U.S. stock futures were much higher this morning, indicating markets could open with strong gains a day after the Federal Reserve cut rates by half a point to 1% and indicated further measures will be taken as necessary. While Wall Street ended mixed, global markets took this, as well as other measures central banks around the world have been taking, as a good sign and stocks in Asia and Europe rallied. However, at 8:30 a.m. this morning, advanced GDP for the third quarter will be released, and will likely show the economy has contracted for the first time. Economists expect GDP fell 0.5-0.6% in the quarter. Weekly jobless claims is also due at the same time.

Exxon Mobil Corp. (NYSE: XOM) - sometime before the opening bell, Exxon is scheduled to report third-quarter earnings. Much like other oil producers that have already reported, posting huge profits for the quarter due to record high oil prices, so is Exxon expected to report sharply higher profit.

Delta Air Lines (NYSE: DAL) - after the merger was approved Wednesday, Delta completed its $2.8 billion acquisition of Northwest Airlines (NYSE: NWA) on Wednesday to become the world's biggest carrier. Shares of both carriers surged 6% in after-hours.

Today was another relief trading day on word that Congress has reached a tentative approval of a bipartisan $700 billion financial bailout package. It definitely wasn't from the slew of bad economic data this morning. That was just ugly. Despite poor economic data, bond yields rose as the bailout package will end the flight to quality we witnessed lately.

Below are today's unofficial closing bell levels:
DJIA 11,022.06 +196.89 +1.82%
NASDAQ 2,186.57 +30.89 +1.43%
S&P500 1,209.18 +23.31 +1.97%
10YR T-Note 3.862% +0.091%
52-week lows
Top Analyst Calls

American International Group (NYSE: AIG) was up most of the day, but ex-Chairman Hank Greenberg filed to sell shares in the open market because of personal liquidity issues. Shares were up 19% but had fallen all the way down to almost 10% at $2.97 on this news. So much for him putting together a hostile rescue package of his own.

Boston Scientific (NYSE: BSX) was up almost 3% at $12.96 right before the close after it received marketing approval from the FDA for its TAXUS Express2 Atom Paclitaxel-Eluting Coronary Stent System this morning. This stock is so far down from prior highs that any good news is welcome.

General Electric Co. (NYSE: GE) managed to gain 4% to $25.60 right before the close despite its earnings warning hitting the stock early today. This was already factored in and should have been anticipated. It is keeping its AAA debt rating, keeping its dividend, and suspending buybacks to preserve liquidity.

Northwest Airlines Corporation (NYSE: NWA) and soon to be parent Delta Air Lines (NYSE: DAL) approved their merger today with something around 98% to 99% of the votes combined in favor of the deal. Unfortunately it had no bearing on the stocks, as Northwest shares were actually down 1% at the close.

U.S. stock futures were higher earlier this morning, as investor continued to watch the debate over the $700 billion bailout plan following President Bush's speech Wednesday when he warned "Our entire economy is in danger." But then General Electric cut its earnings estimates and futures began coming off highs. Now it seems stocks could start the day mixed. Also on tap today are data on durable-goods orders and new-home sales for August, as well as the weekly initial jobless claims number.

General Electric Co. (NYSE: GE) has lowered its outlook for third-quarter and full-year earnings, citing "unprecedented weakness and volatility in the financial services markets." The new guidance is far below analyst estimates. GE has also reaffirmed its commitment to maintaining a 'AAA' credit rating, and is taking steps to bolster its capital and liquidity position including suspending the current GE stock buyback, but not touching the dividend. GE shares are down nearly 5% in pre-market trading.

Delta (NYSE: DAL) and Northwest (NYSE: NWA) shareholders are to vote Thursday on the proposed deal to combine the two. The votes are expected to overwhelmingly back the deal. With that, the airlines will then need

Few actors understand the pluses and minuses of hedging better than traders . . . and airlines. In an ironic twist, some airlines could be financially hurt by falling oil prices. That's right: hurt by falling oil prices.

United Airlines (NYSE: UAUA) is one such airline. United said it could lose up to $294 million in Q3 if oil prices average $95 per barrel, marketwatch.com reported Wednesday. Oil rose $2.44 to $109.05 in mid-day Wednesday trading. United purchased fuel caps averaging around $111 per barrel this year and $118 for 2009. In other words, the caps mean United would be compelled to pay more for oil than the market price, due to the established contracts.

