iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.

CBOE Volatility Index (VIX) closed up 1.53 to 19.44.

Option volume leaders today: Apple (AAPL), Citigroup (C), Netflix (NFLX), Kraft (KFT), according to Track Data.

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

Kraft Foods (KFT) didn't exactly report an exciting quarter. Nevertheless, it is the type of stock that many hold for the long term; it doesn't necessarily force one to put a lot of weight on any single three-month period. It's a story of brands, a thesis based on consumers and supermarket shelves. The future cash flows derived from these elements is what drives an investor to buy this company.

There's nothing wrong with keeping tabs on the business, though. According to the Associated Press, Kraft made, on an adjusted basis (the Cadbury purchase was involved in the adjustment process), 46 cents per share in the fourth quarter. This was a penny less than a year ago. The consensus estimate was for net income to come in at 46 cents per share. Yes, management failed to rise above the projection.

This year we've seen sharp price increases in commodities, especially in the weather sensitive agricultural sector. Coffee and sugar are in the spotlight this week.

Processors who buy raw commodities and process them into consumer products are caught is in a price squeeze. On the one hand they must pay more for the raw product and on the other they are up against consumers who are cost conscious.

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

• American International Group Inc. (AIG) said its Q1 earnings doubled, easily topping analysts' expectations.
• Cablevision Systems Corp. (CVC) said Q1 revenue grew, but disappointing earnings dragged down shares.
• Chevron Corp. (CVX) had strong Q1 earnings and boosted its dividend, but Gulf spill concerns weighed on shares.
• CVS Caremark Corp. (CVS) Q1 earnings topped consensus estimates but it also said same-store sales slipped.
• Freddie Mac (FRE) said its lost $8 billion in Q1, less than a year ago, and requested further bailout funds.

Analyst upgrades

• Deutsche Bank upgraded Sonoco Products (SON) to buy from hold after the company reported Q1 results and raised guidance. The firm upped its target for shares to $38 from $32.
• Baird upgraded Western Digital (WDC) to outperform from neutral following the solid Q3 report and guidance. The firm raised its target to $50 from $48.
• Goldman upgraded Qwest (Q) to neutral from sell. Qwest is being acquired by CenturyLink (CTL).
• Hershey (HSY) was upgraded to neutral from underweight at JPMorgan.
• Principal Financial (PFG) was upgraded to neutral from sell at UBS.
• Monster Worldwide (MWW) was upgraded to market perform from underperform at Wells Fargo.

To those taking time off for Good Friday: "May the Force Be with You!" To those working half days, enjoy your time with your families. The U.S. stock markets are closed today and that might be best so that we all can take a breather.

Given that stock markets all around the world were up yesterday, including ours -- again ... April Fool's Day! -- even day traders expressed confidence because they obviously were willing to hold stocks knowing the long weekend left plenty of time for unforeseen bad news to to slam their positions.

The coming week will bring late-season earnings reports from Best Buy Inc. (BBY), ConAgra Foods Inc. (CAG), Oracle Corp. (ORCL) and Walgreen Co. (WAG), all of which are expected to post earnings and revenue growth, according to analysts surveyed by Thomson Reuters. Below is a closer look at a few other companies reporting this week for which expectations are high.

In the three months that ended in January, Williams-Sonoma (WSM) saw strong holiday sales, declared a quarterly dividend, and announced the retirement of its CEO. Analysts expect the San Francisco-based home products retailer to report that fiscal fourth-quarter earnings more than doubled from the same period of last year to $0.74 per share. Revenue for the period is expected to be 6.2% higher to $1.1 billion. For the full year, the forecast calls for earnings of $0.81 per share (+56.8%) on $3.1 billion in revenue (-8.3%). Williams-Sonoma earnings results have been better than expected in recent quarters -- beating consensus estimates by more than 200% in the third quarter.

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

• Apollo Group Inc. (APOL) second quarter EPS guidance fell short of analysts' estimates, sending shares lower.
• CBS Corp. (CBS) higher Q4 earnings were in line with analysts' expectations but free cash flow declined.
• Deere & Co. (DE) posted higher Q1 earnings that easily topped expectations, sending shares sharply higher.
• Gap Inc. (GPS) received a downgrade from an analyst that foresees contracting earnings, returns and margins.
• Hewlett-Packard Co. (HPQ) better-than-expected Q1 results were accompanied by a better-than-expected outlook.

