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

• AK Steel Holding Corp. (NYSE: AKS) reported better-than-expected Q3 results but shares fell anyway.
• Baidu Inc. (NASDAQ: BIDU) posted strong Q3 results but shares sold off on a disappointing guidance.
• Burger King Holdings Inc. (NYSE: BKC) said lower Q1 earnings fell short of analysts expectations.
• Dreamworks Animation SKG Inc. (NYSE: DWA) topped Q3 profit and revenue estimates, lifting shares.
• Geron Corp. (NASDAQ: GERN) posted a narrower-than-expected Q3 loss, sending shares sharply higher.
• Honda Motor Co. Ltd. (NYSE: HMC) reported lower Q2 earnings and sales on weak demand for cars.

It was good news bad news for the steel industry Tuesday. AK Steel Holding Corp. (NYSE: AKS) and United States Steel Corp. (NYSE: X) both reported better-than-expected third-quarter results. But for U.S. Steel, it was the third straight quarterly loss as the economic downturn continued to drag down demand.

For the three months that ended in September, U.S. Steel said it lost $303 million, or $2.11 per share. That compares with a profit of $919 million, or $7.79 per share, in the same period of last year. Revenue for the quarter fell 61% to $2.82 billion. Analysts surveyed by Thomson Reuters had expected a loss of $2.87 per share on revenue of $2.72 billion.

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

• AK Steel Holding Corp. (NYSE: AKS) posted a smaller-than-expected Q2 net loss as steel prices rise.
• Boston Scientific Corp. (NYSE: BSX) posted a better-than-expected Q2 profit on strong overseas sales.
• Caterpillar Inc. (NYSE: CAT) shares jumped after it beat earnings, missed revenues, and offered guidance.
• DuPont (NYSE: DD) shares declined after it posted a higher-than-expected profit but lower revenue.
• Eaton Corp. (NYSE: ETN) disappointing results were a sign that the bulls are in charge, said Jim Cramer.
• General Electric Co. (NYSE: GE) Q2 earnings and sales declined, dragged down by finance and NBC units.

As we saw in yesterday's earnings preview, AK Steel Holding Corp. (NYSE: AKS) was expected to post a loss for its second quarter, but the good news is that the loss was less than analysts had been expecting to see.

Going into this morning's earnings announcement, analysts had been expecting the company to post a loss of 51 cents per share, but the company was able to show a better than expected loss of just 43 cents per share. While it is good to see the company beat estimates, we still have to keep in mind that during the same period last year the company was able to show earnings of $1.29 per share.

AK Steel Holding Corporation (NYSE: AKS) is due to report earnings tomorrow before the market opens, and the company is expected to post another quarterly loss.

The current recession has been tough on steel makers, and Ohio based AK Steel is no exception. The company has been forced to lower prices and lay off workers in the wake of slumping demand for its steel products.

It takes nerves of steel to buy stocks in this market. Although much of the carnage has passed and is presumably priced into stocks, there is still risk in this market.

Thus far, investors are avoiding those risks preferring the safety of Treasury securities.

Despite the Federal Reserve doing everything in its power to support the economy and to encourage risk-taking, investors are not taking the bait.

What are they waiting for?

Granted, my own analysis of the market suggests that another round of selling may be right around the corner, creating a real buying opportunity in March or April.

That said, in many instances there is no point in waiting or trying to exactly time the market. Many stocks have absolutely caved to the point that there is little downside remaining.

One such stock is AK Steel (NYSE: AKS).

Nucor (NYSE: NUE), an operator steel mills and marketer of steel products, closed at $32.27 Tuesday. NUE December option implied volatility of 91 is above its 26-week average of 73 according to Track Data, suggesting larger price movement.

AK Steel (NYSE: AKS), a producer of steel products, closed at $6.86 Tuesday. AKS December 7.5 straddle is priced at $2.40, January 7.5 straddle is priced at $3.50. AKS January option implied volatility of 158 is above its 26-week average of 102 according to Track Data, indicating larger price movement.

