We are investing in optimistic times. News -- good or bad -- seems to magically morph into an opportunity to move markets higher. In the past week, even more than usual, weak economic news was accompanied by commentary along the lines of, "it could have been worse," and other euphoric sentiments.

It is difficult to determine whether this is another short-covering bear market bounce or a real rally. But next week will bring us new information that will start to indicate where the answer lies. For now, investors are looking at the glass as half-full. Cash on the sidelines is moving in to equities, partly because there are very few other alternatives. Yields are low, commodities are risky and real estate is taboo.

Next week begins with the celebration of Cinco de Mayo, yet the markets were way ahead -- it has shifted into party mode on its own during the past few weeks. Here is a summary of key events to watch during the week ahead:

Monday, May 5

First off, the market gets a chance to react to news of Microsoft withdrawing its bid for Yahoo. It will be interesting to see how far Yahoo's stock price sinks as well as what all the market watchers think Yahoo (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT) will do next.

Hewitt Associates (NYSE: HEW) the HR firm that has been showing amazing strength is set to report. First Call is looking for quarterly earnings of $.38 as compared to a year ago of $.23. There may be opportunity for this firm as we go into harder economic times where companies are looking for an easy solution to labor concerns.

Also reporting is Nam Tai Electronics (NYSE: NTE). It could have a good quarter since the need for computer parts is on the rise. Intel and Apple did well to show that international demand is still hot for electronics and this is one of the parts manufacturers. Through its electronics manufacturing services operations, Nam Tai makes electronic components and sub-assemblies, including liquid crystal display (LCD) panels, LCD modules, flexible printed circuit sub-assemblies and image sensors modules and printed circuit board assembly for Bluetooth headsets. First Call estimates are for $.19 as compared to year ago of $.19 per share on $163 million of revenue.

Chicken anyone? The recent rise in food prices and the concern over demand will show up in the earnings for Pilgrims Pride (NYSE: PPC). We have seen a few competitors report recently and the numbers have been coming in solid. Earnings are expected to be a loss of 81 cents. The earnings loss is expected to be double that of the year ago period.

If you think that the markets are full of hot air, maybe you should look at Airgas (NYSE: ARG) as a potential opportunity. Technically the chart looks similar to almost every other stock in the U.S. It is showing a double bottom with a share price now approaching its breakout point. Keeping above its 200 day moving average and making higher lows, makes for a nice chart. Watch for the earnings announcement, which is expected to show a nice move to $.73 for the recent quarter on $1.6 $1.06* billion of revenue. (*CORRECTED REVENUE)

After the close, Career Education (NASDAQ: CECO) is going to show who is boss. In a slowing economy when workers are laid off... what do they do? Okay, some go home, collect unemployment and drink beer. But there are many who want to be re-trained and find better jobs when the economy gets back into gear. Given that trend, recently, ITT Educational Services (NYSE: ESI) blew out numbers and shares rocketed 30%. Could we see a similar move for CECO? Perhaps, although the ESI news already helped move the stock. But, once again, on a technical basis, the shares look like they are poised to explode if the quarterly earnings come in at or above the expected 21 cents.

Have you ever noticed that the parking lot at the local fitness club is packed in January? After the taco parties, salsa eating and cervesa drinking from today's festivities, there may be a few amigos who want to shed some of those unsightly pounds. Next stop: Weight Watchers (NYSE: WTW)! Technically the shares are in a mid-term downtrend, yet have been somewhat stable since last quarter's well received earnings release. The street is looking for 74 cents on $442 million of revenue. Let's see how they trimmed the fat to bring up margins before taking too big of a bite with this one.

Tuesday May 6

The partying never stops! Cedar Fair (NYSE:FUN), the amusement park group, will be reporting and looking at the potential for a quarterly loss of $1.05 per share. This is compared to the year ago report at $1.02. Shares have been on a roller-coaster ride lately.

