eBay (EBAY) January 29 and 30 puts are active on flat volatility with total call volume of 37K contracts compared to 103K puts, according to Track Data. The increase in trading of the January 29 and 30 puts suggest traders anticipate movement into its Q4 January 19 EPS report.

BMO Financial Group (BMO) announced that it will acquire all outstanding shares of common stock of Marshall & Ilsley (MI) in a stock-for-stock transaction. Under the terms of the agreement, each outstanding share of M&I will be exchanged for 0.1257 shares of Bank of Montreal upon closing. BMO Financial Group overall option implied volatility of 21 is below its 26-week average of 27, according to Track Data, suggesting decreasing price movement.

CBOE Volatility Index (VIX) traded down 10% to at intra-day low of 15.46, an eight-month low.

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

The U.S. House of Representatives passed the tax bill that had already been approved by the Senate, but that did little, if anything, to put a charge into the market today. Better-than-expected earnings reported after markets closed yesterday from Oracle and Research in Motion didn't boost the opening today either. Later in the morning, the report on leading economic indicators from the Conference Board also showed improvement, rising 0.4% in October. The dollar rose slightly on the forex market following Moody's five-notch downgrade of Irish debt. All in all, a day of mixed news with mixed results.

Here are the numbers for late afternoon trading today:

Dow Jones 11,491.98 -7.27 (-0.06%)
S&P 500 1,243.91 +1.04 (0.08%)
Nasdaq 2,642.97 +5.66 (0.21%)

Black Friday has come and gone and the holiday shopping season is off and running. In addition to keeping on eye on how retailers are doing, there will be plenty of other economic data for analysts and investors to peruse on this week.

• Monday: Chicago Fed's Midwest Manufacturing Index
• Tuesday: Conference Board's Consumer Confidence Index, Chicago Purchasing Managers Index, S&P/Case-Schiller Home Price Index for Q3, Johnson Redbook Retail Sales Index

Three of Canada's big five banks reported quarterly results last week. Canadian Imperial Bank of Commerce's (CM) profit surged, topping consensus estimates. However, Royal Bank of Canada (RY) missed estimates for the fourth straight time. And though Bank of Montreal's (BMO) net income grew, it too fell short of expectations.

So what does that do for expectations for Bank of Nova Scotia (BNS) and Toronto-Dominion (TD), which are scheduled to report this week?

Most of the S&P 500 companies have already reported earnings results for the most recent quarter. But scheduled to release their results this week are Medtronic (MDT) and Novell (NOVL), which analysts surveyed by Thomson Reuters expect to post earnings per share (EPS) about same as last year, as well as JDS Uniphase (JDSU), Patterson Companies (PDCO) and Tiffany & Co. (TIF), for which analysts foresee year-over-year earnings growth. Of these, the expectations are highest for Tiffany.

During the three months that ended in July, Tiffany launched an iPhone app and increased its quarterly dividend. Analysts expect the New York-based specialty retailer to report that earnings per share came to 53 cents, a 26.4% increase from a year earlier. Second-quarter revenue is expected to have grown 12.8% to $690.8 million. So far, analysts predict full-year earnings of $2.61 per share (+22.9%) on $3.0 billion (+11.8%) in revenue. Earnings results topped consensus estimates in four of the past five quarters, by 11 cents per share in the first quarter.

Both Walmart (WMT) and BJ's Wholesale Club (BJ) reported strong quarterly results last week, suggesting that discount retailers are still doing well even as the economy seems to be coming around. This week, Costco (COST) and Big Lots (BIG) take their turns in the earnings spotlight, and analysts surveyed by Thomson Reuters expect a strong showing from them as well.

And we'll round out this preview of the coming week with a look at expectations for AutoZone (AZO), Canada's big banks, and Trina Solar (TSL).

The Federal Reserve's next Beige Book report is scheduled to be released this week. This report is a compilation of anecdotal information on current economic conditions from each of the 12 Federal Reserve Bank districts, and it is released eight times a year. The data comes from interviews with business contacts, economists, market experts, and other sources. The previous report, released in January, showed some improvement in most districts and growth in consumer spending over the holiday period, though unemployment remained high. The December report showed modest improvement in eight of the districts.

