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

• American Express Co. (NYSE: AXP) earnings tumbled in Q4 but came in just short of expectations.
• Best Buy Inc. (NYSE: BBY) earnings prospects and cash flow led to an analyst's upgrade.
• Bristol-Myers Squibb Co. (NYSE: BMY) topped analysts Q4 expectations, sending shares higher.
• Colgate-Palmolive Co. (NYSE: CL) posted a better-than-expected Q4 profit despite the weak economy.
• Delta Air Lines Inc. (NYSE: DAL) reported a big quarterly loss due to merger costs and bad fuel hedges.
• Eaton Corp. (NYSE: ETN) Q4 earnings fell on lower exchange rates and charges related to an acquisition.
• E*Trade Financial Corp. (NASDAQ: ETFC) narrowed its Q4 net loss but fell short of expectations.

Here's a quick look at some of Monday's earnings results:

Netflix Inc.'s (NASDAQ: NFLX) fourth-quarter earnings jumped 45% percent to nearly $23 million, or 38 cents per share, which surpassed analysts' estimates. Revenue in the period rose 19% to $360 million. The company ended 2008 with 9.4 million subscribers, a gain of 718,000 customers from the end of September. Shares fell $0.29, less than 1% Monday.

Amgen Inc.'s (NASDAQ: AMGN) fourth-quarter profit grew 15% percent to $961 million, or 91 cents per share, mostly due to lower expenses. Revenue was $3.75 billion about the same as last year. Results included $60 million in restructuring costs a year ago. Shares rose $1.22, or 2.3%, but fell in after-hours trading.

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

• Adobe Systems Inc. (NASDAQ: ADBE) posted strong Q4 and full-year results, but with flat Q4 revenues.
• Best Buy Inc. (NYSE: BBY) beat Q3 expectations though earnings tumbled, and shares rose about 18%.
• Carnival Corp. (NYSE: CCL) announced that it had lowered its full-year earnings and revenue guidance.
• Discover Financial Services (NYSE: DFS) net income from continuing operations more than doubled in Q4.
• Eaton Corp. (NYSE: ETN) cut its Q4 earnings guidance on weakness in the American auto market.
• FedEx Corp. (NYSE: FDX) Q2 earnings topped expectations and it reaffirmed its guidance.
• General Electric Co. (NYSE: GE) declined to provide quarterly earnings guidance in its annual outlook.
• General Mills (NYSE: GIS) posted a higher-than-expected profit on cost cutting and increased marketing.
• Gilead Sciences Inc. (NASDAQ: GILD) strong earnings growth are expected by one analyst to continue.
• Goldman Sachs Group (NYSE: GS) swung to an anticipated Q4 loss and reported negative revenues.
• Healthcare Realty Trust Inc. (NYSE: HR) was downgraded due to its near-term earnings prospects.
• Honeywell International Inc. (NYSE: HON) affirmed a lower 2009 outlook and said it expects profits to fall.

Eaton (NYSE: ETN - option chain) stock is falling today after the company cut its fourth-quarter earnings guidance. ETN now expects adjusted EPS of $1 to $1.10, down from an earlier estimate of $1.70 to $1.80. Analysts are looking for EPS of $1.68. ETN cited weakness in the American auto market for the cuts. 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 ETN.

This morning, ETN opened at $41.59. So far today the stock has hit a low of $40.61 and a high of $42.60. As of 11:50, ETN is trading at $42.31, down $1.60 (-3.6%). The chart for ETN looks neutral and S&P gives ETN a 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider a January bear-call credit spread above the $50 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 an 11.1% return in one month as long as ETN is below $50 at January expiration. Eaton would have to rise by more than 18% before we would start to lose money.

ETN hasn't been above $50 since early November and shown resistance around $48 recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in ETN.

Eaton (NYSE: ETN - option chain) shares have soared higher today after Berkshire Hathaway (NYSE: BRK.A) disclosed in an SEC filing Friday afternoon that it has bought 2.91 million shares of ETN over the past six months. Usuall,y when announcements like this are made, investors follow the Oracle of Omaha and send the stock higher. If you think the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ETN.

ETN opened this morning at $42.30. So far today the stock has hit a low of $41.48 and a high of $43.35. As of 12:25, ETN is trading at $43.49, up $2.34 (5.7%). The chart for ETN looks neutral and S&P gives ETN a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $30 range. A bull-put credit spread is an options position that combines the purchase and sale of put 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 5.3% return in just five weeks as long as ETN is above $30 at December expiration. Eaton would have to fall by more than 30% before we would start to lose money.

ETN hasn't been below $37 at all in the past year and has shown support around $39 recently.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in ETN or Berkshire.

