The vision of Clearwire (CLWR) is definitely ambitious: to "give you faster Internet at home, at work and on the go, so that people everywhere will have the magic of the Internet with them all the time." This means building a sophisticated network across the country, which does not come cheap.

Tuesday, Clearwire announced yet another financing round, which comes to $1.56 billion. The investors include Sprint Nextel (S), Comcast (CMCSA), Time Warner Cable (TWC), Intel (INTC), Eagle River Holdings LLC, and Bright House Networks LLC.

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.

If there was any doubt whether the rally at the end of 2008 and the beginning of 2009 was anything but a bear market rally, this week put these doubts to rest. The Dow Jones Industrial Average is already down 8.3% year-to-date; it sank 6.2% this week alone (notwithstanding Friday).

This week the financial crisis once again took center stage as Bank of America (NYSE: BAC) and Citigroup (NYSE: C) received a second round of bailout money and more guarantees. BAC is finding hard to digest its two acquisitions, while Citi is splitting itself and is no longer a financial supermarket.

But this wasn't all that happened this week. The fourth-quarter earnings season kicked off Monday; Alcoa (NYSE: AA) reported dismal numbers, all the rest followed suit. Even if there were a few surprises to the upside that exceeded expectations, the expectations themselves were already quite low.

Kirkland, Wash. based Clearwire Corporation (NASDAQ: CLWR) closed on a transaction in December which merged the Sprint/Nextel (NYSE: S) wireless Internet business with the WiMax business of CLWR.

In connection with the transaction, CLWR secured $3.2 billion from a group of investors linked to the development of the wireless broadband industry, including Comcast (NASDAQ: CMCSA), Google (NASDAQ: GOOG), Intel (NASDAQ: INTC) and Time Warner Cable (NYSE: TWX).

Clearwater is offering its broadband service under the label "Clear."

While operating in a competitive environment for WiMax (Worldwide Interoperability for Microwave Access), CWTR has an advantage over WiFi, which is limited to access in small areas, such as home or coffee shop. WiMax, on the other hand, offers access from a very broad area and while being mobile in a vehicle.

Though not as capitalized as competitors like Verizon (NYSE: VZ) or AT&T (NYSE: T), the company's relationship with its investors should give it access to capital when needed.

On Jan. 9, due to a significant drop in the market value of CLWR stock, Intel announced a writedown of its investment in CLWR of $950 million. Intel is only the first of the investment group to reflect this writedown in their guidance for the quarter.

Driven by accounting rules mandating that investments in stocks that decline significantly in value be written off, the other publicly traded companies with investments in CLWR will be required to follow suit.

In the face of these writedowns, investors have kept the price of CLWR depressed in spite of recent good news from the company. At around $4.60, the stock is trading near its 52-week low of $3.24, and well below its high of $7.20.

The company's balance sheet reflects its growth mode, with a long-term debt-to-equity ratio of 186 and a current ratio of 3.25.

Analyst upgrades:

• Cowen upgraded Aaron Rents (NYSE: RNT) to Outperform from Neutral and believes the company's business model is gaining momentum despite the difficult environment. The firm views valuation as attractive.
  
• Citigroup upgraded shares of MedCath (NASDAQ: MDTH) to Hold from Sell on valuation following the recent sell-off. The company's target was lowered to $9 from $19.
  
• Stanford upgraded AeroVironment (NASDAQ: AVAV) to Buy from Hold based on valuation and because they believe its visibility over the next year has improved.
• Chiquita Brands (NYSE: CQB) was lifted to Buy from Hold at BB&T.
  
• Chico's FAS (NYSE: CHS) was upgraded to Neutral from Sell at UBS.
  
• FCStone (NASDAQ: FCSX) was raised to Strong Buy from Outperform at Raymond James.

Analyst downgrades:

• RBC Capital downgraded Clearwire (NASDAQ: CLWR) to Sector Perform from Outperform based on reduced valuation parameters and lack of catalysts. The company's target was lowered to $9 from $15.
• Kellogg (NYSE: K) and Coca-Cola (NYSE: KO) were cut to Neutral from Buy at UBS.
  
• Evergreen Solar (NASDAQ: ESLR) was downgraded at JP Morgan to Underweight from Neutral.
• Deutsche Telekom (NYSE: DT) was downgraded to Neutral from Buy at Goldman and to Hold from Buy at Deutsche Bank.

