TheStreet.com's Jim Cramer says stock prices may roll back, but techs and financials should be fine.

The pain of the aftermath of mark-ups never goes away. We knew what was in store for us, as the mark-up folks don't like to play on the last day, especially with the newly vigilant Securities and Exchange Commission. I have to believe that this SEC will now become more interested in "the tapes," which would show clients asking brokers to take stocks up as much as they can, something that we know is against the law.

What comes up from mark-up must come down, and the most important "come-downs" should be in the industrials, because we have the least visibility in them. I do not believe the techs have as much to worry about, nor the banks, because both have excellent earnings prospects for the coming quarter. Why sell Apple (NASDAQ: AAPL) (Cramer's Take) here? Why sell Microsoft (NASDAQ: MSFT) (Cramer's Take)? And why dump Wells Fargo (NYSE: WFC) (Cramer's Take) or Bank of America (NYSE: BAC) (Cramer's Take) or JPMorgan Chase (NYSE: JPM) (Cramer's Take) when those have the best possibilities of good news ahead? I can see locking in some Goldman Sachs (NYSE: GS) (Cramer's Take) gains, but that's going to be the best quarter of all.

TheStreet.com's Jim Cramer says they make the most sense in this vicious market.

It didn't take long, but the accidental high-yielders are back. There's PPG Industries (NYSE: PPG) (Cramer's Take) back at 5%, where it was before it told us that March was a good month and April better.

There's Emerson Electric (NYSE: EMR) (Cramer's Take) over 4% even though last week it said orders lately had been better than expected. Or Honeywell (NYSE: HON) (Cramer's Take), so close to 4%, amazing, given that it reaffirmed earnings last week.

TheStreet.com's Jim Cramer says that it is too easy to sit here and take direction from the oil futures.

The one-wayness of this new market, the one that started with banks, tech and oil and that has now has come back down to just oil, isn't something that can last. We can't come in here every day and know that the news is not so hot, and what Ben Bernanke said yesterday about the deficit and where he thinks we are is not so hot, and have all of those reasons for a pause trumped by a dollar rise in the oil futures.

It just doesn't make sense, but it is where we are.

I've been doing a fair amount of chest puffing lately, as many of my moves suggested here and elsewhere have paid huge dividends for investors. Today, I want to highlight one of my mistakes: General Electric Company (NYSE: GE).

Someone is going to own one heck of an asset when this all shakes out. Unfortunately for GE shareholders, there is a very real risk that you will be on the outside looking in when all is said and done.

Each day the odds are growing that bondholders or the government will end up owning the equity in GE. Given the long-term future of the company, those two parties will be quite pleased.

In this market, it goes without saying that caution remains the watchword. Until the U. S. Treasury Department's program for toxic asset removal from the banking system has been clarified, there's an added layer of risk for a stock investment. And this unknown sits atop a U.S. recession that enters its 16th month in March.

Still, there are bargains to be had for risk-tolerant investors, and along that line, Honeywell International Inc. (NYSE: HON) is worth a review.

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

• Altria Group Inc. (NYSE: MO) Q4 profit rose on higher prices, and its forecast matched expectations.
• Amgen Inc. (NASDAQ: AMGN) Q4 earnings grew on cost cutting but revenue remained flat.
• Black & Decker Corp. (NYSE: BDK) shares tanked after the dismal Q4 report, and it announced job cuts.
• Carpenter Technology Corp. (NYSE: CRS) Q2 numbers resulted in a downgrade from one analyst.
• ConocoPhillips (NYSE: COP) reported a Q4 loss due to writedowns from recent acquisitions.
• DuPont (NYSE: DD) swung to a bigger-than-expected Q4 loss and its revenue fell as well.
• Eli Lilly & Co. (NYSE: LLY) swung to a Q4 loss on acquisition costs but reaffirmed its guidance.

Honeywell (NYSE: HON - option chain) shares are just about unchanged this morning after the company posted a fourth-quarter profit of $707 million, or 97 cents per share, on revenue of $8.7 billion. Analysts had been looking for a profit of 97 cents per share on revenue of $8.97 billion. In an environment like this, flat on earnings is actually pretty good in my book. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on HON.

HON opened this morning at $32.72. So far today the stock has hit a low of $32.50 and a high of $34.24. As of 11:55, HON is trading at $32.48, down 19 cents (0.6%). The chart for HON looks bullish and S&P gives HON a positive 4 STARS (out of 5) buy ranking.

