Royal Caribbean Cruises Ltd. (NYSE: RCL) reports Q3 earnings results Tuesday, hence I'll await those results before re-evaluating the stock, but today we'll take a moment to highlight a high-profile addition to its fleet: the Oasis of the Seas -- the world's largest oceanliner.

Five times larger than the SS Titanic -- 225,282 gross tons and 1,181 feet in length versus Titanic's 46,328 gross tons and 830 feet in length -- the $1.5 billion Oasis will perhaps represent the world's largest and elaborate floating city, in terms of creature comforts (U.S. Nimitz-class aircraft carriers can carry more people, but no, the U.S. Navy does not offer as lavish accommodations nor as much per-person space for military personnel).

Analyst upgrades:

• Jefferies upgraded Biogen (NASDAQ: BIIB) to Buy from Hold based on valuation. The firm, which has a $50 target on the stock, believes Tysabri PML cases are reflected in shares.
• Deutsche Bank upgraded Nordstrom (NYSE: JWN) to Buy from Hold as it finds the valuation attractive and believes the company's sales are benefiting from stabilization in California and share gains. Deutsche raised its target on shares to $45 from $36.
• RBC Capital upgraded Yum! Brands (NYSE: YUM) to Outperform from Sector Perform and raised its target to $39 from $36 citing valuation and views it as a low risk option on a global economic recovery.
• Credit Suisse (NYSE: CS) was upgraded to Buy from Hold at Citigroup.
• Royal Caribbean (NYSE: RCL) was upgraded to Outperform from Market Perform at Wells Fargo.
• Alcatel-Lucent (NYSE: ALU) was upgraded to Hold from Sell at RBS.

You can't win them all. The May 14, 2009 Shorts of both Carnival Corp. (NYSE: CCL), at $25.56 and Royal Caribbean Cruises (NYSE: RCL), at $14.45 were Stopped Out.

Each is a major cruise line that's battling domestic and international macroeconomic headwinds, overcapacity, stagnant-to-lower U.S. disposable income for many U.S. employment segments, and the sector's latest concern: the H1N1 virus that has discouraged some citizens from taking vacations in large-gathering, contained surroundings.

Analyst upgrades:

• Wells Fargo transferred coverage of Cooper Industries (NYSE: CBE) with an Outperform rating, upgraded from the previous analysts' Market Perform rating. The firm believes commercial construction will be of less of a headwind for the company than the Street thinks, and has a $38-$41 valuation range on the stock.
• Kaufman Bros. upgraded SuccessFactors (NASDAQ: SFSF) to Buy from Hold after channel checks indicated demand trends picked up in July. The firm raised its target on shares to $15 from $12.
• UBS upgraded eBay (NASDAQ: EBAY) to Buy from Neutral and believes Marketplace transaction growth is "turning the corner." Additionally, the firm believes the secondary market represents a long-term opportunity for the company. The firm raised its target to $28 from $24.
• Novartis (NYSE: NVS) was upgraded to Buy from Hold at Jefferies.
• Arcelor Mittal (NYSE: MT) was upgraded to Buy from Hold at Citigroup.
• Cardinal Health (NYSE: CAH) was upgraded to Buy from Neutral at Goldman.
• Yahoo! (NASDAQ: YHOO) was upgraded to Outperform from Market Perform AMC Monday at Bernstein.

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

• Amgen Inc. (NASDAQ: AMGN) reported strong Q2 earnings thought revenue fell but beat analysts' estimates.
• Colgate-Palmolive Co. (NYSE: CL) beat Q2 earnings estimates but revenue suffered from currency effects.
• Dow Chemical Co. (NYSE: DOW) reported a drop in Q2 revenue and a net loss on restructuring charges.
• Eastman Kodak Co. (NYSE: EK) posted a deeper-than-expected Q2 net loss as sales plunged.
• Exxon Mobil Corp. (NYSE: XOM) reported its lowest quarterly profit in years, well short of expectations.

Analyst upgrades:

• Morgan Keegan upgraded Motorola (NYSE: MOT) to Outperform from Market Perform due to the increased visibility of Android-based launches, as well as the stock's valuation.
• OfficeMax (NYSE: OMX) was upgraded to Buy from Hold by Citigroup, which cited the company's stabilizing sales trend, accelerating share gains, and valuation.
• Kaufman Bros. upgraded iRobot (NASDAQ: IRBT) to Buy from Hold on valuation.
• Cancaccord upgraded Rio Tinto (NYSE: RTP) to Buy from Hold citing the turnaround in the aluminum business and its exposure to copper.
• Wells Fargo upgraded Smith & Nephew (NYSE: SNN) to Market Perform from Underperform.
• BT Group (NYSE: BT) was upgraded to Neutral from Reduce by Nomura.
• Societe Generale raised L'Oreal (OTC: LRLCY) to Buy from Sell.
• Franklin Resources (NYSE: BEN) was upgraded to Buy from Hold by Sandler O'Neill.