Credit Suisse downgraded Cisco (NASDAQ:CSCO) to "neutral" from "outperform", according to Briefing.com. The news service also reports that Caris initiated CBS (NYSE:CBS) with a "below average", and set an $18 price target.

Clearwire (NASDAQ:CLWR) Started at Outperform at RBC Capital, according to 24/7 Wall St. The financial website also claims that CSX (NYSE:CSX) was raised to Buy from Neutral at Merrill Lynch

MOST NOTEWORTHY: Puget Energy, RC2 Corp and Marvel Entertainment were today's noteworthy upgrades:

• Baird upgraded Puget Energy (NYSE: PSD) to Outperform from Neutral citing valuation on a stand-alone basis and sees additional upside if the merger with Macquarie is approved this fall.
  
• Piper upgraded shares of RC2 Corp (NASDAQ: RCRC) to Buy from Neutral following the Children's Publishing Division acquisition as they view it as a good strategic fit and find RCRC shares attractively valued.
  
• RBC upgraded Marvel Entertainment (NYSE: MVL) shares to Outperform from Sector Perform to reflect the company's visible earnings growth and valuation.

OTHER UPGRADES:

• ASML Holdings (NASDAQ: ASML) was raised to Buy from Neutral at Goldman. The firm also added shares to the Conviction Buy List.
  
• Invitrogen (NASDAQ: IVGN) was upgraded to Overweight from Neutral at JP Morgan.
  
• Citigroup upgraded Clearwire (NASDAQ: CLWR) and Credence (NASDAQ: CMOS) to Hold from Sell.

Despite Sprint Nextel Corp.'s (NYSE: S) share price being down more than 50% in the past year, shares were up 7.5% last week -- up 46.5% in the past montyh -- on all the buzz surrounding Sprint lately. There are rumors that Deutsche Telekom (NYSE: DT) may buyout Sprint and merge it into T Mobile. Then there were rumors that Sprint may spin off Nextel (i.e., undo its troubled merger). And there's the excitment around a joint venture with Clearwire Corp. (NASDAQ: CLWR) to create a high-speed wireless internet network that covers most of the U.S.

But when Sprint reports its first-quarter results tomorrow, analysts polled by Thomson Financial expect the company to report earnings of a mere penny per share, down from the same period in 2007 when it earned 18 cents per share, and from the previous quarter's 21 cents per share. The company has beat quarterly estimates over the past year -- by 17.3% in the fourth quarter -- and it certainly has plenty of room to best analysts' low expectations for this past quarter.

Overland Park, Kansas-based Sprint Nextel operates a nationwide digital wireless network with more than 50 million subscribers. In the past year, Sprint's revenues were $40.1 billion. The company's long-term EPS growth forecast is 8.22%, which is less than the 8.67% of rival Verizon (NYSE: VZ) and the S&P 500. The consensus recommendation of analysts continues to be to hold Sprint.

Shares closed Friday at $9.39, up from a 52-week low of $5.48 in March, but still well off the 52-week high of 23.42 last June.

For news that could influence these results, see BloggingStocks' Sprint coverage.

MOST NOTEWORTHY: Airlines, Chelsea Therapeutics and Clearwire were today's noteworthy downgrades:

• Merrill downgraded AMR Corp (NYSE:AMR), Delta Air Lines (NYSE:DAL), Continental Airlines (NYSE:CAL), US Airways (NYSE:LCC) and UAL Corp (NASDAQ:UAUA) to Neutral from Buy citing earnings risk this year from higher energy costs.
  
• Oppenheimer downgraded shares of Chelsea Therapeutics (NASDAQ:CHTP) to Perform from Outperform after their survey suggested physicians believe currently available generic treatments are adequate in neurogenic orthostatic hypotension, which could impact the company's lead drug Droxidopa.
  
• Clearwire (NASDAQ:CLWR) was cut to Sell from Hold at Citigroup on valuation, as they estimate fair value at $13.

OTHER DOWNGRADES:

• Goldman downgraded Kellogg (NYSE:K) to Neutral from Buy and Hershey Foods (NYSE:HSY) to Sell from Neutral.
  
• Piper lowered Orbitz Worldwide (NYSE:OWW) to Neutral from Buy.

Verizon Communications (NYSE: VZ) shares are falling after competitor Sprint Nextel (NYSE: S) announced it will collaborate with Clearwire (NASDAQ: CLWR) to form a $14.55 billion communications company. The new company will be named Clearwire, and will establish a mobile network based on the emerging WiMAX standard, which VZ has declined to adopt. 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 VZ.

