iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.

CBOE Volatility Index (VIX) closed up 1.53 to 19.44.

Option volume leaders today: Apple (AAPL), Citigroup (C), Netflix (NFLX), Kraft (KFT), according to Track Data.

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

"We like stocks. And we like a lot of 'em. We focus on broadly diversified investments in undervalued stocks for their long-term appreciation potential," says value investor John Buckingham.

The money manager and editor of The Prudent Speculator explains, "Each month, we suggest a group of stocks that could help serve as a portfolio foundation. Here's a look at three such portfolio 'foundation' stocks: Kraft Foods (KFT), Verizon Communications (VZ) and Waste Management (WM).

Kraft Foods (KFT) has done well to sustain demand in the face of higher coffee prices brought on by rising commodity prices. Kraft is the world's second largest food and beverage company after competitor Nestlé. It also competes with PepsiCo (PEP), General Mills (GIS) and Kellogg (K).

Kraft manufactures both food and beverages, with beverages accounting for nearly 14% of our $32.58 price estimate for Kraft's stock, which reflects a small premium to market price. Chocolate, candy and gum constitute around 31% of our price estimate, with snacks adding 19% and grocery products representing another 14%.

The J.M. Smucker Company (SJM), a food concern in the same category as ConAgra Foods (CAG) and Kraft Foods (KFT), issued its fiscal third-quarter report on Thursday. The document wasn't too thrilling, but it shows that the business is holding its own in the competitive battlefield of the supermarket shelves.

Its adjusted profit of $1.27 per share came in ahead of the overall projection by one penny. Not bad, considering the article highlights the challenges of navigating a volatile environment in terms of ingredient costs.

Kraft Foods (KFT) didn't exactly report an exciting quarter. Nevertheless, it is the type of stock that many hold for the long term; it doesn't necessarily force one to put a lot of weight on any single three-month period. It's a story of brands, a thesis based on consumers and supermarket shelves. The future cash flows derived from these elements is what drives an investor to buy this company.

There's nothing wrong with keeping tabs on the business, though. According to the Associated Press, Kraft made, on an adjusted basis (the Cadbury purchase was involved in the adjustment process), 46 cents per share in the fourth quarter. This was a penny less than a year ago. The consensus estimate was for net income to come in at 46 cents per share. Yes, management failed to rise above the projection.

Things look to be pretty quiet on the economic calendar this week. Here are the highlights:

• Tuesday: Weekly chain-store sales
• Wednesday: Federal budget balance for January
• Thursday: Wholesale trade data in December
• Friday: Trade balance in December and the weekly inflation survey

However, three iconic companies -- Walt Disney (DIS), Coca-Cola (KO) and Hasbro (HAS) -- highlight this week's quarterly results. Here's a look at what analysts surveyed by Thomson Reuters are anticipating from these and others.

With about twenty minutes to go before the end of the trading day, I see a quote of $31.18 for Kraft Foods (KFT). That meant that the stock was basically flat, down a mere penny to be exact.

Boring. I actually used that word to describe this stock back in August. What else do you call a stock that has traded in such a narrow 52-week range? Currently, the low for the year is set at $27.09 while the high is $32.67.

This year we've seen sharp price increases in commodities, especially in the weather sensitive agricultural sector. Coffee and sugar are in the spotlight this week.

Processors who buy raw commodities and process them into consumer products are caught is in a price squeeze. On the one hand they must pay more for the raw product and on the other they are up against consumers who are cost conscious.

Starbucks (SBUX - option chain) shares are rising today after the company's CEO, Howard Schultz spoke at a conference about how SBUX is planning to buy other firms to help increase its sales of products in grocery stores. SBUX recently scrapped a contract with Kraft (KFT), who had previously provided Starbucks products to grocery stores. SBUX thinks the consumer packaged goods business should grow faster than its retail cafes. Investors are also enthused about the company's plan to expand its Chinese presence. by If you think that 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 SBUX.