Amazon.com (NASDAQ: AMZN) reported fourth-quarter earnings that topped Wall Street's expectations late Thursday. The online retailer's fourth-quarter profit rose 9% to $225 million, or 52 cents per share, trouncing expectations of 39 cents per share. Revenue rose 18% to $6.7 billion, again exceeding analyst estimates for $6.4 billion. Even for the current quarter Amazon gave guidance that was better than expectations. AMZN shares are soaring about 15% in premarket trading.

Procter & Gamble (NYSE: PG), a Dow component, reported earnings this morning, meeting analyst expectations of a $1.58 per share profit for the quarter. P&G's quarterly profit jumped 53% due to a gain from the sale of its Folgers coffee business. One problem, though, sales unexpectedly declined 3% to $20.37 billion. PG shares traded 2.8% lower in premarket action.

Honeywell (NYSE: HON) closed at $34.71. HON is scheduled to report Q4 EPS on January 30. HON January option implied volatility of 41 is below its 26-week average of 49, according to Track Data, suggesting decreasing price movement.

Nvidia (NASDAQ: NVDA) closed at $8.79. NVDA is scheduled to report Q4 EPS on February 10. NVDA is scheduled to introduce new notebook chips in late spring. NVDA February option implied volatility is at 74; June is at 69; near its 26-week average according to Track Data, suggesting non-directional price movement.

Analyst upgrades:

• Standard Pacific(NYSE:SPF) was upgraded to Buy from Neutral at UBS on valuation. The firm lowered its target to $3 from $3.25.

Analyst downgrades:

• UBS downgraded FPL Group (NYSE:FPL) to Neutral from Buy on valuation and raised its target to $50 from $48.
  
• Citigroup downgraded Charter Comm (NASDAQ:CHTR) to Sell from Buy to reflect Charter's increasing probability of financial distress. The firm lowered its target to 5c from $1.
  
• B. Riley downgraded UCBH Holdings (NASDAQ:UCBH) to Neutral from Buy on valuation.
• Dow Chemical NYSE:DOW) was cut to Equal Weight from Overweight at Barclays.
  
• Honeywell (NYSE:HON) was lowered to Hold from Buy at Argus.
  
• Brean Murray downgraded California Water Service (NYSE:CWT) to Hold from Buy.

Analyst initiations:

• Standpoint Research believes Jacobs Engineering's (NYSE:JEC) relationship-based business model differentiates it from peers. The firm initiated shares with a Buy rating and has a 3-5 year price target of $70-$80.
• Pali thinks American Eagle's (NYSE:AEO) spring product line is improved and that shares already price in weak 2009 results. Shares were assumed with a Buy rating and $13 target.
  
• B. Riley started Watsco (NYSE:WSO) with a Neutral rating and $40 target and believes shares are close to fair valuation.

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

• Adobe Systems Inc. (NASDAQ: ADBE) posted strong Q4 and full-year results, but with flat Q4 revenues.
• Best Buy Inc. (NYSE: BBY) beat Q3 expectations though earnings tumbled, and shares rose about 18%.
• Carnival Corp. (NYSE: CCL) announced that it had lowered its full-year earnings and revenue guidance.
• Discover Financial Services (NYSE: DFS) net income from continuing operations more than doubled in Q4.
• Eaton Corp. (NYSE: ETN) cut its Q4 earnings guidance on weakness in the American auto market.
• FedEx Corp. (NYSE: FDX) Q2 earnings topped expectations and it reaffirmed its guidance.
• General Electric Co. (NYSE: GE) declined to provide quarterly earnings guidance in its annual outlook.
• General Mills (NYSE: GIS) posted a higher-than-expected profit on cost cutting and increased marketing.
• Gilead Sciences Inc. (NASDAQ: GILD) strong earnings growth are expected by one analyst to continue.
• Goldman Sachs Group (NYSE: GS) swung to an anticipated Q4 loss and reported negative revenues.
• Healthcare Realty Trust Inc. (NYSE: HR) was downgraded due to its near-term earnings prospects.
• Honeywell International Inc. (NYSE: HON) affirmed a lower 2009 outlook and said it expects profits to fall.

TheStreet.com's Jim Cramer says the economics are still dire, but stocks aren't even flinching on huge warnings.

Preannouncement after preannouncement after preannouncement. Yawn after yawn after yawn.

