Analyst upgrades:

• Deutsche Bank upgraded Vale SA (NYSE: VALE) to Buy from Hold on expectations the company will benefit from higher realized prices. The firm raised its target on shares to $30 from $23.
• Soleil upgraded Education Management (NASDAQ: EDMC) to Buy from Gradually Accumulate following the company's Q1 results and raised its target on shares to $34 from $32.
• Credit Suisse upgraded Medtronic (NYSE: MDT) to Outperform from Neutral. The firm also added the stock to its Focus List and raised its target on shares to $49 from $41. Credit Suisse believes Medtronic's base business is stabilizing and the stock's risk/reward is compelling.
• Medivation (NASDAQ: MDVN) was upgraded to Buy from Hold at Roth Capital.
• Martha Stewart (NYSE: MSO) was upgraded to Buy from Hold at Morgan Joseph.
• Dominion Resources (NYSE: D) was upgraded to Hold from Underperform at Jefferies.

Every year I find myself asking the same question: What to get dad for Father's Day. Well, Kiplinger's offers not to get our dads the same old presents -- another tie, another power tool -- but stocks in companies he probably likes or uses their products. That's a great idea, I thought, and decided to counter with five of my own.

• Kiplinger's suggests: Diageo (NYSE: DEO), the seller of such brands as Johnnie Walker, Smirnoff, Guinness and José Cuervo. Diageo has held up better than most during the recession -- thanks to a balanced portfolio of products, with higher exposure to mid-price, mainstream brands and less exposure to ultra-premium brands. The shares look reasonably priced. At $56.01, Diageo trades at 15 times estimated June 2009 earnings of $3.82 a share. The stock yields 2.8%.

• Another to consider: Molson Coors (NYSE: TAP), the seller of such brands as Coors, Blue Moon, Pilsner and Rickard's. Beer, probably even more so than hard liquor is supposed to hold better during a recession given the cheaper price point. The company's recent quarterly profits more than doubled. The shares trade at 13 times forward earnings of $3.33 and yield 2.2%.

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

• Alcatel-Lucent (NYSE: ALU) shares rose even though it reported a wider loss for the quarter.
• American Express Co. (NYSE: AXP) posted better-than-expected Q1 results but warned of challenges.
• Blackstone Group (NYSE: BX) reported a net loss and slumping revenues for the first quarter.
• Center Financial Corp. (NASDAQ: CLFC) was downgraded following its Q1 earnings report.
• Cisco Systems Inc. (NASDAQ: CSCO) posted lower Q3 earnings that still topped analysts estimates.

Although commodity cost pressures continued, Molson Coors Brewing Company (NYSE: TAP) saw its quarterly earnings climb 51% compared to a year ago. Net income excluding special items rose 46% to $216.4 million, far better than the pro forma profit of $136.6 million a year ago.

According to the brewery, five of its six focus brands saw sales to retailers increase. The lone declining brand was Miller Lite, which decreased in the mid-single digits. Coors Light saw its sales to retailers increase in the low single digits, Keystone Light saw a double-digit increase, Miller High Life saw a mid-single-digit increase, and (my wife's favorite beer) Blue Moon helped drive TAP's craft and import portfolio higher. Miller Genuine Draft saw sales to retailers increase after a decade of drops thanks to growth from MGD 64. TAP's total sales increased 3% thanks to pricing strength that offset a 2% drop in volumes. TAP expects to achieve $238 million in synergies by the end of 2009, which is higher than its original forecast of $225 million.

"Molson Coors Brewing Company (NYSE:TAP) is a way to drink your way to profits," jests Jonas Elmerraji. In The Rhino Report, the advisor suggests that the brewer is well-positioned to benefit as consumer scale down from more expensive beer brands. Here's his review.

"The stock price of TAP has slid in price in recent months, largely the result of underwhelming Wall Street in its latest earnings release a month ago.

"The company posted earnings of $96.8 million, or $0.44 per share, missing analyst estimates by 30 cents per share. But digging deeper reveals a quarter that wasn't quite as bad as Wall Street made it out to be.

Analyst upgrades:

• Jefferies upgraded Home Depot (NYSE: HD) to Buy from Hold as they expect significant multiple expansion as earnings revisions start to bottom out and the market starts to factor in a recovery. The firm raised its price target to $24 from $18-$20.
  