American Airlines (NYSE: AMR), and the slated-to-merge Northwest Airlines (NYSE: NWA) / Delta Air Lines (NYSE: DAL) are other carriers that could be hurt by oil hedges, marketwatch.com reported.

Hedges, caps: An attempt to create fixed expenses

Stock Analyst C. Leonard Bauer told BloggingStocks Wednesday most airlines "merely seek to break even with their fuel hedges and caps, not profit from them."

Analyst upgrades:

• UBS believes US airlines estimates are too low and will move higher. The firm upgraded AirTran (NYSE: AAI), AMR Corp (NYSE: AMR), Continental (NYSE: CAL), Delta (NYSE: DAL) and Northwest (NYSE: NWA) to Buy from Neutral and JetBlue (NASDAQ: JBLU) to Neutral from Sell.
  
• JMP Securities upgraded DealerTrack (NASDAQ: TRAK) to OUtperform from Market Perform as they believe 2H08 guidance represents a floor and that 2009 estimates are achievable, among other reasons.
• Potash (NYSE: POT) and Mosaic (NYSE: MOS) were raised to Buy from Hold at Soleil.
  
• Argus upgraded Seagate (NYSE: STX) to Buy from Hold on Friday.

Analyst downgrades:

• Jefferies downgraded Citrix Systems (NASDAQ: CTXS) to Underperform from Hold as they do not see a catalyst for the company to grow into 2009 consensus estimates. The firm lowered their target price to $25 from $32.
  
• Citigroup said following Lehman's (NYSE: LEH) bankruptcy, they expect a distressed-sale of American International's (NYSE: AIG) MBS portfolio, resulting in the worst quarter yet for the company. Shares were cut to Hold from Buy.
• D.R. Horton (NYSE: DHI) was downgraded to Sell from Hold and Pulte Homes (NYSE: PHM) was downgraded to Hold from Sell at Citigroup.
  
• Merrill downgraded Goldman Sachs (NYSE: GS) to Neutral from Buy and JP Morgan (NYSE: JPM) to Underperform from Neutral.

There was a bit of a move up in the market today, but there was very little news to push sentiment one way or the other. Traders are too tired from the beating they have taken since Memorial Day.

DJIA : 11,504.87 +0.81%
NASDAQ: 2,382.46 +0.87%
S&P 500: 12.81.63 +0.8%
10 Year Bond 3.772% -0.0120
52-Week Lows

Short interest figures for stocks traded on both the NYSE and Nasdaq were released yesterday: Short sellers jumped out of both financials and big tech, signaling a possible turn up in those sectors.

Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM) continued to rally, extending hopes they will not have to be bailed out by the government and that common shareholder will not be crushed. Late in the day Freddie was up 17% and Fannie 12%.

U.S. stock futures were mixed on Tuesday. Following Monday's broad sell-off and volatile session, which was also marked by low volume, today might not be different -- volatile and low volume. Several reports are in focus today, specifically some housing data that could shine more light on the sector, and consumer confidence, which could also move stocks. Meantime, oil prices declined and the dollar strengthened against major currencies.

Rio Tinto (NYSE: RTP) shares are down over 3% in premarket trading after the mining giant reported fiscal first-half profit more than doubled. RTP's acquisition of Alcan and soaring commodity prices helped Rio achieve the results. RTP shares have been declining due to worldwide slower growth.

Meanwhile, Anadarko Petroleum (NYSE: APC) shares were 2.4% higher in after-hours after it announced a plan to buy back up to $5 billion of stock.

Staying with share buybacks, Coach (NYSE: COH) are also 1.7% higher in premarket trading after announcing a buyback program of up to $1 billion, which follows the completion of a similar repurchase.

And of course, Lehman Brothers (NYSE: LEH). Shares of the embattled banker are rising this morning following speculation that Kohlberg Kravis Roberts may be interested in buying Neuberger Berman, according to CNBC, while Blackstone Group backed away.

Northwest Airlines Corp. (NYSE: NWA) is feeling the heat of high oil prices like most of us, and announced 2,500 job cuts (8.3% of its workforce) yesterday evening. In addition to the job cuts, the regional air carrier will now charge $15 for a single piece of carry-on luggage. Want to redeem some frequent-flier rewards? It'll cost you another $100.

Northwest isn't the first (and won't be the last) to charge for almost any luggage brought on board by customers. With all the other (undisclosed) fees it will be adding to its services, the carrier said that it expected to add $250 million to $300 million a year in revenue. Sounds like what the telecom companies have been doing for years sliding in fees to prop up profits.