Analyst upgrades:

• Goldman upgraded General Electric (NYSE: GE) to Buy from Neutral and raised its target to $15 from $13 citing reports that U.S. House Financial Services Chairman Barney Frank has indicated regulatory reform will not require a separation of GE Capital.
• Syntel (NASDAQ: SYNT) was upgraded to Market Perform from Underperform by Wells Fargo. The firm upgraded the stock following the company's much better than expected Q2 EPS.
• Canaccord upgraded USANA (NASDAQ: USNA) to Outperform from Market Perform citing the strong Q2 report and earnings momentum. The firm has a $40 target on the stock.
• Royal Caribbean (NYSE: RCL) was upgraded to Equal Weight from Underweight at Barclays.
• Equity Residential (NYSE: EQR) was upgraded to Market Perform from Underperform at FBR Capital.
• Tyco Electronics (NYSE: TEL) was upgraded to Buy from Neutral at UBS.
• Yum! Brands (NYSE: YUM) was upgraded to Overweight from Equal Weight at Morgan Stanley.

Royal Caribbean Cruises (NYSE: RCL - option chain) stock is falling today after the company reported a second-quarter loss of $35.1 million, or 16 cents per share, worse than analysts' forecasts of a loss of 13 cents per share. RCL also forecast third-quarter earnings of 95 cents to $1 per share, while analysts are expecting a profit of $1.22 per share. 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 RCL.

This morning, RCL opened at $15.29. So far today the stock has hit a low of $14.50 and a high of $15.38. As of 11:25, RCL is trading at $14.55, down $1.84 (-11.2%). The chart for RCL looks bullish and S&P gives RCL a positive 4 STARS (out of 5) buy ranking.

Some contend that shorting stocks is un-American. Hardly. Selling short provides liquidity to the markets, aids in price discovery, and provides an extra check -- some argue the only check -- against ill-conceived business ideas and incompetent executives.

New York Stock Trader Dave Fischer is a short king, and has made most of his money over the past 15 years shorting stocks. His favorite phrase is, "With those fundamentals, that stock can't hang on for long."

Late Tuesday, Carnival Corporation (NYSE: CCL) reported that it will temporarily cancel all stops in Mexico due to fears surrounding the swine flu. "We have decided to cancel calls at Mexican ports for all current sailings. Additionally, we will cancel calls in Mexico for all voyages departing Thursday, April 30 through Monday, May 4," the cruise line operator said in a statement.

Carnival isn't the only cruise line playing it safe. Sector peer Royal Caribbean Cruises Ltd. (NYSE: RCL) also announced plans to temporarily suspend port calls in Mexico. Currently, the World Health Organization (WHO) has not recommended any travel restrictions to halt the swine flu's spread.

I remember Toronto during SARS. As one of the harder hit areas, it was not a happy place. It was the end of winter, but that miserable, cold winter just didn't want to end. People walked the streets in a gloomy haze, afraid to take the subway and giving dirty looks to anyone brazen enough to cough in public. Worse, I couldn't even visit a friend in the hospital. All things considered though, in global pandemic terms, it was over relatively quickly. Let's hope swine flu will be the same.

In the meantime, let's put on our investors hats and see what's in store for some stocks:

Travel and tourist stocks
This is one of the worst hit areas, especially airlines, as people may cancel their travel plans. For example, AMR Corp. (NYSE: AMR) traded over 9 percent lower an hour after the open. Royal Caribbean Cruises (NYSE: RCL) was down over 15 percent. In fact UBS downgraded these airlines and hotels this morning: AMR, Continental Airlines (NYSE: CAL), Host Hotels and Resorts (NYSE: HST), Lasalle Hotel Properties (NYSE: LHO), Marriott (NYSE: MAR), United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC). Carnival Cruise Lines (NYSE: CCL) also declined considerably. Best to stay away from the sector.

Analyst upgrades:

• Barclays upgraded Spectra Energy (NYSE: SE) to Overweight from Equal Weight. The firm believes Spectra's valuation is attractive and that the dividend is secure.
• Soleil upgraded Sunoco (NYSE: SUN) to Buy from Hold on valuation following the recent pullback and maintains a $45 target on the stock.
  
• Friedman Billings upgraded O'Reilly Automotive (NASDAQ: ORLY) to Outperform from Underperform on valuation and the company's better than expected sales and earnings acceleration. The firm has a $38 target on the stock.
• Royal Caribbean (NYSE: RCL) was removed from Goldman's Conviction Sell List.
  
• Intercontinental Hotels (NYSE: IHG) was raised to Buy from Hold at Jefferies.
  
• Valspar (NYSE: VAL) was lifted to Neutral from Underweight at JP Morgan.

Analyst upgrades:

• Oppenheimer upgraded AmerisourceBergen (NYSE:ABC) to Outperform from Perform on the company's strong branded drug price inflation, potential for greater than expected buybacks, and their belief that prescription volume growth will stabilize after Q1. The firm raised their target to $45 from $36.
  
• Baird upgraded Ecolab (NYSE:ECL) to Outperform from Neutral based on valuation following reaffirmed guidance.
  
• Goldman removed shares of Dollar Tree (NASDAQ:DLTR) from its Conviction Sell List and upgraded it to Neutral from Sell based on valuation.
• Teppco Partners (NYSE:TPP) was upgraded to Outperform from Market Perform at Wachovia.
  
