Analyst upgrades:

• Jefferies upgraded Biogen (NASDAQ: BIIB) to Buy from Hold based on valuation. The firm, which has a $50 target on the stock, believes Tysabri PML cases are reflected in shares.
• Deutsche Bank upgraded Nordstrom (NYSE: JWN) to Buy from Hold as it finds the valuation attractive and believes the company's sales are benefiting from stabilization in California and share gains. Deutsche raised its target on shares to $45 from $36.
• RBC Capital upgraded Yum! Brands (NYSE: YUM) to Outperform from Sector Perform and raised its target to $39 from $36 citing valuation and views it as a low risk option on a global economic recovery.
• Credit Suisse (NYSE: CS) was upgraded to Buy from Hold at Citigroup.
• Royal Caribbean (NYSE: RCL) was upgraded to Outperform from Market Perform at Wells Fargo.
• Alcatel-Lucent (NYSE: ALU) was upgraded to Hold from Sell at RBS.

Blue-chip soda titan Coca-Cola Company (NYSE: KO) slipped into the red this morning after Standard & Poor's last night revised the company's outlook to "negative." The ratings change also affects the Dow component's two main bottling units, Coca-Cola Enterprises (NYSE: CCE) and Coca-Cola Hellenic Bottling (NYSE: CCH). Analyst Jean Stout noted, "Weak economic conditions in select markets and volatile commodity costs have pressured the Coke system's operating performance."

Currently, Coca-Cola's S&P rating is "A+," the fifth-highest investment-grade notch. The downwardly revised outlook indicates that the rating is in danger of being cut over the next one to two years. In response to S&P's "negative" label, CCE postponed pricing a previously announced, $1 billion bond issue.

Stout added that "reduced share repurchases at Coke could restore some financial flexibility to the Coke system," but warned, "weakening macroeconomic conditions, as well as further acquisitions at Coke, CCE, or CCHB will likely further weaken Coke system credit measures."

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

• ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
• Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
• Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
• Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
• Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
• Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
• CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
• Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
• Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
• Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
• Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

Today was a mixed day in the news, despite the rally we saw in the equity markets. Some was related to a surge in the dollar causing a relatively small drop in oil prices after hints of the Saudis boosting production. The Labor Department reported that the inflation index, the Consumer Price Index, rose by +0.6% in May, just above the +0.5% economists were looking for. The core-CPI, an ex-food and ex-energy basis, showed only a gain of +0.2% that matched expectations. Too bad that no one can go without energy or food. Perhaps the more shocking number came out of the housing sector where there were reports that May's foreclosure rates were up 48% compared to last year's reading. Below are the unofficial closing bell levels for major index levels:]

DJIA: 12307.67 up 166.09
NASDAQ 2,454.50 up 50.15
S&P 500: 1,360.12
52-WEEK LOWS
TOP 10 ANALYST CALLS

Capstone Turbine Corporation (NASDAQ: CPST) was one the more active movers after its earnings, but the real boost came from the realization that its backlog was actually understated and even better than an already strong report. Shares were up in the final minutes today.

Coca-Cola (NYSE: KO) shares are falling after Coca Cola Hellenic Bottling (NYSE: CCH) revised its 2008 earnings growth estimate to 5% to 8%, well below the 12% to 15% previously forecast. KO owns a 23% stake in CCH. CCH said rising food and fuel prices have adversely affected consumer spending. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on KO.

After hitting a one-year low of $51.06 last June, the stock hit a one-year high of $65.59 in January. This morning, KO opened at $57.03. So far today the stock has hit a low of $54.01 and a high of $57.10. As of 1:20, KO is trading at $55.02, down $2.12 (-3.7%). The chart for KO looks bearish and steady, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $60 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 6.4% return in two months as long as KO is below $60 at August expiration. Coke would have to rise by more than 9% before we would start to lose money. Learn more about this type of trade here.

KO hasn't been above $60 since April and has shown resistance around $58 recently. This trade could be risky if the company's earnings (due out in mid-to-late July) are a positive surprise, but even if that happens, this position could be protected by resistance KO might find at its 200 day moving average, which is currently around $59.

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 CCH. He does control bullish hedged positions in KO which are struggling. Both this trade above and those positions can expire profitably at the same time.

U.S. stock futures were mixed to lower early Friday morning as investors awaited data on inflation. News about companies cutting workforce and Yahoo!'s failed talks with Microsoft also soured the mood.

On Thursday, U.S. stocks closed with gains following a surprisingly strong retail sales, but the gains were tempered as the day went on due to rising oil prices and the Yahoo! announcement about the failed Microsoft talks.The Dow industrials ended 57 points, or 0.48%, higher, the S&P 500 rose 4 points, or 0.33%, and the Nasdaq Composite rose 10 points, or 0.43%.

What may yet change the atmosphere on Wall Street is the Consumer Price Index is scheduled for release at 8:30 a.m. EDT. Economists surveyed by Briefing.com expect CPI to show an increase of 0.5% in May following a 0.2% rise in April. Core CPI, which excludes the volatile food and energy prices, is expected to have risen 0.2% in May, after it rose 0.1% the month before.

At 10:00 a.m., the preliminary University of Michigan consumer confidence gauge for June is also due.

MOST NOTEWORTHY: BP PLC, Wells Fargo and Hibbett Sports were today's noteworthy downgrades:

• Lehman downgraded shares of BP PLC (NYSE:BP) to Underweight from Equal Weight to reflect a lower share of profitability from the Azeri field in Azerbaijan.
  
• Friedman Billings downgraded Wells Fargo (NYSE:WFC) to Underperform from Market Perform citing its consumer exposure and recent indications of consumer credit quality deterioration.
  
• The firm also downgraded Hibbett Sports (NASDAQ:HIBB) to Market Perform from Outperform following the company's Q4 pre-announcement.

OTHER DOWNGRADES:

• Coca-Cola HBC SA (NYSE:CCH) was downgraded to Neutral from Buy at Merrill.
  
• Goldman removed Weatherford (NYSE:WFT) from its Conviction Buy List and downgraded Foot Locker (NYSE:FL) to Sell from Neutral.