Now for the big one: Fannie Mae (NYSE:FNM). With credit markets seeing a great deal of uncertainly, FNM has been one of the stocks in focus. From the depths of despair, the shares have risen over the past few weeks. No doubt, there are problems. The real question is has the worst passed? Investors are betting they have and the earnings will tell them if they are correct. First Call estimates a loss of 81 cents as compared to a gain of 85 cents last year, same quarter. (See additional FNM/FRE Commentary)

Lots of lipstick on the economic pig may benefit Estee Lauder (NYSE: EL). The company is reporting this day and expectations are for a quarterly gain of 47 cents on $1.879 billion of revenue.

If Tecate was not the choice for Monday's Mexican celebration, then maybe a frosty Molson (NYSE:TAP)? I have my money on beer during economic downturns. Agree? Maybe this is why quarterly earnings estimates are expected at 29 cents, up from 14 cents a year ago. CHUG...CHUG...CHUG!

Bellwether Cisco (NASDAQ:CSCO) is reporting after the close. Technology has been on fire and, if the dollar's weakness has had anything to do with that, network gear company Cisco should benefit. Look for 36 cents on $9.75 billion of revenue.

Rounding out the fun for this day, Disney (NYSE: DIS) will tell us how it has been affected by the global slowdown. If there is any truth to the notion that consumers are spending less, then there could be problems for Disney. Expectations are for quarterly earnings at50 cents per share.

Wednesday, May 7

Earnings for Playboy (NYSE: PLA) are scheduled for after the close on Tuesday, but it will be much more fun to be a part for the action during the conference call. Aside from revealing its strategy and a behind-the-scenes look at earnings, investors will be looking to PLA to strip out all of the excess and cut margins so that they can continue to have a leg-up on the competition. Analysts are suggesting that 6 cents is the per share earnings for this quarter. I will be reading the earnings report closely. Usually there is something interesting to look at. Believe me, I read it for the comments, not the pictures.

Caffeine, I need caffeine. Not coffee, no, no , no - it makes me sweat. How about an energy drink instead? That is what Hansen Natural (NASDAQ: HANS) is hoping you will say. Hansen has been capitalizing on the energy drink craze with its Rumba, Energade and Energy Formula beverage line. Earnings estimates are for a 60% increase over last year to 35 cents per share from revenues of $220 million.

Thursday, May 8

If you believe that the all of the giant casinos are built on the backs of losers, maybe the revitalization of the southern gambling zone, post Katrina will help out Ameristar Casinos (NASDAQ: ASCA). There is nothing positive to say about the chart or fundamentals these days except if you want to roll the dice, have at it. The shares are in a confirmed downturn and riding an overbought topside Bollinger band. Look for 31cents of earnings on the announcement.

Dendreon (NASDAQ: DNDN) is going to announce earnings. This is an interesting biotech company as it has been embroiled in a fight to bring Provenge to market. This is a drug specifically geared toward prostate cancer and seems to work, or so they say. The FDA is being difficult. First Call is looking for revenues of $110,000 with a loss of 25 cents per share. (More insight on DNDN)

Maybe, just maybe, the partying this week gets out of hand. Then, it happens. You ask her that magical question and look to tie The Knot. Your next stop? TheKnot.com (NASDAQ: KNOT) -- your place for all-things wedding-related. This dot com has been around for a while and is still holding on strong. Investors divorced themselves of this one a while ago and shares are down a whopping 50% since the October 2007 high. Earnings are expected to be 5 cents per share on $25 million of revenue.

If that stops your heart, you may look towards the results of fast-moving Vital Signs (NASDAQ: VITL). The company is the designer, manufacturer, and marketer of airway management products for the anesthesia, respiratory/critical care, and interventional cardiology/radiology and sleep disorder markets. Fun stuff indeed! Revenues are expected to be $57 million with earnings of 69 cents for the quarter.

Friday, May 9

Fridays don't usually bring much excitement. A time to kick back with a cold beer (didn't we do that already this week?) and plan for the week to come. Look for Clear Channel (NYSE: CCU) as a proxy for the advertising sector. Otherwise, take a peek at the trade balance numbers, including the trade deficit. There is no reason to believe that there will be any change of direction.