Mechel Steel (NYSE: MTL) closed at $4.59 Tuesday. MTL is a Russian mining, steel and power company. MTL December 5 straddle closed at $2.25, January 5 straddle closed at $3.15. MTL April option implied volatility of 185 is above its 26-week average of 117 according to Track Data, suggesting larger price fluctuations.

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

AK Steel (NYSE: AKS) shares are trading higher today after Standard & Poor's announced they have added the stock to the S&P 500 index. These announcements drive stock prices higher since any mutual fund that is tracking the S&P 500 will need to add AKS to its holdings soon. 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 AKS.

After hitting a one-year low of $27.90 in August, the stock hit a one-year high of $73.07 in May. AKS opened this morning at $65.74. So far today the stock has hit a low of $65.42 and a high of $68.10. As of 12:30, AKS is trading at $67.18, up $4.00 (6.3%). The chart for AKS looks neutral and deteriorating, while S&P gives the stock a bearish 2 Stars (out of 5) Sell rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $55 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in just three weeks as long as AKS is above $55 at July expiration. AKS would have to fall by more than 18% before we would start to lose money. Learn more about this type of trade here.

AKS has not been below $55 since April and has shown support around $63 recently. This trade could be risky if the global economy tanks in the next few weeks, but even if that happens, this position could be protected by the support the stock might find around $63, where it has bounced twice in the past month.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AKS.

TheStreet.com's Jim Cramer says the different reactions to these earnings underscore the difference between two good quarters.

You have to contrast a Coach (NYSE: COH) (Cramer's Take) with a US Steel (NYSE: X) (Cramer's Take) to get a sense about where this market is going.

First, the obvious -- there are too many Coach bags and bags of its ilk, and there isn't enough steel. Second, Coach couldn't pass on a price increase to save its life. Every price increase sticks for US Steel.

Third, on the Coach call where does Lew Frankfort -- who is great! -- want to expand? The U.S. Ouch! Worst market in the world. Saturated. No growth. Feeling poor.

Where does US Steel want to expand? Doesn't matter. The demand is so great it's really an issue of shipping, as CSX's (NYSE: CSX) (Cramer's Take) Michael Ward would tell you -- at least he told me last night on "Mad Money."

The market's choppy, consolidating (or perhaps worse) pattern continues. Further, the steel sector remains vulnerable to a U.S./global economic slowdown, but one company that may hold its own is AK Steel.

AK Steel Holding Corp. (NYSE: AKS) is the third largest U.S steelmaker, and features coated, cold rolled and hot rolled carbon steel used by the automotive, appliance and manufacturing markets, among other buyers.

Analysts expect AK Steel Holdings' 2008 revenue growth to slow to about 2%-5% in 2008 after a 16% rise in 2007. Analysts expect stainless steel raw material surcharges to end, but carbon steel should show some price improvement as companies rebuild inventories.

Longer-term, analysts likely AKS' sector position, overall product mix, debt reduction, and cost containment (particularly regarding legacy costs). The Reuters F2008/F2009 EPS consensus estimates for AKS are $4.01/$4.33.

The risks? AKS remains vulnerable to companies' willingness to rebuild steel inventories, particularly the auto sector, which accounts for more than 40% of revenue.

The First Call mean rating for AKS is: Hold. [9 firms.] Mean 2008 target: $49.00. [high: $57, low: $45.]

Stock Analysis: AK Steel is a moderate-risk stock not suitable for low-risk investors. More-cautious investors may want to wait for a possible pull-back in AKS' shares to about $51, but keep in mind AKS's shares may not retreat to that level. Investors with an investment horizon longer than 2 years should be rewarded from AKS' shares. Sell / Stop Loss if you were to purchase shares in this company: $31.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

TheStreet.com's Jim Cramer says U.S. Steel is a puzzle, and he ponders how to play it here.

U.S. Steel (NYSE: X) (Cramer's Take) presents the ultimate conundrum. It is hitting on all cylinders, courtesy of the incredible demand for steel domestically because of pipelines. And it is finally not suffering from dumped imports, because the dumpers are from countries growing so much faster than we are that they need all the steel they can get - China, for example, is struggling to build its own share instead of dumping.