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

• Altera Corp. (NASDAQ: ALTR) beat Q2 estimates, offered guidance, and announced a quarterly dividend.
• Capital One Financial Corp. (NYSE: COF) profit tumbled as consumers stopped paying off credit cards.
• Coca-Cola Co. (NYSE: KO) mixed Q2 results were boosted by international operations.
• Eaton Corp. (NYSE: ETN) reported strong Q2 numbers but shares still fell afterward.
• Genentech Inc. (NYSE: DNA) did not meet analysts' estimates but lifted its full-year outlook (see transcript).
• Google Inc. (NASDAQ: GOOG) posted strong results that fell short of Wall Street expectations.
• Intel Corp. (NASDAQ: INTC) better-than-expected Q2 results lifted other tech stocks as well (see transcript).
• JPMorgan Chase & Co. (NYSE: JPM) posted better-than-expected Q2 results (see transcript).
• Lawson Software Inc. (NASDAQ: LWSN) net income fell due to an auction-rate securities related charge.
• Mattel Inc. (NYSE: MAT) Q2 results topped expectations despite lower profits on weak demand for Barbie.
• Nokia Corp. (NYSE: NOK) posted better-than-estimated Q2 earnings on strong sales growth.
• Overstock.com Inc. (NASDAQ: OSTK) fell nearly 30% after reporting earnings for the second quarter.
• Rockwell Collins Inc. (NYSE: COL) posted strong Q3 results due to long-term government contracts.
• Sun Microsystems Inc. (NASDAQ: JAVA) preliminary Q1 results sparked an after-market rally.
• Wells Fargo & Co. (NYSE: WFC) beat low earnings expectations and also raised its quarterly dividend.
• Yum! Brands Inc. (NYSE: YUM) beat Q2 expectations due in part to strength overseas, but shares fell.

For more highlights from this week, see: Citigroup, eBay, IBM, Merrill Lynch, Microsoft and others

The earnings crunch continues next week. Among companies scheduled to report are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Merck (NYSE: MRK), Texas Intruments (NYSE: TXN), Caterpillar (NYSE: CAT), Halliburton (NYSE: HAL), United Parcel Service (NYSE: UPS), Wachovia (NYSE: WB), Yahoo! (NASDAQ: YHOO), Amazon (NASDAQ: AMZN), Anheuser-Busch (NYSE: BUD), AT&T Inc. (NYSE: T), McDonald's (NYSE: MCD), PepsiCo (NYSE: PEP), Pfizer (NYSE: PFE), Boeing (NYSE: BA), Hershey (NYSE: HSY), and Southwest Airlines (NYSE: LUV).

Visit AOL Money & Finance for more earnings coverage.

As the second quarter earnings crunch begins in earnest this week, the bear market has investors jittery and prognosticators spinning out dire warnings. In the wake of mixed results from Alcoa (NYSE: AA) and General Electric (NYSE: GE) kicking things off last week, here's a look at what Wall Street is expecting from many of the companies scheduled to report this coming week.

Analysts surveyed by Thomson Financial are expecting the following companies to report a rise in earnings when compared to the same period of the previous year.

• Nucor Corp. (NYSE: NUE): $1.80 EPS (36.6%) on sales of $6.4 billion (+53.0%)
• Google Inc. (NASDAQ: GOOG): $4.74 EPS (24.9%) on sales of $3.9 billion (+41.6%)
• Nokia Corp. (NYSE: NOK): 56 cents EPS (23.2%) on sales of $19.9 billion (+17.8%)
• CSX Corp. (NYSE: CSX): 90 cents EPS (21.1%) on sales of $2.9 billion (+12.8%)
• Altera Corp. (NASDAQ: ALTR): 27 cents EPS (18.5%) on sales of $346.7 million (+8.4%)
• IBM (NYSE: IBM): $1.82 EPS (+17.6%) on sales of $25.9 billion (+9.0%)
• eBay Inc. (NASDAQ: EBAY): 41 cents EPS (17.1%) on sales of $2.2 billion (+18.0%)
• W.W. Grainger Inc. (NYSE: GWW): $1.46 EPS (17.1%) on sales of $1.7 billion (+8.0%)
• Microsoft Corp. (NASDAQ: MSFT): 47 cents EPS (17.0%) on sales of $15.7 billion (+17.0%)
• Honeywell International Inc. (NYSE: HON): 94 cents EPS (17.0%) on sales of $9.2 billion (+7.9%)

Eaton (NYSE: ETN) shares are falling today after the company announced this morning that it has named Joseph P. Palchak its new Automotive Group Chief Executive Officer. ETN shares are trading lower today with most other auto component companies as a weak first-quarter GDP reading has investors worried about the fragile state of the economy. 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 ETN.

