Analyst upgrades:

• Jefferies upgraded Consolidated Edison (NYSE: ED) to Buy from Hold on expectations the company will be able to reach a settlement with the New York PSC Staff that will provide benefits to both ratepayers and shareholders. The firm raised its target on shares to $46 from $40.50.
• Keefe Bruyette upgraded Public Storage (NYSE: PSA) to Market Perform from Underperform to reflect the company's balance sheet, industry leading position, and potential for accretive acquisitions. The firm raised its target on shares to $75 from $57.
• JPMorgan upgraded Big Lots (NYSE: BIG) to Overweight from Neutral to reflect valuation and industry data points that suggest a pick-up in discretionary spending. The firm has a $30 target on the stock.
• Alcoa (NYSE: AA) was upgraded to Buy from Hold at Deutsche Bank.
• East West Bancorp (NASDAQ: EWBC) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• Bronco Drilling (NYSE: BDC) was upgraded to Neutral from Sell at UBS.

Analyst upgrades:

• Baird upgraded Tenet Healthcare (NYSE: THC) to Outperform from Neutral and raised its target to $6 from $5 based on cost trends, valuation, and expectations the company can beat expectations over the next six months.
• Oppenheimer upgraded E-House (NYSE: EJ) to Outperform from Perform following the company's better-than-expected Q2 results. The firm has a price target of $27 on shares.
• JPMorgan upgraded Avery Dennison (NYSE: AVY) to Overweight from Neutral and has a $33 target on the stock. The firm cites valuation for the upgrade following the recent underperformance and expects the company's margins to expand as demand rebounds.
• Citigroup (NYSE: C) was upgraded to Buy from Underperform at BofA/Merrill.
• Taubman Centers (NYSE: TCO) was upgraded to Conviction Buy from Buy at Goldman.
• First Niagara (NASDAQ: FNFG) was upgraded to Buy from Neutral at Janney Montgomery.

Analyst upgrades:

• Baird upgraded Western Digital (NYSE: WDC) and Seagate (NASDAQ: NSTX) to Outperform from Neutral citing better than expected industry conditions. The firm believes supply has tightened, resulting in price increases in certain market segments.
  
• RBC Capital upgraded XTO Energy (NYSE: XTO) to Outperform from Sector Perform citing free cash flow and stable growth.
  
• Goldman upgraded Manpower (NYSE: MAN) to Neutral from Sell and raised its target to $29 from $20 based on balanced risk/reward.
• Energy Conversion (NASDAQ: ENER) was upgraded to Buy from Neutral at Piper Jaffray.
  
• Infineon (NYSE: IFX) was raised to Hold from Sell at RBS.
  
• NetSuite (NYSE: N) was upgraded to Acummulate from Source of Funds at ThinkEquity.

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

• Accenture Ltd. (NYSE: ACN) reported strong Q1 numbers as its clients sought ways to cut costs.
• Best Buy Inc. (NYSE: BBY) may interest short sellers despite its earnings prospects for 2009.
• International Paper Co. (NYSE: IP) to shed dead wood to reduce the impact of the recession on earnings.
• Manpower Inc. (NYSE: MAN) withdrew Q4 profit and revenue guidance, sending shares lower.
• Textron Inc. (NYSE: TXT) lowered its Q4 earnings forecast to well below analysts' estimates.
• Toyota Motor Corp. (NYSE: TM) forecast its first-ever loss for the fiscal year on lower demand/higher yen.
• Walgreen Co. (NYSE: WAG) missed Q1 expectations and announced cost cutting and store redesign.

Also, bank earnings will be hit next by cancelled M&A deals.

Earnings releases scheduled for early January include Navistar (NYSE: NAV), Bed Bath & Beyond (NASDAQ: BBBY), Constellation Brands (NYSE: STZ), Family Dollar (NYSE: FDO), and Monsanto (NYSE: MON).

Visit AOL Money & Finance for more earnings coverage.

Lately it seems companies have been withdrawing guidance left and right. Maybe it is just a cop-out during difficult times, but on the surface the large number of businesses that are withdrawing guidance is troubling for investors.

