Last week's sleeping bull market was brought back to a woken bull market. Despite warnings from Nouriel Roubini that things were up too much too fast, the services sector actually came in above the expansion line after 11 straight months of contraction. This caused most of the excitement for the day.

Here were today's unofficial closing bell levels:

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TheStreet.com's Jim Cramer says the bizarre rules these days make it worth looking at stocks through a different lens.

How much should we care about low-dollar speculation? How much should we care about the incessant trading in CIT (NYSE: CIT) (Cramer's Take) and Fannie Mae (NYSE: FNM) (Cramer's Take), Alcatel-Lucent (NYSE: ALU) (Cramer's Take), or Vonage (NYSE: VG) (Cramer's Take) and Sprint (NYSE: S) (Cramer's Take)? Or even Citigroup (NYSE: C) (Cramer's Take)?

First, I have to tell you that I worry about it less than I used to. Why? Because when we used to have rules and government officials that were willing to speak the truth about stocks, we wouldn't have these single-digit players out there every day. But without it, how in heck can people not believe that Fannie and Freddie Mac (NYSE: FRE) (Cramer's Take) are the biggest and best bets on a turn in housing?

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.

U.S. stocks were set for a lower open Thursday morning as futures declined ahead of the release of January retail sales and weekly employment statistics. Read more: Before the bell: Stocks set for lower open ahead of retail sales numbers

Rio Tinto (NYSE: RTP) will get a much needed $19.5 billion investment from Aluminum Corp. of China, or Chinalco, one of the world's biggest aluminum producers. This would help debt-laden RTP pay some of its debts. As part of the deal, Chinalco agreed to invest $12.3 billion in joint ventures in aluminum, copper and iron ore mining.

Alcoa (NYSE: AA) also sold its stake in Rio Tinto to Chinalco for $1 billion, well above its $300 million current value. Mind you, RTP shares declined 67% since the acquisition was made.

For the first time in a long time, the future at Vonage (NYSE: VG) is brightening. According to The Wall Street Journal, "Vonage said Thursday that it had entered into a commitment letter with hedge fund Silver Point Finance LLC for as much as $215 million in financing." The company is about to bring in a new CEO to replace founder Jeffrey Citron.

The new money will allow Vonage to pay down a significant part of its debt.

A better balance sheet does not necessarily make for a better operating business, but it does buy the company time to prove that there is room in the market for an independent VoIP company. Fortunately for Vonage, there probably is.

While cable companies now dominate the voice-over-IP market because they can deliver the product as part of their broadband and TV offering, not all customers want their eggs in one basket. Cable companies often score low on customer satisfaction surveys. Vonage can use this to its advantage.

By positioning itself as the better service alternative, Vonage has a reasonable chance to build a decent business. Over time, that should get the stock up from $1.59.

Douglas A. McIntyre is an editor at 247wallst.com.

Vonage (NYSE: VG) must has 100 people in its general counsel's office. The company only has 1,600 people.

The comment may be fanciful, but the Vonage patent problems are not. Nortel (NYSE: NT) has now become one of a long list of companies to sue the VoIP company, which went public at $17. Vonage shares now trade for $2.

The Wall Street Journal writes (subscription required) that "the patents relate to technology that forms the basis of Internet-based voice service, as well as features such as 911 and 411 calling and click to call, according to Nortel spokesman Mohammed Nakhooda."

Investors in Vonage had hoped that the company's intellectual property problems were behind it. The company has already lost legal actions to several large U.S. telecom companies, including Verizon (NYSE: VZ).

And, Nortel needs to be careful. The Canadian company may be better off with a quick settlement than with a lengthy lawsuit. Vonage is already crippled by lost legal battles and negative cash-flow. On its last balance sheet, the company had $350 million in cash and investments and $275 million in long-term.debt. Payables were $332 million.

Nortel could win the suit and end up with nothing to show for it.

Douglas A. McIntyre is an editor at 247wallst.com.

The Vonage (NYSE: VG) saga continues. Douglas McIntyre reported recently of a "sucker rally" in Vonage stock as Vonage tried to fight off a patent lawsuit brought against the company by Verizon (NYSE: VZ). Friday brought with it a refusal of an appeal made by Vonage and slapped the voice-over-IP telephony firm with a $120 million lawsuit.

Legal costs have hurt Vonage and may increase its risk of bankruptcy. The company said that it may not have enough money to pay $253.5 million in debt due as early as December 2008.