After hitting a one-year high of $104.12 in July, the stock hit a one-year low of $66.27 in January. This morning, ETN opened at $87.94. So far today the stock has hit a low of $84.78 and a high of $87.94. As of 11:40, ETN is trading at $84.88, down $3.67 (-4.2%). The chart for ETN looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $100 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 seven weeks as long as ETN is below $100 at August expiration. Eaton would have to rise by more than 17% before we would start to lose money. Learn more about this type of trade here.

TheStreet.com's Jim Cramer says they can't be profitable with this huge cost – it's time to move on.

Here's a revelation. The airline industry is disappearing right before our eyes. And it doesn't even matter. They can merge all they want, they can try to cut costs through synergy, but the business can't survive $120 oil. The variable cost is 35% of their expense. That's not tenable and it is going higher. Fares have to double to make it up. That's just not tenable. The Dreamliner's a nice savings, but this American industry won't get there in time to be saved by it.

Last week we saw the big give-up, the departure of even the longest-term investors. The stocks are signaling that most of them will have to restructure through bankruptcy. They have done it before, but this time it doesn't matter. The fare increases have to occur, and they are such that the airline structures can't be profitable. It is one of those industries that can't stay afloat without massive federal subsidies, and that can't happen.

I have hated the airline stocks ever since 1985 when I recommended Delta (NYSE: DAL) (Cramer's Take) and my clients promptly dropped 50%. I reiterate that after the tremendous declines these stocks have, they are still worth avoiding. Don't be tempted to pick up these stocks if oil "swoons" down to $115. The airlines will rally, but they will need to do every bit of financing possible if a rally occurs.

In earnings reports Monday, Eaton Corp. (NYSE: ETN) posted first-quarter profit gains, while J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) and Stanley Furniture Co. (NASDAQ: STLY) reported smaller profits compared to the same period in 2007.

Eaton, a maker of industrial parts and systems, said that first-quarter earnings rose 5% as demand from international markets pushed sales higher. Net income rose to $247 million, or $1.64 per share, beating Wall Street expectations. Sales rose 12% to $3.5 billion. Eaton shares rose $1.09 in trading Monday to $80.39, but slipped 13 cents in after-hours trading.

J.B. Hunt, which provides truckload and intermodal shipping services, said its first-quarter profit fell 18% because of weak demand and a rising fuel prices. The company earned $36.4 million, or 28 cents per share, missing Wall Street estimates. Total operating revenue rose 10% to $878.4 million. Shares fell 31 cents to $29.15 Monday, and continued to fall in aftermarket trading.

Stanley Furniture, which makes wood furniture for the residential market, said its first-quarter profit tumbled 37%, but beat Wall Street's expectations. The company reported income of $1 million, or 10 cents per share. Sales fell 17% to $62.5 million. Shares fell 15 cents Monday, then plunged another $1, or 9.4%, in after-hours trading to $9.59.

Visit AOL Money & Finance for more earnings coverage.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
• AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
• Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
• Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
• Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
• Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
• Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
• Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
• ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
• CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
• Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
• Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
• Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
• Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
• Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
• Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
• Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Venture capital is flowing, engineers are chomping at the bit and layman sources claim that mechanical components of the Chevy Volt are already being road tested on the streets of Detroit. General Motors (NYSE: GM) is not letting anything get in the way of its plans to place a successful electric car on the streets of America and the world by 2010. A report by RedHerring outlines the broad and powerful collection of top tier companies which are coming together to help GM bring its mission to fruition.

Two new research projects targeted towards electric car development were recently announced by General Electric (NYSE: GE) and are specifically geared towards the needs of the Chevy Volt. GE has been asked to design high density electric capacitors and hybrid drive train components in pursuit of our first generation of truly plug-in electric cars. It would seem that GM, GE and the Department of Energy are not willing to settle for an automobile with simple hybrid status. The goal would appear to be full blown electric automobiles at a price within reach of the public. Once the car is built, add the current advances in solar technology and you'll have an automobile that can be charged from a solar powered battery array at home.

MOST NOTEWORTHY: Viacom, Agilent, AudioCodes and Microsoft were today's noteworthy upgrades:

• JP Morgan upgraded shares of Viacom (NYSE: VIA) to Overweight from Neutral as they believe contractual rate increases and distribution of the company's newer networks will drive higher earnings growth in 2008. The firm does not believe this growth is priced into shares.
  