Valuations are determined based on discounting future earnings. Without some sort of idea as to what earnings, or lack thereof, will be, investors are a bit in the dark. Such lack of guidance is particularly troubling for companies with poor balance sheets.

For those with a stronger foundation, the lack of guidance, while still troubling, takes on less importance. As long as it is reasonable to assume that a company will navigate the darkness and ultimately see sunny days once again, investing in companies that pull guidance can be quite rewarding.

Manpower (NYSE: MAN - option chain) stock is falling today after the company withdrew its fourth-quarter profit and revenue forecasts, saying its quarter-to-date drop-off is much larger than expected. 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 MAN.

This morning, MAN opened at $33.95. So far today the stock has hit a low of $31.13 and a high of $34.50. As of 12:25, MAN is trading at $30.92, down $5.48 (-15.0%). The chart for MAN looks bearish and S&P gives MAN a negative 2 STARS (out of 5) sell ranking.

For a bearish hedged play on this stock, I would consider a March bear-call credit spread above the $45 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 4.2% return in four months as long as MAN is below $45 at March expiration. Manpower would have to rise by more than 45% before we would start to lose money. Learn more about this type of trade here.

MAN hasn't been above $45 since late September and shown resistance around $38 recently.

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 MAN.

Analyst upgrades:

• Oppenheimer upgraded Inter Parfums (NASDAQ: IPAR) to Outperform from Perform on valuation and increased comfort with the company's outlook after meeting with management.
  
• Deutsche Bank raised Covidien (NYSE: COV) to Buy from Hold on the company's solid execution and ongoing restructuring, which they believe will drive EPS higher. The firm raised its target to $63 from $51.
• Regions Financial (NYSE: RF) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• American Eagle (NYSE: AEO) was lifted to Buy from Neutral at Banc of America.
  
• Goldman raised Healthways (NASDAQ: HWAY) to Neutral from Sell.

Analyst downgrades:

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

• AFLAC Inc. (NYSE: AFL) reported better-than-expected earnings for the first quarter.
• Ambac Financial Group Inc. (NYSE: ABK) posted a wider-than-expected loss; shares hit new low.
• Amdocs Ltd. (NYSE: DOX) beat Q2 estimates on strength in the managed services businesses.
• Amphenol Corp. (NYSE: APH) beat expectations in the first quarter and raised its guidance.
• Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) posted a larger-than-estimated Q1 loss.
• Aptar Group Inc. (NYSE: ATR) posted record Q1 results and raised its Q2 guidance.
• Bank of America (NYSE: BAC) Q1 earnings plunged on further housing-related write-downs.
• Brinker International Inc. (NYSE: EAT) narrowly beat earnings expectations on cost cutting.
• Bristol-Myers Squibb Co. (NYSE: BMY) beat analysts' estimates for the first quarter.
• Credit Suisse Group (NYSE: CS) reported a wider-than-forecast loss on subprime-related write-downs.
• Cree Inc. (NYSE: CREE) earnings slipped while revenues soared 29%.
• Eli Lilly & Co. (NYSE: LLY) reported worse-than-expected Q1 earnings on discontinued product charge.
• Gannet Inc. (NYSE: GCI) beat low expectations as earnings and revenue continue slump.
• Hasbro Inc. (NYSE: HAS) posted better-than-expected Q1 earnings on international strength.
• JAKKS Pacific Inc. (NASDAQ: JAKK) missed Q1 expectations on restructuring and litigation costs.
• Kimberly-Clark Corp. (NYSE: KMB) beat EPS estimates by a penny, as revenue jumped 10%.

Manpower (NYSE: MAN) is a world leader in the employment industry, offering businesses a full range of staffing-related services. These include permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower maintains a network of about 4,500 offices in 80 countries, enabling the firm to serve the needs of some 400,000 clients per year. It operates under the brands Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management.

Investors were pleased last week, when the company reported Q1 EPS of 94 cents and revenues of $5.39 billion. Analysts had been looking for 82 cents and $5.26 billion. In discussing the results, the CEO particularly noted strength in European markets. Management also guided Q2 EPS to $1.47-$1.51, versus consensus of $1.39. Lehman Brothers subsequently reiterated its "overweight" recommendation on the stock and boosted its price target to $76.

