"Wells Fargo (NYSE: WFC) absolutely surprised Wall Street, which had downbeat expectations for lower earnings," reports Richard Rhodes, trading expert and editor of The Rhodes Report.

"WFC earned $1.75 billion or $0.53/share for the April to June period, which is down just a bit from $2.28 billion or $0.67 per share for the same period last year. Provisions for credit losses were $3 billion, which included increase in reserves for future losses of $1.5 billion.

"But what really surprised the market was that fact that WFE raised their quarterly dividend to $0.34/share per quarter from $0.31, a near +10% increase. In a world where most, if not all, banks are raising capital and slashing dividends - WFC sees fit to stand on the Left Coast and shout that 'all is fine in the water, come on in!'

"This should support the banking community today, which given yesterday's better-than-expected earnings out of First Horizon (NYSE: FHN), has tended to cause a bit of short covering in the banks.

"In our view, this will be a large test for the banking sector. We are interested in how it trades today given the good WFC news - WFC is higher by nearly +10% as we finish up writing, for if they can rally and hold their gains, we are apt to put on an aggressive long position to capture a sharper short covering rally that may cause value managers to 'dip their toe' into the water and become buyers.

"Expectations have been inordinately low; the regional banks are showing there are managing their businesses relatively well."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

CME Group (NYSE: CME) is recently trading at $479, below its close of to $523.50 Monday.

CME reported Q1 EPS $4.67 ex-items versus consensus of $4.81.

Bank of America says: "Core EPS miss likely to pressure stock, Long-term growth story still intact."

CME May option implied volatility of 53 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

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

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

• BJ's Wholesale Club Inc. (NYSE: BJ) beat fourth-quarter estimates on lower costs and strong sales.
• Ciena Corp. (NASDAQ: CIEN) first-quarter profit doubled on strong sales, lifting the sector.
• Clean Harbors Inc. (NASDAQ: CLHB) trounced expectations as it completes acquisitions.
• Del Monte Foods Co. (NYSE: DLM) beat estimates on cost cutting and raised its guidance.
• HSBC Holdings PLC ADS (NYSE: HBC) profit soared in 2007, beating analysts' expectations.
• Intel Corp. (NASDAQ: INTC) lowered its first quarter earnings forecast, citing weak chip prices.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its losses for the fourth quarter and full year.
• LKQ Corp. (NASDAQ: LKQX) beat fourth-quarter estimates and raised its guidance.
• Midway Games Inc. (NYSE: MWY) widened its losses in both the fourth quarter and full year.
• Staples Inc. (NASDAQ: SPLS) reported a solid fourth quarter and increased its annual dividend.
• TiVo Inc. (NASDAQ: TIVO) posted a smaller-than-expected fourth-quarter loss due to licensing deals.
• Trump Entertainment Resorts Inc. (NASDAQ: TRMP) fourth-quarter and full-year losses widened.
• Universal Health Services (NYSE: UHS) beat earnings expectations but matched revenue estimates.

Also, Dell Inc. (NASDAQ: DELL) struggles to maintain profitability against competitor Hewlett-Packard Co. (NYSE: HPQ). See Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. And Zac Bissonnette is interested in where earnings actually come from.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

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

• Astec Industries Inc. (NASDAQ: ASTE) beat expectations and raised its guidance.
• Blockbuster Inc. (NYSE: BBI) fourth-quarter profit fails to offset the full-year loss.
• China Techfaith Wireless Communication Technology (NASDAQ: CNTF) beat analysts' expectations.
• Costco Wholesale Corp. (NASDAQ: COST) met analysts' estimates, buoyed by higher fuel prices.
• FTI Consulting Inc. (NYSE: FCN) beat expectations and raised its full-year guidance.
• H&R Block Inc. (NYSE: HRB) narrowed its loss due to higher sales and smaller subprime losses.
• Jackson Hewitt Tax Service Inc. (NYSE: JTX) missed estimates as third-quarter profits declined sharply.
• LifeCell Corp. (NASDAQ: LIFC) beat fourth-quarter estimates and offered full-year guidance.
• Marvell Technology Group (NASDAQ: MRVL) lowered its first-quarter forecast , sending shares lower.
• Porsche AG (OTC: PSEPF) profit soared on strong sales of its Cayenne.
• S1 Corp. (NASDAQ: SONE) beat expectations and offered full-year guidance.
• Saks Inc. (NYSE: SKS) fourth-quarter profit nearly doubled, but full-year profit declined.
• Urban Outfitters Inc. (NASDAQ:URBN) beat expectations on strength in same-store sales.
• Walgreen Co. (NYSE: WAG) reports strong same-store sales ahead of its quarterly results.