IPO/New Issue Market

Looking at the IPO calendar for the upcoming week, there are three major deals likely to price. The most important one to watch is Colfax Corporation which is being brought by Merrill Lynch. Quite literally a nuts and bolts company, Colfax makes pumps and fluid handling products. Without delving into the high quality customer base, let's just note the $500 million dollar revenue base and strong profitability margins. The stock (ticker to be CFX) is expected to price at $15 to $17, but don't be surprised if this range is higher due to strong demand for shares.

In addition, we have Western Gas Partners LP (WES) which is expected to price on May, 9th. Don't look for too much out of this name, as there will likely be plenty of stock to go around for those that want it. However, the dividend yield is likely to be high so it may prove to be a good long-term total return purchase. Finally, there is another solar company to join the litany of public solar companies already trading. Real Goods Solar, Inc. (RSOL) has a hokey name and that's about it. Not much in the way of profits, and with no brand-name underwriting, do not expect much in the way of initial returns. (For more info check out ZachStocks.)

Disclosure: Horowitz & Company may hold positions of securities mentioned as of the date of publish. Andrew Horowitz is a money manager and author of the The Disciplined Investor - Essential Strategies for Success. Data provided by Briefing.com and other sources believed to be reliable. Dates may change without notice.

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Avon (NYSE: AVP) delivered not a bag of cosmetics to Wall Street, but a batch of growing earnings. Total revenues for the first quarter were up beautifully, rising 14% to $2.5 billion. Earnings per diluted share likewise did the double-digit-increase dance, rocketing 26% to $0.43.

Now, I would have liked the report a lot more if the company had indicated in its cash flow statement that everything was positive -- unfortunately, that was not to be, as operational cash flow was, in fact, negative. Avon needed to use $41 million for its operating activities during the quarter. Well, one thing I can say is that it's a lot less than the cash needed to fund last year's operations -- Avon burned through over $160 million in the comparable period. A check of the latest 10K shows that, while operational cash flow has been decreasing over the last few years, it has remained positive, so since this is the first quarter of the new fiscal year, we can wait to see how cash flow shapes up as the quarters go by.

Avon competes with companies like Procter & Gamble (NYSE: PG), Revlon (NYSE: REV) and Estee Lauder (NYSE: EL). As I've stated in the past, Procter & Gamble is more my kind of consumer-products business, but I'll give Avon its due since it does have a good product portfolio backing its brand and a devoted base of users. The stock is not too far off from its 52-week high as of this writing, and so long as it can keep sales growing and fight inflationary pressures, it should be a decent long-term bet.

Disclosure: I don't own shares in any of the companies mentioned; positions can change at any time.

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Revlon (NYSE: REV) issued a press release concerning its plans for a reverse split as well as some preliminary quarterly results. The reverse split will be based on a 1-for-10 ratio. Well, the company may increase the share price via this method, but it won't make much of a difference in terms of Revlon's potential as an investment.

The stock closed on Friday at $0.99 per share. Let me repeat this -- the stock closed on Friday at $0.99. We are thus talking about a highly speculative equity. Interestingly, if you take a look at the preliminary results, you might believe that Revlon is on the right path. Revlon's management expects a slight dip in terms of net revenues -- the top line will see about $320 million in the quarter versus nearly $329 million in the year-ago period. There will be a net loss of about $5 million this time around versus a net loss of over $35 million last year. Doesn't sound so bad, I suppose, especially when you consider that operating income should come in at $30 million -- that's ten times better than 2007's first quarter. So, would I buy Revlon?

No. I actually owned Revlon stock a few years ago, and I think I essentially broke even when I decided to get the heck out. Revlon has a long way to go before proving to me that it's got a handle on all its problems and that it can get its brand equity back on track. And this reverse stock split means nothing to me, as it doesn't alter the underlying fundamentals. Revlon faces tough competition from other brands, such as Avon (NYSE: AVP), Estee Lauder (NYSE: EL), and products from Procter & Gamble (NYSE: PG), so the company has its work cut out for it.

Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.

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This post is one of several on business heirs apparent. Let us know in the comments whether you think Aerin Lauder Zinterhofer should take up the reigns of Estee Lauder, and be sure to check out the other heir apparent posts.

