If you were looking for help from the economic front or from the oil patch today to help out the market, that wasn't in the cards. Home prices plunged by a record 15.3% from may 2007 to May 2008. Consumer confidence also came in at a 16-year low. From bottom to top to bottom we had more than a 150 point trading range in the DJIA today. These are the unofficial closing levels:

• DJIA 11810.04 (-32.89)
• S&P 500 1314.54 (-3.46)
• NASDAQ 2368.28 (-17.46)
• 10YR T-Note 4.105% (-0.063%)
• 52-week lows
• Top 10 Analyst Calls

Eastman Kodak Co. (NYSE: EK) saw a sharp rise with shares up 15% at $4.20 late in the day after the company announced a large IRS refund and a $1 billion buyback to retire close to half of its stock.

Eli Lilly & Co. (NYSE: LLY) hit the 52-week low list and a multi-year low earlier today before recovering list after the FDA delayed a decision on its anti-clot blood thinning drug, with shares down some 1.5% at $46.87 in the final minutes today.

Kroger Co. (NYSE: KR) saw shares rise a sharp 7% with shares at $27.88 in the final minutes today after the company raised guidance.

Reliance Steel (NYSE: RS) saw shares up after the company raised its own guidance again. Its shares were only up 0.5% at $73.85 in the final minutes of the trading day. Shares were up over 5% at the start.

United Parcel Service Inc. (NYSE: UPS) saw a drop after the company came clean and fessed up that high fuel prices and low demand for premium delivery services were hurting business domestically and abroad. Shares were down 6% at $62.26 late in the day.

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Kodak (NYSE: EK) is recently up $1.75 to $14.12.

EK's Board of Directors authorized a stock repurchase of as much as $1 billion, representing 25% of the shares outstanding. EK also announced it received a tax refund from the U.S. Internal Revenue Service of $581 million.

EK call option volume of 29,104 contracts compares to put volume of 2,712 contracts. EK July option implied volatility of 50 is above its 26-week average of 45 according to Track Data, suggesting larger price movement.

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

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Paul Krugman's New York Times op-ed tries to defend his Princeton colleague, Federal Reserve Chairman Ben Bernanke. Krugman suggests that inflation is not a problem because he can't find any long-term labor contracts with 11% annual pay increases as in 1981's United Mine Workers contract.

Krugman gets himself into a weak position and he does not disclose his fealty to Bernanke whom he evidently does not believe can defend himself. It seems absurd to pretend that inflation is not a problem. Food prices have tripled and oil prices have doubled as Bernanke cut the Fed funds rate from 5.25% to 2%. Last week Dow Chemical (NYSE: DOW) announced a 20% price increase as did Eastman Kodak (NYSE: EK) in response to rising oil and other commodity prices. Huntsman Chemical (NYSE: HUN) announced a 25% price increase. And consumers -- who account for 70% of GDP growth -- expect inflation to rise at a rate of 7.7%.

Strapped consumers may demand wage increases. So Krugman has a point that it's worth looking at labor contracts. Unfortunately for his position, there are plenty of inflationary labor contracts being negotiated now if he cared to look. The San Francisco Chronicle reports that Silicon Valley janitors contracted for a 22% four-year wage increase. Bloomberg News reports a three-year 3.5% annual wage increase for the 70,000-member American Federation of Television and Radio Artists (AFTRA). The Seattle Post-Intelligencer reports on a local police contract for 36% wage increases by 2010 for rookie officers and a 25% increase for veterans.

Granted, this is not a comprehensive survey but it suggests that Professor Krugman has locked himself into a position of pretending inflation is not a problem and in so doing is ignoring all sorts of evidence to the contrary.

Let's hope the Fed will stop ignoring this evidence and raise rates before inflationary expectations get even more baked into the economy.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

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Some Tax Rebate Checks Hit Obstacles
To date, the IRS has issued nearly 30 million stimulus checks, totaling more than $27 billion. This is the first time the IRS has used direct deposit to deliver rebates - a step intended to quickly pump money into the struggling economy. But several problems have delayed the process.
Some tax rebate checks run into obstacles - USATODAY.com Some IRS tax rebate checks going to wrong accounts - USATODAY.com
Also: Errors Will Prevent 350,000 Households From Getting Child Credit in Tax Rebate Checks