MOST NOTEWORTHY: DealerTrack, Healthcare Realty Trust and the employment services sector were today's noteworthy initiations:

• Suntrust believes DealerTrack (NASDAQ:TRAK) is in the stages of significantly increasing penetration of dealers, finance companies, and aftermarket providers with its leading suite of transaction and subscription based solutions. The firm started shares with a Buy rating and $61 target.
  
• Jefferies resumed coverage of Healthcare Realty Trust (NYSE:HR) with a Buy rating and $28 target, as they believe the company is well-positioned to benefit from the superior long-term growth trends for outpatient services.
  
• Credit Suisse initiated the employment services sector with a Market Weight rating, citing economic uncertainty and downside EPS risk. The firm initiated Manpower (NYSE:MAN) with an Outperform rating and $73 target and HireRight (NASDAQ:HIRE) with a Neutral rating and $13 target.

OTHER INITIATIONS:

• CVS Caremark (NYSE:CVS) was initiated with a Market Perform rating and $45 target at BMO Capital.
  
• JP Morgan initiated Plug Power (NASDAQ:PLUG) with an Underweight rating and California Pizza (CPKI) with a Neutral rating.

MOST NOTEWORTHY: General Motors, Acuity Brands, Post Properties, Manpower and IMAX Corp were today's noteworthy upgrades:

• UBS upgraded General Motors (NYSE: GM) to Buy from Sell citing a potential $3B in cost savings from the "transformational contract" with the UAW.
  
• Acuity Brands (NYSE: AYI) was upgraded to Outperform from Neutral at Baird based on valuation and management's ability to execute.
  
• Post Properties (NYSE: PPS) was raised to Neutral from Sell at Merrill Lynch following its Q3 report and guidance.
  
• Citigroup upgraded shares of Manpower (NYSE: MAN) to Buy from Hold as they like the company's business model and balance sheet.
  
• Soleil upgraded shares of IMAX Corporation (NASDAQ: IMAX) to Buy from hold with digital IMAX set to launch in Q208, to reflect the attractive economics of the company's new joint venture model.

OTHER UPGRADES:

• Verizon Communications (NYSE: VZ) was upgraded to Market Perform from Underperform at Raymond James.
  
• JMP Securities upgraded Actuate Corporation (NASDAQ: ACTU) to Outperform from Market Perform.
  
• Citigroup upgraded FormFactor (FORM) to Buy from Hold and added shares to their Global Tech Conviction List.
  
• CIBC upgraded Northgate Minerals Corporation (NYSE: NXG) to Sector Performer from Sector Underperformer.

MOST NOTEWORTHY: McDonald's (MCD), Micron Tech (MU), ManPower (MAN), ASML Holding (ASML) and Wm. Wrigley Jr Co (WWY) were today's notable upgrades:

• McDonald's (NYSE: MCD) is creating shareholder value by selling 1600 under-performing restaurants and using the money for share buyback programs and dividends and was upgraded to Buy from Hold at Matrix.

• AG Edwards upgraded Micron (NYSE: MU) to Buy from Hold on the belief notebook unit growth could stay in the 25-30% YoY range over the next two quarters, while desktop growth could pick up from the 4% attained in the June quarter. Up from a low of close to $5 in February, NAND spot prices are in the $8-$9 range for an 8Gb chip over the last few weeks.

• ManPower (NYSE: MAN) was upgraded to Strong Buy from Hold at Matrix based on the growing demand for search services in Europe, Africa and North America.

• Friedman Billings upgraded shares of ASML Holding (NASDAQ: ASML) to Outperform from Market Perform and added them to their Top Picks list based on recent checks that indicate a sustainable recovery in lithography tool bookings beyond Q3.

• Bear upgraded shares of Wrigley (NYSE: WWY) to Peer Perform from Underperform citing the better-then-expected response to competitor Cadbury (CSG), UK momentum in developing markets, and likely strong performance by new gum, "5."

