Hartford Financial Services (NYSE: HIG) is scheduled to step into the earnings spotlight right after Tuesday's closing bell, with the insurance issue releasing its final third-quarter figures. Analysts are expecting Hartford to report a profit of $1.11 per share, according to Thomson Reuters, representing a dramatic reversal from its year-ago loss of $1.40 per share.

Hartford has a mixed history on the earnings front, with the company exceeding consensus expectations in two of the previous four reporting periods -- and falling short of Wall Street's predictions during the other two quarters. On the plus side, sector peer Lincoln National (NYSE: LNC) recently released a stronger-than-expected third-quarter report, which could bode well for Hartford.

News Corp (NYSE: NWS) closed at $11.92. NWS is expected to report Q4 EPS in early August. NWS August option implied volatility is at 53, October is at 47; below its 26-week average of 59, according to Track Data, suggesting decreasing price movement.

Hartford Financial (NYSE: HIG) closed at $14.76. HIG is scheduled to report Q2 EPS on July 30. HIG call option volume of 19,071 contracts compares to put volume of 8,839 contracts. HIG August option implied volatility is at 86, September is at 78; below its 26-weeks average of 104, according to Track Data, suggesting decreasing price movement.

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

Cloud computing is a type of on-demand hosting services on the internet. Not only a necessity for mainstream e-commerce sites, it also increases efficiency, is scalable, and lowers expenses. The monetary savings may be misleading to consumers and businesses who do not fully understand the potential risks involved.

With a pay-as-you-go type structure, users are only charged for the amount of traffic, bandwidth, and memory used. Online businesses become more efficient by only utilizing the storage and space needed, while also being assured capacity for any usage increases. The buzz has been building for years, so cloud computing has attracted a diverse customer base, ranging from popular social networks such as Twitter and Facebook, to educational websites of Arizona State and Northwestern University.

Analyst upgrades:

• Keefe Bruyette upgraded American Capital (NASDAQ: AGNC) to Outperform from Market Perform on expectations the company's book value and earnings are trending higher. The firm raised its target price to $22.
• Jefferies upgraded Spartan Stores (NASDAQ: SPTN) to Buy from Hold as it believes the company's EPS and sales momentum will return with the Michigan economy likely bottoming out. Despite upgrading, the firm lowered its target price to $18 from $24.
• Morgan Stanley upgraded U.S. Steel (X) to Overweight from Equal Weight due to its favorable product mix and leverage to improving operating rates.
• CSX Corp. (NYSE: CSX) was upgraded to Buy from Neutral at Goldman.
• Mueller Water (NYSE: MWA) was raised to Perform from Underperform at Oppenheimer.
• Marvell Technology (NASDAQ: MRVL) was upgraded to Outperform from Underperform at JMP Securities.

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

• Analogic Corp. (NASDAQ: ALOG) Q1 earnings plunged well below expectations due to costs.
• CKE Restaurants Inc. (NYSE: CKR) solid Q3 earnings were in line with analysts expectations.
• Costco Wholesale Corp. (NASDAQ: COST) beat Q1 expectations and same-stores sales increased.
• Dow Chemical Co. (NYSE: DOW) lowered its guidance and announced layoffs and factory closings.
• Eastman Kodak Co. (NYSE: EK) withdrew its guidance due in part to weak consumer spending.
• Electronic Arts Inc. (NASDAQ: ERTS) lowered its outlook due to weaker-than-expected holiday sales.
• Eli Lilly & Co. (NYSE: LLY) offered a full-year profit forecast that missed analysts' expectations.
• FedEx Corp. (NYSE: FDX) lowered its earnings guidance and announced price increases.
• FuelCell Energy Inc. (NASDAQ: FCEL) reported a deeper-than-expected loss but topped sales estimates.
• H&R Block Inc. (NYSE: HRB) Q2 net loss was in line with expectations but revenue fell short.
• Hartford Financial Services Group (NYSE: HIG) raised its full-year forecast, doubling the share price.
• Hooker Furniture Corp. (NASDAQ: HOFT) shares sold off following disappointing Q3 results and outlook.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) reported a deeper-than-expected Q3 loss on increased costs.

The Treasury has decided that just bailing out American International Group (NYSE: AIG) to the tune of $122.8 billion and counting is not going far enough. Now it's time to use our money to bail out more insurance companies. As it turns out, the insurers that are likely to get the money are the same ones that took a blood bath earlier this month. The companies seeking a bailout include Met Life (NYSE: MET), Hartford Financial Services (NYSE: HIG), and Prudential Financial (NYSE: PRU).

