MAJOR PAPERS:

• If Yahoo! Inc (NASDAQ: YHOO) accepts a buyout offer from Microsoft Corporation (NASDAQ: MSFT), it will have to be at the software maker's original offer of $44.6B. Microsoft won't raise the price, the Wall Street Journal reported, and the state of the economy might work in their favor.
• The FAA said that landing gear made by Illinois-based AAR Corporation (NYSE: AIR), and used on hundreds of Boeing Company (NYSE: BA)-built aircraft, includes "unapproved" parts, the Wall Street Journal also reported.
• Lehman Brothers Holdings Inc (NYSE: LEH) is thinking of not allowing its two British subprime mortgage units to provide any new loans. The Financial Times reported that the company may also order the units to put additional pressure on borrowers with a spotty credit history whose mortgages are coming to the end of fixed-rate terms.

OTHER PAPERS:

• According to the Detroit News, people familiar with the matter said that the strike at American Axle & Manufacturing Holdings Inc (NYSE: AXL) could threaten production of General Motors Corporation's (NYSE: GM) Chevrolet Malibu sedan.

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

• AAR Corp. (NYSE: AIR) posted record third-quarter earnings and revenue.
• Adobe Systems Inc. (NASDAQ: ADBE) posted better-than-estimated first-quarter results and raised its outlook.
• CKE Restaurants Inc. (NYSE: CKR) posted third-quarter results that missed estimates.
• ConAgra Foods Inc. (NYSE: CAG) third-quarter profit surged as strong sales offset commodity prices.
• Darden Restaurants Inc. (NYSE: DRI) beat third-quarter expectations and offered guidance.
• FactSet Research Systems Inc. (NYSE: FDS) second-quarter results beat estimates and it raised its outlook.
• Fortress Investment Group (NYSE: FIG) remained upbeat despite a fourth-quarter loss.
• Guess Inc. (NYSE: GES) record fourth-quarter results beat Wall Street expectations.
• Inter Parfums Inc. (NASDAQ: IPAR) posted better-than-estimated fourth-quarter results and raised its outlook.
• Jabil Circuit Inc. (NYSE: JBL) beat second-quarter expectations but lowered its guidance.
• JC Penney Co. Inc. (NYSE: JCP) lowered its first-quarter outlook on weaker-than-expected sales.
• KB Home (NYSE: KBH) swung to a larger-than-expected first-quarter loss on write-downs.
• Lennar Corp. (NYSE: LEN) posted a smaller-than-expected first-quarter loss.
• Monsanto Co. (NYSE: MON) raised its second-quarter and full-year guidance.
• Oracle Corp. (NASDAQ: ORCL) merely met earnings expectations, sending shares lower.
• Tiffany & Co. (NYSE: TIF) posted better-than-estimated fourth-quarter results and raised its outlook.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted lower-than-expected first-quarter results.
• Walgreen Co. (NYSE: WAG) posted solid second-quarter results, including same-store sales growth.

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

AAR Corporation (NYSE: AIR) provides products and services to the aviation, aerospace and defense industries. The company's aviation supply chain unit sells engine and airframe parts, repairs avionics systems and provides inventory management programs. Other AAR divisions offer airframe maintenance, aircraft modifications, cargo handling systems, and commercial jet sales/leasing services. The US government accounts for about one-third of sales.

The company pleased investors last week, when it reported Q3 EPS of 47 cents and revenues of $376.6 million. The Street had been expecting 46 cents and $337.5 million. Both the earnings and sales totals represented company records.

I have a bitter-sweet relationship with Adobe Systems Incorporated (Nasdaq: ADBE). I think they build great technology. In fact, I've been a customer of their Dreamweaver product since 2000. It's an awesome offering -- and gets better and better.

Yet, when it comes to Adobe's upgrade policies, they often fall short -- at least for me. For example today they wanted to charge me full price for a product that I've bought and upgraded several times over the years.

Oh, well. End of my rant.

The fact remains that Adobe continues to innovate. Interestingly, the company has recently announced a variety of initiatives. For example, Adobe is sponsoring the SQLite database open source project (according to the company's open source thought-leader, Dave McAllister). The company also has new open source destination.

Oooh, ahh, oh. Apple Inc. (NASDAQ: AAPL) announced its newest luscious piece of hardware, the MacBook Air, today at the MacWorld conference. Every one of my geeky friends on Twitter wants the newest, thinnest, most desirable piece of hardware since the iPhone (one of my friends has already purchased one, in fact) -- but most of us can't afford it.

Could it be because we're just not Jobsian enough?

I was ooh-ing and ahh-ing over the MacBook Air on Engadget's hands-on photo gallery when I saw this photo, above. Notice something? Each and every MacWorld attendee allowed to touch the super-light laptop is wearing a variation on Steve Jobs' trademark black mock turtleneck. Sure, there are a few button-up shirts, a sport coat, a crewneck or two, but all is a sea of black. Note to self: If I go to MacWorld next year, wear orange! And see what happens. All that conformity could be key to Apple's stock price (seriously!): Apple followers, both spiritual and financial, tend to behave a bit like lemmings.

Northwest Airlines (NYSE: NWA) believes that a reduction in flights may restore orderly service after a week of massive cancellations last month. The airline blamed those cancellations on severe weather, air traffic control problems and pilot absenteeism, which was an astonishing 80% higher last month than in 2006. The Air Line Pilots Association's Monty Montgomery told Reuters that it would be more accurate to attribute the cancellations to inadequate staffing during the peak summer travel season.

The number five U.S. airline said last Friday that it would cancel one of its Detroit-to-Frankfurt flights starting July 18th to free up pilots, and would cut its domestic mainland capacity by 3%. "I think this is better than last-minute cancellations, but we would prefer that we have enough pilots to fly all the revenue flights," says Montgomery.

The cancellations come shortly after Northwest's exit from Chapter 11 during which relations between management and workers had been far from stellar – mainly due to the forced pay cuts for many workers. Instead of looking ahead, workers have focused on the millions in stock awards given to CEO Doug Steenland, while rank-and-file sacrificed to keep the company afloat.

At a time when pilot salaries are seemingly continuously cut, executives decided to give themselves a hefty raise. One day, executives will figure out that it was the workers who helped to pull the company out of bankruptcy, and that maybe they should get a raise, too.