The firm had a first-move advantage and created an innovative service. Unfortunately, the legal issues and commoditization of voice-over-IP technology has severely hampered the prospects for the young company. I would expect the company and its customer-base would not be a standalone business a year or two from now.

Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC., the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds no positions in the stocks mentioned above.

Morgan Stanley (NYSE: MS) joined a growing list of financial companies in booking losses on subprime mortgage- related assets and said the outlook for credit markets is bleaker than in September. Morgan Stanley said it lost $3.7 billion in the two months through Oct. 31. After dropping over 6% yesterday, MS shares are gaining over 4% in premarket trading.

Ford Motor Co. (NYSE: F) shares are gaining around 5% in premarket action. The second-biggest U.S. automaker reported a third-quarter loss that narrowed to $380 million after it managed to lower costs through plant closings and job cuts. Excluding one-time costs, the company lost $24 million, or 1 cent a share, beating analysts expectations of a loss of 47 cents, according to Bloomberg.

Luxury home builder Toll Brothers (NYSE: TOL) issued preliminary fourth-quarter results this mornings, showing a sharp drop in the number of new homes sold. As buyers canceled orders for more expensive homes, Toll also saw a deep plunge in the average price of the home it was able to sell.

The earnings season crunch continues next week, and among companies reporting are Verizon Communications Inc. (NYSE: VZ) and Viacom Inc. (NYSE: VIA).

When it reported second quarter results back in July, Verizon's earnings were 58 cents per share, in line with Wall Street estimates, but six cents less than in the same period of the previous year. It was the first time since the second quarter of 2005 that Verizon failed to beat expectations. For the current quarter, analysts surveyed by Thomson Financial are expecting 62 cents per share, which is six cents less than a year ago.

The consensus recommendation on Verizon has shifted from buy to hold, though 12 of 31 analysts still consider it a buy or strong buy. Verizon's share price has climbed this past quarter to a five-year high of $46.24 recently, but closed Friday at $45.60.

For more on the Vonage (NYSE: VG) settlement and other telco news that could influence Verizon's results, check out BloggingStocks' Verizon coverage.

Vonage (NYSE: VG) settled its big patent dispute with Verizon (NYSE: VZ). After hours yesterday, shares in the VoIP pioneer were up over 70% to $2.61.

According to The Wall Street Journal, "Vonage agreed to pay Verizon either $80 million or $117.5 million, depending on the outcome of a decision by the U.S. Court of Appeals for the Federal Circuit." The company has settled a suit with Sprint (NYSE: S) and has another legal fit pending over patent matters with AT&T (NYSE: T).

The rally in the stock misses the point that Vonage is still losing a lot of money and its cash balance drops with each settlement. At the end of the June quarter, the company had $275 million. But, operational deficits and settlements have probably cut that considerably. Vonage had an operating loss of $33 million during that quarter.

The market is also moving away from Vonage. Fiber products from the large telecom companies are encouraging customers to stick with them by offering the "triple play" of TV, voice, and broadband. Cable stock prices have been pulled down sharply by the ability of old line phone companies to offer competing service. So Vonage may no longer have an easy leg up in taking customers from traditional land-line users.

Vonage is facing the classic problem of the small innovator. The market has been able to copy its services and bleed off its cash. The company may not be around in a year.

Douglas A. McIntyre is an editor at 247wallst.com.

Main market news here: Microsoft's upbeat earnings should boost techs

Vonage Holdings (NYSE: VG) shares climbed in after-hours trading on news the internet phone company has agreed to settle its lawsuit with Verizon Communications (NYSE: VZ). Vonage will pay as much as $120 million to end the patents-infringement case.

In its pursuit of BEA Systems (NASDAQ: BEAS), Oracle Corp. (NASDAQ: ORCL) has rejected as "impossibly high" a $21-per-share counteroffer from BEA's board of directors. Oracle is firmly standing by its original $17 bid, saying the offer will expire Sunday evening.

The Wall Street Journal is reporting that Macy's (NYSE: M) will be the exclusive department store retailer of Tommy Hilfiger sportswear beginning next fall. Tommy Hilfiger is held by Apax Partners.

Vonage Holdings Corp. (NYSE: VG) continues to pay big bucks to settle patent infringement cases.

The Internet phone company today settled its long-running dispute with Verizon Communications Inc. (NYSE: VZ). In March, a jury awarded Verzion $58 million and issued an injunction that basically would have forced Vonage out of business. That decision was upheld by the U.S. Court of Appeals for the Federal Circuit.

