Analyst upgrades:

• Barclays upgraded Dollar Tree (NASDAQ: DLTR) to Overweight from Equal Weight and raised its target to $64 from $48 following the better-than-expected Q2 report.
• Cowen upgraded Whirlpool (NYSE: WHR) to Outperform from Neutral. The firm cites stabilizing demand trends and recovering margins for the upgrade.
• Susquehanna upgraded Isle of Capri (NASDAQ: ISLE) citing weakness following the weak quarter. The firm, which has a $13 target on shares, expects regional operators to benefit from improving macro trends quicker than destination markets.
• Senior Housing (NYSE: SNH) was upgraded to Outperform from Market Perform at Wells Fargo.
• Barclays (NYSE: BCS) was upgraded to Outperform from Market Perform at Keefe Bruyette.
• CGI Group (NYSE: GIB) was upgraded to Buy from Speculative Buy at Canaccord.

Analyst upgrades:

• Citigroup upgraded Brightpoint (NASDAQ: CELL) to Buy from Hold on expectations global handset units will trough in 2009, leading to a higher multiple for the stock. Citi raised its target on shares to $9 from $6.50.
• FBR Capital upgraded Rosetta Resources (NASDAQ: ROSE) to Outperform from Market Perform on valuation and believes drilling results in Q3 and Q4 should serve as near-term catalysts. The firm raised its target on shares to $15.
• Piper Jaffray upgraded Echelon (NASDAQ: ELON) to Neutral from Underweight following the company's contract announcement with Duke Energy (NYSE: DUK). The firm raised its target on shares to $10 from $6.
• Smith & Nephew (NYSE: SNN) was upgraded to Equal Weight from Underweight at Morgan Stanley.
• Schawk (NYSE: SGK) was upgraded to Neutral from Underperform at Baird.
• Alpha Natural (NYSE: ANR) was upgraded to Outperform from Market Perform at BMO Capital.

Analyst upgrades:

• UBS upgraded Wendy's/Arby's (NYSE: WEN) to Buy from Neutral and raised its target to $5.50 from $4.90 based on improving sales momentum at Wendy's and potential improvements at Arby's.
• Goldman upgraded 3M (NYSE: MMM) to Buy from Neutral and raised its target to $85 from $78. The firm cites 3M's short-cycle exposure and relative valuation for the upgrade.
• Thomas Weisel upgraded JCPenney (NYSE: JCP) to Market Weight from Underweight citing comfort in the company's intermediate-term recovery potential.
• UBS AG (NYSE: UBS) was upgraded to Buy from Hold at ING Group.
• Gap (NYSE: GPS) was upgraded to Overweight from Equal Weight at Barclays.
• Alliance Healthcare (NYSE: AIQ) was upgraded to Outperform from Market Perform at Wells Fargo.

Analyst upgrades:

• Jefferies upgraded Abercrombie & Fitch (NYSE: ANF) to Buy from Hold on a favorable risk/reward profile. The firm thinks sentiment is negative, estimate revisions have troughed, and compares ease in the second half of 2009. Jefferies upped its target price to $35 from $22.
• Citigroup upgraded Home Depot (NYSE: HD) to Buy from Hold on expectations for positive earnings surprises in 2009. The firm thinks home merchandise sales are picking up and consensus estimates could prove conservative. Citi raised its target price on the stock to $32 from $26.
• Bernstein upgraded Starwood Hotels (NYSE: HOT) to Market Perform from Underperform and raised their price target to $23 from $10 based on its credit agreement amendment and valuation.
• SunTrust (NYSE: STI) was upgraded to Neutral from Sell at Goldman. Fiat (OTC: FIATY) was upgraded to Buy from Neutral at UBS.
• Lincoln National (NYSE: LNC) was raised to Outperform from Market Perform at Wachovia.