A cosmetics empire might seem the ultimate in puffery, the very materialization of vanity. But the venerable empire built by Estee Lauder and her powerhouse son, Leonard, has turned makeup into a very real financial juggernaut. And Aerin Lauder Zinterhofer, Leonard's niece, is not only the public face of the company but also the considerable creative brain of its marketing soul.

As granddaughter of the company's founder, Aerin is surely far-removed from the hardscrabble life that was The Estee Lauder Companies Inc (NYSE: EL) beginnings. She is a child of great wealth and, as such, is the inheritor not just of money and corporate responsibility but also of appearances. Aerin is not just the face of the company, but of a certain sense of style; her choices, from her cutlery to the clothing her two boys wear to (of course) her lip gloss, are signals to a certain subset of the fashion world. Aerin is not just the harbinger of styles, she is a style.

Can one go from being the face of a company to its head? If anyone is positioned to do so, it's Aerin. She didn't just grow up in the center of the fashion world, but in the center of the "old American money" world; her best friends are Lauren duPont and Renee Rockefeller, and they've been teaching her the ways of the powerful since she was a child.

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MOST NOTEWORTHY

• Jefferies upgraded shares of Thornburg Mortgage Inc Corp (NYSE: TMA) to Buy from Hold as they believe the stock is at an inflection point, characterized by accelerated earnings and dividend growth.
• Expedia Inc (NASDAQ: EXPE) was upgraded to Outperform from Neutral at Credit Suisse, as they believe the company is well-positioned to benefit from global e-travel and media opportunities, strong free cash flow, and attractive valuation.
• Perot Systems Corporation (NYSE: PER) was upgraded to Sector Perform from Underperform at RBC Capital following its Q4 report.

• HSBC raised Swiss Reinsurance Company (OTC: SWCEY) to Overweight from Neutral.
• The Estee Lauder Companies Inc (NYSE: EL) was upgraded to Equal Weight from Underweight at Lehman.
• Cantor upgraded Genomic Health Inc (NASDAQ: GHDX) to Buy from Hold.

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MOST NOTEWORTHY:

• GPC Biotech (NASDAQ: GPCB) was downgraded to Sell from Neutral at Goldman, to Sell from Hold at Deutsche Bank and to Underweight from Overweight at Lehman after the company's phase III trial of satraplatin to treat prostate cancer did not meet its primary endpoint.
  
• Deutsche Bank downgraded shares of Akamai Technologies (NASDAQ: AKAM) to Hold from Buy on valuation following the recent rally as they believe concerns around slowing growth, margins and capital efficiency will limit upside.
  
• Qwest Communications (NYSE: Q) was downgraded to Sector Performer from Outperformer at CIBC and to Neutral from Overweight at JP Morgan following the company's disappointing Q3 results.
  
• Jefferies downgraded shares of Shutterfly (NASDAQ: SFLY) following the better-than-expected Q3 results due to valuation.
  
• Piper downgraded shares of LDK Solar (NYSE: LDK) to Market Perform from Outperform, as they expect higher blended poly cost for the company due to tightening scrap poly supply and increased competition.

• Maxwell Technologies (NASDAQ: MXWL) was downgraded to Underperform from Market Perform at JMP Securities.
  
• UBS downgraded Estee Lauder (NYSE: EL) to Sell from Neutral.
  
• Merrill downgraded CommScope (NYSE: CTV) to Neutral from Buy.
  
• Under Armour (NYSE: UA) was downgraded to Underperform from Market Perform at Raymond James.
  
• RBC Capital downgraded Beckman Coulter (NYSE: BEC) to Sector Perform from Outperform.