Also, see Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. Zac Bissonnette is interested in where earnings actually come from. And Saks, Costco, and other retailers saw stronger February same-store sales despite recession concerns, but JC Penney Co. (NYSE: JCP) didn't feel the love.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

Tuesday's Applied Materials Inc. (NASDAQ: AMAT) first-quarter results and Qwest Communications International Inc. (NYSE: Q) fourth-quarter results have helped them lead Wednesday's tech gains and telecom gains respectively.

Semiconductor equipment maker Applied Materials said that its fiscal first-quarter profit declined as revenue fell due to the challenging global market for its products. Sales fell 8% to $2.09 billion from $2.28 billion in the same period of 2006. The company earned $262.4 million, or 19 cents per share, down 35% from $403.5 million, or 29 cents per share.

Excluding restructuring costs and other items, adjusted earnings were $345 million, or 25 cents per share. Analysts polled by Thomson Financial had expected a profit of 20 cents per share on sales of $2.01 billion.

Shares of Applied Materials rose Tuesday and Wednesday $3.10, or about 17%, to close at $19.91. Shares have been climbing from the 52-week low of $16.13 in mid January.

Electronics retailer RadioShack Corporation (NYSE: RSH) is on the rebound. The company posted net income of $46.3 million for 3rd Quarter 2007, as opposed to a net loss of $16.3 million in 3Q 2006. Cash generation is up, prepaid wireless system sales are up, GPS system sales are up, gross profit is up, and cash balances are up. On the flip side, better inventory management and a more profitable product mix combined with serious cost control efforts to reduce SG&A expenses by 13%, contributed to the rebound.

Radio Shack managed to post these good numbers despite the fact that total sales fell 9.4% due to large declines in Sprint post-paid wireless systems. CEO Julian Day insists that Radio Shack will continue to focus on both growth and profitability despite continuing problems in post-paid wireless sales. The company is trying to help its bottom line by continuing to repurchase shares, $162 million worth in 3Q 2007 alone, out of $209 million YTD.

Perhaps electronics will be a hot holiday seller this winter, giving Radio Shack a much needed boost. The stock currently trades at $18.21 and will pay a dividend of 25 cents per share.

Kraft Foods Inc. (NYSE: KFT) took its turn reporting earnings today, and it was yet another case of rising commodity costs impacting the bottom line at a food company. Third-quarter profit at the largest food and beverage manufacturer in the U.S. hit $596 million, or 38 cents per share, a 20% drop from year-ago results of $748 million, or 45 cents per share.

Company officials cited rising dairy costs, as well as investments in new products, as the primary reasons for this backslide. Kraft's cost of sales rose 14% while marketing and research expenses were 8% higher. Additionally, the year-ago time period had included a one-time gain of 9 cents per share, further impacting the year-over-year results.

The latest quarter did include various charges of 6 cents per share, some of which was related to asset impairments. Excluding these items, the maker of Nabisco, Oscar Mayer, and Post would have banked 44 cents per share, topping the Street's estimates by two pennies.

Raising price targets on a stock that is already at an all-time high can be a dangerous game. After earnings yesterday, Google (NASDAQ: GOOG) shares did not move up much after hours. Traders are worried that the company is hiring people too fast and that a recession could hurt even the great search company.

But intrepid analysts will not be dissuaded from thinking Google will do even better.

According to a survey by Barron's, several large firms raised price targets. Bernstein has pushed its price target from $625 to $720. Credit Suisse has moved its from $600 to $800. And Goldman Sachs has upped its ante from $620 to $900. Google now trades at about $640.

It would seem unlikely that any news, even the launch of a Google Phone, will push shares much higher if the Q3 earnings do not. But analysts do not want to be left out in the cold if the shares take off again. GOOG is already up 35% in the last month.

The risk is that big Wall Street firms are raising targets and chasing a future that is not there. Google is up against the same cost pressures and recession risks that may trouble many other companies.

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

Nokia Corp. (NYSE: NOK), the world's largest manufacturer of wireless handsets, saw a very admirable rise in Q3 profit levels -- to the tune of 85% growth -- on the backs of increasing awareness and sales in emerging markets. Nokia, which has about 39% share of the global cellphone market at this time, also explained that it expected this level to remain throughout the Q4 period.