Selling Off the Core Business
It was quite a surprise to some this week to hear that GE is looking to sell their signature product line --appliances. But, they aren't the first company to move away from their early roots. Here are some companies that decided to cut their roots-the products that fed their early growth to delve into other areas. Companies have mixed results when they stray from their original visions, sometimes stumbling to adjust and others morphing into better creations. Among the companies are IBM which sold off their PC unit, Corning and Corningware, Kodak and 35MM Film, Goodrich and tires and more.
Selling off the core business - BusinessWeek
In the News: GE Confirms It Is Considering Strategic Options for Its Appliance Unit

Millionaires in the Making: Meet the Wisneskis
Married since 2005, the Wisneskis and their 6-month-old daughter Ashlyn live in Oneida Wis., home to the Oneida Indian Nation. Nate, 27, is a member of the tribe and works for its newspaper. Nicki, 27, is a claims specialist. See how they are working their way toward millionaire status and if they can get there.
Millionaires in the Making Millionaires in the Making: The Wisneskis «

Dining Habits of Washington's Elite
Ever wondered how Condi Rice likes her steak? Or where Ted Kennedy goes for seafood? We reveal the dining habits of prominent politicians from the point of view of DC restaurant owners. Restaurant owners are now looking ahead to the new administration. There's speculation that newer spots might see a spike in business if Barack Obama wins the presidency and brings to town lots of fresh young faces drawn to hipper venues. John McCain, as usual, is a wild card. And many restaurant owners fondly look back on the Clinton years, when the commander in chief flitted about town both with and without his wife.
Power Dining in D.C. - Portfolio.com

Jason Giambi Has a Deep, Dark Secret
Deeper than his compulsion to sleep on the side of the bed nearest the door, and darker than his dream of growing up to be a heavy-metal musician. The deepest, darkest secret harbored by the New York Yankees first baseman is that whenever he is in a prolonged hitting funk, he wears a gold lamé, tiger-stripe thong under his uniform. "I only put it on when I'm desperate to get out of a big slump," he confides.
Yankees' Jason Giambi Struggles - Portfolio.com

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

• Alcatel-Lucent (NYSE: ALU) reported its fifth straight quarterly loss and lowered its outlook.
• Anadigics Inc. (NASDAQ: ANAD) beat Q1 expectations and raised its Q2 guidance.
• AuthenTec Inc. (NASDAQ: AUTH) Q1 revenues jumped 67% on new product offerings.
• CBS Corp. (NYSE: CBS) posted better-than-expected Q1 results and raised its dividend.
• Cognex Corp. (NASDAQ: CGNX) beat Q1 expectations and lifted its outlook.
• Comcast Corp. (NASDAQ: CMCSA) posted soild Q1 results on high-speed internet/digital phone strength.
• DreamWorks Animation Inc. (NYSE: DWA) earnings and revenues soared in the first quarter.
• Eastman Kodak Co. (NYSE: EK) narrowed its Q1 loss but missed earnings estimates.
• IAC/InterActivCorp (NASDAQ: IACI) Q1 profits fell but met analsts' expectations.
• LSI Corp. (NYSE: LSI) beat Q1 expectations and raised its guidance for the next quarter.
• NetSuite Inc. (NASDAQ: N) narrowed its loss on a surge in Q1 revenue.
• Omniture Inc. (NASDAQ: OMTR) Q1 revenue jumped 136% on acquisitions.
• RadioShack Corp. (NYSE: RSH) just beat low Q1 expectations on lower demand and narrower margins.
• SAP AG (NYSE: SAP) earnings for the first quarter fell short of analysts' expectations.

• Sohu.com Inc. (NASDAQ: SOHU) Q1 profits rose 156%, easily beating analysts' estimates.
• Sun Microsystems Inc. (NASDAQ: JAVA) reported a Q3 loss and announced layoffs.
• Teledyne Technologies Inc. (NYSE: TDY) posted its 25th consecutive quarterly earnings growth.
• Verizon Communications Inc. (NYSE: VZ) posted solid Q1 profits in line with expectations.
• Viacom Inc. (NYSE: VIA) posted solid Q1 profits despite weakness in movie business.
• Virtual Radiologic Corp. (NASDAQ: VRAD) solid Q1 results failed to impress investors.

Also, Jim Cramer lauds Procter & Gamble Co. (NYSE: PG) for its success in these tough times and Colgate-Palmolive Co. (NYSE: CL) for bouncing back after taking a hit. And Time Warner Inc. (NYSE: TWX) investors may have been looking for more than they got in the quarterly report.