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

• Activision Blizzard Inc. (NASDAQ: ATVI) Q1 results beat expectations and raised its guidance.
• Alpha Natural Resources Inc. (NYSE: ANR) shares surged after the it reported strong Q1 earnings.
• Archer Daniels Midland Co. (NYSE: ADM) just missed swinging to a loss due to to hefty investment losses.
• CBS Corp. (NYSE: CBS) surprised with a net loss in Q1 as revenue and cash flow declined.
• Chesapeake Energy Corp. (NYSE: CHK) shares fell after it reported disappointing results for the quarter.

Coal concern Alpha Natural Resources, Inc. (NYSE: ANR) has spiked more than 20% today on the heels of its first-quarter earnings report. The company reported a 61% improvement in net income, which rose to $41 million, or 58 cents per share, compared to $25.5 million, or 39 cents per share, in the first quarter of 2008.

Revenue for the period inched higher to $424.4 million. ANR's profit easily exceeded Wall Street's expectations; analysts were looking for a profit of 48 cents per share on $515.5 million.

ANR gapped higher with the sound of the opening bell today, extending its year-to-date advance of 56.4%. If the stock keeps climbing, it could soon have a chance to challenge resistance from its 10-month moving average, which is currently hovering in the $33 neighborhood.

Along with the May flowers, the coming week will bring plenty more disappointing earnings reports. Analysts surveyed by Thomson Reuters anticipate that Archer Daniels Midland Co. (NYSE: ADM), CBS Corp. (NYSE: CBS), Cisco Systems Inc. (NASDAQ: CSCO), CVS Caremark Corp. (NYSE: CVS), Kraft Foods Inc. (NYSE: KFT), and Walt Disney Co. (NYSE: DIS) will all post lower earnings for the most recent quarter. American International Group Inc. (NYSE: AIG) and Sprint Nextel Corp. (NYSE: S) are expected to report losses.

But which companies are doing well? Here are a few reporting this week that analysts are optimistic about.

• Baird upgraded Carlisle (NYSE:CSL) to Outperform from Neutral and lowered their target to $25 from $33 following the company's Q4 results citing attractive valuation and solid execution.
  
• Citigroup upgraded Talbots (NYSE:TLB) to Hold from Sell on valuation as they believe the company's cash flow is improving and does not expect the company to face bankruptcy in next three years.
  
• Jefferies upgraded shares of Spectra Energy (NYSE:SE) to Hold from Underperform on valuation following the company's Q4 results and raised their target price to $15 from $11.75.
• Costco (NASDAQ:COST) was upgraded to Buy from Neutral at UBS.
  
• AU Optronics (NYSE:AUO) and LG Display (NYSE:LPL) were upgraded to Buy from Neutral at Banc of America/Merrill.
  
• Alpha Natural (NYSE:ANR) was raised to Buy from Hold at Natixis.

• Baird upgraded MSM Industrial (NYSE: MSM) to Outperform from Neutral based on valuation and a positive view for Industrial Distributors.
  
• William Blair upgraded Allscripts (NASDAQ: MDRX) to Outperform from Market Perform on valuation following the recent pullback and believes Allscripts is well positioned to benefit from public policy that drives adoption of electronic medical records.
  
• Citigroup upgraded Consolidated Edison (NYSE: ED) to Buy from Hold as they believe the ALJ recommendation in the company's pending electric rate case indicates potential for an improving outlook.
• Raytheon (NYSE: RTN) was raised to Buy from Neutral at Goldman.
  
• Smith & Nephew (NYSE: SNN) was upgraded at JP Morgan to Neutral from Underweight.
  
• Becton Dickinson (NYSE: BDX) was upgraded to Overweight from Equal Weight at Morgan Stanley.

• Oppenheimer downgraded Bio-Reference Labs (NASDAQ: BRLI) to Perform from Outperform as they believe weaker volumes could pressure top-line growth in the near-term. The firm lowered their target to $25 from $30.
  
• Morgan Stanley downgraded shares of Alcatel-Lucent (NYSE: ALU) to Equal Weight from Overweight to reflect market deterioration as they find the risk/reward as balanced at current levels.
  