• Goldman upgraded HSBC (NYSE: HBC) to Neutral from Sell and removed the stock from their Asia Pacific Sell List given the company's plans to stop making new loans at its U.S. unit.
  
• Deutsche Bank upgraded Ensco International (NYSE: ESV) to Hold from Sell on valuation as it believes weakening shallow water demand is priced into shares at current levels. The firm raised its target price to $32 from $30.
• Liberty Global (NASDAQ: LBTYA) was raised to Equal Weight from Underweight at Morgan Stanley.
  
• UnitedHealth (NYSE: UNH) was lifted to Outperform from Market Perform at Bernstein.

Analyst upgrades:

• Deutsche Bank upgraded shares of Camden Property (NYSE: CPT) to Hold from Sell on valuation and believes the company has improved its liquidity position. Despite the upgrade, the firm lowered its target price to $21 from $25.
  
• Goldman added Best Buy (NYSE: BBY) to its Conviction Buy List as it is now the sole dominant retailer in consumer electronics and expects Best Buy's margins to benefit from Circuit City's demise.
  
• Molson Coors (NYSE: TAP) was upgraded to Overweight from Neutral at JP Morgan as it finds the valuation attractive and sees a number of long-term fundamental positive catalysts. The firm has a $47.50 target on shares.
• United Rentals (NYSE: URI) and Illinois Tool Works (NYSE: ITW) were upgraded to Buy from Neutral at UBS.
  
• ProLogis (NYSE: PLD) was upgraded to Buy from Neutral at Banc of America/Merrill.

Analyst downgrades:

• Oppenheimer downgraded Global Traffic Network (NASDAQ: GNET) to Perform from Outperform following the company's weaker than expected Q2 results and lowered its target price to $6.25 from $7.
  
• Friedman Billings downgraded BankAtlantic (NYSE: BBX) to Underperform from Market Perform to reflect the deterioration of both the company's credit and capital in Q4. The firm lowered its target price to $1 from $5.
  
• RBC Capital downgraded AbitibiBowater (NYSE: ABH) to Underperform from Sector Perform and lowered its target to 50 cents from $2.00 following the company's debt refinancing announcement.
• Lions Gate (NYSE: LGF) was cut to Market Weight from Overweight at Thomas Weisel.
  
• Ctrip.com (NASDAQ: CTRP) was downgraded at Goldman to Sell from Neutral.
  
• Molson Coors (NYSE: TAP) was downgraded to Neutral from Buy at Banc of America/Merrill.

Analyst initiations:

• Oppenheimer initiated Chattem (NASDAQ: CHTT) with an Outperform rating and believes the company's business model is well suited for the current uncertain consumer environment. The firm has an $80 target on the stock.
• Freeport McMoRan (NYSE: FCX) was initiated at BMO Capital with a Market Perform rating and $30 target.
  
• Anglo American (NASDAQ: AAUK) was assumed with a Sell rating at Societe Generale.
  
• Yamana Gold (NYSE: AUY) was started at UBS with a Buy rating.

It's about that time again: Pepsi vs. Coke. No, not another taste test or another Battle of the Brands. It's time for the next quarterly results from these two soft drink titans.

Analysts surveyed by Thomson Reuters anticipate that PepsiCo Inc. (NYSE: PEP), global beverage and snack food giant, will report fourth-quarter earnings this week that are 9.1% higher that a year ago, or $0.88 per share. Revenue is expected to total $12.8 billion, which is 3.9% higher than last year. For the full year, the profit is expected to be $3.67 per share on revenue of $43.4 billion, up from $3.38 per share on $39.5 billion in 2007. PepsiCo's earnings met or beat estimates in four of the past five quarters, but missed by only two cents per share in the third quarter. The consensus recommendation of analysts remains to buy PEP. The share price fell to a 52-week low in January and is now 24.4% lower than it was a year ago. During the fourth quarter, PepsiCo declared a $0.42 per share quarterly dividend, agreed to acquire a Spitz International, and announced investments in China and Mexico.

Coca-Cola (NYSE: KO) closed at $43.29. KO is scheduled to report Q4 EPS on February 12. KO February option implied volatility of 36 is near its 26-week average of 34, according to Track Data, suggesting non-directional price movement.

