I first discussed United Parcel Service (UPS) here on April 7, 2009, at a price of $51.28, and shares continue to head north. I obviously still like the business model at this stage.

UPS's 2011 revenue should increase 8% to 10%, after a probable 10% to 13% increase in 2010. UPS is benefiting from increased demand stemming from the strengthening U.S. and global recoveries and there will be better quarters are ahead. Look for increased pricing power, in some delivery segments, and higher volumes.

I'd also raise the sell/stop loss to $54 from $48 at this stage.

Friday's fourth-quarter GDP numbers offered more evidence that the economy is picking up steam, but one of the biggest obstacles to the recovery remains the stubbornly high unemployment rate. We'll find out whether there's been any movement on that front when employment data for January comes out this week. The Challenger Job-Cut report and ADP employment data are due Wednesday, and the government's unemployment rate on Friday. Another mild increase in jobs is expected, in line with the three-month average, but not enough to significantly reduce the unemployment rate.

Also look for the ISM manufacturing and nonmanufacturing indexes this week, as well as the Chicago PMI and the New York NAPM index. And Fed Chairman Ben Bernanke will speak to the National Press Club on Thursday.

Delivery firm UPS (UPS) has announced third-quarter earnings and upped its full-year 2010 earnings. For the quarter, the dean of delivery earned 93 cents per share on an adjusted basis, topping the consensus estimate by a nickel. These results also easily trumped last year's third-quarter earnings of 55 cents per share. Quarterly revenue increased 9% to $12.19 billion.

UPS's earnings received a boost from higher prices, but also benefited by a 3.6% rise in the average number of packages shipped per day. The main benefit of this increase stemmed from an increase of 4% in revenue per package. International average daily shipping volume increased 13%, led by Asia, which saw an increase of 30% in volume. A majority of this international increase came from shipments of electronics from Asia.

United Parcel Service Inc. (NYSE: UPS) lowered its Q2 guidance just under a month ago amid worries that high increases in fuel costs would shave a bit off its earnings, which is coming up this Monday. While the company is still expected to post an EPS figure of $0.82 for its second quarter, this would be an 18% drop from the year-ago period. Its stock has recently hit a 52-week low, but then again, a recent analyst upgrade has the shares rallying a bit to offset that low.

Although fuel costs are affecting just about any company involved in transportation, the business and consumer shipping industry is still apparently going decent even in a downbeat economy. UPS said that package volume was being negatively affected by the U.S. economy, though -- and this is having an effect on international package volume as well. It's not that businesses and consumers have stopped shipping -- perhaps they are delaying shipping or forgoing it together on some items.

UPS did say that its Supply Chain and Freight segment was expected to outdo expectations for the second quarter, which will be a nice bright spot for the company. So, I have to ask: have you stopped ordering products (as a business or consumer) that require shipping? That is what UPS is implying with the statement it came out with on June 23rd when it lowered Q2 guidance. My bet -- UPS will earn $0.80 per share, even lower than its lowered guidance. What's your call?