Years ago, the word was that Nokia had lost some edge and that Motorola (NYSE: MOT) and South Korean stalwart Samsung Electronics would eat handily into Nokia's market share. That has not happened, as Samsung has still been growing, and Motorola's product lineup has completely stagnated until just recently. Nokia went on the offensive at the end of 2005 with higher-end smartphones, decent mid-level phones and an attack into the entry-level, emerging market and has not looked back since.

Nokia's Q3 net income beat analyst estimates as well, coming in at €1.56 billion ($2.21 billion), or 40 eurocents per share. Nokia executives explained the growth as coming from new, lucrative multimedia handsets in addition to growing sales in emerging markets. One gray cloud over the company for Q3 was from its mobile networks joint venture with Germany's Siemens AG. As what seems always to happen, handset sales are the growth engine, while infrastructure and related equipment take a back seat. In Q3, that seat was at the very rear of the bus for Nokia.

If you're looking for a diversified industrial corporation with strong domestic and international profiles, United Technologies Corp. (NYSE: UTX) could be perfect for you. Its strengths are wide and deep, and this is a company likely to keep growing under any circumstances.

Indeed, today the company released strong second quarter numbers, reporting a 4.1% earnings increase, to $1.15 billion, or $1.16 cents a share. Revenues grew 13% to $13.9 billion.

But, in keeping with my posts about the weather conditions in the West, I'm picking UTX this week because of its Carrier unit, which is a world leader in the air condition, ventilation, and heating sectors, and because of its UTC Fire and Security division, which manufactures and sells fire-fighting equipment as well as fire security products.

Carrier's sales have actually been down a bit of late due to the decline in new construction in the United States, but this has been offset in part by continuing strength abroad. But with the droughts and unbelievably hot weather out West, I believe we'll see an upswing in this division of the corporation for the third quarter. The Fire and Security division, which is also a world leader in its markets, has been stronger than Carrier, with solid if not spectacular growth of 3% in the first quarter of 2007, and it too should see its sales grow as a result of the fires raging through the West this summer.

But even if these two divisions' sales don't bounce as I'm expecting, UTX is still a solid bet for any investor. It's a
strong player in the aerospace industry, which has been very strong due to demand created by ever-increasing airline traffic. UTX is also the owner of Otis Elevators, which has a very strong market share abroad and is enjoying profits from rapidly developing nations like China, where Otis controls 75% of the elevator market.

There are some risks -- the company was negatively affected by a major labor strike in 2006; it has since been settled but it is vulnerable to future actions. UTX also relies on a wide variety of raw materials for its products, which creates a risk of rising commodity prices, and its strong international presence means UTX can be negatively affected by exchange rates. UTX can offset some of this risk with higher prices, but only to a degree, and the first quarter results would have been even better with a stronger dollar.

Type of stock: A diversified industrial and commercial products manufacturer with steady growth and a strong
international presence.

Price target: UTX is trading right up near its 52-week high, thanks to strong forecasts for second-quarter results which have now come to pass. I'd wait for this to drop just a little and grab it if it dips below $70. This is one to hold for the long term.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

Reliance Steel & Aluminum Co. (NYSE: RS) posted record net income for 1Q 2007, almost $112 million, a 55% increase compared to 1Q 2006. Record net income was made possible by record sales for the quarter, $1.84 billion, an 86% increase. No, that's not a typo. Diluted EPS for 1Q 2007 were $1.46, despite a 2-for-1 stock split in July 2006. CEO David Hannah is very pleased to state the obvious: demand for steel and aluminum products remains steady at a high (and profitable) level.

Reliance Steel & Aluminum has grown not just by increased demand, but also through the acquisition of Encore Group of metals in both the U.S. and Canada, Crest Steel Corporation of California, and Industrial Metals and Surplus, and its subsidiary, in Georgia. The company spent $750 million in acquisitions for the quarter and may not be done yet.

Reliance improved its cash flow to $71 million for the quarter, a 72% increase, and reconfigured $600 million in debt. Given its strong earnings lately, the company increased its dividend 33% to $0.08 per share. 2Q 2007 marks the company's 47th consecutive quarter of dividend payouts. FY sales and earnings should continue at current levels. CEO Hannah forecasts that the company's major customers in the aerospace, rail car, and shipbuilding industries, and semiconductor and rail car manufacturing, will continue to grow at moderate rates. Therefore, demand for Reliance's steel and aluminum will continue to be high. FY diluted EPS should be in the $1.45-$1.55 range. The stock closed recently at $61.83, up $1.45 on earnings news.

