Tempur-Pedic (TPX - option chain) shares are rising today after the company reported Q4 earnings last night, posting a profit of $46.29 million, or 66 cents per share, on revenue of $292.7 million. Analysts had forecast a profit of 57 cents per share on revenue of $292.3 million. TPX also forecast 2011 earnings of $2.60 to $2.75 per share on sales of $1.23 to $1.28 billion. Analysts are expecting earnings of $2.49 per share on revenue of $1.23 billion. 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 TPX.

Tempur-Pedic (NYSE: TPX - option chain) shares are rising today after competitor Sealy Corp. (NYSE: ZZ) reported a preliminary second-quarter profit margin of 40.1 to 41.1 percent on revenue of $294 million to $301 million, in line with analyst forecasts of $296 million. This should be a good sign for TPX as well. 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 TPX.

TPX opened this morning at $12.04. So far today the stock has hit a low of $12.01 and a high of $13.22. As of 11:35, TPX is trading at $12.65 up 0.86 (7.3%). The chart for TPX looks neutral and S&P gives TPX a neutral 3 STARS (out of 5) hold ranking.

MAJOR PAPERS:

• The Financial Times (subscription required) wrote that Citigroup Inc (NYSE: C) has shaken up its top management structure, giving senior status to executives outside New York in a move to recognize the bank's growth prospects abroad.
• Barron's Online's (subscription required) "Weekday Trader" was positive on Teva Pharmaceutical Industries ADS (NASDAQ: TEVA), writing that despite challenges in 2007, the company could win back its crown.

• The Globe and Mail reported that DaimlerChrysler AG's (NYSE: DCX) Chrysler Group will eliminate 20%, or 2,000, of its 10,000 jobs in Canada.
• According to French paper Les Echoes (in French), Alcatel-Lucent ADS (NYSE: ALU) is expected to announce 12,000-13,000 job cuts, or more than 15% of its work force.
• Technology website CNet.com reported that Microsoft Corporation (NASDAQ: MSFT) will release Windows 6, the latest software for powering mobile phones, on Monday.
• Investor's Business Daily's "New America" column was positive on bed manufacturer Tempur-Pedic International Inc (NYSE: TPX), which makes visco-elastic foam mattresses. The company has been able to stay in front by doubling its R&D and increasing its ad spending.