Pepsi Bottling Group (NYSE: PBG) issued its Q2 earnings numbers today, and the market apparently wasn't impressed. As of 2:45, the shares are off well over 4%.

The numbers weren't bad in some respects, but a couple areas weren't encouraging. Sales increased about 5%, and earnings per diluted share expanded by 12% to $0.78. That was more than enough to beat the analysts, who were looking for about $0.75 per share, according to Briefing.com. However, worldwide case volume declined 3%. Case volume is one of the most important metrics for a beverage company, so this is very disheartening. Also, cash from operations dropped to $89 million for the six-month period from a year-ago level of $158 million. There was no free cash flow, but management does expect positive free cash flow for the fiscal year.

Considering the bottler's forward guidance and dividend yield, the shares are somewhat cheap. But they are basically at a 52-week low in a bad market, so I wouldn't bother with them. When it comes to investing in the beverage sector, I prefer owning a PepsiCo (NYSE: PEP) or a Coca-Cola (NYSE: KO). In fact, I own the latter. Avoiding bottlers like Pepsi Bottling Group and Coca-Cola Enterprises (NYSE: CCE) makes sense for the long-term since the bottlers will always have greater exposure to capital-expenditure requirements.

Disclosure: I own Coke; positions can change at any time.

It was announced today that soft drink giant Coca Cola (NYSE: KO) had settled an almost 8-year-old lawsuit today for $137.5 million. The case originated back in October of 2000, and alleged that the company had artificially boosted its strike price in 1999.

According to the lawsuit, back in late 1999 Coca Cola applied pressure to some of its bottlers to buy unnecessary beverage concentrate. By adding "hundreds of millions of dollars" to the books, the company was allegedly able to report much higher sales volumes to its shareholders and keep its stock price artificially inflated. This practice is typically referred to as "channel surfing".

Despite the fact that the company decided to settle, there was definitely no admission to any wrongdoing. A company representative stated that the decision to go ahead and settle out was merely a move meant to avoid any length and drawn out legal battle, and by no means should be viewed as any admission of guilt in the charges.

I finally got around to investing a portion of my stimulus check. I had a few stocks in mind for the money, but at the end of the day, I decided that I should buy shares of a high-yielding blue chip for the very long term. It really wasn't a difficult decision. The winner of my stimulus-check buy was none other than General Electric (NYSE: GE).

I've been talking about GE a lot lately, but if you're an investor, you know there's a lot to talk about this conglomerate. No, I don't mean fundamentally, necessarily, I mean that its current yield is simply amazing. GE has dropped a lot this year, and it's gotten the attention of many value investors. In fact, I purchased some GE shares not too long ago when they were trading about six bucks higher than the current price for what I hoped would be a short-term trade. I admit it, I was wrong.

I still think my reasoning at the time was correct, and I continue to hold those shares, but I also hold a long-term position of GE that I add to several times a year with the intent of holding for the next couple decades, maybe even beyond that. It is this position that received the shares acquired through the beneficence of the government. Although some might argue that I should have improved the cost basis of my trade, I decided against such action, since I think GE might be down for a while. If I wanted to use the money for a trade, there are probably better ideas out there for it than GE. But long-term, GE's current 4.7% yield will probably turn into an effective yield of better than 20%, assuming the dividend continues to rise in the future as it has in the past (I believe it will).

The only other stock that provided real competition for my stimulus windfall is Coca-Cola (NYSE: KO). However, the GE yield was just too beautiful. Granted, Coke is obviously the more focused business, and its brand equity is impeccable. But a near 3% yield is no match for a 4.7% yield. I think I made the right decision, but time will tell. No matter what, though, anyone who buys GE now better be patient. Short-term traders might not be rewarded.

Disclosure: I own Coke and GE; positions can change at any time.

For those of you who own blue-chip stocks, this is an eye-opening prediction. An article at CNBC.com talks about the possibility of Dow 10,000. Dow 10,000!

I repeated that in case you didn't get it the first time. It sounds pretty scary to me, and it should sound pretty scary to a lot of you out there. I'd have to presume that most investors don't use the stock market primarily as a substitute casino for the times when Las Vegas is out of reach. Many of you out there must own a Disney (NYSE: DIS) or a Coca-Cola (NYSE: KO), maybe a General Electric (NYSE: GE) or a Microsoft (NASDAQ: MSFT), something generally considered core and safe for the long-term. I happen to own the first three. Anyone who does is in for some huge volatility if Dow 10,000 comes along.