• Barrick Gold (NYSE:ABX) was raised to Buy from Hold at Canaccord.
  
• Coca Cola Femsa (NYSE: KOF)) was upgraded at Morgan Stanley to Overweight from Equal Weight.

Analyst downgrades:

• RBC Capital downgraded Apple (NASDAQ:AAPL) shares to Underperform from Sector Perform and lowered their target to $70 from $125 following the announcement that CEO Steve Jobs is taking a medical leave of absence. The analyst expects shares to be pressured by reduced earnings growth expectations and near-term leadership uncertainty.
  
• Barclays downgraded Motorola (NYSE:MOT) to Equal Weight from Overweight as they do not expect handset recovery for at least 6 to 9 months.
  
• Banc of America/Merrill downgraded Shire (NASDAQ:SHPGY) to Underperform from Buy based on earnings risk from the upcoming generic launch of Adderall XR.
• Royal Caribbean (NYSE:RCL) was added to Goldman's Conviction Sell List.
  
• Starent Networks (NASDAQ:STAR) and Ceragon Networks (NASDAQ:CRNT) were downgraded to Equal Weight from Overweight at Barclays.
  
• Casella Waste (NASDAQ:CWST) was lowered at JP Morgan to Neutral from Overweight.

Analyst initiations:

• Citigroup initiated Cliffs Natural (NYSE:CLF) with a Buy rating and $43 target. The firm believes the company's multi-tier North American contract sales arrangements should allow it weather the volatility in the spot and seaborne markets and the firm expects volumes to improve in Q2.
  
• ING started Arcelor Mittal (NYSE:MT) with a Sell rating and believes the economic slowdown will have a greater than expected impact on the steel industry.
  
• Friedman Billings believes weakness in M&T Bank's (NYSE:MTB) regional economy could hinder the company's growth prospects and the firm is concerned about the bank's concentration in commercial and industrial loans. The firm has an Underperform rating and $30 target on the stock.
• S&T Bancorp (NASDAQ:STBA) was initiated with a Market Perform rating at Keefe Bruyette.
  
• RBC Capital initiated Norfolk Southern (NYSE:NSC) with a Sector Perform rating and $61 target.

Famous cruise line entity Carnival Corp. (NYSE: CCL), which competes with Royal Caribbean (NYSE: RCL) and The Walt Disney Company's (NYSE: DIS) vacation voyages, reported earnings for the third quarter on Thursday. The company held up well during the summer months. Revenues increased 11% to $4.8 billion. Earnings per diluted share did decrease slightly from a year ago, dropping two pennies to $1.65. But management reported that the number was better than expected because of lower costs and the positive effect of an insurance recovery. As far as Wall Street estimates were concerned, the bottom line beat by a wide margin. This item says that Carnival bested estimates by $0.07.

Another cool thing is that Carnival narrowed its fiscal-year guidance in a most positive way. Before, the company expected that it would book earnings somewhere between $2.70 and $2.80 per share. Well, now management thinks it'll do between $2.79 and $2.81. That shows confidence in the business, and it looks like the market is pretty happy with the results. Taking a look at the stock at the time of this writing, I see that is up almost 3%, and that volume is decent so far.

I personally would not buy Carnival at this time, however, even though there are some sound elements to this story. It does sport a very good dividend yield of 4%, but it's not close to the 52-week low, and one could argue that the upgraded guidance is confirmation that the stock could be a buy. Still, the market is volatile, the economy is questionable, and energy prices remain a concern. Plus, the earnings release did note some weakness in occupancy levels for advance bookings. I'd be fearful of looking at Carnival before a pullback brings the stock in a little. Long term, though, I do think the company will prosper, since I think it is a great brand in the leisure business.

Disclosure: I own Disney; positions can change at any time.

Carnival Corp. (NYSE: CCL), a provider of cruise vacations and competitor of Royal Caribbean (NYSE: RCL), issued its Q2 earnings numbers on Thursday. Revenues rose more than 16% to $3.4 billion. Net earnings were 49 cents a share. That wasn't too impressive, considering that it was a penny better than the previous year's quarter. However, according to Briefing.com, Carnival killed the earnings expectations of analysts by 8 cents. Net sales were also higher than what Wall Street's expectations.

This performance sent the stock up more than 5%. I think investors need to be a little careful here because Carnival's management has become cautious about the next quarter because of energy costs. The company expects earning of $1.56 to $1.58 per share in Q3. Last year's Q3 saw bottom-line income of $1.67 per share. So, growth will not be found in next quarter's report.

Yet, again, the market didn't seem to mind, as it was high off the expectations-beating data. Is Carnival, therefore, a buy? Well, I don't think it's overly expensive considering the P/E ratio and the yield attached to the stock. But the direction of oil prices has me concerned. Not only will that increase costs for Carnival, but it will compete with the discretionary dollars of potential vacationers. I see the valuation case, but the current state of the market makes me reluctant to pull the trigger on this stock. Some would argue that all this is baked into the shares since they did so well yesterday, but I'm not convinced.

Disclosure: I don't own any company mentioned here; positions can change at any time.