Northwest CEO Doug Steenland said, "These reductions are the direct result of our extraordinary fuel costs and the necessary actions we must take to right-size our airline and eliminate unprofitable flying." Regarding the frequent-flier redemptions, Steenland indicated that Northwest would charge $25 for domestic tickets, $50 for trans-Atlantic tickets and $100 for trans-Pacific tickets -- but did call the new frequent-flier service fees "temporary."

Fuel prices seem to be the number one concern on just about everyone's mind lately, and it seems like things are not going to be getting better any time soon. As prices have risen to record levels, many of us have decided to cut back on our driving, especially on long trips in order to save a little on our fuel prices. Well, the airlines are no different, and there's an interesting report today in The Wall Street Journal showing how airlines are cutting back on long flights in order to save a little on fuel consumption.

It is a pretty nasty cycle we are seeing with the airlines. The higher fuel costs have led to higher tickets prices and extra fees. These higher prices have led to less air traffic, and that has led to an even greater need to find more ways to cover rising costs. Definitely a tough situation.

The new way they are starting to combat the high costs of flying is by cutting back, or postponing long international flights, in particular flights that are in excess of 12 hours.

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

• AeroVironment Inc. (NASDAQ: AVAV) beat Q4 estimates on demand for unmanned aircraft.
• Apollo Group Inc. (NASDAQ: APOL) beat Q3 expectations on increased enrollment and tuition collection.
• Campbell Soup Co. (NYSE: CPB) predicted earnings at the high end of the previously announced range.
• Constellation Brands Inc. (NYSE: STZ) posted better-than-expected Q1 earnings, sending shares up.
• Deutsche Bank (NYSE: DB), in an effort to calm investors, said that it expects a Q2 profit.
• Family Dollar Stores Inc. (NYSE: FDO) beat Q3 expectations and raised its Q4 guidance.
• H&R Block Inc. (NYSE: HRB) posted solid Q4 and full-year results and boosted its dividend.
• Kroger Co. (NYSE: KR) posted record Q1 EPS and in-line guidance, and its share buybacks continue.
• Nvidia Corp. (NASDAQ: NVDA) warned of lower Q2 earnings due to slowing demand and lower prices.
• Robbins & Myers Inc. (NYSE: RBN) beat Q3 expectations and raised its Q4 and full-year outlook.
• Thornburg Mortgage Inc. (NYSE: TMA) 2007 results are being investigated by the SEC.
• UnitedHealth Group (NYSE: UNH) cut its full-year outlook due to changing business trends.

More highlights from this past week: BP, Discover, Corel, Citigroup, WD-40, MSCI and others

Also, Peter Cohan points out that a bear market means low earnings expectations, and also that negative surprises are likely to outweigh positive ones in the second half of the year. Aaron Katsman, on the other hand, predicts a rebound for earnings in the second half. And BusinessWeek reminds us that cheap stocks -- even with big names such as Ford Motor Co. (NYSE: F), Sprint Nextel Corp. (NYSE: S), and Northwest Airlines (NYSE: NWA) -- are no bargain if they have no earnings.

Upcoming results to watch for include Alcoa (NYSE: AA), Pepsi Bottling Group (NYSE: PBG), Marriott International (NYSE: MAR), and General Electric (NYSE: GE).

Visit AOL Money & Finance for more earnings coverage.

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

• Andersons Inc. (NASDAQ: ANDE) lifted its outlook on improved performance of its Plant Nutrient Group.
• BP Plc (NYSE: BP) was upgraded by Societe Generale due in part to its earnings prospects.
• Citigroup Inc. (NYSE: C) has developed an earnings improvement plan based on collective bonuses.
• Corel Corp. (NASDAQ: CREL) solid Q2 results did not address a buyout offer from Vector Capital.
• Discover Financial Services (NYSE: DFS) Q2 earnings were boosted by dumping its Goldfish card division.
• Fortune Brands Inc. (NYSE: FO) lowered its earnings outlook on challenging consumer environment.
• Isle of Capri Casinos Inc. (NASDAQ: ISLE) blamed dismal results on floods and smoking bans.
• MSCI Inc. (NYSE: MXB) strong Q2 results didn't save it from being dumped by Morgan Stanley (NYSE: MS).
• PAREXEL International Corp. (NASDAQ: PRXL) lifted its Q4 and full-year guidance, leading to an upgrade.
• Texas Industries Inc. (NYSE: TXI) was downgraded due to fears about its earnings prospects.
• Taleo Corp. (NASDAQ: TLEO) reaffirmed its outlook as an acquisition would boost results.
• WD-40 Co. (NASDAQ: WDFC) posted solid Q3 results and offered conservative guidance.

