The Energy Department is set to lend money to Ford (NYSE: F), Tesla, and Nissan (NASDAQ: NSANY), according to the Associated Press. The report cites anonymous sources, with the official announcement set for today in Dearborn, Michigan.

Reportedly, Ford has asked to receive $5 billion in loans by 2011, although the sources were not certain on how much money the automaker would receive. Nissan's requested amount was undisclosed and Tesla has reportedly asked for $450 million. The loan program the automakers are trying to tap into was approved by Congress last year in order to help car companies and suppliers develop green vehicles and components (such as the advanced battery) and help automakers meet the new fuel-efficiency standards of 35 miles per gallon by 2020.

Ford (NYSE: F) is the last of the "Big" Three standing on its own two feet. Chrysler and General Motors (OTC: GMGMQ) are on crutches supplied by the federal government. While they're both still upright, those crutches are mighty expensive (the government will own 60% of GM when it emerges from bankruptcy).

Speaking of bankruptcy, Chrysler is already on the other side and now a partner with Fiat. That was perhaps the fastest legal action ever seen. Usually bankruptcy takes between 18 months to two years before a new company emerges.

Honda (NYSE: HMC) closed at $25.90. HMC March 2009 U.S. sales decreased 36% compared to March 2008. HMC April option implied volatility of 51 is below its 26-week average of 62, according to Track Data, suggesting decreasing price movement.

Toyota Motor (NYSE: TM) closed at $67.90.TM March 2009 U.S. sales decreased 39% compared to March 2008. TM April option implied volatility is at 44, May is at 46; below its 26-week average of 57, according to Track Data, suggesting decreasing price movement.

Nissan (NASDAQ: NSANY) closed at $8. NSANY March 2009 U.S. sales decreased 37% compared to March 2008. May option implied volatility of 60 is below its 26-week average of 65, according to Track Data, suggesting decreasing price movement.

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

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

• Abercrombie & Fitch Inc. (NYSE: ANF) beat Q4 earnings estimates handily, sending shares higher.
• Activision Blizzard Inc. (NASDAQ: ATVI) did well in the holiday period but offered weak guidance.
• Barclays (NYSE: BCS) one-time gains offset write-downs and said it expects to resume dividend payments.
• Boeing Co. (NYSE: BA) shares fell after it announced that it had understated its Q4 and fiscal 2008 loss.
• Coca-Cola Co. (NYSE: KO) topped Q4 earnings estimates due in part to volume gain internationally.
• Diageo (NYSE: DEO) earnings rose in the first half, but it cut its full-year forecast.
• GSI Commerce Inc. (NASDAQ: GSIC) "solid" Q4 results led to an analyst downgrade.

Stocks are set for a mixed start as investors keep watching -- and waiting for more details -- the different government plans to bailout the financial market, stimulate the economy and aid homeowners. More here: Before the bell: Stocks set for a mixed start as investors watch government's plans

PepsiCo (NYSE: PEP) -- Can the Coca-Cola (NYSE: KO) rival follow in its competitor's footsteps as it reports earnings today and post results the market is happy with?
Pepsico reported that fourth-quarter profit fell partly on restructuring and impairment charges, but adjusted results were $1.39 billion, or 88 cents per share, inline with analysts' expectations. PEP shares traded nearly 1% higher in premarket trade, despite saying it forecasts pressure from a stronger dollar. PEP shares were some 2.5% higher by 11 am.

Toyota Motor Corp. (NYSE: TM) will freeze wages, cut pay for factory executives, eliminate bonuses for all salaried employees and offer voluntary redundancy to plant workers in North America for the first time as it widens output cuts to adjust for slumping vehicle demand. TM shares traded lower in premarket action. TM shares declined some about 1.9% by 11 am.

For employees of Japan's third largest automaker, Nissan Motor Co. (NASDAQ: NSANY), the news today was grim. Nissan announced it will be eliminating a hefty 8.5% of its workforce, or roughly 20,000 jobs.

The news comes at a time when all automakers are struggling to deal with the global recession that continues to keep car buyers off the showroom floors. Nissan said it expects to report its first annual loss in the past nine years.

For the company's most recent quarter, October through December, Nissan reported a $904 million quarterly loss.

Nissan Motor Co. (NASDAQ: NSANY) reported a $904 million quarterly loss and said it expects this year to be its first annual loss in nine years. Nissan is cutting 20,000 jobs, or 8.5% of its workforce. NSANY shares declined over 6.5% in premarket trade.

Barclays PLC (NYSE: BCS) reported Monday that its net profit for 2008 fell just 1% after several major one-off gains helped compensate for over 8 billion pounds ($11.8 billion) of write-downs. The bank's balance sheet, meanwhile, ballooned 67% to 2.05 trillion pounds. Pretax profit for the year dropped 14% to 6.08 billion pounds, well ahead of analyst estimates. Barclays said it will resume dividend payments in the second half of the year. Shares in Barclays soared over 12% in premarket trade.