SBUX opened this morning at $31.01. So far today the stock has hit a low of $20.95 and a high of $31.79. As of 12:10, SBUX is trading at $31.78 up $1.18 (3.8%). The chart for SBUX looks neutral and S&P gives SBUX a neutral 3 STARS (out of 5) hold ranking.

The J.M. Smucker Company (SJM) was down almost 1.4% to $62.15 at the close of the day. Volume was quite heavy. The market voted on the food entity's latest earnings report. Should investors listen to this opinion and immediately put in sell orders?

According to Theflyonthewall, the business, whose colleagues include ConAgra Foods, Inc. (CAG) and Kraft Foods Inc. (KFT), made an adjusted $1.38 per share during its fiscal second quarter. That was six solid pennies ahead of the overall projection. Not only was that beat cool to see, but income guidance for fiscal year 2011 saw an improvement.

It will be a busy week. Republicans are poised to gain control of the House of Representatives and gain governorships in Tuesday's mid-term elections. Also, the Federal Reserve is expected to announce another round of quantitative easing Wednesday, following the FOMC meeting. Major retailers are scheduled to report October same-store sales Thursday, while the October unemployment rate, announced on Friday, is expected to remain at 9.6%.

Toyota's (TM) fiscal second-quarter results will be one of the highlights on the earnings front this week. After three periods of way underestimating Toyota's earnings, have the analysts surveyed by Thomson Reuters got it right this time? The stock sure could use a boost. Teva Pharmaceuticals (TEVA) is in a similar situation; i.e., high expectations for this week's quarterly results but a stock in need of a boost. Marathon (MRO) and Starbucks (SBUX) are also expected to post strong earnings growth this week, but both stocks are riding high.

Del Monte Food Company's (DLM) stock wasn't one you wanted to be in today. Especially at a time when the bulls are in charge. The company, whose colleagues include ConAgra Foods, Inc. (CAG) and Kraft Foods Inc. (KFT), was down 2.1% to $12.56 about thirty minutes before the close of the session.

First-quarter data was reported by the business this morning. The market obviously wasn't too pleased. According to an article over at TheStreet.com, profit from continuing operations was 29 cents per share. This figure was two pennies above the estimate generated by the analysts. No matter what the traders are doing to the stock, at least shareholders can be happy about that aspect of the period.

Kraft Foods (KFT) is a boring stock from one point of view. The 52-week range is rather narrow -- the low for the year is $25.72 while the high is $31.09. The shares were, however, pretty fascinating during Thursday's extended-hours session. Traders sent the foodstuffs price higher by well over 3% at one point.

The market enjoyed the second-quarter results. According to TheFly, adjusted net income of 60 cents per share was eight pennies ahead of the estimate. Management made good use of the company's brand power to drive results.

The J.M. Smucker Company (SJM), whose related companies include ConAgra Foods, Inc. (CAG) and Kraft Company Inc. (KFT), is rallying this afternoon following an earnings report. With a little more than three hours to go before the closing bell, shares of the business famous for its jelly products were up over 6% to $61.39. Volume should do well.

The 52-week high on the stock is $63.50, so this is one of those stocks that needs to be examined in light of the recent bearish tone of the markets. Although the chart isn't the best out there, I tend to view the relative stability of the equity as a positive element.

Walmart (WMT) is a big-cap, blue-chip business in retail, one that competes with Sears Holdings (SHLD) and Target (TGT), among others. It's generally considered one of the safer, although considerably more boring, names in the universe of equities. However, could it be a defensive play in this economy?

Difficult to say for certain. As I've said before, I don't care what stock you hold in your portfolio, it'll go down if the markets become very choppy, defensive reputation or not. And Walmart isn't necessarily the first idea you think of when you think defensive. Usually, you might come up with a Coca-Cola (KO) or a Kraft (KFT) ... something with food involved, something that sells products consumers use and need every single day and can buy at multiple locations, not just at one single shopping source.