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

• Abercrombie & Fitch Co. (ANF) lower Q3 results still topped expectations and sent shares higher.
• Applied Materials Inc. (AMAT) posted much better-than-expected Q4 earnings, the first profit in a year.
• AstraZeneca (AZN) received an analyst's downgrade due to concerns over its earnings prospects.
• Blackstone Group (BX) received an analyst's upgrade following the company's Q3 results.
• Blockbuster Inc. (BBI) widened its net loss in Q3 and revenue and same-stores sales declined.
• Clean Energy Fuels Corp. (CLNE) shares declined after its Q3 numbers fell short of expectations.
• Consolidated Water Co. Inc. (CWCO) earnings prospects for 2010 earned it an analyst upgrade.

In this week's (November 9) Preview Section of Barron's (subscription required) I was surprised to find that on Wednesday (11/9) it is noted that Computer Sciences (CSC), Applied Materials (AMAT), and Macy's (M) reported "profits." How do they know this?

On other days they refer to the "earnings" of various companies reporting. Perhaps I am splitting hairs, perhaps it is editorial haste (like you might find on our site), or perhaps there is no difference in some people's minds? From my perspective there is a difference between earnings and profits. Every quarter, public companies report their earnings. They do not always report a profit.

The conventional wisdom is that consumer spending is what drives the U.S. economy. And consumer spending arises out of consumer confidence. Unfortunately, the signals along the road to economic recovery are mixed, what with the rising GDP growth and the dismal unemployment numbers. Its enough to leave investors scratching their heads. What barometers of consumer confidence will the coming week bring?

The TIPP Economic Optimism Index for November is scheduled for Tuesday, and the University of Michigan Consumer Sentiment Index for November is due out Friday.

Analyst upgrades:

• Collins Stewart upgraded General Dynamics (NYSE: GD) to Buy from Hold as it finds the valuation compelling at current levels and sees potential upside from a better economy and better-than-expected defense budgets.
• SunTrust views the sell-off in shares of Cabot Oil (NYSE: COG) as a buying opportunity and expects the Pennsylvania Department of Environmental Protection order to be resolved quickly. The firm upgraded Cabot to Buy from Neutral.
• Barclays upgraded Cisco (NASDAQ: CSCO) to Overweight from Equal Weight based on expectations for improved carrier demand, continued U.S. momentum, and an improved Europe.
• Applied Materials (NASDAQ: AMAT) was upgraded to Buy from Hold at Citigroup.
• Stericycle (NASDAQ: SRCL) was upgraded to Gradually Accumulate from Hold at Soleil.
• Grupo Televisa (NYSE: TV) was upgraded to Neutral from Sell at Goldman.

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

• Applied Materials Inc. (NASDAQ: AMAT) posted better-than-expected Q3 results, sending shares higher.
• AutoDesk Inc. (NASDAQ: ADSK) reported better-than-expected Q2 earnings, sending shares higher.
• Blockbuster Inc. (NYSE: BBI) had another disappointing quarter as same-store sales declined.
• CIT Group Inc. (NYSE: CIT) delayed its Q3 report due to ongoing debt restructuring and a possible bankruptcy.
• Dr Pepper Snapple Group Inc. (NYSE: DPS) Q2 earnings came in well ahead of Wall Street expectations.

I'm indecisive about Applied Materials (NASDAQ: AMAT). The semiconductor company, which also works with solar photovoltaic cells, is starting to look like a good trade to me. However, I still shudder when I examine the numbers. What I've got to keep telling myself, I guess, is that the market is a discounting mechanism, and that now may be the time to act.

According to the press release, which was issued after the market closed on Tuesday, net sales decreased 39% in the third quarter. Adjusted earnings came in at 0 cents per share. That was obviously much less than the 17 cents per share earned one year ago. According to Reuters, which made a further adjustment for equity-based compensation, Applied Materials lost 3 cents per share. The market was expecting a loss of 8 cents per share. The top line beat projections as well.

Applied Materials (NASDAQ: AMAT - option chain) stock is falling today after company CEO Mike Splinter said that weak demand and high development costs could lead to multiple failures in the semiconductor equipment sector. 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 AMAT.

This morning, AMAT opened at $11.87. So far today the stock has hit a low of $11.53 and a high of $11.88. As of 11:30, AMAT is trading at $11.57, down $0.49 (-4.1%). The chart for AMAT looks bullish and S&P gives AMAT a positive 4 STARS (out of 5) buy ranking.