General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F), Chrysler and other automakers will report throughout the day December car and truck sales. Overall, sales are expected to decline by 40% with GM sales down 39% and Ford sales down 34% according to Edmunds.com. Chrysler may post a 46% decline in December sales. Also, Nissan Motors (NASDAQ: NSANY) is expected to post a 42% slump, while Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. (NYSE: HMC) are expected to post a 38% decline each. Ford and TM were last traded down 2% in premarket. GM is the only automaker whose stock was trading higher -- over 3% -- by 11:10 am.

Apple Inc. (NASDAQ: AAPL) is expected to unveil new products at Macworld in San Francisco today. While no major breakthroughs or new products are expected to be unveiled -- especially not when compared to the iPhone's unvailing -- there might still be some product improvements and new versions of existing products. The focus though is probably still be the fact that Apple CEO Steve Jobs will not be giving the keynote speech and why that is. [Update: Steve Jobs has sent a letter to the Apple community, explaining he suffers from a hormone imbalance that caused his weight loss. The remedy is simple he says and commits to telling Apple's board if he ever feels he cann't function as CEO.] Following Jobs' announcement AAPL shares gained and were up over 4% by 11:10 am.

Pfizer Inc. (NYSE: PFE) CEO Jeff Kindler said in an interview with the Financial Times that the company is willing to buy a large rival. This may trigger a fresh round of mergers within pharmas and put the sector in focus today.

Nissan Motors (NASDAQ: NSANY - option chain) shares have moved higher today on reports that the company will invest $1.1 billion to make lithium-ion batteries to be used in electric and hybrid cars. This outlay should account for batteries for 200,000 vehicles each year. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on NSANY.

NSANY opened this morning at $7.02. So far today the stock has hit a low of $6.90 and a high of $7.07. As of 12:50, NSANY is trading at $6.96, up 11 cents (1.6%). The chart for NSANY looks neutral and S&P gives NSANY a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a June covered call at the $7.50 level. A covered call is an options position that combines the purchase of stock with the 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 a 22.0% return in just 6 months as long as NSANY is above $7.50 at June expiration. Nissan would have to fall by more than 11% before we would start to lose money. Learn more about this type of trade here.

NSANY has only barely dipped below $6.15, which is this trade's break-even point, in the past year and has shown support around $6.80 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in NSANY.

Honda (NYSE: HMC) closed at $22.40 Thursday. HMC overall option implied volatility of 92 is above its 26-week average of 42 according to Track Data, suggesting larger price movement.

Toyota Motor (NYSE: TM) closed at 67.09 Thursday. TM overall option implied volatility of 70 is above its 26-week average of 39 according to Track Data, suggesting larger price movement.

Tata Motors (NYSE: TTM), an Indian car manufacturer, closed at $4.50 Thursday. TTM overall option implied volatility of 84 is above its 26-week average of 61 according to Track Data, suggesting larger price movement.

Nissan (NSADQ: NSANY) closed at $8.57 Thursday. NSANY overall option implied volatility of 76 is above its 26-week average of 49 according to Track Data, suggesting larger price movement.

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

This is part of a weekly series about the auto industry. Record-high oil prices and a global slowdown have contributed to a crisis in the sector, and this column will highlight some of the interesting stories that emerge as that crisis plays out.

Monthly sales figures for the auto industry are enough to make a grown man cry -- especially if that man works for an American car company.

General Motors (NYSE: GM) saw sales fall a whopping 45% in October compared to October 2007. Potential GM partner Chrysler fell 35%, while Ford (NYSE: F) dropped 30%.

Auto sales were down 32% for all manufacturers. If the current sales rate continues, the industry will sell about 10 million fewer cars this year.

There are a number of interesting details in this month's report. For one thing, it looks like GM is in even worse shape than previously thought. Analysts have frequently stated that GM is burning about $1 billion a month, giving it less than a year until it faces a cash crunch crisis. But the astounding drop in sales at GM suggest that the cash crunch might hit sooner than that -- GM may have just a few months before bankruptcy becomes a very real possibility.

Another interesting detail: the SUV love affair is officially dead. Sales of Chevy Suburbans are down 70% year-over year, Tahoes down 77% and Yukons down 76%. And this despite the fact that gas prices fell dramatically during October.

Nissan Motors (NASDAQ: NSANY) will unveil a stripped-down version of its Versa subcompact vehicle this month at the lowest price ever for a brand-new car in the U.S. market. The new Versa won't come with power windows or air conditioning, but will retail at $9,990 -- just a few bills below ten grand. The cheapest new vehicle currently being sold in the U.S. is the Hyundai Accent.

