Analyst upgrades:

• Wells Fargo upgraded Prudential (PRU) to outperform from market perform. The firm thinks the company is in a better position than its peers and will be able to more effectively exploit M&A opportunities.
• UBS upgraded Reliance Steel (RS) to buy from neutral based on potential growth through M&A and valuation. The firm raised its target to $50 from $49.
• Deutsche Bank upgraded Eastman Chemical (EMN) to buy from hold on expectations the company's portfolio transformation will drive higher normalized earnings power, which the firm believes is not fully reflected in consensus estimates. Deutsche raised its target price on shares to $70 from $62.
• Amylin Pharma (AMLN) was upgraded to overweight from equal weight at Barclays.
• Cephalon (CEPH) was upgraded to buy from hold at Jefferies.
• Acuity Brands (AYI) was upgraded to outperform from perform at Oppenheimer.

Similar to Dupont, I selected Eastman Chemical (NYSE: EMN) as a stock to avoid due to rising input prices and low margins. It is a simple formula that cannot be broken: If a company cannot pass along higher costs, it will make less.

The market has yet to grasp that concept with respect to EMN. The stock has more than doubled since bottoming in March and has skyrocketed during the second quarter. This is in stock contrast to the poor performance at Dupont.

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

• Acuity Brands Inc. (NYSE: AYI) beat second-quarter estimates on increased productivity and new products.
• Advanced Micro Devices (NYSE: AMD) cut its outlook and announced job cuts.
• Alcoa Inc. (NYSE: AA) missed first-quarter earnings estimates but beat revenue expectations.
• Circuit City Stores Inc. (NYSE: CC) surprised Wall Street by posting a second-quarter profit.
• Dell Inc.'s (NASDAQ: DELL) rosy 2008 forecast is based on cost cuts, overseas growth, share buybacks.
• DuPont & Co. (NYSE: DD) raised its first-quarter outlook on strength in agriculture and emerging markets.
• Eastman Chemical Co. (NYSE: EMN) raised its first-quarter guidance on strong sales and higher prices.
• EXFO Electro-Optical Engineering (NASDAQ: EXFO) beat estimates and announced an acquisition.
• Foundry Networks Inc. (NASDAQ: FDRY) slashed its first-quarter outlook, blaming the weak economy.
• Genentech Inc. (NYSE: DNA) beat first-quarter earnings estimates, but not revenue expectations.
• General Electric Co. (NYSE: GE) missed earnings expectations and lowered its guidance.
• Novellus Systems Inc. (NASDAQ: NVLS) trimmed its first-quarter earnings and revenue forecasts.
• Progressive Corp. (NYSE: PGR) beat estimates though first-quarter profits fell due to lower premiums.
• Rite Aid Corp. (NYSE: RAD) swung to a loss in the fourth quarter on acquisition costs and a tax charge.

Eastman Chemical Company (NYSE: EMN) manufactures and markets chemicals, fibers and plastics. Key products include coatings, adhesives, specialty plastics, cellulose acetate fibers, polyethylene terephthalate polymers for packaging, and intermediates based on oxo and acetyl chemistries. The company has operations in 23 countries and employees 11,000. Dow Chemical (NYSE: DOW) is a major competitor.

Eastman surprised investors earlier in the week, when it issued upside guidance for first quarter earnings. The firm now sees Q1 EPS of $1.30, versus the Street consensus estimate of $1.21. Management said that continued strong sales volume and higher selling prices offset higher raw material and energy costs.

Eastman Chemical Company (NYSE: EMN) manufactures and markets chemicals, fibers and plastics. Key products include coatings, adhesives, specialty plastics, cellulose acetate fibers, polyethylene terephthalate polymers for packaging, and intermediates based on oxo and acetyl chemistries. The company has operations in 23 countries and employees 11,000. Dow Chemical (NYSE: DOW) is a major competitor.

Eastman surprised investors late last month, when it reported Q4 EPS of $1.27 and revenues of $1.74 billion. Analysts had been expecting $1.11 and $1.67 billion. Management also guided Q1 EPS above $1.19 ($1.19 consensus) and estimated FY08 EPS of $5.06 ($4.92 consensus).

MOST NOTEWORTHY: Anheuser-Busch (BUD), Imax Corp (IMAX), Amgen (AMGN), Fifth Third Bancorp (FITB) and TiVO (TIVO) were today's noteworthy upgrades:

• Citigroup upgraded shares of Anheuser-Busch (NYSE: BUD) to Hold from Sell as they see a 70% chance of an alliance between Anheuser-Busch and InBev in the next two years; they believe such a merger would create a market leader.

• Merriman upgraded IMAX Corp (NASDAQ: IMAX) to Buy from Neutral after IMAX removed its overhang by completing SEC filings, while fundamentals have remained strong.

• Citigroup upgraded Amgen (NASDAQ: AMGN) to Hold from Sell to reflect the potential for CMS to roll back proposed reimbursement cuts in oncology, an improving risk/reward profile and the potential for positive phase 3 denosumab data by year-end.

• Stifel raised its rating on Fifth Third Bancorp (NASDAQ: FITB) to Hold from Sell on valuation.

• Kaufman upgraded TiVO (NASDAQ: TIVO) to Buy from Sell as indicators of the change in its business model suggest a positive transaction. The firm feels the the EchoStar (DISH) litigation provides an attractive risk/reward potential, creating an attractive entry point...

OTHER UPGRADES:

• Aflac (NYSE: AFL) was upgraded at Lehman to Overweight from Underweight.

• Stifel upgraded Progressive (NYSE: PGR) to Hold from Sell.

• Wedbush upgraded Jack in the Box (NYSE: JBX) to Buy from Hold.

• Eastman Chemical (NYSE: EMN) was upgraded to Buy from Hold at Citigroup.

• Navteq (NYSE: NVT) was upgraded to Buy from Neutral at UBS.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

On today's STOP TRADING! segment on CNBC, Cramer discussed the NYSE Group Inc. (NYSE:NYX) as still being the most attractive stock in the exchange sector even though IntercontinentalExchange Inc. (NYSE:ICE) has rallied the most.

This isn't Cramer's first note on NYX, as that was his #1 Growth Pick for 2007. On TXU Corp. (NYSE:TXU) merging, Cramer thinks that McDermott International (NYSE:MDR) is down too much at -5% on concern that it will lose TXU business.

Foster Wheeler Ltd (NASDAQ:FWLT) is one that Cramer thinks is still great on a post-asbestos basis. On Dow Chemical (NYSE:DOW), Cramer said the history of these deals may keep them up and he noted how Alcoa (NYSE:AA) has not fallen. Eastman Chemical Co. (NYSE:EMN) is the one he would do right now because it is too cheap. He also like Louisiana-Pacific Corp. (NYSE:LPX) after temple-Inland Inc. (NYSE:TIN) FINALLY announced its own break-up it had hoped for when he was a broker in 1991.