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

• Abercrombie & Fitch Co. (NYSE: ANF) reported dismal Q1 numbers as same-store sales plunged.
• Applied Materials Inc. (NASDAQ: AMAT) dismal Q2 results were in line with analysts' expectations.
• Bankrate Inc. (NASDAQ: RATE) reported lower earnings and revenue for Q1 and offered no guidance.
• Blockbuster Inc. (NYSE: BBI) earnings, revenue, and same-store sales all fell in the first quarter.
• Dr Pepper Snapple Group (NYSE: DPS) Q1 earnings declined but still topped analysts' expectations.

Applied Materials (NASDAQ: AMAT) reported Q2 numbers earlier in the week. They were dismal, to say the least. According to Jon Ogg's Closing Bell on Wednesday, the semiconductor business saw its top line reduced by 50%, and the adjusted loss came to 10 cents per share. Yes, yes, that met expectations. So what? The article also mentioned that the solar operation wasn't doing so hot.

Looking through the actual earnings release, I don't see a lot of things that would make a shareholder happy. Backlog was down. Applied Materials had to use cash to keep things going over the last six months (obviously investors would rather see cash generated from operations). And CEO Mike Splinter described the current climate as very tough in terms of customer demand.

As earnings season begins to wind down, some apparel retailers are scheduled to report quarterly results this week. Analysts polled by Thomson Reuters anticipate that Walmart Stores Inc. (NYSE: WMT), the 800-pound gorilla in the space, will report that it earned $0.77 per share in the first quarter, about the same as in the first quarter of last year. But JCPenney Co. (NYSE: JCP), Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and Urban Outfitters Inc. (NASDAQ: URBN) are expected to report lower profits for the first quarter as consumers continued to hold off on spending. Macy's Inc. (NYSE: M) and Abercrombie & Fitch Co. (NYSE: ANF) are expected to have swung to a loss year over year.

Whole Foods Market Inc. (NASDAQ: WFMI) and Winn Dixie Stores Inc. (NASDAQ: WINN) are likewise expected to report declining earnings, while the Great Atlantic & Pacific Tea Co. (NYSE: GAP), parent of the A&P supermarket chain, is expected to have narrowed its net loss 68.9% to $0.28 per share.

• Jefferies upgraded shares of SourceFire (NASDAQ:FIRE) to Buy from Hold as they believe the company is benefiting from recent spending by the U.S. Federal government and private enterprises to improve cybersecurity. The firm raised their price target on the stock to $11 from $7.
  
• Piper Jaffray upgraded Brocade (NASADAQ:BRCD) to Buy from Neutral as they believe an expanded OEM announcement with IBM (NYSE:IBM) could be announced as early as the end of April, creating a positive catalyst. The firm raised their price target on the stock to $6 from $4.
  
• UBS upgraded Salesforce.com (NYSE:CRM) to Buy from Sell but lowered their target to $4 from $21 citing reduced churn and cashflow concerns, expectations for FY10 to be a trough year, and a potential reacceleration in deferred growth.
• AK Steel (NYSE:AKS) was raised to Buy from Neutral at Goldman.
  
• Strattec (NASDAQ:STRT) was raised to Neutral from Underperform at Baird.
  
• Lululemon (NASDAQ:LULU) was upgraded at William Blair to Outperform from Market Perform.

After testifying before a Senate committee about AIG (NYSE: AIG) last week, the Fed's Ben Bernanke participates in a Council of Foreign Relations event Monday evening.

Economic data due to be released this week include wholesale trade and job vacancies for January on Tuesday morning, the U.S. Treasury budget for February on Wednesday, retail sales for February and business inventories for January on Thursday morning, and the U.S. trade balance for January on Friday morning.

President Obama has encouraged companies to cut pay -- particularly at the executive level. Some companies -- many of which are in Silicon Valley -- are complying. And others, like Boeing (NYSE: BA), are holding off on the pay cuts and going for the layoffs instead. This is a tricky problem and there's no doubt that CEOs are probably in a better position to make the call then Washington.

It's hard to hire engineers. So rather than fire them, many Silicon Valley companies are giving pay cuts to their executives and their employees alike. For example,

• Hewlett Packard (NASDAQ: HPQ) will cut its CEO's base salary by 20%, executives' pay by 10% to 15%, and most employees' salaries by 5%
• Applied Materials Inc., (NASDAQ: AMAT) the will cut executive pay 10% adding to an earlier 10% reduction
• Intel (NASDAQ: INTC) zeroed out its budget for merit pay or promotions, its CEO received e-mails from employees saying they would rather take pay cuts than lose a job or see co-workers terminated