Nissan's valiant attempt here is geared towards converting used-car buyers into new-car buyers. It's true that a car shopper can buy a decent used vehicle for $10k that will most likely have air conditioning and more interior space (and more engine power). The Mexican-made Versa will go on sale November 18 and will be priced $3,000 less than any currently sold Versa in the U.S.

Alexander Edwards with Strategic Vision asks the question I'm thinking: "Automakers seem to be trying to do two things: bring in vehicles in the lowest price range while also trying to deliver cars with some level of nobility and class and extras ... the question is, how many people are going to choose a vehicle that doesn't have air conditioning?"

That one single feature could be killer to Nissan's attempt here. Folks will buy cars with a complete lack of features -- except air conditioning. But will shoppers look at used cars with more size and convenience, or a brand new car without any features which will depreciate considerably the moment it's driven off the dealer lot? In the good news segment, the $10,000 Versa will see a fuel efficiency figure of 34 miles per gallon on the highway.

U.S. stock futures fell Friday morning, after two days of gains and ahead of some economic data that will likely show further economic distress. The economic releases are: the employment cost index for q3, personal income and spending for September, the Chicago manufacturing PMI and the University of Michigan's consumer confidence for October. Global stocks generally declined Friday as oil again dropped below $65 a barrel to around $63.50. Meanwhile, the Bank of Japan cut its benchmark interest rate to 0.3%, which was less than expected, causing the Nikkei to drop by 5%.

Chevron (NYSE: CVX) is due to report this morning, following Exxon Mobil's (NYSE: XOM) record profit reported Thursday.

Burger King (NYSE: BKC) reported first quarter earnings of 38 cents per share, ex-items, below the consensus of 39 cents. Revenues came in at $674 million, versus the consensus of $667.6 million.

Electronic Arts (NASDAQ: ERTS) shares dropping 14% in after-hours trading after it posted a wider loss and reduced its annual forecast. The game maker also announced layoffs.

Sun Microsystems Inc. (NASDAQ: JAVA) on Thursday reported a $1.68 billion fiscal first-quarter loss due to charges, but sales also fell more than 7% from a year ago. In all, ex-items, the company would have lost $65 million, or 9 cents a share on revenue of $2.99 billion for the quarter. Shares were down 3% in after-hours.

This is part of a weekly series about the car business. The auto industry plays an important role in the global economy, and record-high oil prices and a global slowdown have contributed to a crisis in the sector. This column will highlight some of the interesting stories that emerge as that crisis plays out.

And I thought things looked bad last week (Car Biz: Dark days in Detroit and beyond). The skies do indeed look dark in Detroit and the auto industry as a whole. But now instead of weak sales and slow growth, we are looking at plummeting sales and the very real possibility of bankruptcy and further consolidation throughout the industry.

Yesterday, as Zac Bissonnette noted, General Motors (NYSE: GM) dropped like a stone to a 58-year low. This earlier low point came before the Korean War, when gas cost less than 30 cents a gallon. Looking back, of course, we can see that GM had some great years ahead of it. If only the future looked so bright now.

Today, an S&P analyst quoted on Bloomberg said that the Big Three could face bankruptcy as macroeconomic factors "overwhelm them." This follows yesterday's comment from S&P that debt from GM and Ford Motor Company (NYSE: F) may have to be downgraded again, even deeper into junk status.

GM has replied to S&P's comments, saying that while it does indeed face "unprecedented challenges," it does not consider bankruptcy an option at this time. But then again, what else are they going to say?

U.S. stock futures drifted lower Thursday morning on the heel of another big loss reported by AIG. With reports today that mortgages made in 2007 are going bad at a rapid pace, the blow to the financial system may be even deeper than Wall Street had estimated, and data on June pending home sales could give more information about the recent state of the housing market. Also in focus today will be July same-store sales announced by retailers, which could show a 2.2% gain due to stimulus checks and back-to-school shopping, as well as rate decisions by ECB and BOE. The latter already kept rates the same. Finally, rising oil prices could affect trading as well.

AIG (NYSE: AIG) posted its third straight quarterly loss Wednesday after the close. Analyst believe that this quarter's $5.56 billion recorded loss due to investments related to mortgages could continue in the next few quarters. AIG's results didn't just cause investors to dump the stock, but also caused overall jitters about financials. AIG shares are down over 9% in premarket trading. In Europe, Allianz, Axa, Aegon, three of the biggest insurers, also post lower earnings on asset writedowns.

Toyota Motor Corp. (NYSE: TM) reported a 28% profit fall in the quarter, 39% drop in operating profit. The company said the strong yen and rising costs of materials for the decline in addition to soft conditions in the U.S. all contributed to these results. While it said it plans to offset the declines by launching new vehicle models and stepping up production of popular models, it's unclear how successful that would be in light of softening economic conditions worldwide.

Staying with the auto industry, The Wall Street Journal reported that Chrysler and Nissan Motors (NASDAQ: NSANY) are in talks tabout jointly producing midsize cars, where Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name.