Retailers were in the earnings spotlight last week and for the most part made a strong showing of it. Even as the earnings season winds down, some more retailers are scheduled to release quarterly results this week.

It's been reported that Canadian banks have fared better than their U.S. and European counterparts recently. The Bank of Montreal (BMO) did report strong fourth-quarter results last week. This week, analysts surveyed by Thomson Reuters expect competitor Royal Bank of Canada (RY) to post modest earnings growth as well, while Canadian Imperial Bank of Commerce (CM) and Toronto Dominion Bank (TD) are expected to post earnings declines.

Analysts are looking for $0.98 per share (+6.1%) earnings from RBC, $1.25 per share (-7.4%) from Toronto Dominion and $1.36 per share (-21.8%) from Canadian Imperial. The long-term EPS growth forecast for these three banks is for ranges from 10% and 12%, which is in the same ballpark as U.S. rivals Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC). Earnings multiples for these Canadian banks are 10x to 12x, but only Toronto Dominion has a First Call consensus recommendation of buy. The Motley Fool, though, recently commented on Royal Bank's steady income and reliability. All three banks are trading near their 52-week highs, and shares of all are up well more than 100% since March lows.

Canadian banks are scheduled to step into the earnings spotlight this week, with third-quarter reports coming from Bank of Montreal (NYSE: BMO), Bank of Nova Scotia (NYSE: BNS), Canadian Imperial Bank of Commerce (NYSE: CM), Royal Bank of Canada (NYSE: RY), and Toronto-Dominion Bank (NYSE: TD). While Canadian banks on the whole held up better than their U.S. counterparts during the financial crisis, these five are expected to report that their earnings are still declining in the most recent quarter.

Analysts surveyed by Thomson Reuters are looking for EPS for these banks to have fallen from 15% to 25% from a year ago. Their long-term EPS growth forecast is for between 10% and 12%, which is in the same range as U.S. rivals JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC), but better than Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C). Earnings multiples for these Canadian banks are 10x to 12x, but none of them have a First Call consensus recommendation is to buy. The Motley Fool, though, considers TD as a value stock and RY a stock poised to pop. All of them are trading much closer to their 52-week highs than lows, and shares of all are up more than 100% since March lows.

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

• American Eagle Outfitters Inc. (NYSE: AEO) reported better-than-expected Q1 earnings, lifting shares.
• AutoZone Inc. (NYSE: AZO) posted a better-than-expected Q3 profit said it will continue to buy back shares.
• Bank of Montreal (NYSE: BMO) reported lower Q2 earnings and also announced 1,100 layoffs.
• Big Lots Inc. (NYSE: BIG) higher Q1 earnings topped estimates even though same-store sales fell.
• BioMed Realty Trust Inc. (NYSE: BMR) earnings prospects after the recent capital raise led to a downgrade.

It was good news, bad news Tuesday for maple leaf stocks Bank of Montreal (NYSE: BMO) and Canadian Solar Inc. (NYSE: CSIQ). While both reported better than expected quarterly results, Bank of Montreal reported lower second-quarter earnings and said it would lay off 1,100 employees, and Canadian Solar posted a first-quarter loss due to plunging revenues.

Bank of Montreal, Canada's fourth-largest bank, reported its profit declined to C$358 million (US$317 million), or 61 Canadian cents per share, in the quarter that ended April 30. Results included one-time charges of C$80 million for losses in BMO's backup financing operations and C$80 million in severance costs for job cuts. Adjusted earnings came to 93 Canadian cents per share, just above analysts' expectations.

After the Memorial Day holiday in the United States, the earnings spotlight turns to Canadian banks: Bank of Montreal (NYSE: BMO), Canadian Imperial Bank of Commerce (NYSE: CM), Royal Bank of Canada (NYSE: RY), and Toronto-Dominion Bank (NYSE: TD) are all scheduled to report their second-quarter results.

While banks north of the border of generally have held up better than their U.S. counterparts, analysts surveyed by Thomson Reuters expect the four listed above to report that earnings declined between 20% and 30% since the same period of last year. All four have P/E ratios around 10, and they are paying dividends. Shares of all four have surged 50% to 83% in the past three months, but are still 26% to 38% lower than a year ago.