The dot-com bust may finally be over. Tech company Compuware Corporation (NASDAQ: CPWR) posted 4Q 2007 earnings and FY 2007 earnings, both of which were good. 4Q 2007 revenues totaled $313 million, with net income of $67.5 million. Diluted EPS was $0.21. Revenues break down into just over $73 million for software license fees, $118 million for maintenance fees, and $122 million for service fees.

Compuware has been busy these past several quarters. In 4Q it completed the acquisition of Proxima Technology, and also launched a bundle of software testing services called Compuware Test Factory. It will partner with IT service company Atos Origin to provide outsourced software testing services worldwide. Domestically, Compuware partnered with health care management giant CIGNA (NYSE: CI) to provide the structure for health care information exchange between medical providers and insurance companies. Compuware also introduced applications designed to provide additional security for mainframe data storage. It also expanded the availability of Compuware Unifaec 9.1, designed to work across Web, Windows, Unix, or mainframe platforms.

These initiatives contributed to Compuware's good FY 2007 numbers, the first full-year revenue growth since 2000. FY revenues were $1.2 billion with net income of $158 million, an increase of 10%. FY diluted EPS is $0.45, a 21% increase. FY revenue breakdown is $283.4 million for software license fees, $457.6 million for maintenance fees, and service fees of $472 million. Already more than 90% of Fortune 100 companies use Compuware to increase efficiency, control costs, and improve productivity. The stock recently closed at $11.20, down $0.02.

Apple, Inc. (NASDAQ: AAPL) just crushed their earnings and revenues for what typically is the slow first quarter. Usually the first quarter is met with a yawn. I have written three posts in the last month that this first quarter would be different, and it was. The street was looking for earnings per share of $.63 -- .66 and Apple reported $.87 on revenues of $5.26 billion, 100 million more than estimates.

What tipped me off is Wall Street analysts usually leave big tech names alone during the first quarter and maybe do a quiet, back-of-the -envelope mid-quarter update. Apple just had too much momentum exiting the December 2006 quarter and the outlook was just getting too big. So four firms put out "real" updates and began to hint of better-than-expected first quarter numbers. I have been recommending Apple to my web site Insider Insights Club Members since last September at $66, when the site opened. But I have been on this story for three years plus and recommending the shares to my old institutional clients since $12.

Yahoo! Inc. (NASDAQ: YHOO) shares are down 8%, or $2.59, to $29.50 tonight after the internet company reported lower-than-expected profit of 10 cents a share (versus analysts' expectations of 11 cents). Investors were evidently expecting right along with analysts, as the stock had been up 1.52% as the market waited for Yahoo! to report its first quarter earnings. When they came in, the results of Project Panama weren't having the company-wide impact so many Yahoo! watchers had clearly hoped.

Says Jordan Rohan of RBC Capital Markets, "the company is clearly still in transition." From all I've heard, Yahoo! has been in transition (I like to call it "limbo" or maybe even mild "chaos") for the past few years. When will the transition end? As Jonathan Berr suggests, maybe it won't end until Terry Semel is out -- and, I'd argue, the transition will have another year to go from there.

Or even more. Yahoo! will soon be faced with the DoubleClick problem; the internet company has a close partnership with the advertising firm, and that firm has just agreed to be sold to Google, Inc. (NASDAQ: GOOG). As MarketWatch puts it, this will mean "it'll soon be paying its chief rival for services, and at the same time, giving Google more insight into Yahoo's own business."

I'm not a Yahoo! believer -- I have to wonder if it will ever be done with its "transition."

McDonald's Corp (NYSE: MCD) will be reporting on its fiscal first quarter earnings next Friday the 20. The stock has had a pretty nice run over the last year with shares climbing over 35% since last July. Will this impressive run continue after next week?

If past performance is any indication, there is a strong possibility that McDonald's won't let the market down. It has a great history of meeting or surpassing analyst estimates. The last time that the company was unable to meet estimates was back on January 28, 2005 when it missed by just a penny.

This time around analysts are expecting to see McDonald's report $0.62 per share when it announces its first quarter numbers before the market opens next Friday. For the first quarter last year, the company matched its estimates when it reported $0.49 per share.

There hasn't been a whole lot of news surrounding the fast food giant lately, other than troubles it has run into in China. After being accused of underpaying its employees in the country, China officially cleared the company of any wrongdoing. While it is good news to hear, if you read the fine print of the news release you see that the only reason that the company was cleared is because China does not legally protect the working conditions of working students.

Last week McDonald's announced that it will give unions a bigger presence in its Chinese restaurants, so we can expect to hear a little more on this subject during the conference call next week.