Amazon, Inc. (AMZN) is in the clouds. So are Google, Inc. (GOOG), EMC (EMC) and Cisco (CSCO). Now, Microsoft Corporation (MSFT) is joining them, having announced on Tuesday its new Windows Azure cloud computing system. The new product will be released on January 1, 2010 -- a new solution for a new year.

Azure will deliver an online platform for the software development set to build their own mousetraps and provide plenty of storage space for users. Testing began a year ago, and full live version will be celebrated next year. For the first month, Azure will be free. The charges start in February.

Neither company is saying a thing yet, but word is Cisco Systems (NASDAQ: CSCO) and EMC (NYSE: EMC) are joining up to sell a new collection of products designed to deliver cloud computing capabilities, Reuters reports. Called vBlock, the cloud solution is intended to help the companies compete more effectively with IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ).

The partnership, which no one is admitting to, involves a joint venture between Cisco and EMC that will sell vBlock. The former will supply the networking equipment and servers, with the latter kicking in the storage gear and virtualization technology through its VMWare (NYSE: VMW) subsidiary. The joint venture will put the systems together, integrate the components for clients, and make the whole pile of cables and silicon work. A formal announcement is expected next week.

A lot of earnings reports were issued last week. The market was busy sorting them all out. I'm going to take a fast look at several of the issuing companies.

American Express (NYSE: AXP): Don't leave home without it. Good advice for the card, perhaps, but what about the company? Should your portfolio leave home and forget this stock? I'd say so. It's not that American Express lost the earnings game. On the contrary, Bloomberg reported a beat. American Express earned 44 cents per share from continuing operations, adjusted. This was six pennies ahead of forecasts. Okay, I applaud such performance. And shares are way off the single-digit 52-week low. Thing is, I'm in love with another card business. Visa (NYSE: V). As I've stated before, I enjoy the beauty of Visa's lower-risk model. It doesn't have to put up with loan risk. Yes, the situation at American Express might be improving, but I'm not going to buy this one.

Analyst upgrades:

• JPMorgan upgraded Barrick Gold (NYSE: ABX) and Goldcorp (NYSE: GG) to Overweight from Neutral following its gold valuation analysis. The firm set a $54 price target on Barrick shares and a $47 price target on Goldcorp shares.
• Thomas Weisel upgraded EMC Corp. (NYSE: EMC) to Overweight from Market Weight and raised its target to $24 from $15, citing the company's improving end market demand, competitive position, and valuation.
• Barclays upgraded AMR Corp. (NYSE: AMR) to Overweight from Equal Weight, citing the company's improved liquidity position and what they believe to be the beginning of a multi-year profit cycle for the sector. Despite the upgrade, the firm lowered its target to $14 from $20.
• Harley-Davidson (NYSE: HOG) was upgraded to Outperform from Market Perform at Wells Fargo.
• Toshiba (OTC: TOSBF) was upgraded to Overweight from Neutral at JPMorgan.
• Sanofi-Aventis (NYSE: SNY) was upgraded to Neutral from Sell at UBS.

Analyst upgrades:

• FBR Capital upgraded Ann Taylor (NYSE: ANN) to Outperform from Market Perform to reflect a recovery in the missy sector and the company's product improvement. The firm raised its target on shares to $19 from $13.
• Roth Capital upgraded Marvell Tech (NASDAQ: MRVL) to Buy from Hold based on product cycle strength in wireless and Ethernet, HDD share gains, and a return of PC growth. Target is $22.
• Goldman upgraded Colgate (NYSE: CL) to Buy from Neutral citing valuation and expectations for a pick-up in unit growth. The firm raised its price target to $85 from $83. Note that Goldman downgraded Clorox to Neutral from Buy.
• Cadbury (NYSE: CBY) was upgraded to Neutral from Underweight at HSBC.
• Garmin (NASDAQ: GRMN) was upgraded to Buy from Underperform at BofA/Merrill.
• Qwest (NYSE: Q) was upgraded to Market Weight from Underweight at Thomas Weisel.

Analyst upgrades:

• Citigroup upgraded Kraft Foods (NYSE: KFT) to Buy from Hold as it believes the company's domestic retail business is improving while input cost inflation pressures are beginning to moderate. Citi raised its target on shares to $32 from $28.
• Jefferies upgraded Sybase (NYSE: SY) to Buy from Hold as it believes slowing core IPG licenses in the second half of 2009 are now reflected in guidance. The firm raised its target on shares to $41 from $34.
• Canaccord said Apple's (NASDAQ: AAPL) decision to ad video functionality into the iPod lineup is "very positive" as it expands its market into the low-end camcorder area. The firm, which upgraded shares to Buy from Hold and raised its target to $200 from $150, also views the launch of iPhone 3GS in all countries by the end of Q4 as another catalyst.
• Rio Tinto (NYSE: RTP) was upgraded to Buy from Hold at Societe Generale.
• Renasant Corp. (NASDAQ: RNST) was upgraded to Overweight from Equal Weight at Stephens.
• America Movil (NYSE: AMX) was upgraded to Neutral from Sell at Pali Capital.