John Surma, the CEO, has taken this once-great company right back to greatness with a rise from $9 to $127 in five years. That defies gravity. He has done that by cutting labor costs and growing the business, he has done it by emphasizing areas he can dominate and cutting ones he can t. And he has done it by taking advantage of the 30 bankruptcies in this sector, leaving him one of the few publicly traded companies left, including Nucor (NYSE: NUE) (Cramer's Take), which is a great company, AK Steel (NYSE: AKS) (Cramer's Take), which levitates all of the time on takeover talk and then DOESN'T come in, and Reliance (NYSE: RS) (Cramer's Take), which is another fave of mine.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
• AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
• Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
• Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
• Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
• Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
• Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
• Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
• ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
• CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
• Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
• Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
• Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
• Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
• Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
• Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
• Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

While the profit plunges of Bank of America (NYSE: BAC) and Wachovia Corp. (NYSE: WB) and the loss posted by UAL Corp. (NASDAQ: UAUA) garnered a lot of attention in Tuesday's early earnings news, there were some solid earnings reports as well.

AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit that far exceeded Wall Street's expectations. The company earned $106.7 million, or 95 cents a share, in the three months ending December 31, compared with a loss of $49.3 million, or 45 cents a share, a year ago, when it took a one-time employee retiree health care benefit charge of $133.2 million. Revenue rose 7 percent to $1.69 billion from $1.58 billion in the fourth quarter of 2006, during a nearly 13-month lockout at its Middletown Works mill. Analysts surveyed by Thomson Financial had expected a profit of 59 cents per share on revenue of $1.68 billion. Shares fell in early trading Tuesday (along with the DJIA), but had recovered to $37.67 by mid-day Tuesday.

Railroad operator CSX Corp. (NYSE: CSX) reported that its profit rose more than 5 percent in the fourth quarter as productivity increases and expanding business offset higher fuel costs. Net earnings were $365 million, or 86 cents per share, for the three months ending December 28, compared to a profit of $347 million, or 75 cents per share in the previous year. Analysts polled by Thomson Financial had expected earnings of 64 cents per share for the quarter, and $2.50 for the year. CSX earned $1.23 billion, or $2.99 a share, for the year, against $1.31 billion, or $2.82 a share, a year ago. Revenue rose to $2.58 billion from $2.4 billion a year ago. Annual revenue rose to $10.03 billion from $9.57 billion in 2006. Shares were up around 6 percent to $43.75 by mid-day Tuesday.

Visit AOL Money & Finance for more earnings coverage.

AK Steel (NYSE: AKS), a flat-rolled carbon, stainless and electrical steel producer, is recently up $1.40 to $50.04. AKS is expected to report EPS on 10/23. AKS call option volume of 18,037 contracts compares to put volume of 14,916 contracts. AKS October 50 straddle is priced at $2.85. AKS November option implied volatility of 63 is above its 26-week average of 52 according to Track Data, indicating traders positioning themselves for a larger share price movement.

Intuitive Surgical (NASDAQ: ISRG), develops, manufactures and markets robotic technologies designed to improve patient returns. ISRG is expected to report EPS after the close on 10/18. CIBC says, "We feel the current valuation is reflecting expectations for another blowout in 3Q." ISRG call option volume of 6,005 contracts compares to put volume of 6,620 contracts. ISRG October 250 straddle is priced at $31. ISRG November option implied volatility of 71 is above its 26-week average of 49 according to Track Data, suggesting traders are positioning themselves for large price risk.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

AK Steel Holding Corp. (NYSE: AKS), a flat-rolled carbon, stainless and electrical steel producer, is recently up $1.39 to $50.63. The DealReporter said several steel companies are interested in AKS according to sources. AKS is expected to report EPS on October 23. AKS call option volume of 15,243 contracts compares to put volume of 2,502 contracts. AKS October 50 straddle is priced at $3.75. AKS November option implied volatility of 60 is above its 26-week average of 51 according to Track Data, suggesting larger price risks.

Mechel Steel (NYSE: MTL), a Russian mining and metals company, is recently up $6.26 to $72.23 after reporting its operational results for nine months. MTL November option implied volatility of 55 is above its 26-week average of 43 according to Track Data, suggesting larger price risk.

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