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The earnings crunch continues to roll along, and here are a some highlights of this past week's earnings coverage from BloggingStocks:

• Aetna Inc. (NYSE: AET) beat expectations and raised its full-year guidance.
• Amazon.com Inc. (NASDAQ: AMZN) beat estimates by a penny and offered a poor outlook.
• American Express Co. (NYSE: AXP) delivered a positive surprise, with profits up 10%.
• Amgen Inc. (NASDAQ: AMGN) beat estimates, but revenue was flat.
• Anheuser-Busch Cos. (NYSE: BUD) beat expectations on strength of international sales and partner brands.
• Apple Inc. (NASDAQ: AAPL) blew past expectations. See our conference call live blog.
• Avery Dennison Corp.'s (NYSE: AVY) net sales up, EPS down, both due to the Paxar acquisition.
• Baidu.com Inc. (NASDAQ: BIDU) beat expectations, but wariness about its growth potential lingers.
• Boeing Co. (NYSE: BA) beat expectations but lowered its guidance.
• Bristol-Myers Squibb (NYSE: BMY) beat expectations on the strength of Plavix sales.
• CNH Global's (NYSE: CNH) profit nearly doubled, beating estimates by 15%.
• Coach Inc. (NYSE: COH) beat estimates by a penny, but offered a conservative outlook for the holidays.
• Comcast Corp. (NASDAQ: CMCSA) met EPS expectations but cut its cash flow forecast.
• Countrywide Financial Corp. (NYSE: CFC) reported a $1.2 billion loss, but predicts a profit in the next quarter.

• Dow Chemical Co. (NYSE: DOW) fell short of estimates, due to taxes and research costs.
• EMC Corp.'s (NYSE: EMC) profit soared on increased sales and the sale of VMWare.
• Estee Lauder Companies Inc. (NYSE: EL) beat estimates even though profits fell.
• General Dynamics Corp.'s (NYSE: GD) net income rose 25%, and it raised its full-year outlook.
• GlaxoSmithKline (NYSE: GSK) announced job cuts after profits fell 5.8%.
• Halliburton Co. (NYSE: HAL) reported last Sunday and easily beat Wall Street estimates.
• Hasbro Inc.'s (NYSE: HAS) profits soared 62% on higher sales led by Transformers.
• JetBlue Airways Corp. (NASDAQ: JBLU) returned to the black, with net income of $23 million.
• Juniper Networks Inc. (NASDAQ: JNPR) only beat estimates by a penny, despite a profit rise of 46%.
• Lexmark International (NYSE: LXK) blamed its weak third quarter on poor printer sales.
• Lockheed Martin Corp. (NYSE: LMT) easily beat estimates and boosted its ROIC projection.
• Merck & Co. (NYSE: MRK) posted better-than-expected results, despite ongoing Vioxx-related litigation.
• Motorola Inc. (NYSE: MOT) beat expectations and raised its full-year guidance.
• Merrill Lynch and Co. (NYSE: MER) took a big hit from the subprime mortgage mess.
• Microsoft Corp.'s (NASDAQ: MSFT) encouraging results easily beat Wall Street expectations.
• Netflix Inc.'s (NYSE: NFLX) profit rose 23%, beating analysts' EPS expectations by eight cents.
• New York Times Co. (NYSE: NYT) doubled EPS estimates in its strong third quarter report.
• Panera Bread Co. (NASDAQ: PNRA) net income up 10%, revenue up 35%.
• Texas Instruments Inc.'s (NYSE: TXN) profits rose, but revenues were down.
• UAL Corp.'s (NASDAQ: UAUA) profits soared 75%, beating EPS estimates by eight cents.
• United Parcel Service (NYSE: UPS) had a solid quarter despite the sluggish economy.
• Waste Management Inc. (NYSE: WMI) reported losses due to labor issues and the housing slowdown.

While Jonathan Berr looks for the market's heroes and villains, Sheldon Liber and Georges Yared offer their thoughts on the value of AMZN. And Merrill Lynch's results prompt both Jim Cramer and Zac Bissonnette to ponder.

Upcoming results to watch for include: Verizon Communications Inc. (NYSE: VZ), Procter & Gamble Co. (NYSE: PG), Exxon Mobil Corp. (NYSE: XOM), Sirius Satellite Radio Inc. (NASDAQ: SIRI), Viacom Inc. (NYSE: VIA), U.S. Steel Corp. (NYSE: X), MGM Mirage (NYSE: MGM), and Kraft Foods (NYSE: KFT).

Visit AOL Money & Finance for more earnings coverage.