Kraft Foods Inc. (KFT), which is acquiring Cadbury for more than $19 billion, is scheduled to discuss its fourth-quarter financial results in a presentation to the Consumer Analyst Group of New York conference on Tuesday, Feb. 16, at 10:30 AM (ET), by CEO Irene Rosenfeld and CFO Tim McLevish. A live webcast of the presentation can be accessed at the company's website.

During the three months that ended in December, Kraft made investments in Russia, saw new board members and declared a quarterly dividend. Analysts surveyed by Thomson Reuters are looking for earnings for that period of $0.45 per share. That compares with $0.55 per share in the previous quarter and $0.42 per share a year ago. Revenue for the fourth quarter is expected to be 2.8% higher than a year ago to $11.1 billion.

As so often happens at this point in the earnings season, focus begins to shift to the results from retailers. And the world's largest retailer is among those that step into the spot light this week.

Analysts surveyed by Thomson Reuters are looking for Wal-Mart Stores Inc. (WMT), which was aggressively competitive during the holiday shopping season and also recently announced a new global strategy, to report fourth-quarter earnings of $1.12 per share, up from $1.03 per share in the year-ago period. Revenue for the three months that ended in January is expected to have risen 4.9% to $114.5 billion. The full-year forecast calls for earnings of $3.61 per share (+5.3%) on $409.1 billion in revenue (+0.9%). Walmart has not missed earnings estimates in the past five quarters.

Analyst Upgrades

• Jefferies upgraded Netflix (NFLX) to buy from hold and has a $65 target, citing stronger than expected momentum following the Q4 report and guidance. Merriman upgraded Netflix to buy from neutral following the company's better-than-expected Q4 results as it sees upside in shares to the $66 to $75 range. Shares were also upgraded to buy from underperform at BofA/Merrill.
• Citigroup upgraded Rockwell Automation (ROK) to hold from sell following the company's better-than-expected Q1 results and raised FY10 guidance. Citi raised its target on shares to $52 from $35.
• Deutsche Bank upgraded Textainer (TGH) to buy from hold to reflect improved container fundamentals and potential fleet growth. The firm keeps a $19 price target on shares.
• STMicroelectronics (STM) was upgraded to neutral from underweight at Piper Jaffray.
• Caterpillar (CAT) was upgraded to neutral from sell at UBS.
• Apache (APA) was upgraded to outperform from market perform at Wells Fargo.

Kraft Foods (KFT) agreed a deal to buy Cadbury (CBY) for around 11.9 billion pounds ($19.6 billion), creating the world's top confectioner. Kraft had to increase its offer, injecting more cash into the bid to win over the 186-year-old Cadbury, which has finally surrendered its independence and accepted the sweetened offer.

Kraft's offer is 840 pence per Cadbury share, with shareholders also getting a 10 pence special dividend, bringing the offer to a total of 850 pence per share. The new bid has won unanimous recommendation from the Cadbury board. Cadbury shares hit a record high of 838 pence in early trade in London and jumped over 5% to $54.63 in premarket trading.

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

• Activision Blizzard Inc. (NASDAQ: ATVI) said its Q3 profit declined despite the popularity of Guitar Hero.
• Blackboard Inc. (NASDAQ: BBBB) said Q3 revenue surged and its offered impressive cash flow numbers.
• Boston Beer Co. Inc. (NYSE: SAM) easily beat Q3 earnings estimates and raised its full-year guidance.
• Cisco Systems Inc. (NASDAQ: CSCO) lower Q1 results topped estimates and sent shares higher.
• Cognizant Technology Solutions Inc. (NASDAQ: CTSH) was upgraded following its strong Q3 results.
• Corporate Executive Board (NASDAQ: EXBD) received an analyst's upgrade following the Q3 results.

Equity markets ended the third quarter with their biggest losses in four months, and we're now staring down the closing months of 2009. Half the quarter, of course, is dominated by holiday sales, which ups the stakes at the finish line and sets the tone for the bulk of 2010.

Even though company performances have been fairly strong through this reporting season, it's tough to shake the nerves associated with depressed consumer spending and high unemployment.

Kraft Foods (NYSE: KFT) is expected to report Q3 EPS on November 3. KFT's $16.7 billion bid for Cadbury PLC (NYSE: CBY) was rejected by CBY in September. KFT faces a November 9 deadline set by the U.K. Takeover Panel to make a formal offer for CBY. KFT November option implied volatility is at 25, December is at 24; versus its 26-week average of 25, according to Track Data, suggesting non-directional price movement.

iShares Trust FTSE/Xinhua China 25 Fund (NYSE: FXI) is recently up $1.30 to $43 in pre-open trading. FXI is an index fund that seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index. FXI overall option implied volatility of 38 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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