To get a valuation juiced up, all it takes is two bidders. And, that's what Data Domain (NASDAQ: DDUP) got. The data deduplication company has been the target of two rival bidders: NetApp (NASDAQ: NTAP) and EMC (NYSE: EMC).

Well, today the wrangling stopped -- with EMC as the victor. The company has agreed to shell out $2.4 billion for Data Domain.

Analyst Upgrades

• Citigroup upgraded Deutsche Bank (NYSE: DB) to Hold from Sell citing reduced legacy risks and strength in the fixed income franchise.
• Janney Montgomery upgraded Fuel Systems (NASDAQ: FSYS) to Buy from Neutral based on valuation, the OEM market in Europe for alternative transportation is growing faster than expected, and the $30M equity raise was smaller than expected.
• Freeport McMoRan (NYSE: FCX) was upgraded to Outperform from Market Perform by FBR Capital. The firm believes that the company will benefit from copper supply issues over the long term, and it thinks the stock has reached an attractive entry point.
• Black & Decker (NYSE: BDK) was upgraded to Neutral from Underperform at Credit Suisse.
• American Tower (NYSE: AMT) was raised to Overweight from Neutral at JPMorgan.
• EMC Corp. (NYSE: EMC) was upgraded at Barclays to Overweight from Equal Weight.

A race has broken out for Data Domain Inc (NASDAQ: DDUP). NetApp Inc. (NASDAQ: NTAP) offered $1.5 billion for the company two weeks ago, and EMC Corp. (NYSE: EMC) decided it had to get in on the action, upping the ante to $1.8 billion yesterday. Data Domain shares gained 16% on the news in late trading yesterday, resulting in EMC's bid carrying a 17% premium.

EMC sees Data Domain as its ticket into the market for software-based storage management, as the target company's products help reduce the amount of disk space needed to store data. With large, high-profile clients like AT&T Inc. (NYSE: T) and the U.S. Defense Department, Data Domain was able to double its top line to $274 million in 2008. It pulled in net income of $21.6 million last year, up from a loss of $3.7 million in 2007.

• Bernstein upgraded Merck (NYSE: MRK) to Outperform from Market Perform and raised its target to $30 from $27 citing valuation and its decision to buy Schering-Plough, at what appears to be a reasonable price.
  
• RBC Capital upgraded Palm (NASDAQ: PALM) to Outperform from Sector Perform and raised its target to $12 from $5 as it believes webOS has increased its chances for Smartphone leadership and will increase its attractiveness as an acquisition target.
  
• RW Baird upgraded Alcatel-Lucent (NYSE: ALU) to Outperform from Neutral on valuation as it believes balance sheet risks are overly discounted in the stock, creating a buying opportunity. The firm has a $3 target on shares.
• Express Scripts (NASDAQ: ESRX) was raised to Buy from Hold at Argus.
  
• France Telecom (NYSE: FTE) was upgraded at Morgan Stanley to Equal Weight from Underweight.
  
• Foster Wheeler (NASDAQ: FWLT) was upgraded to Conviction Buy from Neutral at Goldman.

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

• Amazon.com Inc. (NASDAQ: AMZN) shares surged after earnings easily topped Q4 expectations.
• AT&T Inc. (NYSE: T) reported that its Q4 earnings fell while its revenue rose marginally.
• Boeing Co. (NYSE: BA) posted a big loss and lower revenue due to strikes and design changes.
• Caterpillar Inc. (NYSE: CAT) reported that Q4 profit fell despite higher revenue and lowered its guidance.
• Danaher Corp. (NYSE: DHR) lower Q4 profit topped analysts' estimates, sending shares higher.
• Eastman Kodak Co. (NYSE: EK) reported a Q4 net loss and announced additional job cuts.

For software operator EMC (NYSE: EMC), a key goal was to hit $15 billion in revenues in 2008. Unfortunately, the company missed the mark by about $100 million.

Going into Q3, EMC was on track to hit its goal, but, of course, the economy went into a tailspin in Q4, and EMC couldn't avoid the impact. In the quarter, the company's revenues inched up 5% to $4.02 billion. Net income was $288 million, or $0.14 per share.

Unfortunately, the outlook looks fairly bad for 2009. Based on a variety of surveys, IT spending could drop 10% for the first half of this year.