the numbers, or whether it will work at all, but what will it do to the "pull through." How much of future sales will it "steal"?

Durable goods are products that should last more than 3 years. That usually includes things like appliances, furnishings, and heavy equipment. The Commerce Department tracks this data and the number of orders for these things popped up an extra 4.9% in July, which was a nice surprise.

Why do I care whether North Americans are buying a new fridge? This is actually a metric you should watch for insight into potential corporate profits. If durable goods (which tend to cost a lot) are being purchased at an increasing rate, it bodes well for the companies that produce and sell those products.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) strong Q2 results beat expectations due to rising same-store sales.
• Agilent Technologies Inc. (NYSE: A) Q3 earnings topped low expectations and revenue declined.
• Analog Devices Inc. (NYSE: ADI) posted better-than-expected Q3 results but shares fell on weaker margins.
• Baidu Inc. (NASDAQ: BIDU) CEO said its new advertising efforts will boost sales over the long run.
• Barnes & Noble Inc. (NYSE: BKS) had a better-than-expected Q2 profit but same-store sales fell.
• BJ's Wholesale Club Inc. (NYSE: BJ) reported solid Q2 numbers and raised its full-year guidance.

Another day, another dollar. The difference is that yesterday's loss became today's gain. There was a weak wholesale inflation reading that kept the inflation hawks at bay and less-bad, or better than, expected earnings did the rest.

Here are today's unofficial closing bell levels:

Dow 9,214.54 +79.20 (0.87%)
S&P 500 989.53 +9.80 (1.00%)
Nasdaq 1,955.92 +25.08 (1.30%)

Top 10 Analyst Calls

Home Depot Inc. (NYSE: HD) didn't have the best quarter when it reported this morning, but it was better than the market expected. The largest home improvement retailer in the U.S. saw net income of $1.12 billion, down from $1.2 billion from the year-ago quarter. It reported earnings per share of $0.67, ahead of the consensus analyst estimate of $0.59.

The retailer's shares had dipped over 3.8% Monday to close at $26.11 joining in the huge Dow plunge. Will HD shares recover? According to pre-market action, it certainly seems that way, as the retailer did skid through its latest quarter without huge bumps and bruises. Still, as markets have shown yesterday, there is the realization that the consumer won't be spending the economy towards a recovery. At least, not in 2009.

Home Depot (NYSE: HD) is recently trading at $26.50 in pre-open trading, above its close of $26.11. HD reported Q2 net earnings of $1.1 billion compared to net earnings of $1.2 billion in the same period in 2008. HD lifted 2009 EPS guidance. HD August 26 straddle is priced at $1.43, September 26 straddle is at $2.35. HD September option implied volatility is at 39; below its 26-week average of 43, according to Track Data, suggesting less price risk after EPS.

Direxion Daily Emerging Marks Bull 3x (NYSE: EDC) closed at $94.77. EDC overall option implied volatility of 107 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

U.S. stock futures climbed higher Tuesday morning, indicating Wall Street is ready to put Monday's selloff behind it and bounce back. Meanwhile, some economic indicators, including data on inflation and housing, will be in focus this morning, as well as some retail earnings.

If on Monday major indices dropped nearly 2 percent on global economic recovery concerns following a disappointing consumer sentiment survey in the U.S., this morning Target (NYSE: TGT) and Home Depot (NYSE: HD) earnings might give yet another indication on consumer spending. While Home Depot topped earnings expectations, it was mainly due to cost cuts. Revenue fell 9% and came in below estimates.

While its rival Lowe's Companies Inc. (NYSE: LOW) reported weak quarterly results today, Home Depot Inc. (NYSE: HD) is scheduled to discuss its second quarter 2009 results tomorrow morning in a conference call at 9:00 AM ET. You can catch the live webcast on the company's website.