• JP Morgan cut Nestle (OTC: NSRGY) to Underweight from Neutral on concerns the company's 2009 revenue will miss consensus estimates due to market share losses.
• Rio Tinto (NYSE: RTP) and Anglo American (NASDAQ: AAUK) were lowered to Hold from Buy at Deutsche Bank.

Arch Coal (NYSE: ACI) closed at $18.50 Friday. ACI January and February option implied volatility of 87 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Massey Energy (NYSE: MEE), a coal miner, closed at $16.19 Friday. MEE is scheduled to report Q4 EPS in the February option cycle. MEE February option implied volatility of 108 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

Consol Energy (NYSE: CNX) closed at $32.15 Friday. CNX has two principle business units: coal and gas. CNX February option implied volatility of 90 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Alpha Natural (NYSE: ANR), an Appalachian coal producer, closed at $18.38 Friday. ANR February option implied volatility of 107 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Peabody Energy (NYSE: BTU), a coal company, closed at $25.06 Friday. BTU is expected to report Q4 EPS in late January. January and February option implied volatility of 97 is above its 26-week average of 89, according to Track Data, suggesting larger price movement.

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

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

• Aeropostale Inc. (NYSE: ARO) strong Q3 results beat estimates despite the dismal retail environment.
• Alpha Natural Resources Inc. (NYSE: ANR) lowered its full-year forecast due to lower demand for coal.
• America's Car-Mart Inc. (NASDAQ: CRMT) reported higher Q2 earnings and higher same-store sales.
• Beazer Homes USA Inc. (NYSE: BZH) losses in Q4 more than tripled as revenue declined.
• Collective Brands Inc. (NYSE: PSS) Q3 profits were in line with estimates, enough to send shares higher.
• General Electric Co. (NYSE: GE) cut its Q4 earnings forecast, which now falls in line with estimates.
• Goldman Sachs Group Inc. (NYSE: GS) warned that it may see its first quarterly loss ever in Q4.
• Guess? Inc. (NYSE: GES) strong Q3 results beat estimates but offered a conservative outlook.
• Infineon Technologies AG (NYSE: IFX) posted a wider Q4 loss on restructuring and warned of further losses.
• Johnson & Johnson (NYSE: JNJ) 2009 earnings are expected to be diluted by an acquisition.
• Marvell Technology Group Ltd. (NASDAQ: MRVL) reported strong Q3 numbers, sending shares higher.
• Medicis Pharmaceutical Corp. (NYSE: MRX) earnings prospects after a settlement led to an analyst's upgrade.
• Merck & Co. Inc. (NYSE: MRK) lowered its 2009 earnings guidance below analysts' expectations.
• Palm Inc. (NASDAQ: PALM) said that it expects Q2 revenues to come in below analysts' estimates.

Coal-mining concern Alpha Natural Resources (NYSE: ANR) is trading sharply lower today after cutting its full-year earnings and production forecasts. Due to lower coal demand from steelmakers, ANR now expects net income of $175 million to $185 million for fiscal 2008. Previously, the commodity firm predicted full-year earnings of $230 million to $270 million.

As a result of waning demand, shipments of metallurgical coal will be reduced by about 500,000 tons in the fourth quarter. Going forward, ANR stated, "the outlook for metallurgical coal sales shipments and pricing will remain uncertain until such time as the financial markets begin improving and economic activity shows tangible signs of recovery."

Additionally, Alpha said it will close its mining operations at West Virginia's Whitetail Kittanning mining complex. The company is citing "adverse geologic conditions and regulatory requirements" for the shutdown, which will occur at the end of December. A total of 329 employees will be affected by the closure.

Whether it's a recession or an economic boom, one thing doesn't change, the need for energy. And until technology leaps ahead, coal is the largest producer of fuel for the generation of electricity in the world. It's also the most abundant fossil fuel in the United States. Coal is obviously not recession immune as people tighten the reigns on their lives and cut back on electricity consumption, but the shear necessity of electricity makes the coal industry fairly resistant. An investment in an exchange traded fund (ETF) that is centered on the coal industry is a great way to hedge your bets by investing in a pool of successful companies in the coal field.