More highlights from this past week: Apollo Group, Family Dollar, Kroger, Deutsche Bank and others

Also, while Jim Cramer ponders what will signal the bottom, many investors will be looking at next week's earnings results for General Electric (NYSE: GE), the world's largest conglomerate, as a sign of the direction of the global market. And BusinessWeek reminds us that cheap stocks -- even with big names such as Ford Motor Co. (NYSE: F), Sprint Nextel Corp. (NYSE: S), and Northwest Airlines (NYSE: NWA) -- are no bargain if they have no earnings.

Upcoming results to watch for include Alcoa (NYSE: AA), Pepsi Bottling Group (NYSE: PBG), Marriott International (NYSE: MAR), and General Electric (NYSE: GE).

Visit AOL Money & Finance for more earnings coverage.

The weak market conditions have caused many stock prices to fall under $10. Not only smaller -- and perhaps lesser known -- stocks trade under $10 these days, but also some big and famous names such as Ford Motor Co. (NYSE: F), Motorola Inc. (NYSE: MOT), Sprint Nextel Corp. (NYSE: S), Washington Mutual Inc. (NYSE: WM) and Del Monte Foods (NYSE: DLM), as well as many airline companies like Northwest Airlines (NYSE: NWA) and JetBlue (NASDAQ: JBLU).

While those names could sound tempting for investors who may think they are cheap, BusinessWeek's Karyn McCormack reminds us that not everything that is cheap is a good bargain, and there are some risks that need to be taken into account.

One common problem for most of these stocks is that they trade under $10 for a reason. That reason is usually hardly any earnings growth, if any at all. And with a weak economy, these companies would have an even harder time to stimulate growth. Add to the mix the fact that institutional investors don't like to touch stocks under $10 and the potential for recovery is not good.

Stocks futures fell early Wednesday, ahead of the weekly crude oil inventories figures as oil persists at high level and ahead of earnings from Morgan Stanley and FedEx as many hope to see clearer signs the credit crunch crisis has peaked and its effects begin to ease.

On Tuesday, U.S. stocks fell sharply despite solid earnings from Goldman Sachs. Goldman, though, suggested more is to come in terms of the credit crisis. In addition, several economic figures on inflation, housing and industrial production further damped the sentiment on Wall Street. The Dow industrials fell 108 points, or 0.89%, the S&P 500 dropped 9 points, or 0.68%, and the Nasdaq Composite lost 17 points, or 0.69%.

Not much is on the economic docket today. At 10:30 a.m. EDT, the government will report its weekly figures on fuel supplies. Oil prices edged above $134 in electronic trading ahead of that report and the meeting in Jeddah Sunday of oil producing and consuming nations. So far, it seems the promised increased production from the Saudis has not helped to lower the price of oil as it is weighed against increased global demand.

Jefferies & Co reiterated its "buy" rating on BioMarin (NASDAQ:BMRN) ahead of its analyst meeting, according to the AP.

Oppenheimer downgraded Motorola (NYSE:MOT) to "underperform" from "perform" according to Briefing.com. The news service also reports that Lehman upgraded Northwest (NYSE:NWA) from "equal weight" to "overweight".

Adobe Systems (NASDAQ:ADBE) cut to Neutral at Cowen & Co, according to 2Briefing.com. The news service also reports that Caterpillar (NYSE:CAT) cut to Sell at UBS

In a move that may be imitated by large US carriers like AMR (NYSE: AMR), Delta (NYSE: DAL) and Northwest (NYSE: NWA), British Airways will ground part of its fleet to save money because of the rising cost of fuel.

According to The Times of London, "The airline would park its oldest, least fuel-efficient aircraft."

Analysts are concerned that British Airways may loss money for the next two years. By taking some aircraft out of service, the carrier could ameliorate some of that.

Wall Street may watch to see if big American companies have the sense to do the same thing. Most have debt loads large enough to move them toward Chapter 11, if fuel costs stay high and a rough economy hurts passenger traffic. Major airline mergers, some of which are fairly far along, will not solve the gas price problem. Taking jets out of service may, at least in part.

Douglas A. McIntyre is an editor at 247wallst.com.