Parker Hannifin (NYSE: PH), makers of motion and control technologies, was just awarded $2 billion in contracts to supply fuel and hydraulic systems for the new A350 aricraft. Parker's aerospace division will supply the entire fuel management system for the wide body aircraft. Likewise, Parker aerospace will supply hydraulic power and distribution components and measurement controls for the A350.

News of these awards comes immediately following Parker Hannifin's posting a record 2Q2008 sales revenue of $2.8 billion, an increase of almost 13%. A healthy 5% of this growth was organic, 3% resulted from four separate acquisitions the company made during the quarter. Net income increased just under 10% to $212 million, and cash flow increased more than 8% to $473 million. As a result, diluted EPS increased 13% to $1.23.

Parker Hannifin reported great results in its international segment. Revenue increased 28% to $1.2 billion, while operating income increased 44% to $175 million. These results helped make up for some softness in the domestic industrial market. While the domestic aerospace segment posted a 7% increase in sales, operating income dropped by 23%. The same is true of the climate control segment which posted a 22% drop in operating income.

On a more positive note, total orders are running 10% ahead of last year, with both industrial and aerospace segments posting 16-19% increases. CEO Don Washkewicz forecasts good order growth throughout all of 2008. As a result, he boosted earnings guidance modestly to the $5.15-$5.40 range.

Parker Hannifin forecasts a number of new product launches in 2008, with more products in the development pipeline. The company has increased its annual dividend for 51 consecutive years and shows no signs of breaking with tradition. The stock currently trades just under $62.

TheStreet.com's Jim Cramer says Parker Hannifin's punishment for good results is typical of what to expect in this market.

Parker Hannifin (NYSE: PH) (Cramer's Take) defines this market. The company delivers a perfectly good quarter, says international is smoking, boosts forecast, commits to more buybacks -- and then loses almost 10% of its value.

That's what this market is all about.

It was in the cards. You knew it if you listened to the conference call. Because on that call the company had to answer endless questions about how it would fare in a recession, even though it saw improvement domestically.

PH is one of those companies that keeps the Fed from easing: its commercial aerospace and engines businesses are really strong. But no matter what, the Street has decided that PH spent too much money buying back stock at higher prices -- the mantra of the moment -- and can't possibly do well in the now well-baked-in Fed-mandated recession.

TheStreet.com's Jim Cramer says the market showed its stuff Monday, and health care, tech and retail look like buys.

Sweet comeback as people are getting too panicked and too bearish. I noticed it first in the retailers, which all trade like subprime-mortgage originators.

It then spread to the oil and oil-service stocks (as if oil is going to plummet, not just find a level). The minerals got whacked something awful off the usual recession gambit.

Then it started hitting tech names, including ones that are doing well and just reported, like EMC (NYSE: EMC) (Cramer's Take) off the big downgrade.

To me the last straw was the collapse, for a second day, of Goldman Sachs (NYSE: GS) (Cramer's Take), something that simply makes no sense at all except from the proposition that both competitors, Merrill (NYSE: MER) (Cramer's Take) and Citigroup (NYSE: C) (Cramer's Take), will now be better run (which is a given, by the way).

In fact, the only five stocks that were holding up throughout the onslaught -- at least on my screen -- were Yahoo! (NASDAQ: YHOO) (Cramer's Take), Google (NASDAQ: GOOG) (Cramer's Take) and IACI (NASDAQ: IACI) (Cramer's Take) plus Deere (NYSE: DE) (Cramer's Take) and Parker Hannifin (NYSE: PH) (Cramer's Take) -- the latter are incredible stalwarts.

The ability of this market to shrug off these losses will be the tale of today's tape. Resilience has been the hallmark of this market when it comes up against key levels, and it showed it again today.

It's probably time to do some buying of health care -- we did Monday in Action Alerts PLUS -- tech, and retail, and cover some of the financials.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long EMC, C and Goldman Sachs.

MOST NOTEWORTHY: Centene, Brinker International, Harmonic, Idex and Royal Dutch Shell were today's noteworthy upgrades:

• Jefferies upgraded shares of Centene Corporation (NYSE: CNC) to Buy from Hold as they expect the company is benefiting from above 20% revenue growth next year and SG&A leverage opportunity over the next 12–18 months.
  
• Bear Stearns upgraded shares of Brinker International (NYSE: EAT) to Outperform from Peer Perform as they believe Brinker's turnaround efforts can enhance shareholder value.
  