PepsiCo (NYSE: PEP) closed at $50.44. PEP is scheduled to report Q4 EPS in early February. PEP February option implied volatility of 35 is near its 26-week average of 33, according to Track Data, suggesting non-directional price movement.

Hansen Natural (NASDAQ: HANS) closed at $33.33. HANS is expected to report Q4 EPS in late February. HANS February option implied volatility is at 61, March is at 67; below its 26-week average of 72, according to Track Data, suggesting less price movement.

Molson Coors (NYSE: TAP) closed at $42.93. TAP is scheduled to report Q4 EPS on February 10. February option implied volatility of 42 is near its 26-week average of 39, according to Track Data, suggesting non-directional price movement.

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

TheStreet.com's Jim Cramer says until they begin buying again, these stocks are in for a lot of pain.

It's China, stupid. We have to stop kidding ourselves that the only reason commodity plays are going down is because of selling by hedge funds. Sure, it's exacerbating and speeding it up and taking it to levels where it may not even matter whether China exists, but it is all China, or more specifically, the absence of China.

Take steel. An article in the Financial Times about steel consumption last week stated point-blank that it is going to slow "markedly" in the second half of this year. When you combining tight central banks in Europe -- totally as ridiculous as the tight money in the U.S. while it was obvious what was going to happen -- with China missing from the steel market, you get U.S. Steel (NYSE: X) (Cramer's Take) down into the $80s pretty fast, because you get an inventory buildup quickly, and that leads to an endless series of price cuts as the world was going full-tilt not that long ago. U.S. Steel benefits because at least it didn't lock in sky-high iron ore prices --sell that Cleveland-Cliffs (NYSE: CLF) (Cramer's Take) if you are still in -- but still how do you value a company that could have its earnings cut in half? That's how steel trades.

U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude falling below $120 a barrel on demand concerns due to the economic slowdown in the U.S. Commodities in general have been declining. Also today, the Federal Reserve will announce its decision regarding interest rates and it is widely expected they will remain unchanged. Similarly, the Fed's outlook statement about outlook and focus may also remain largely the same according to expectations. Meanwhile, overseas, both the ECB and BoE are expected to leave rates unchanged.

One of Yahoo! Inc. (NASDAQ: YHOO)'s largest shareholders, Capital Research Global Investors, had asked to review the vote in last week's re-election of the Internet giant's board. Specifically, I guess, it was surprising the vote showed strong support -- 85% -- for CEO Jerry Yang. There's no sense dancing around this issue; basically the shareholder implies suspicions of wrongdoings (or really really incompetent tallying of votes).

Bloomberg reports that analysts now expect Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record. The the biggest U.S. mortgage-finance companies report tomorrow and according to estimates will show a loss of 74 cents and 60 cents per share respectively. The losses may be greater than expected as we've seen before analysts underestimating the credit losses. It will not be pretty.

With a turn of the calendar page, we drift into the middle portion of the current quarter, but the earnings season rolls on. Among the many companies scheduled to report quarterly results this coming week are Time Warner Inc. (NYSE: TWX), Cisco Systems Inc. (NASDAQ: CSCO), News Corp. (NYSE: NWS), and Whole Foods Market International (NASDAQ: WFMI). Let's take a look at which companies Wall Street analysts are expecting to be among the top earnings gainers and decliners this week.

Analysts surveyed by Thomson Financial expect the following to report strong earnings growth when compared to the same period of the previous year.

• DRS Technologies Inc. (NYSE: DRS): $0.85 EPS (+95.3%) on revenue of $823.8 million (+12.0%)
• Integrys Energy Group Inc. (NYSE: TEG): $0.40 EPS (+70.0%) on revenue of $2.6 billion (+9.7%)
• Cimarex Energy Co. (NYSE: XEC): $2.53 EPS (+64.4%) on revenue of $599.9 million (+75.4%)
• Forest Oil Corp. (NYSE: FST): $1.51 EPS (+55.6%) on revenue of $456.1 million (+79.1%)
• Devon Energy Corp. (NYSE: DVN): $3.28 EPS (+48.5%) on revenue of $4.1 billion (+38.5%)
• CMS Energy Corp. (NYSE: CMS): $0.13 EPS (+46.2%) on revenue of $1.4 billion (+6.7%)
• Transocean Inc. (NYSE: RIG): $3.23 EPS (+43.0%) on revenue of $3.1 billion (+112.9%)
• Sara Lee Corp. (NYSE: SLE): $0.26 EPS (+38.5%) on revenue of $3.5 billion (+8.9%)
• Williams Companies Inc. (NYSE: WMB): $0.69 EPS (+37.7%) on revenue of $3.4 billion (+20.0%)
• Harris Corp. (NYSE: HRS): $0.99 EPS (+28.3%) on revenue of $1.4 billion (+18.0%)