Upcoming results to watch for include Anadarko Petroleum (NYSE: APC), Cisco Systems (NASDAQ: CSCO), Fannie Mae (NYSE: FNM), Molson Coors (NYSE: TAP), Walt Disney Company (NYSE: DIS), and American International Group (NYSE: AIG).

Visit AOL Money & Finance for more earnings coverage.

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• Dow 13,011.06 +190.93 +1.49%
• S&P 500 1,409.06 +23.47 +1.69%
• NASDAQ 2,480.71 +67.91 +2.81%
• 10YR-TBond 3.749% (-0.01%)
• 52-WEEK LOWS.

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Rochester, New York-based Eastman Kodak Co. (NYSE: EK) was founded in 1892, and is well known for its wide range of photographic film products; it remains to this day the largest supplier of photographic films in the world. The company played a vital role in the invention and development of the motion picture industry, setting the standard of 35 mm film.

But times change. In 1999, Kodak entered into the consumer inkjet photo printers market in a joint venture with manufacturer Lexmark (NYSE: LXK). In 2004, Kodak announced it would stop producing traditional film cameras, beginning a multiyear struggle to refocus on digital photography and printing. Some of the results of that effort include the Kodak Smart Picture Frame, into which digital files are downloadable via a network connection. The Kodak Gallery is a website where users can upload photos into albums, print them out, and create mouse pads, calendars, and the like. And in 2006 Kodak announced that Flextronics (NASDAQ: FLEX) would manufacture and help design its digital cameras. Kodak also has long-term plans to sell ink jet printers and flat-panel displays.

Tokyo-based Canon Inc. (NYSE: CAJ) also has a venerable history, founded in 1937 as a camera maker. These days, the company has a high profile in the consumer market for cameras and computer printers, but most of the company's revenue comes from the office products division, especially for analog and digital copiers, fax machines, and scanners. Canon has also entered the digital displays market a joint-venture with Toshiba to develop and manufacture flat panel televisions. The original camera business makes digital cameras, camcorders, liquid-crystal display projectors, lenses, and binoculars.

One significant difference between these two imaging giants: while Kodak has been called one of the worst corporate polluters in the United States, Canon once topped a list climate friendly companies.

Another difference is that in surveys by Thomson Financial, analysts recommend buying Canon, but holding Kodak (leaning toward sell). Canon reported $38.2 billion revenue last year and has a market cap of 67 billion. Though the share price as slipped 10.15% in the past year, it has also risen 9.71% year to date. Kodak, on the other hand, reported revenue of $10.3 billion and has a market cap of $5.6 billion. The share price has fallen 17.88% in the past year, 10.97% since the beginning of the year.

But what do consumers prefer? Well, in a recent list of the top ten most popular digital cameras, four of them were Canon PowerShot cameras, but just one was a Kodak EasyShare.

Which do you prefer?

Vote in our poll for Canon or Kodak as your preferred brand, and let us know in the comments why you love it.

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The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) reported a slip in profits and warned of slow growth in 2008.
• Alberto-Culver (NYSE: ACV) returned to profitability after a spin-off and restructuring.
• Avnet Inc. (NYSE: AVT) beat expectations and offered a revised forecast.
• Black & Decker Corp. (NYSE: BDK) beat expectations but lowered its outlook due to the housing slump.
• Eastman Kodak Co. (NYSE: EK) fell short of earnings estimates, sending shares lower.
• Hershey Co. (NYSE: HSY) responded to disappointing results by announcing price increases.
• Kraft Foods Inc. (NYSE: KFT) fourth-quarter profit fell on higher costs for raw materials.
• Lenovo Group Ltd. (OTC: LNVGY) nearly tripled quarterly earnings on strong demand for PCs in Asia.
• MasterCard Inc. (NYSE: MA) beat expectations, even after excluding a one-time investment gain.
• McCormick & Co. (NYSE: MKC) posted solid results on strength in international markets.
• McDonald's Corp. (NYSE: MCD) beat expectations, but reported flat same-store sales in December.
• Procter & Gamble Co. (NYSE: PG) reported strong second-quarter results on strength in emerging markets.
• SanDisk Corp. (NASDAQ: SNDK) reported a profit but missed revenue expectations.
• Sherwin-Williams Co. (NYSE: SHW) missed estimates and lowered expectations for the next quarter.
• 3M Co. (NYSE: MMM) beat expectations despite a decline in profits.
• Tyson Foods Inc. (NYSE: TSN) profits fell and it announced a plan to raise prices.
• Verizon Communications Inc. (NYSE: VZ) met earnings estimates but fell short of revenue expectations.