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MOST NOTEWORTHY: The Personal Care, Household Products and Cosmetics industry, Horsehead Holdings and China Sunergy were today's noteworthy initiations:

• Wachovia initiated coverage of the HPC industry with an Overweight rating, starting shares of Avon Products Incorporated (NYSE: AVP), The Procter & Gamble Company (NYSE: PG) and Kimberly-Clark Corporation (NYSE: KMB) with Outperform ratings and The Clorox Company (NYSE: CLX) and The Estee Lauder Companies Inc (NYSE: EL) with Market Perform ratings.
• CIBC started shares of Horsehead Holdings (NASDAQ: ZINC) with a Sector Outperformer rating and $30 target, as they believe the valuation discount to other North American zinc producers will narrow as investors become more aware of the name.
• Jefferies would avoid shares of China Sunergy Co Ltd (NASDAQ: CSUN) in the near-term as the company resolves issues regarding its access to polysilicon. The firm initiated shares with a Hold rating and $8 target.

• Goldman reinstated LSI Corporation (NYSE: LSI) with a Neutral rating and $8 target.
• ThinkEquity initiated Advanced Analogic Technologies Incorporated (NASDAQ: AATI) with a Buy rating and $15 target.
• Deutsche Bank resumed coverage of Spirit Aerosystems Holdings Inc (NYSE: SPR) with a Hold rating and $36 target.

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The Estee Lauder Companies Inc. (NYSE: EL) made the Wall Street Journal (subscription required) on Tuesday as the company that had a rise in stock price but the largest outflow of money. Perhaps now that the company's IRS problems are behind it and all sectors are showing profits, insiders want to take their share of the profits. The news from the company's 4Q and FY 2007 report is very positive. All product categories in all regions increased sales, though the increases in the U.S. were the smallest. FY sales topped out at over $7 billion, FY net earnings from continuing operations rose $124 million to $448.7 million, and FY diluted EPS increased 45% to $2.16. Numbers for just 4Q 2007 were as good. EPS of $0.45 was double that of 4Q 2006 when the company was embroiled in tax problems.

Whether organized by geographic region or product category, sales and earnings are headed in the right direction. Estee Lauder is increasing its sales channels to include a larger internet presence, more products in European pharmacies, as well as moving into direct-response television advertising. This sales reorganization comes at the cost of $30 million for discontinuing slow selling and lower profit margin items, as well as reconfiguring an international distribution network. The strategy seems to be working as makeup, fragrance, and hair care sales are up 11% in Asia, 10% in Europe and the Middle East, and 3% in the U.S.

Operating cash flow declined significantly, due primarily to stock repurchases. CEO William Lauder forecasts that 1Q 2008 sales will grow 5-7%, and FY 2008 sales growth will be 7%-9%. Diluted EPS will be $2.28-2.40 with hair care products being the biggest seller. The stock currently trades right around $40.00.

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• Courtesy hello -- I really enjoyed awkwardly waving at you
• Graduation -- Congratulations on getting through the easiest part of your life
• Business - Just getting on your radar because I may need something from you soon

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MOST NOTEWORTHY:

• Jefferies downgraded shares of American Capital (NASDAQ: ACAS) to Hold from Buy citing the slowing M&A market and risk characteristics of the company.

• Soleil downgraded Doral Financial (NYSE: DRL) to Sell from Hold, on the belief that the recent reverse stock split will increase short-selling activity and discourage speculative buying.

• E-Trade Financial (NASDAQ: ETFC) was cut to Neutral from Buy at UBS, citing deteriorating trends in the credit/mortgage markets, lack of near-term catalysts; the firm does not see an M&A deal occurring near-term.

• Goldman downgraded Family Dollar (NYSE: FDO) to Neutral from Buy, citing weakness in the low-end consumer and increased pressure from Wal-Mart (WMT)...

• Wachovia downgraded Tween Brands (NYSE: TWB) to Market Perform from Outperform.

• Estee Lauder (NYSE: EL) was downgraded to Neutral from Outperform at Credit Suisse.

• Deutsche Bank cut Pearson (NYSE: PSO) to Hold from Buy.

