While today was a mixed day, overall it was far better than it could have been. Financial stocks saw a bit of a rebound as Lehman's world didn't look like it was coming to an end. Ben Bernanke gave a speech today but showed his concerns that rising health care costs are a huge concern for the economy. The NAHB also gave a low builder sentiment reading of 18, which matches recent lows. Oil did hit a new high despite the Saudi's pledge to boost production, but that was on the dollar and it did manage to come off of highs. These are unofficial index level closing prices:

• DJIA 12264.77 (-42.58)
• S&P500 1359.88 (-0.15)
• NASDAQ 2473.08 (+18.58)
• 10YR T-Note 4.245% (-0.016%)
• 52-WEEK LOWS
• TOP 10 ANALYST CALLS

Chiquita Brands International Inc. (NYSE: CQB) was the disaster of the day as shares were down some 29% in the final minutes after this mornings warning that cost hikes were going to create a wide earnings miss.

Chiquita Brands (NYSE: CQB) is recently down $6.71 to $16.58 after announcing it expects to report a Q3 loss on higher industry costs. Wachovia has an Outperform rating on CQB. CQB August 17 puts have traded 83 times on transaction volume of 1,718 contracts compared to its open interest of 1,312 contracts. CQB August option implied volatility of 68 is above its 26-week avearge of 54 according to Track Data, suggesting larger price movement.

Fresh Del Monte (NYSE: FDP) is recently down $6.56 to $25.32 in sympathy with CQB announcing a Q3 loss on higher industry costs. FDP July option implied volatility of 65 is above its 26-week average of 49, suggesting larger price movement.

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

Banana company Chiquita Brands International Inc. (NYSE:CQB) settled its suit with the U.S. Justice Department. Chiquita agreed to pay a $25 million fine for aiding and abetting terrorists in Colombia. The DOJ alleges that Chiquita paid $1.7 million over a 7 year period, 1997-2004, to the right-wing United Self-Defense Forces as well as to the left-wing Revolutionary Armed Forces to protect Chiquita operations and employees. Chiquita executives said that the payments were to ensure the safety of its workforce and were not meant to take sides in Colombia's civil conflict nor support Colombia's cocaine trade. Unable to secure its operations in Colombia despite paying off both sides, Chiquita sold its Colombian operations in June 2004. It is worth asking where all the U.S. aid to Colombia went and why none of it seems to have been used to protect American commercial interests in Colombia. Perhaps its easier to fault the company rather than U.S. policy.

But being accused of consorting with terrorists was not the only bad news for Chiquita. 2006 was a bad year for bananas. In recently released fourth-quarter 2006 earnings, Chiquita experienced a 4% growth in its "European banana regime," despite no one knowing quite what that phrase means. Net sales were up 9% to $1.1 billion, yet the company suffered an operating loss of $34 million, including the $25 million set aside to pay the fine. Banana sales were up 11% to $495 million, but nonetheless showed an oeprating loss of $26 million for Q4 2006. Fresh Cut packaged salad sales were flat at $256 million, but showed a $9 million operating loss over consumer concerns about tainted spinach. Not a good year!