For additional BloggingStocks earnings highlights, see Yahoo!, Google, Amazon, Countrywide, Merck, UBS and others and Exxon, Boeing, Halliburton, Sony, UPS, Honda and others.

Also, in the wake of earnings reports from Yahoo! (NASDAQ: YHOO) and Google (NASDAQ: GOOG), Microsoft Corp. (NASDAQ: MSFT) made a move for Yahoo! Rumor has Google going after AOL in response. Meanwhile, Timothy Sykes has some advice for buying stocks ahead of earnings reports.

Upcoming results to watch for include Archer Daniels Midland (NYSE: ADM), Yum Brands (NYSE: YUM), Walt Disney (NYSE: DIS), Cisco Systems (NASDAQ: CSCO), Time Warner (NYSE: TWX), and PepsiCo. (NYSE: PEP).

Visit AOL Money & Finance for more earnings coverage.

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After hitting a one-year high of $30.20 in June, the stock hit a one-year low of $16.66 last week. This morning, EK opened at $20.54. So far today the stock has hit a low of $19.85 and a high of $20.91. As of 11:05, EK is trading at $19.88, down $0.57 (-2.8%). The chart for EK looks bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a March bear-call credit spread above the $22.50 range. A bear-call credit spread is an options position that combines the purchase and 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 an 8.7% return in 2 months as long as EK is below 22.50 at March expiration. Kodak would have to rise by more than 15% before we would start to lose money.

EK hasn't been above $22.50 by more than a few cents since November and has shown resistance around $22.20 recently. This trade could be risky if the economy turns itself around soon, but even if that happens, this position could be protected by resistance EK might find around its 50-day moving average, which is currently at $21 and falling.

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 EK.

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• Teleflex Incorporated (NYSE: TFX) to give preliminary business outlook at 9:00am.
• LifeCell Corporation (NASDAQ: LIFC) to give guidance at 10:00am.
• Atlanta Fed Reserve Bank President Lockhart to speak on the economy in Atlanta, GA at 12:40pm.
• Lawson Software, Inc. (NASDAQ: LWSN) to report Q2 earnings; conference call at 4:30pm

• Immucor Inc. (NASDAQ: BLUD) to report Q2 earnings; conference call at 8:30am.
• Constellation Brands, Inc. (NYSE: STZ) to report Q3 earnings; conference call at 10:00am.
• Eastman Kodak Company (NYSE: EK) conference call from the Consumer Electronics Show in Las Vegas at 12:00pm.
• Conceptus, Inc. (NASDAQ: CPTS) to give 2008 guidance at 4:30pm.
• PDUFA Date for Omrix Biopharmaceuticals, Inc. (NASDAQ: OMRI) Evicel a Fibrin Sealant for Hemostasis (bleeding control) during kidney surgery.

• Navios Maritime Holdings Inc. (NYSE: NM) to discuss launch of their South American Logistics business at 8:30am.
• Pharmaceutical Product Development, Inc. (NASDAQ: PPDI) to give guidance at 9:00am.
• Alcoa Inc. (NYSE: AA) to report Q4 earnings; conference call at 5:00pm.

• The Gap Inc. (NYSE: GPS) and Wal-Mart Stores, Inc. (NYSE: WMT) to report monthly sales at 8:00am, Target Corporation (NYSE: TGT) to report monthly sales at 8:30am.
• Federal Reserve Bank of St Louis Bank President Hoenig to speak on economic outlook in St. Louis, Missouri at 1:00pm.

• PDUFA Date for Biogen Idec Inc. (NASDAQ: BIIB) and Elan Corporation, plc (ADR) (NYSE: ELN) Tysabri for treating moderately to severely active Crohn's Disease.

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MAJOR PAPERS:

• Merrill Lynch & Co Inc (NYSE: MER), under intense pressure from billions of dollars of mortgage write-downs may get about a $5B capital investment from Temasek Holdings, a Singapore state-owned investment firm, the Wall Street Journal reported.
• The WSJ also reported that the SEC is investigating how Washington Mutual Incorporated (NYSE: WM) handled and reported on mortgage loans which may have been based on inflated home appraisals.

