MAJOR PAPERS:

• Online ad firm DoubleClick is exploring a sale, and is in talks with Microsoft Corporation (NASDAQ: MSFT), among others, reported the Wall Street Journal (subscription required).
• The Financial Times (subscription required) reported that BP plc ADS's (NYSE: BP) Russia venture, TNK-BP, abandoned its bid for a stake in Rosneft less than ten minutes into bidding, leaving Rosneft able to buy its own shares back at a 10% discount.
• According to the Financial Times, Tyco International Ltd (NYSE: TYC) bondholders are worried the company may try to avoid paying them in full when the company completes its break-up later in the year.
• The Financial Times reported that Cadbury Schweppes ADS (NYSE: CSG) CEO Todd Stitzer said a merger with Hershey (HSY) would make "commercial, strategic and financial sense" for Cadbury, which is preparing to split into two divisions.

OTHER PAPERS:

• The U.K. Times reported that British Airways ADS (NYSE: BAB) is considering making a GBP1B bid for bmi, a competing British airline.

WEBSITES:

• BusinessWeek Online reported that Beazer Homes USA Inc (NYSE: BZH) is being investigated for potential mortgage fraud by the FBI.
• CNet.com reported that Yahoo! Inc (NASDAQ: YHOO) will offer unlimited email storage beginning in May, according to an announcement by the company.

AMR Corp. (NYSE:AMR), the parent of American Airlines, may be the latest company to go private, according to BusinessWeek.

People familiar with the matter told the magazine that the bid of British Airways and Goldman Sachs Group (NYSE:GS) would between $46 and $52 a share or $9.8 billion to $11.1 billion. That's well above the $38.57 where AMR's stock is trading today. Other sources told Reuters that the two companies have "no current plans" to bid for AMR.

Translated that means that the price being floated by the people speaking to BusinessWeek is wishful thinking. Can you say trial balloon?

AMR, whose shares are up on the BusinessWeek report, lately has been on a roll. The company reported better-than-expected fourth quarter results because of lower fuel prices. Its stock has almost doubled over the past six months.

In other words, it's coming into a potential merger from a position of strength. Of course, airlines have soared and plummeted on Wall Street for years, so there's no telling how long the good times will last.

MOST NOTEWORTHY: Travelzoo Inc (TZOO) and Cisco Systems Inc (CSCO) topped today's list of noteworthy upgrades:

• Travelzoo Inc (NASDAQ: TZOO) was upgraded to Strong Buy from Underperform with a $38 target at First Albany based on valuation and the potential for significant upside in first quarter. Stifel upgraded Travelzoo to Hold from Sell, also on valuation.

• Following the company's Q2 results and guidance, Baird upgraded shares of Cisco Systems Inc (NASDAQ: CSCO) to Outperform from Neutral with a $32 target.

OTHER UPGRADES:

• AG Edwards upgraded shares of Marriott Int'l Inc (NYSE: MAR) to Buy from Hold with a $56 target. The firm believes that given recent indications of sulid industry fundamentals, Marriott is being overlooked. In addition, AG Edwards believes Marriot is poised to report strong earnings on Thursday.

• Broadcom Corp (NASDAQ: BRCM) was upgraded to Overweight from Equal Weight with a $40 target at Morgan Stanley.

• FEI Company (NASDAQ: FEIC) was upgraded by Credit Suisse to Neutral from Underperform following its Q4 report and outlook.

• Goldman added Gilead Sciences Inc (NASDAQ: GILD) to the America's Buy List based on its HIV franchise and pipeline. Goldman also upgraded Earthlink (ELNK) to Neutral from Sell on valuation.

• Baird upgraded Business Objects ADS (NASDAQ: BOBJ) to Outperform from Neutral following the company's solid Q4 report.

• Merrill Lynch upgraded British Airways ADS (NYSE: BAB) to Buy from Neutral.

• Digene Corp (NASDAQ: DIGE) was upgraded to Outperform from Market Perform at Piper Jaffray.

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

As the January earnings crunch rolls into February, more industry giants, including Verizon Communications (NYSE: VZ) and Google Inc (NASDAQ: GOOG), are reporting.

Monday January 29

• Verizon to report Q4 earnings; conference call at 8:30am. Wall Street will be paying particularly close attention to Verizon's comments on its broadband operations, including the company's progress with its version of the triple play package [phone/Internet/television].
• Extended review period for Genta Inc's (NASDAQ: GNTA) Genasense. Cancer drug Genasense was previously deemed unapprovable by the FDA on December 15, 2006.

Tuesday January 30

• US Steel Corporation (NYSE: X) to report Q4 earnings; conference call at 2:00pm. Analysts will be focusing on overall refined and core steel prices and the company's international performance.

Wednesday January 31

• Boeing Company (NYSE: BA) to report Q4 earnings; conference call at 10:30am. Analysts will evaluate the company's aerospace performance and its ability to maintain momentum in government service work.
• Google to report Q4 earnings; conference call at 4:30pm. Google, since they never give any guidance, is always a mystery come earnings season. Anyone that wants to take a guess at what they will report should check out the quarterly Google Earnings Sweepstakes at the Internet Outsider blog.
• PDUFA date for GlaxoSmithKline plc's (NYSE: GSK) Arixtra for acute coronary syndromes.
• Broadcom Corporation (NADSAQ: BRCM) and SafeNet Inc (NASDAQ: SFNT) must file 10Q by 1/31 for continued NASDAQ listing.

Thursday February 1

• Amazon.com Inc (NASDAQ: AMZN) to report Q4 earnings; conference call at 5pm. Note that Prudential, which rates Amazon as an Underperform, saw the company's holiday season as tepid, which could bode ill for the company's quarterly report.
• PDUFA date for Merck & Co' Incs (NYSE: MRK) MK-0517, a new intravenous medication to prevent nausea and vomiting occuring after surgery.

Friday February 2

• British Airways ADS (NYSE: BAB) to report Q3 earnings; conference call at 9am. The company has been down recently due to a strike action by the cabin crew, and investors and analysts will be looking for clarity on the situation.

MOST NOTEWORTHY:

Arris (ARRS), American Eagle (AEOS) and Nokia (NOK) top today's lengthy list of downgrades.

• Arris was downgraded by Cowen to Neutral from Outperform. The firm cited 2007 expectations for muted revenue growth and lower than expected gross margins.
• Freedman Billings Ramsey downgraded American Eagle to Market Perform from Outperform based on valuation and the competitive environment.
• Merrill Lynch took Nokia off their Europe Focus 1 List today.

OTHER DOWNGRADES:

C.E. Unterberg downgraded M-Systems Flash (FLSH) to Market Perform from Buy citing expectations for the stock to trade inline with SanDisk (SNDK) after the acquisition was awarded regulatory approval.

British Airways (BAB) was downgraded by Societe General to Hold from Buy.

And finally, Bear Stearns downgraded Kohl's (KSS) and Avon Products (AVP) to Peer Perform from Outperform based on valuation.

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