In that quarter, Home Depot declared a quarterly dividend of 22.5 cents per share, as well as shared its long-term priorities with analysts. The Atlanta-based home improvement chain is expected to report that earnings fell 16.9% from a year ago to $0.59 per share, according to analysts surveyed by Thomson Reuters. That's up from better-than-expected $0.35 per share in the first quarter, though. Revenue for the second quarter is expected to be 8.4% lower to $19.2 billion. Earnings have topped estimates in recent quarters, by as much as 10 cents per share.

Every year I find myself asking the same question: What to get dad for Father's Day. Well, Kiplinger's offers not to get our dads the same old presents -- another tie, another power tool -- but stocks in companies he probably likes or uses their products. That's a great idea, I thought, and decided to counter with five of my own.

• Kiplinger's suggests: Diageo (NYSE: DEO), the seller of such brands as Johnnie Walker, Smirnoff, Guinness and José Cuervo. Diageo has held up better than most during the recession -- thanks to a balanced portfolio of products, with higher exposure to mid-price, mainstream brands and less exposure to ultra-premium brands. The shares look reasonably priced. At $56.01, Diageo trades at 15 times estimated June 2009 earnings of $3.82 a share. The stock yields 2.8%.

• Another to consider: Molson Coors (NYSE: TAP), the seller of such brands as Coors, Blue Moon, Pilsner and Rickard's. Beer, probably even more so than hard liquor is supposed to hold better during a recession given the cheaper price point. The company's recent quarterly profits more than doubled. The shares trade at 13 times forward earnings of $3.33 and yield 2.2%.

The Federal Reserve's cautious Beige Book may have been a small catalyst to keep a lid on the market, but the real weakness was after the 10-Year Treasury auction came in very weak and 10-year Treasury rates flirted with 4%. Higher draw-downs in oil inventories also kept energy prices higher. Here were today's unofficial closing bell levels:

Dow 8,739.02 -24.04 (-0.27%)
S&P 500 939.15 -3.28 (-0.35%)
Nasdaq 1,853.08 -7.05 (-0.38%)

Top Analyst Upgrades
Top Analyst Downgrades

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

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

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

• Aeropostale Inc. (NYSE: ARO) beat profit expectations as revenue and same-store sales both increased.
• Aruba Networks Inc. (NASDAQ: ARUN) received an analyst's upgrade following its Q3 report.
• Buckle Inc. (NYSE: BKE) reported better-than-expected Q1 expectations as revenue surged.
• Campbell Soup Co. (NYSE: CPB) higher Q2 earnings beat expectations and sent shares upward.
• Deere & Co. (NYSE: DE) reported better-than-expected Q3 earnings, sending shares higher.

What? Buy The Home Depot (NYSE: HD) after it reported Q1 EPS of 35 cents -- it beat the First Call Q1 EPS estimate of 29 cents – but failed to raise guidance? Indeed, the Buy rating has been generated. Here's why:

Home Depot's Q1 sales fell 9.7% and same store sales declined 10.2%. Those are pretty bad totals for key metrics, and of course the stock sold off some Tuesday, with short-term players taking profits. However, unless you believe the U.S. housing market and economy is likely to remain in recession for more than two quarters, those low sales totals sat up easier comparisons for next year, and the stock pull-back represents a buying opportunity.

Analyst upgrades:

• Barclays believes Procter & Gamble's (NYSE: PG) portfolio mix provides better leverage to stabilizing macro trends. The firm upgraded shares to Overweight from Equal weight and raised its target to $60 from $56. Note the firm downgraded Colgate (NYSE: CL) to Equal Weight from Overweight.
• Deutsche Bank upgraded McDonald's (NYSE: MCD) to Buy from Hold as it finds the risk/reward on shares compelling at current levels and sees upcoming catalysts from McCafe and easing commodity pressures. The firm raised its target price to $65 from $60.
• FBR Capital upgraded Talbots (NYSE: TLB) to Outperform from Market Perform to reflect an attractive risk/reward, reduced risk of a bankruptcy, and merchandise improvements. The firm raised its target price to $4 from $2.
• Nokia (NYSE: NOK) was upgraded to Buy from Hold at Deutsche Bank.
• Analog Devices (NYSE: ADI) was upgraded to Neutral from Underperform at Baird.