• BusinessWeek's "Inside Wall Street," Eastman Kodak Company (NYSE: EK) is looking to transform from a pariah on the Street into success. The number one photography company has been restructuring since 2003, and analysts expect to see strong profitability and cash flow in 2008.
• Aldabra 2 Acquisition Corp (AMEX: AII) may be another success story, BusinessWeek's "Inside Wall Street" noted, particularly if it gets a boost in output and "possible listing on the Big Board."
• Analysts are bullish on Inspire Pharmaceuticals Inc (NASDAQ: ISPH), BusinessWeek's "Inside Wall Street" reported, which has conjunctivitis drug AzaSite on the market and several drugs in its pipeline. AzaSite sales are expected to come in around $45M next year, but the company could grow further with its cystic fibrosis drug Denufosol, now in phase III trials.

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MOST NOTEWORTHY:

• Suntrust initiated shares of Blackboard (NASDAQ:BBBB) with a Neutral rating, as they sees risk to 2008 Street estimates due to minimal margin expansion.
  
• Deutsche Bank started shares of Ruth's Chris Steak House (NASDAQ:RUTH) with a Hold rating, as they find it difficult to recommend a high-end dining chain in this economic environment.
• The firm also initiated Texas Roadhouse (NASDAQ:TXRH) with a Buy rating and $15 target, citing the company's solid balance sheet, consistent operating history and low valuation.
  
• Piper expects shares of China Digital (NYSE:STV) will move higher as investors recognize the growth potential of the conditional access card market in China. The firm started shares off with a Buy rating and $43 target.
  
• Morgan Keegan resumed coverage of Main Street (NASDAQ:MAIN) with an Outperform rating and sees fair value range $15.50 to $17.00 based on MAIN's current yield of 9.2%.

• Societe Generale initiated Centrica PLC (CPYYY) with a Sell rating.
  
• Conceptus (NASDAQ:CPTS) was initiated with a Buy rating and $27 target at Oppenheimer.
  
• JP Morgan resumed coverage of Eastman Kodak (NASDAQ:EK) with an Underweight rating, and Infinera (INASDAQ:INFN) and Starent Networks (NASDAQ:STAR) with Overweight ratings.
  

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• At 8:30 a.m. -- September personal income and spending is due, which includes a key inflation measure.
• Also at 8:30, weekly initial claims will be released ahead of tomorrow's non-farm payroll.
• At 10:00 a.m. -- September pending home sales and the October ISM index, a gauge of nationwide manufacturing activity.
• Car and truck sales for October will also be released today.

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When a new technology is offered to investors, the cautious in the crowd tend to stand back and await developments. When established firms begin to use that technology, it's time to pay close attention. There is an outfit in Ewing, New Jersey, that has been a pioneer in the commercialization of a special kind of light emitting diode. Now, some of the big consumer electronics players are beginning to show a serious interest.

Universal Display Corporation (NASDAQ: PANL) develops and commercializes organic light emitting diode (OLED) technologies and materials for use in flat panel displays, solid-state lighting products, cellphones and other opto-electronic devices. OLED screens use organic semiconductor materials to sharpen image and color quality. The company licenses its technology to makers of televisions, computer screens, and consumer electronics devices. It has strategic relationships with such technology leaders as Sony Corporation (NYSE: SNE). Eastman Kodak (NYSE: EK) is a major competitor.

The stock has been a steady gainer over the past month, in response to such issues as word from Sony and Toshiba that they will begin commercial production of OLED televisions. Analysts remarked favorably on Universal Display's prospects in the matter. The company has been working with Sony to develop OLED sets since 2001, and customer LG. Philips LCD (NYSE: LPL) sells panels to Toshiba. Shares are advancing through a positive trading channel. The price is currently consolidating at the base of that channel, suggesting the potential for a turn back toward the top.

Brokers recommend the issue with three "strong buys," two "buys" and two "holds." Analysts see a 44 percent growth rate through the next year. The PANL Price to Tangible Book ratio (7.61) compares favorably with industry, sector and S&P 500 averages. Institutions hold about 48 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $11.00 and $19.66. A stop-loss of $15.75 looks good here. Note that the company is next expected to report quarterly results in early November.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Maybe the investors who were buying in September should have asked themselves this: what does it say about a movie rental business when having fewer locations is awesome news? If it's a good business to own, wouldn't you want more locations?

And now Kodak is the latest name to see a surge on cost-cutting news -- it probably will provide a boost to the company's bottom-line, possibly at the expense of the longer-term strength of the brand. Kodak's sales have declined these past few years, and ditching the Olympics doesn't seem like the way to get them going again.

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