You may be wondering, what crime did I commit that makes it socially acceptable for my money to be used to bailout the insurance industry? Aren't my home, auto, and life insurance premiums up to date? If so, what gives the insurance industry the right to use my taxes to pay for their investment mistakes? Because that is exactly what the insurance companies are doing.

How so? Their books are loaded down with asset-backed securities such as mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) that vastly exceed their shareholder's equity. These securities are not worth much -- in fact, a recent report suggested that CDOs were worth 10 cents on the dollar at best. If the insurers have these stated on their books at 60 cents on the dollar, the mark to market process could wipe out a significant portion of their capital.

Hartford Financial (NYSE: HIG) closed at $62.06 Thursday. HIG October option implied volatility of 52 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Travelers (NYSE: TRV), a leading property casualty insurer, closed at $44.61 Thursday. TRV October option implied volatility of 37 is above its 26-week average of 32 according to Track Data, indicating larger price movement.

Genworth Financial (NYSE: GNW) closed at $15.02 Thursday. GNW October option implied volatility of 71 is above its 26-week average of 52 according to Track Data, suggesting larger price movement.

XL Capital (NYSE: XL), provider of global reinsurance coverage, closed at $18.63 Thursday. XL October option implied volatility of 78 is above its 26-week average of 73 according to Track Data, suggesting larger movement.

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

MOST NOTEWORTHY: UQM Technologies, Blue Nile, NPS Pharmaceuticals, Massey Energy and Hartford Financial were today's noteworthy downgrades:

• Merriman downgraded shares of UQM Technologies Inc (AMEX: UQM) to Neutral from Buy after Phoenix Motorcars delayed its electric vehicle manufacturing ramp, as they view the company's Phoenix Motorcars relationship as the primary driver for near-term growth.
• Citigroup downgraded shares of Blue Nile Inc (NASDAQ: NILE) to Sell from Hold on valuation as they believe near-term risks outweigh rewards. They see risk to Q3 revenue estimates and their analysis suggests an in-line quarter at best.
• NPS Pharmaceuticals Inc (NASDAQ: NPSP) was downgraded to Neutral from Buy at Oppenheimer and to Hold from Buy at Jefferies. Oppenheimer lowered shares following disappointing Gattex data; Jefferies believes the P3 GATTEX results in short bowel syndrome make the chances of successful low-dose approval unpredictable.
• Friedman Billings downgraded Massey Energy Company (NYSE: MEE) to Underperform from Market Perform based on valuation, 2008/2009 outlook, spinoff of Patriot Coal appears to be a better investment option, and another blow to mountaintop mining and permit issues.
• JP Morgan removed The Hartford Financial Services Group Inc (NYSE: HIG) from their Focus List; however, they believe the company's fundamental outlook remains positive and expects strong Q3 results.

OTHER DOWNGRADES:

• Morgan Stanley downgraded EV3 Inc (NASDAQ: EVVV) to Underweight from Equal Weight.
• Business Objects SA (NASDAQ: BOBJ) was downgraded to Hold from Buy at Roth Capital.
• Goldman downgraded The Nasdaq Stock Market Inc (NASDAQ: NDAQ) to Neutral from Buy.
• Banc of America downgraded The Pepsi Bottling Group Inc (NYSE: PBG) to Neutral from Buy.

Monday December 11

• Hartford Financial (NYSE: HIG) to hold a 10am conference call regarding 2007 earnings guidance
• FCC to hold a hearing on Media Ownership at 1pm
• Texas Instruments (NYSE: TXN) to hold Q4 mid-quarter update at 5pm

Tuesday December 12

• Six Flags (NYSE: SIX) to hold mid-quarter update at 8:30am
• Goldman Sachs (NYSE: GS) to hold Q4 earnings conference call at 11am
• General Electric (NYSE: GE) to hold financial update conference call at 3pm

Wednesday December 13

• Dynegy (NYSE: DYN) to hold 2007 earnings and cash flow estimates webcast at 8am
• Pennsylvania Gaming Control Board to hold public hearing at 9am

Thursday December 14

• Bear Stearns (NYSE: BSC) to hold Q4 earnings conference call at 10am
• PDUFA Date for Novartis' (NYSE: NVS) Rasilez

Friday December 15

• PDUFA Date for Oscient Pharmaceuticals' (NASDAQ: OSCI) Factive