Market Vectors Coal ETF (NYSE: KOL) seeks to replicate the price and yield performance of the Stowe Coal index, which provides exposure to publicly traded companies worldwide that derive greater than 50% of their revenues from the coal industry. With KOL you'll own shares of some of the most noted coal companies in the world, including Arch Coal Inc. (NYSE: ACI), which specializes in steam and metallurgical coal; CONSOL Energy Inc. (NYSE: CNX), a large provider of fuel for electricity in the United States; Alpha Natural Resources Inc. (NYSE: ANR), another leader in steam and metallurgical coal; and Peabody Energy Corp. (NYSE: BTU), an exploration miner and coal producer worldwide, as well as several other highly rated coal companies across the globe.

Market Vector charges only a 0.65% fee, a fraction what a professional money manager would charge you to analyze research and pick coal mining stocks with this level of global reach. Recently KOL has gone through a typical correction for this commodity sector, but then suffered a greater hit as Asia saw a 20% decline in spot prices for thermal coal. The result? A better deal for those currently willing to dive into coal as an investment. KOL is up 14%, so maybe there's some light at the end of the mine.

While other earnings may have disappointed last week, the news was good for oil giant ConocoPhilips (NYSE: COP). In what some took as a good sign for big oil, the Houston-based company reported that third quarter net income surged 41% year over year to $3.39 per share, and that revenue also surged 52% to $70 billion. We'll see whether the good news extends to other petroleum giants scheduled to report quarterly results this week.

Analysts surveyed by Thomson Financial are looking for BP (NYSE: BP) profits to have grown 43.2% in the most recent quarter to $2.34 per share on revenue of $109.7 billion, and Chevron Corp. (NYSE: CVX) to post earnings up 39.4% to $3.25 per share on revenue of $86.8 billion. Marathon Oil Corp. (NYSE: MRO), ExxonMobil Corp. (NYSE: XOM), and Royal Dutch Shell (NYSE: RDS.A) likewise are expected to report higher net income of $2.33 per share (sales of $23.4 billion), $2.40 per share (sales of $131.4 billion), and $2.65 per share, respectively. Even Valero Energy Corp. (NYSE: VLO) is expected to post earnings slightly higher to $1.46 per share (sales of $36.4 billion), despite the effects of Hurricane Ike. Among these companies, only BP and Valero beat earnings expectations in the previous quarter. Not surprisingly, analysts on average recommend buying all except Valero, and shares of all of these companies have recently hit 52-week lows.

MAJOR PAPERS:

• According to people familiar with the matter, the Wall Street Journal reported that Federal Hole Loan Mortgage Corporation (NYSE: FRE) --Freddie Mac -- is considering raising capital by selling up to $10B in new shares to investors. The sources believe this effort may have the potential to avoid a full-blown government rescue.
• The Wall Street Journal also reported that, amid U.S. investigations into allegations it helped American clients evade taxes, UBS AG (NYSE: UBS) said some Swiss-based private bankers will stop offering American clients Swiss bank accounts and other services.
• Starbucks Corporation (NASDAQ: SBUX) will close store in 44 states plus the District of Columbia, including 88 closures in California, 59 in Florida and 57 in Texas, the Wall Street Journal reported.

• After Cleveland Cliffs Inc (NYSE: CLF) bought Alpha Natural Resources Inc (NYSE: ANR), there may be many more acquisitions in the coal industry, Bloomberg said.
• Reuters noted that, according to a person with knowledge of the plans, Yahoo! Inc (NASDAQ: YHOO) could renew talks over News Corporation's (NYSE: NWS) Web properties if Microsoft Corporation (NASDAQ: MSFT) gets in the way of discussions with Time Warner Inc's (NYSE: TWX) AOL. Yahoo! is in contact with News Corp. about the assets, but the search engine's talks with Time Warner about AOL are more advanced, the source added.