While the release of economic data doesn't stop next week (see economic schedule highlights below), the earnings season does wind down dramatically. Most of the S&P 500 companies already have reported on the past quarter, which means dismal earnings news is largely behind us, at least for a while. About the only companies of note expected by analysts surveyed by Thomson Reuters to report falling earnings this week are Costco Wholesale Corp. (NASDAQ: COST), Wendy's/Arby's Group Inc. (NYSE: WEN), Foot Locker Inc. (NYSE: FL), Bank of Montreal (NYSE: BMO), and Steinway Musical Instruments Inc. (NYSE: LVB).

While PetSmart Inc. (NASDAQ: PETM) and Big Lots Inc. (NYSE: BIG) quarterly profits are expected to be about the same as a year ago, Liz Claiborne Inc. (NYSE: LIZ), Kenneth Cole Productions Inc. (NYSE: KCP), Ciena Corp. (NASDAQ: CIEN), and Trina Solar Ltd. (NYSE: TSL) are expected to have swung to losses in the most recent quarter.

Last week, Bank of Montreal (NYSE: BMO), one of Canada's oldest and largest banks, reported growth in its fiscal fourth-quarter earnings. But it may be the only one that does, as at least two of the Canadian banks scheduled to report fourth-quarter numbers this week have already released preliminary results that warn of lower earnings due to debt write-downs and trading losses.

Analysts surveyed by Thomson Reuters expect Toronto-based Canadian Imperial Bank of Commerce (NYSE: CM) to post earnings 42.6% lower than a year ago, or $1.28 per share. CIBC beat estimates by a penny in the third quarter, but missed by a penny in the period before that. The bank faces a class-action lawsuit related to investments in collateralized debt obligations consisting of U.S. subprime mortgages. Shares have climbed 20.7% from a recent 52-week low of $39.52, but are down 37.8% in the past three months.

Toronto Dominion Bank (NYSE: TD), Bank of Nova Scotia (NYSE: BNS), and Royal Bank of Canada (NYSE: RY) are expected to report more modest earnings declines of $1.01 per share, $0.73 per share, and $0.83 per share, respectively. All three Toronto-based banks topped estimates in the third quarter. Toronto Dominion and RBC have recently announced plans to offer shares in order to raise capital. Toronto Dominion and Scotiabank have been trading near 52-week lows, and their share prices are down around 39% in the past three months. But only Toronto Dominion has a consensus buy recommendation from analysts.

The earnings season is beginning to wind down as we have passed the halfway mark of the quarter and the holiday season begins in earnest next week with Thanksgiving in the United States.

Bermuda-based Frontline Ltd. (NYSE: FRO) is anticipated by analysts surveyed by Thomson Reuters to be one of the biggest earnings gainers among companies scheduled to report quarterly results this coming week. The oil tanker fleet operator is expected to post third-quarter earnings of $1.97 per share, 86.8% higher than in the same period a year ago, on revenues of $399.5 million (+44.6%). Frontline missed estimates by 6.4% in the previous quarter, and the consensus recommendation by analysts is to hold FRO. While Motley Fool likes its robust dividend, Jim Cramer said in a recent Lightning Round that he prefers rival Nordic American Tanker Shipping Ltd. (NYSE: NAT). Shares have fallen 52.9% in the past three months, and reached a 52-week low of $25.00 on Friday.

Analog Devices Inc. (NYSE: ADI) is also expected to be among the week's biggest earnings gainers. Analysts are looking for the semiconductor chip maker to report a fiscal fourth-quarter profit of $0.44 per share, 31.8% higher than a year ago, on revenues of $661.7 million (+2.0%). Analog Devices has beat estimates in three of the past five quarters, but only missed by 1.3% in the previous quarter. Analysts on average recommend buying ADI, which has a forecast long-term EPS growth rate of 17.3%, which better than the S&P 500 and that of rival Texas Instruments Inc. (NYSE: TXN). Shares sank to a multiyear low of $16.23 on Friday, and are down 41.1% in the past three months.