I've never seen anything like it. Worst ever. But, did anyone really think Ingersoll Rand (NYSE: IR) (Cramer's Take), cut in half here, would make the quarter? How about Nucor (NYSE: NUE) (Cramer's Take)? Stanley Works (NYSE: SWK) (Cramer's Take)? ITT (NYSE: ITT) (Cramer's Take)? Eaton (NYSE: ETN) (Cramer's Take)? Pentair (NYSE: PNR) (Cramer's Take)? I figured they would all miss. I bet the ones that preannounced last night hardly go down. Why should they? ITT's up nicely. Eaton's unchanged. Not even glancing blows. Nucor's up 10! Ten from a preannouncement.

Most glaring: the 10% miss by Joy Global (NASDAQ: JOYG) (Cramer's Take) with the almost 15% rally! Now that's gigantic.

That's why people feel better about this tape. In the end of that big run up, stocks failed to react to even the biggest beats. Now they fail to react to the biggest misses.

General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) may get help from the Bush administration. President Bush said in an interview today that "an abrupt bankruptcy for the autos could be devastating for the economy." He signaled he may use TARP funds for that, but didn't provide a timeline or other details. GM shares are up 4.8% in premarket, Ford's shares are up 2%. Shares of both opened about 3% higher.

Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) probably will report fourth-quarter losses this week on shrinking asset values and a decline in fees for businesses. But even the deep cost cutting measures the investment firms -- now turned banks -- may not help help shareholders enough as the companies face another year of slumping revenue. The demand for their services is and will continue to be limited in what is the worst financial crisis since the Great Depression. GS shares are down 2% in premarket trade.

Banco Santander (NYSE: STD), Nomura (NYSE: NMR) and Royal Bank of Scotland (NYSE: RBS) are among the victims ex-Nasdaq Chairman Bernard Madoff' $50 billion Ponzi scheme. Santander said its customers had an exposure of around $3.1 billion, while Japan's Nomura has an exposure of around $302 million. STD shares are down 1.5% and RBS shares up 1.7% in premarket trade.

[Update 10:00 am:
Huntsman Corp. (NYSE: HUN) shares were down about 35% a little after the open after it has ended its $6.5 billion agreement to be taken over by Hexion Specialty Chemicals Inc. and agreed to a $1 billion legal settlement.
Apple Inc. (NASDAQ: AAPL) shares were down about 4% a little after the open on a downgrade. Goldman Sachs downgraded the iPhone and Mac maker to Neutral from Buy due to deteriorating consumer spending.
JPMorgan (NYSE: JPM) shares slumped nearly 6% after a Merrill Lynch analyst downgraded JPM to Underperform from Neutral.
Honeywell (NYSE: HON) shares gained nearly 7.5% after the manufacturer affirmed a lower 2009 outlook and said it expects profits to fall 6% to 16% as the deepening global recession hits markets it serves.]

TheStreet.com's Jim Cramer says the relief rally should last at least a day.

There's some genuine good news out there. First, the worst-acting groups and countries from yesterday -- the insurers and Hong Kong -- got some good news. The insurers are participating in the federal bailout, something that is needed to protect the value of annuities that are hopelessly underwater; and Hong Kong rallied more than it fell, which seems like total manipulation to me, but who the heck cares if you are a bull.

Second, the Boeing (NYSE: BA) (Cramer's Take) strike might end soon, and just in time for a lot of quarters, something that a United Technologies (NYSE: UTX) (Cramer's Take) and a Honeywell (NYSE: HON) (Cramer's Take) need to have happen to save their quarters. Those two fine stocks are an easy trade off this news but will presumably open up huge because of the ridiculous futures action.

As per usual, the hedge funds that most need this lift to get in shape won't take it. They can't afford to leave the market because it is their only way to get the performance back that they need so badly to keep some of the money under management.

General Electric (NYSE: GE) closed at $20.35 Tuesday. GE November option implied volatility of 52 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Siemens (NYSE: SI) closed at $63.97 Tuesday. SI November option implied volatility of 86 is above its 26-week average of 37 according to Track Data, suggesting larger price movement.

Philips Electronics (NYSE: PHG) closed at $18.71 Tuesday. PHG November option implied volatility of 68 is above its 26-week average of 43.

United Technologies (NYSE: UTX) closed at $50.95 Tuesday. UTX November option implied volatility of 53 is above its 26-week average of 33.

Hitachi Ltd (NYSE: HIT) closed at $51.63 Tuesday. HIT November option implied volatility of 71 is above its 26-week average of 36 according to Track Data.

Honeywell (NYSE: HON) closed at $28.85 Tuesday. HON November option implied volatility of 66 is above its 26-week average of 37.

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