After hitting a one-year high of $46.24 in October, the stock hit a one-year low of $33.00 in March. This morning, VZ opened at $38.47. So far today the stock has hit a low of $38.09 and a high of $38.72. As of 12:10, VZ is trading at $38.67, down $0.22 (-0.6%). The chart for VZlooks bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $42.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in ten weeks as long as VZ is below $42.50 at July expiration. Verizon would have to rise by more than 9% before we would start to lose money. Learn more about this type of trade here.

MAJOR PAPERS:

• The Wall Street Journal reported that an alliance of cable, Internet and chip titans will announce plans to invest $3.2B in a company that will deliver Web access for laptops and cellphones using WiMax. The venture, valued at over $12B, includes Sprint Nextel Corporation (NYSE: S) and Clearwire Corporation (NASDAQ: CLWR) and will be backed by Comcast Corporation (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), Intel Corporation (NASDAQ: INTC) and Google Inc (NASDAQ: GOOG).
• According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry's boom, will leave Wachovia Corporation (NYSE: WB) within the next week, the Wall Street Journal reported.

WEB SITES:

• Bloomberg reported that the Department of Justice is probing whether UBS AG (NYSE: UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was "briefly detained" by authorities.
• Bloomberg also reported that Vallejo, California's city council voted to go into bankruptcy. Officials said that after talks with labor unions failed to win salary concessions from police and fire fighters, the city does not have enough money to pay its bills.
• According to a rumor, TechCrunch reported that the Yahoo Inc (NASDAQ: YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer about re-starting negotiations.

U.S. stock futures were lower early Wednesday as investors, worried about inflation, await data on pending home sales and labor costs. Earnings news in focus this morning comes from tech bellwether Cisco Systems, which gave a cautious outlook, and from Walt Disney, which reported good results.

After that, weekly crude inventories are scheduled to be reported. Crude futures have held up near $122 a barrel despite the dollar advancing against the yen and the euro.

Sprint (NYSE:S) is upi 5% on news that it will form an alliance to build out it WiMax broadband network.

Clearwire (NASDAQ:CLWR) is up over 10% on news that it will be part of the Sprint initiative.

Yahoo! (NASDAQ:YHOO) is down 1.2% on news that Bill Gates says his company will not pursue its takeover bid.

Motorola (NYSE:MOT) is up 1.2% on news that Carl Icahn has raised his stake in the company.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Comcast Corp. (NASDAQ: CMCSA) stock is falling on reports that the company is in talks with Time Warner Cable (NYSE: TWC) to fund a new wireless Internet program. CMCSA would invest up to $1 billion in the project, a nationwide network using WiMax technology that would be operated by Sprint Nextel (NYSE: S) and Clearwire Corp. (NASDAQ: CLWR). Judging by this morning's action, investors do not seem very enthusiastic about the plan. 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 CMCSA.

After hitting a one-year high of $29.41 in July, the stock hit a one-year low of $16.11 in January. This morning, CMCSA opened at $20.07. So far today the stock has hit a low of $19.30 and a high of $20.14. As of 12:15, CMCSA is trading at $19.59, down 0.95 (-4.6%). The chart for CMCSA looks bullish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $22.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in 4 months as long as CMCSA is below $22.50 at July expiration. Comcast would have to rise by more than 15% before we would start to lose money.

Cable companies are at a disadvantage. Their telecom rivals can offer wireless service along with home broadband and TV. This "bundling" helps marketing to customers and keeping them once they sign up.

The big companies in the cable business are aiming to change that. Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) are working on a plan to fund a national WiMax service to be run by startup Clearwire (NASDAQ: CLWR) and Sprint (NYSE: S).

According to The Wall Street Journal, "Under the plan the parties are reviewing, Comcast -- the largest cable operator with 24 million subscribers -- would put as much as $1 billion into the venture, with No. 2 operator Time Warner Cable adding $500 million." Intel (NASDAQ: INTC) and Motorola (NYSE: MOT) have already invested in Clearwire.

The deal may be cable's only way out of a bind that has telecom companies putting fiber in homes to offer a direct competition to cable TV. The fiber also provides for fast broadband.

If the deal goes through, it will usher in an entirely new generation of competition where the consumer may have several more choices for getting wireless voice and data services. With more players, there is usually active price competition. This will be good for customers, but could cut telecom company wireless margins.

Douglas A. McIntyre is an editor at 247wallst..com.