Vonage will pay Verizon up to $117.5 million, depending on the outcome of pending appeals, the Holmdel, NJ-based company said in a statement. It will also give $2.5 million to charity. This settlement isn't surprising. Patent litigation is really expensive and takes forever to wind its way through the courts which is why companies are eager to settle these cases before trial.

Earlier this month, Vonage settled a patent dispute with Sprint Nextel Corp. (NYSE: S) for $80 million. It faces a separate legal action from AT&T Inc. (NYSE: T). With all of these huge companies wanting a piece of it, it's a wonder that Vonage is still standing.

Absent the patent issues, Vonage's future remains bleak. It competes to offer what is basically a commodity service against much larger rivals. Once these patent cases are settled, my suspicion is that one of them will try to snap up Vonage while the stock continues to trade well-under its $17 IPO price. It closed today at $1.53.

Deaths come in threes and the latest lawsuit against Vonage Holdings Corp. (NYSE: VG), the VoIP pioneer, may just put it under. It is the third such suit by a major telephone company.

Vonage has now lost or settled patent infringement suits brought by Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S). Each loss has brought a one time payment and royalties on future revenue.

An SEC filing by the VoIP company disclosed that an action has been filed buy AT&T Inc. (NYSE: T), which accuses Vonage of "violating a single patent that lets users access an Internet phone system using a standard phone device," according to The Wall Street Journal.

Vonage opened at $17 on its IPO in 2006. The stock is lucky to hold $1 now. And, the AT&T suit may be the end of the line. In the June quarter, the company had an operating loss of $33 million on $20 million in revenue. The company's cash was down to under $350 million.

It is Chapter 11 time for Vonage. One of the large cable companies would probably be willing to pay enough for the company to pay off lawsuits and, perhaps, leave a few pennies for the shareholders.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Vonage Holdings Corp. (NYSE: VG) has escaped the hangman's noose for now, settling a patent dispute with Sprint Nextel Corp. (NYSE: S) for $80 million that threatened to sink the company. Shares of the Internet phone service provider surged on the announcement.

Hold the applause for a second.

Remember, the Holmdel, NJ company recently was ordered to pay $58 million with Verizon Communications Inc. (NYSE: VZ) to settle another paent dispute. Though the company say it can "work around" the disputed patents, it has other serious problems.

The company is locked in a competitive struggle against much bigger competitors such as Verizon and Comcast Corp. (NASDAQ: CMCSA) that over time it will lose even as more telephone service migrates to the Internet. Yes, I know Vonage has a cadre of customers who are just crazy about it and even liked those annoying commercials that thankfully have disappeared but I don't see how the company will survive over the long term.

MOST NOTEWORTHY: The process control sector, R.H. Donnelley, Vonage, Coca-Cola Enterprises and Transocean were today's noteworthy downgrades:

• Baird reduced estimates across the board in the process control sector due to lower expectations for North American industrial and residential construction. The firm downgraded Roper Industries (NYSE: ROP), Regal-Beloit Corp (NYSE: RBC) and Baldor Electric (NYSE: BEZ) to Neutral from Outperform and AO Smith Corporation (NYSE: AOS) to Underperform from Neutral.
• Goldman downgraded shares of R.H. Donnelley Corporation (NYSE: RHD) to Neutral from Buy after the company updated its 2007 guidance to reflect deteriorating trends in local advertising.
  
• Vonage Holdings Corp (NYSE: VG) was downgraded to Sell from Hold at Soleil due to liquidity concerns.
  
• Coca-Cola Enterprises (NYSE: CCE) was downgraded to Hold from Buy at Deutsche Bank on valuation and mixed near-term trends.
  
• Transocean Inc (NYSE: RIG) was downgraded to Hold from Buy at Gabelli. Even though the deepwater market continues to be strong, the firm is concerned regarding the continuing weakness in the jackup market as well as the limited upside potential due to the company's ships being in use through 2009.

OTHER DOWNGRADES:

• XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) were downgraded to Neutral from Buy at UBS.
  
• Blue Nile Inc (NASDAQ: NILE) was downgraded to Neutral from Buy at Suntrust.
  
• Citigroup downgraded shares of CheckFree Corporation (NASDAQ: CKFR) to Hold from Buy.
  
• Morgan Stanley downgraded McAfee Inc (NYSE: MFE) to Underweight from Equal Weight.