Actually, whether it comes along or not, volatility is here to stay. And here's the thing about the Dow 10,000 prediction: it isn't so farfetched on a mathematical basis. When you first read that number, you say to yourself "No way, that would be like a depression!" But because the numbers are getting higher, the actual point moves aren't as dramatic as they may seem on the surface. If we hit 10,000, that would represent a decline of approximately 29% from the high reached back in October 2007. As I write this, the Dow is about 20% off the high. Is another 9% feasible?

According to The Wall Street Journal, Campbell Soup (NYSE: CPB) plans on executing a nice buyback program for its stock. The company will repurchase perhaps as much as 10% of its shares over time. Also, earnings will probably come in near the top point of the previously stated range. So, should you rush in and invest in Campbell just because of this buyback?

My opinion: Probably not if you're looking to merely trade the name, but if you're looking to hold for the long term, you'll probably be all right. Although Campbell Soup's stock isn't near a 52-week low as of this writing, I notice that Coca-Cola (NYSE: KO), PepsiCo (NYSE: PEP), and Kraft (NYSE: KFT) aren't too far from theirs. It's been a crazy time for the markets, and it amazes me that a stock like Coke isn't being perceived as a safe haven. I know there are some reasons out there for its weakness in terms of growth prospects and the like, but still, I've watched it drop quite a bit in very recent times (I own Coke), and I'm a bit surprised at its current price action considering the recession.

So, even though Campbell's buyback is great news for shareholders who already own the stock, I'm not sure I'd initiate a position myself. Although I am looking for stocks to buy, I just haven't been able to ignore the technical damage that's been inflicted upon the big averages by the bears and am reticent at putting new money to work in short-term trades. I think management might be doing the right thing with its buyback from a shareholder standpoint, but from a trading perspective, I would not be buying along with them.

Disclosure: I own Coke; positions can change at any time.

With the market looking just plain awful these days, and with the theory of recession becoming more and more concrete as the dour days pass, the concept of shorting equities is gaining popularity, at least from a headline point of view. Here's an article that talks about utilizing ETFs to go short. My colleague Timothy Sykes also discussed shorting in a recent piece of his own. Both of these articles bring up excellent points, and like Tim, I don't feel there is anything unpatriotic about betting against stocks, whether they are rising or falling. We're a capitalist society, and the trading spoils should go to the winners, whether the winners be long or short.

However, I urge all individual investors out there to think before they short. Don't take betting against a company or a market average lightly. The problem with shorting now is that it might be too late. The time to have purchased, say, the Proshares Ultrashort Dow 30 (AMEX: DXD) might have been a week ago. Remember that shorting is not a long-term idea, no pun intended. Going long is, so you're essentially going to become a market-timer when you invest in a short fund. There is nothing inherently wrong about trying to hedge yourself in a downward-spiraling environment, but make sure you understand that you are making a guess about the direction of stock prices. That's a tricky endeavor at best.

One thing you must avoid doing is shorting individual stocks. I think it's safer to short averages than it is to short companies. Again, if you're really sophisticated, you can do what you want, but do you have the guts to short a General Electric (NYSE: GE) or a Coca-Cola (NYSE: KO)? Or what about a Newcastle Investment (NYSE: NCT)? A Citigroup (NYSE: C)? These are all stocks that I believe may be going lower in the short-term, but they all pay dividends, which the short-seller is still responsible for. Plus, at some point, the dividend yields will signal to investors that a bottom could be in. Besides, with short-themed ETFs around, there's really no reason to literally borrow shares and sell them into the market. There's also the method of buying put options to take advantage of a downtrending equity, so you're covered by that technique, too.

General Mills (NYSE: GIS), arch competitor of fellow cereal seller Kellogg (NYSE: K), posted some good news for shareholders on Monday. In an otherwise gloomy day that saw the Dow remain below the 12,000 level and inflationary pressures still exerting a hold over the market, General Mills proved that dividends are at least one island of safety in a sea of trouble.

The company indicated that it will now pay an annual dividend of $1.72 per share. Previously, the annual dividend was set at $1.57 per share. This is a nice example of double-digit appreciation of approximately 10%. Based on Monday's closing price, General Mills' stock now yields a hearty 2.7%.

As a long-term idea, General Mills is certainly one of the best. As I observed with Kellogg, you can put this one on perpetual dollar-cost-averaging. However, with the stock in 52-week-high territory, and with prices for commodities, especially corn, still exerting a negative effect on businesses, I'd be a bit cautious about entering just now. Is it possible one might get General Mills closer to a 3% yield? I can't predict the short-term future, but my gut says that a pullback is inevitable. Even with cool dividend increases, stocks can return to the low end of a 52-week range at any point. Just look at Coca-Cola (NYSE: KO) and the recent pressure its stock has been under. And Coke is a dividend stalwart. Nevertheless, I am bullish on General Mills' future. Just watch out for commodity trends, and perhaps remain patient for better prices on the shares.

