Del Monte Foods (NYSE: DLM), a supermarket brand whose colleagues include ConAgra (NYSE: CAG) and Kraft (NYSE: KFT), was way up in afternoon trading. When a stock like Del Monte gains 9% on great volume, you know something big must have happened. Well, it was the company's fiscal Q1 results that made investors want to buy today. After checking over the news, I can honestly say that I see the market's point.

Sales increased 12% during the quarter, and earnings from continuing operations calculated out to 30 cents per share, a huge improvement over the loss observed in the comparable period. According to Earnings.com, Wall Street was only looking for a measly four pennies for the bottom line.

Shares of Del Monte (NYSE: DLM) are up over 9% in early afternoon trading. And the volume is doing gangbusters business. The market is responding to the company's fourth-quarter results. The numbers did tell an overall fun story.

To begin with, revenues saw a big jump of 20%. As many news items have pointed out, price increases helped out. It should also be pointed out that the company's press release indicated that an extra week skewed things a bit. That's okay, though, it was still a good top-line performance. Earnings per share from continuing divisions came in at $0.35, which meant that Del Monte grew the bottom line by 75% (a couple elements affecting the perception of this profit expansion was a better tax situation linked to a positive change in California tax code and a $0.04 per-share transformation expense recorded in Q4 2008). Analysts said the company might earn $0.26 per share. That's a pleasant difference, isn't it?

MOST NOTEWORTHY: World Wrestling, Novo Nordisk and Nestle were today's noteworthy downgrades:

• B. Riley downgraded shares of World Wrestling Entertainment (NYSE: WWE) to Neutral from Buy on valuation with the stock only 1% below their target price. However, B. Riley admits shares may move higher during the next 30-35 days, due to the upcoming WrestleMania event in Orlando, FL.
  
• Novo Nordisk (NYSE: NVO) was downgraded to Neutral from Buy at Merrill on valuation and a lack of near-term catalysts; shares were also lowered to Peer Perform from Outperform at Bear Stearns.
  
• ING lowered Nestle (OTC: NSRGY) to Hold from Buy as they expect organic growth to slow in 2008.

OTHER DOWNGRADES:

• Banc of America downgraded Paychex (NASDAQ: PAYX) to Neutral from Buy.
  
• HSBC downgraded Repsol SA (NYSE: REP) to Neutral from Overweight.
  
• Del Monte Foods (NYSE: DLM) was downgraded to Market Perform from Outperform at Wachovia.

The pet food recall is still at the top of the consumer radar these days, and we've been waiting for the lawsuits to begin. One of the first efforts is now underway, as a man whose dog passed away from kidney failure has filed suit against Wal-Mart Stores (NYSE: WMT), Menu Foods (an ingredient supplier blamed for the recall) and Del Monte.

This was to be expected, but I am surprised that Wal-Mart was included in the suit. Being a distributor of products, in most cases, should absolve one of liability unless the product is not removed from shelves after notification from vendors and suppliers. Perhaps this was the case with Wal-Mart. If so, the retailer deserves to be included here.

The same argument could be made for Google Inc. (NASDAQ: GOOG), which is sued routinely for making certain information available through its search engine. Apparently, being a "distributor" of information means legal liability, which is nonsense. This kind of thinking moves the responsibility from the creator of a service or product into the realm of the middleman. Is this right? Well, it can be -- it's all in the details of each case. In the Wal-Mart case, the charges include language like "failed to prevent the distribution of tainted pet foods after the discovery of contaminated wheat gluten in their ingredients." If true, then Wal-Mart's inclusion makes sense.