• Friedman Billings raised shares of Harmonic (NASDAQ: HLIT) to Outperform from Market Perform based on the favorable outlook for cable and satellite spending on HD video and other projects.
  
• The firm also upgraded Idex Corporation (NYSE: IEX) to Outperform from Market Perform, citing the company's positive 2008 outlook and solid end markets.
  
• Goldman upgraded Royal Dutch Shell (NYSE: RDS.A) to Neutral from Sell on valuation.

OTHER UPGRADES:

• CIBC upgraded J. Crew Group (NYSE: JCG) to Sector Outperformer from Sector Performer and Parker Hannifin (NYSE: PH) to Sector Performer from Sector Underperformer.
  
• Sprint Nextel Corporation (NYSE: S) was upgraded to Outperform from Neutral at Credit Suisse.
  
• RBC Capital Markets upgraded LaSalle Hotel Properties (NYSE: LHO) to Top Pick from Outperform.

MOST NOTEWORTHY: Rockwell Automation, Barclays, F5 Networks, Foundry Networks, AMR Corp., and Red Hat were today's noteworthy downgrades:

• JP Morgan downgraded Rockwell Automation Inc (NYSE: ROK) to Neutral from Overweight based on valuation, as the firm believes the recent credit market turbulence could make a material recapitalization less likely.
  
• Bear Stearns downgraded shares of Barclays (NYSE: BCS) to Underperform from Peer Perform on valuation and expectations for losses in the company's Capital division.
  
• Nollenberger downgraded shares of F5 Networks Inc (NASDAQ: FFIV) to Neutral from Buy, as they believe the company is transitioning from a "beat and raise" story to a "meet and maintain" story given the recent disruptions in the financial services sector and slowing growth in active web hosts on the net. The firm also downgraded shares of Foundry Networks Inc (NASDAQ: FDRY) to Neutral from Buy on valuation, seeing a well balanced risk/reward profile at current levels.
  
• Soleil downgraded shares of AMR Corporation (NYSE: AMR) to Hold from Buy to reflect the company's deteriorating revenue and non-fuel cost outlook.
  
• Red Hat Inc (NYSE: RHT) was downgraded to Neutral from Outperform at Credit Suisse, citing lack of progress in execution.

OTHER DOWNGRADES:

• LDK Solar (NYSE: LDK) was downgraded at CIBC to Sector Performer from Outperformer.
  
• Friedman Billings downgraded Parker Hannifin Corporation (NYSE: PH) to Market Perform from Outperform.
  
• Morgan Keegan downgraded Cree Inc (NASDAQ: CREE) to Market Perform from Outperform.

MOST NOTEWORTHY: Cadbury Schweppes (CSG), Parker Hannifin (PH), Christopher & Banks (CBK), Benihana (BNHNA) and Sears Holdings (SHLD) were today's noteworthy downgrades:

• Cadbury Schweppes PLC (NYSE: CSG) was downgraded to Equal-Weight from Overweight at Lehman Brothers to reflect lower-than-expected value from Cadbury's American Beverages sale or demerger.
• Friedman Billings removed Parker Hannifin Corporation (NYSE: PH) from its Top Picks List, citing valuation.
• Christopher & Banks Corporation (NYSE: CBK) was downgraded to Sector Performer from Outperformer at CIBC World Markets following the unexpected departure of CEO Matthew Dillon. Suntrust downgraded shares of the stock to Neutral from Buy citing pressure in the retail sector.
• KeyBanc lowered shares of Benihana Inc (NASDAQ: BNHNA) to Buy from Aggressive Buy following the company's Q2 results.
• Sears Holdings Corporation (NASDAQ: SHLD) was downgraded to Peer Perform from Outperform at Bear Stearns citing a continued deterioration in fundamentals and challenging outlook...

OTHER DOWNGRADES:

• Brocade Communications Systems Inc (NASDAQ: BRCD) was removed from JP Morgan's Focus List; the firm maintained its Outperform rating.
• Goldman Sachs downgraded Renovis Inc (NASDAQ: RNVS) to Sell from Neutral.
• Raymond James downgraded shares of Amedisys Inc (NASDAQ: AMED) to Outperform from Strong Buy and shares of Restoration Hardware Inc (NASDAQ: RSTO) to Underperform from Market Perform.
• Biogen Idec Incorporated (NASDAQ: BIIB) was downgraded to Hold from Buy at BWS Financial.

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