Disclosure: I own Coke; positions can change at any time.

In the agricultural sector, it's been nirvana for investors. But are prices too high?

Perhaps not. Take Bunge Ltd. (NYSE: BG), which is a major fertilizer and oilseed producer. Bunge has agreed to pay $4.4 billion for Corn Products International Inc. (NYSE: CPO), a producer of finished corn products. Some of its customers include biggies like Coca-Cola (NYSE: KO). This is a stock-for-stock deal. In other words, why not take advantage of the high market caps?

Both companies have rich histories. Corn Products got its start in 1906 and Bunge was founded in 1818. But it's the future that matters, and Bunge is certainly bullish on the global growth trends in the agricultural markets. To take advantage of this, it makes sense to bulk up. Corn Products will expand Bunge's offerings as well as provide some diversification.

In fact, Bunge also raised its full-year 2008 earnings forecast from $7.10-$7.40 to $9.35-$9.65. This doesn't even include the impact of the Corn Products transaction.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Talk about a tough time in the markets. Between the financial crisis and oil prices rising on an almost daily basis, with the Fed damned if it raises rates and damned if it doesn't, the floods in the Midwest are now threatening to make a trip to the supermarket much more expensive. Yes, break out the coupons and pray for sales, because, according to The Wall Street Journal [subscription], food prices are destined for one direction: higher. That's because a lot of farmland has been damaged, throwing the supply-demand dynamic into chaos.

What does this mean for investors? Look for potential pressure on the stocks of companies such as Coca-Cola (NYSE: KO), PepsiCo (NYSE: PEP), Kraft (NYSE: KFT), Kellogg (NYSE: K), General Mills (NYSE: GIS), and Hershey (NYSE: HSY). I happen to own Coke, and I've heard the news reports talking about how higher corn prices will affect Coke and Pepsi because they use corn syrup as an ingredient for their sodas. It's also been pointed out by others that PepsiCo owns Frito-Lay, and since that company manufacturers salty snacks such as Doritos and Tostitos (I love them both), corn prices will also have an impact on that division.

If you're a trader, be wary. We might be in for a rough ride this summer with not only the stocks I've mentioned here, but in a general sense. Since I own Coke, I've been acutely aware of the pullback experienced in that stock as the external pressures surround it. As I write this, the stock is trading at $54.27. The shares were over $65 during their wonderful stay at the 52-week-high suite. So, yes, buyers with short-term mentalities must be wary. However, long-term investors should look upon any pullbacks as potential opportunities for some of these food-selling companies. If you don't intend to trade, then adding to a Coke or Pepsi position might make sense.

Disclosure: I own Coke; positions can change at any time.

Today was a mixed day in the news, despite the rally we saw in the equity markets. Some was related to a surge in the dollar causing a relatively small drop in oil prices after hints of the Saudis boosting production. The Labor Department reported that the inflation index, the Consumer Price Index, rose by +0.6% in May, just above the +0.5% economists were looking for. The core-CPI, an ex-food and ex-energy basis, showed only a gain of +0.2% that matched expectations. Too bad that no one can go without energy or food. Perhaps the more shocking number came out of the housing sector where there were reports that May's foreclosure rates were up 48% compared to last year's reading. Below are the unofficial closing bell levels for major index levels:]

DJIA: 12307.67 up 166.09
NASDAQ 2,454.50 up 50.15
S&P 500: 1,360.12
52-WEEK LOWS
TOP 10 ANALYST CALLS

Capstone Turbine Corporation (NASDAQ: CPST) was one the more active movers after its earnings, but the real boost came from the realization that its backlog was actually understated and even better than an already strong report. Shares were up in the final minutes today.

Coca-Cola (NYSE: KO) shares are falling after Coca Cola Hellenic Bottling (NYSE: CCH) revised its 2008 earnings growth estimate to 5% to 8%, well below the 12% to 15% previously forecast. KO owns a 23% stake in CCH. CCH said rising food and fuel prices have adversely affected consumer spending. 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 KO.

After hitting a one-year low of $51.06 last June, the stock hit a one-year high of $65.59 in January. This morning, KO opened at $57.03. So far today the stock has hit a low of $54.01 and a high of $57.10. As of 1:20, KO is trading at $55.02, down $2.12 (-3.7%). The chart for KO looks bearish and steady, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider an August bear-call credit spread above the $60 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 two months as long as KO is below $60 at August expiration. Coke would have to rise by more than 9% before we would start to lose money. Learn more about this type of trade here.