• JP Morgan also upgraded Agilent Technologies (NYSE: A) to Overweight from Neutral and added shares to its Focus List. Shares were upgraded based on its sum-of-the-parts valuation and sees further upside given that strategic buyers are back in the marketplace.
  
• AudioCodes (NASDAQ: AUDC) was raised to Buy from Accumulate at Think Equities, as they expect the company to benefit from the newly acquired CTI squared business, the security gateway business, and traction in the SBC business, with Microsoft's OCS launch of a new driver today.
  
• Goldman added Microsoft Corporation (NASDAQ: MSFT) to its Conviction Buy List, citing valuation and overwhelmingly negative sentiment, and expects shares to trade higher on a better Q1 report.

OTHER UPGRADES:

• RBC Capital Markets upgraded Citrix Systems (NASDAQ: CTXS) to Outperform from Sector Perform.
  
• Eaton Corporation (NYSE: ETN) was upgraded to Outperform from Market Perform at Friedman Billings.
  
• Citigroup upgraded Broadcom Corporation (NASDAQ: BRCM) to Buy from Hold.

Sellers took control at the open and sent the market lower. The Dow Jones Industrial Average got with striking distance of the August 1st low -- down 200 points -- before rebounding to close down only 31 points.

The NYSE had volume of 4.3 billion shares with 1,279 shares advancing while 2,058 declined for a loss of 14.27 points to close at 9,435.04. On the NASDAQ, 3.2 billion shares traded, 1,309 advanced and 1,792 declined for a loss of 11.6 to 2,544.89.

Eaton Corporation (NYSE: ETN) rose $6.98 (8%) to $93.45. Las Vegas Sands Corp. (NYSE: LVS) fell $7.68 (-7%) to $100.47. Coventry Health Care, Inc. (NYSE: CVH) strengthened $3.26 (6%) to $54.38. Whole Foods Market, Inc. (NASDAQ: WFMI) fell $2.58 (-6%) to $42.27. Darden Restaurants, Inc. (NYSE: DRI) rose $2.15 (5%) to $42.94.

With the market plunging on the open, the options were active. There were 8.8 million puts and 8.3 million calls traded for a put/call open interest ratio of 1.07. Garmin Ltd. (NASDAQ: GRMN) saw heavy volume on the August 45 calls (GQRHI) with over 259,000 options trading. The August 75.0 Garmin calls (GQRHO) moved 121,000 options. Most of this option volume is dividend arbitration in anticipation of the 0.75 cent dividend Monday.

Apple Computer, Inc. (NASDAQ: AAPL) saw heavy volume on the August 130 calls (APVHF) with over 55,000 options trading. Financial Sector SPDR ETF (NYSE: XLF) saw heavy volume on the September 34 puts (XLFUH) with over 234,000 options trading. The other strikes were active as well and they investors were likely trying to protect investments capital. PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the September 45 puts (QQQUS) moving 171,000. Put index options can work as an insurance policy against market falls.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

MOST NOTEWORTHY: The machinery industry, Sohu.com (SOHU), Intuit (INTU), Priceline.com (PCLN) and Expedia (EXPE) were today's noteworthy initiations:

• JP Morgan assumed coverage of 5 machinery stocks: The firm assumed Eaton (NYSE: ETN) and Illinois Tool Works (NYSE: ITW) with Overweight ratings and Ingersoll-Rand (NYSE: IR), Parker Hannifin (NYSE: PH) and Kennametal (NYSE: KMT) with Neutral ratings. JP Morgan's top picks in the group are Illinois Tool Works and Eaton.

• Pali initiated Sohu.com (NASDAQ: SOHU) with a Buy rating and $41 target and believes the Olympic Games represent the biggest growth catalyst for the company.

• Jefferies started shares of Intuit (NASDAQ: INTU) with a Buy rating and $34 target, likes the momentum in TurboTax and QuickBooks and sees potential upside fo FY08 expectations.

• Banc of America initiated Priceline.com (NASDAQ: PCLN) with a Buy rating and $96 target and is positive on the company's European positioning given expectations for top line growth and margin expansion. The firm also started shares of Expedia (NASDAQ: EXPE) with a Buy rating and $35 target, positive on the company's strong management, solid competitive positioning and improving fundamentals.

OTHER INITIATIONS:

• First Albany assumed coverage of Cougar Biotechnology (OTC: CGRB) with a Buy rating and $29 target.

• Oppenheimer started shares of Virginia Commerce (NASDAQ: VCBI) with a Neutral rating.

• Omega Financial (NASDAQ: OMEF) was initiated at Keefe Bruyette with a Market Perform rating and $25 target.

• Merrill Lynch initiated shares of Insulet (NASDAQ: PODD) with a Buy rating.

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