OTHER UPGRADES:

• Calyon raised Capital One (NYSE: COF) to Buy from Add.

• Goldman raised Darden Restaurants (NYSE: DRI) to Buy from Neutral.

• Lehman upgraded National Semiconductor (NYSE: NSM) to Overweight from Equal Weight.

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

Manpower (NYSE: MAN) volatility up; on employment growth concerns. MAN, an employment services company with 4,400 offices in 73 countries, is recently down $4.51 to $65.34. MAN has a market cap of $5.5 billion with long term debt of $800 million. MAN, Kelly Services (NASDAQ: KELYA), Labor ready (NYSE: LRW) & Spherion (NYSE: SFN) have aggressively sold off over the last week on U.S. human resource and employment services growth concerns. MAN September option implied volatility of 43 is above its 26-week average of 28 according to Track Data, suggesting larger price risk.

Labor Ready (NYSE: LRW) volatility Up; on employment growth concerns. LRW, a global temporary staffing provider, has a market cap of $878 million. LRW September option implied volatility of 47 is above its 26-week average of 40 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 3.55 to 25; 10-day average is 22.95.

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

MOST NOTEWORTHY: Seagate Technology (STX), SAP AG (SAP), Western Digital (WDC), BAE Systems (BAESY) and Manpower (MAN) are today's noteworthy upgrades:

• Hambrecht upgraded shares of Seagate Tech (NYSE: STX) on improving demand and second half of 2007 prospects. Bear Stearns upgraded shares to Outperform from Peer Perform based on stabilizing industry conditions.

• ING upgraded shares of SAP AG (NYSE: SAP) to Buy from Hold shares to reflect the migration within the company's large installed base and growing opportunities in the small business market.

• Hambrecht upgraded Western Digital (NYSE: WDC) to Buy from Hold on improving demand for 2H07 growth prospects.

• HSBC raised BAE Systems (OTC: BAESY) off the ground, upgrading shares to Neutral from Underweight.

• Banc of America upgraded Manpower (NYSE: MAN) to Buy from Neutral to reflect the change in French payroll tax subsidies, which they view as a positive change to the company's ongoing margin structure.

OTHER UPGRADES:

• First Albany upgraded ATMI Inc (NASDAQ: ATMI) to Buy from Hold.

• The Medicines Co (NASDAQ: MDCO) was raised to Sector Perform from Underperform at RBC Capital.

• Sonic Solutions (NASDAQ: SNIC) was upgraded to Buy from Hold at Kaufman.

• ThinkEquity upgraded Interwoven (NASDAQ: IWOV) to Accumulate from Source of Funds.

• BB&T upgraded Omnicell (NASDAQ: OMCL) to buy from Hold.

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

MOST NOTEWORTHY: Today's list of downgrades were filled with notable companies, including Yahoo! Inc (YHOO), Advanced Micro Devices Inc (AMD), Intel Corp (INTC) and Microsoft Corp (MSFT).

• Goldman Sachs downgraded Yahoo! (NASDAQ: YHOO) to Neutral from Buy, with a $31.50 target, citing valuation.

• Advanced Micro Devices Inc (NYSE: AMD) was downgraded to Underperform from Market Perform at Friedman Billings following their disappointing quarter. They told clients AMD no longer enjoys a technical advantage and is losing share in the higher margin segments. Credit Suisse downgraded Advanced Micro to Underperform from Neutral, American Technology downgraded shares to Sell from Buy and Caris downgraded shares to Above Average from Buy.

• Intel Corp (NASDAQ: INTC) was downgraded to Neutral from Buy at American Technology. The firm believes management may not have been conservative enough with their margin guidance and doesn't see an end to the price war.

• Microsoft Corp (NASDAQ: MSFT) was downgraded to Neutral from Buy at DA Davidson.

OTHER DOWNGRADES:

• JP Morgan downgraded shares of Continental Airlines Inc (NYSE: CAL) to Underweight from Overweight on valuation.

• Goldman Sachs downgraded Manpower Inc (NYSE: MAN) to Sell from Neutral.

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