KO hasn't been above $60 since April and has shown resistance around $58 recently. This trade could be risky if the company's earnings (due out in mid-to-late July) are a positive surprise, but even if that happens, this position could be protected by resistance KO might find at its 200 day moving average, which is currently around $59.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CCH. He does control bullish hedged positions in KO which are struggling. Both this trade above and those positions can expire profitably at the same time.

U.S. stock futures were mixed to lower early Friday morning as investors awaited data on inflation. News about companies cutting workforce and Yahoo!'s failed talks with Microsoft also soured the mood.

On Thursday, U.S. stocks closed with gains following a surprisingly strong retail sales, but the gains were tempered as the day went on due to rising oil prices and the Yahoo! announcement about the failed Microsoft talks.The Dow industrials ended 57 points, or 0.48%, higher, the S&P 500 rose 4 points, or 0.33%, and the Nasdaq Composite rose 10 points, or 0.43%.

What may yet change the atmosphere on Wall Street is the Consumer Price Index is scheduled for release at 8:30 a.m. EDT. Economists surveyed by Briefing.com expect CPI to show an increase of 0.5% in May following a 0.2% rise in April. Core CPI, which excludes the volatile food and energy prices, is expected to have risen 0.2% in May, after it rose 0.1% the month before.

At 10:00 a.m., the preliminary University of Michigan consumer confidence gauge for June is also due.

Many of us would be happy to benefit from a quiet retirement without facing concerns of losing all of our hard earned money. Fortune 40 gives us a helping hand by suggesting some big names to invest in that could offer us the results that we are looking for.

One such company is Abbott Laboratories (NYSE: ABT), whose earnings surged 35% during its last quarter, helped by its famous anti-inflammatory drug Humira and HIV treatment Kaletra. Looking ahead to the company's performance, CEO Miles White is planing to keep his main attention on its medical devices unit which is seen as a key element against strong competition.

Fortune 40 also looks at beverage maker The Coca-Cola Company (NYSE: KO), which benefits from strong international gains able to beat recent weakness in U.S. In addition, it looks like the company's acquisition of Glacéau and its VitaminWater brand offer it a good support to outperform on the market.

PepsiCo (NYSE: PEP), major rival of Coca-Cola (NYSE: KO), is letting the investing world know that it's doing fine. In one of the shortest press releases I've ever read, management at the beverage maker let shareholders in on the fact that it intends to reiterate guidance at The Deutsche Bank Global Consumer and Food Retail Conference that takes place next week in Paris. PepsiCo believes it's still good for $3.72 per share in earnings for the fiscal year.

When the world seems to be heading for the dark pits of economic hell, it's nice to know that PepsiCo expects to be able to stay the course and deliver on an earlier forecast. After all, with all this talk of inflation, one would have to wonder how companies like PepsiCo and Coke can possibly remain stable given the difficult input-cost environment. The big question on my mind is how high these two companies might rise during the summer, since they are considered defensive plays. They didn't seem defensive at all on Wednesday during the Dow's 200-point bleed, but my gut is telling me they might be good short-term plays.

They certainly are excellent long-term plays, and while I own Coke, I'll concede that right now, in terms of P/E ratios and dividend yields, an investor wouldn't go wrong with either. And, yes, I'll further concede that one gets an added bonus with PepsiCo since it owns the strong Frito-Lay salty-snack business. But with both stocks down over the last six months (As of this writing, PepsiCo is down more than 11% for the six-month period while Coke is down more than 9%), and with problems in the markets, they might be interesting ideas right now. Again, though, the effect of input costs must be part of your due diligence before buying.

Disclosure: I own shares of Coke; positions can change at any time.

For the first time Monday I heard John McCain comparing Barack Obama to Jimmy Carter. I had heard this before in other arenas, but not from McCain. I guess that despite these two presidential candidates pledging to the American people to bring change and resist politics as usual, they are both, as usual as one could get.

Obama is being shaped by the pressures of running for office and to believe otherwise is delusional. I suppose one has to have hope but the effects of the campaign are becoming clear. Obama has been painting McCain as an extension of Bush, which is nonsense, and now in a typical tit-for-tat response, McCain is filling the air with Carter references.

Both McCain and Obama are wrong in their assessments of their opponents and they are becoming commoners to resort to the bottom of the barrel campaign techniques used in every campaign for most of our nation's proud history. Obama gave up the high ground too easily and McCain has decided he can sling mud with the best of them.