Analyst upgrades:

• Baird upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Outperform from Neutral following strong Q2 results as they expect comps momentum, operating leverage, and potentially favorable chicken wing costs to support healthy trends in 2H08.
  
• RBC Capital upgraded Myriad Genetics (NASDAQ: MYGN) to Outperform from Sector Perform citing solid core molecular diagnostics growth and increased confidence that the spin-out will generate better shareholder value.

Analyst downgrades:

• Citigroup downgraded shares of Wyeth (NYSE: WYE) to Sell from Hold following the disappointing bapineuzumab data and lowered their target to $39 from $49.
• Molson Coors (NYSE: TAP) was downgraded to Neutral from Overweight at JP Morgan.
  
• UBS lowered Affymetrix (NASDAQ: AFFX) and Sepracor (NASDAQ: SEPR) to Neutral from Buy.
  
• Sony (NYSE: SNE) was downgraded to Underweight from Neutral at HSBC.

Analyst initiations:

• Citigroup initiated Intercontinental Exchange (NYSE: ICE) with a Hold rating and $112 target. The firm believes regulatory concerns and a potential deceleration in energy trading volumes could limit upside in the stock near-term.
  
• Banc of America assumed Walgreen Co. (NYSE: WAG) with a Buy rating and $38 target and believes fewer new pharmacies openings removes an impediment to higher ROIC.

The board of Anheuser-Busch Cos. (NYSE: BUD) has unanimously rejected InBev NV's $46.35 billion takeover bid, calling it "financially inadequate." So now, will we have a hostile takeover fight?

So far, we had InBev putting in the offer and Anheuser-Busch taking its sweet time to reply while trying to thwart the offer by talking to Groupo Modelo. If Anheuser can manage to buy the remaining 50% of Modelo, it would be too big for InBev to swallow. Thursday, though, Anheuser finally replied. Unanimously, no less. I wonder if somewhere around that boardroom full of directors, one at least represented the interests of BUD's second largest shareholder, Warren Buffett's Berkwhire Hathway (NYSE: BRK.A).

In response, InBev said it might ask Anheuser shareholders to unseat the whole board. InBev filed suit "seeking a judgment to confirm that shareholders acting by written consent could remove all of Anheuser's directors without cause." I'd say they might even have cause. The $65 per share offer represented a 35% premium at the time. What's so "financially inadequate" about that?

Well, as Anheuser Chairman Patrick Stokes said, the offer undervalues the Bud Light and Budweiser brands, which he calls iconic. Whatever he calls them, they are the top two selling beer brands in the world. He also said InBev undervalues BUD's growth prospects. Well, if Anheuser could restructure on its own, it should have done so by now and not wait until it was up against the wall with its shareholders. The plans it has and wants to put in place will take a while to bear fruits no doubt.

As InBev has stated, it'd rather take over BUD under friendly terms (a bit of an oxymoron there, but that's the business world). Otherwise, it could either take the tender offer directly to shareholders or get into a fight similar to that Icahn has on his hands with Yahoo! Inc. (NASDAQ: YHOO)'s board, which may not be pretty. Replacing a whole board for a new slate can, and will, get ugly. Or it can do both.

If InBev decides to play nice after all, it may have to raise its bid. Maybe they should all chill and drink a Molson (NYSE: TAP). Things will look better after a few...

When I heard that the CEO of Miller Brewing Co. said Thursday he sees a trend of consumers buying cheaper beers, I was wondering whether consumers might also be switching not just from more expensive beers to cheaper ones, but from more expensive alcoholic drinks to beer, which tends to be cheaper.

Unfortunately for Miller, for which its parent SABMiller PLC reported earnings Thursday, so far the increase in sales of more economic beers has been at the expense of the more expensive ones. So my theory isn't much of one after all. I guess that food and gas still have a higher priority than beer, and we all know how much the price of these have risen lately.