• Matrix downgraded Talisman Energy (NYSE: TLM) to Hold from Buy.

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Revlon Inc

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MOST NOTEWORTHY:

• Prudential raised shares of Schering-Plough Corp (NYSE: SGP) to Overweight from Neutral to reflect management's activity on the deal front and recent data on the drug TRA.

• ThinkEquity upgraded shares of Jones Soda Co (NASDAQ: JSDA) to Accumulate from Source of Funds after disappointing Q1 results. The firm believes results will get better in FY07 as the canned soda roll-out continues and high fructose corn syrup inventory is depleted.

• RealNetworks Inc (NASDAQ: RNWK) was upgraded to Market Perform from Underperform at JP Morgan, citing valuation.

• Bear Stearns upgraded shares of Westwood One Inc (NYSE: WON) following reports the company hired UBS AG (UBS) to help find potential buyers.

• KeyBanc Capital markets raised Darden Restaurants (NYSE: DRI) to Buy from Hold based on accelerating same-store sales at Olive Garden.

• Bear Stearns raised Plantronics, Inc (NYSE: PLT) to Peer Perform from Underperform.

• SunTrust Robinson Humphrey upgraded Career Education Corp (NASDAQ: CECO) to Neutral from Reduce.

• Credit Suisse upped Estee Lauder Cos (NYSE: EL) to Outperform from Neutral.

• Needham upgraded shares of Andrew Corp (NASDAQ: ANDW) to Buy from Hold.

• Wedbush upgraded Crocs, Inc (NASDAQ: CROX) to Strong Buy from Buy with a $95 target.

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Chindia is a new buzzword among advisor, used to highlight the cross-over of both China and India as future growth market. Keith Fitz-Gerald -- who has spent many years working in Asia -- is an expert on the region and was one of the few to forewarn of the recent volatility in Asian markets.

Meanwhile, in line with his long-term bullishness on China and India (and his short-term concern for these markets), the editor of The Skeptical Investor suggests that investors focus their investments in the region to income-producing ideas.

His top current income idea is Diana Shipping (NYSE: DSX), a dry bulk shipper with a yield of 9.6% .He explains, "Diana leverages the emerging market theme surrounding Chindia. It operates 11 ships and charters them to commodity producers."

He notes that Diana is specifically targeting Chinese and Indian demand for coal, iron ore, cement, grain, fertilizer, sugar and other commodities.

The firm , he notes, has a a "ship-shape balance sheet, is practically debt-free and has a management team comprised of some pretty salty captains."

The company depends largely on shipping rates, he observes, which are very cyclical in nature. Thus, he says, "There is some risk in that it doesn't tie up the ships on long-term contracts, but that's not unusual for a bulk shipper."

Shipping rates, he notes, are the key issue. And these rates, he points out, can quickly change. He recalls, "A day after Diana went public in March 2005, the going rate for Panamax charters plunged from $35,000 a day to $13,000."

Now, those same rates are near $19,000 and he forecasts they are likely to go "far higher in the future as Chindia grows." How high? He notes, "Try $40,000 a day, which is where China pushed prices recently."

"Speaking of which, continues to drive strong imports of these raw materials, even as finished goods flow out to the world's vast consumer-end markets.

"He notes that some analysts think the stock could jump more than 35% when the now-depressed key shipping rates come back to life. He is even more optimistic and notes, "I think the potential rise is closer to 50%." He recommend purchase up to $20 a share.

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

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For years as a financial reporter in the 1990s, I heard mutual fund managers crow about the benefits of investing in "consumables" -- companies that make products that people buy, use up, and discard or recycle. Customers of such companies have to go out and buy more quite regularly, which keeps sales afloat even in rough economic times.

Gillette, with its razors and batteries, was usually the poster child for this investment theme. Printer maker Lexmark International (NYSE: LXK) was another fave.

But then Procter & Gamble Company (NYSE:PG) bought Gillette in 2005. And Lexmark ran into tough times with ever more heated competition from the likes of Hewlett-Packard Company (NYSE:HPQ) and Canon Inc. (NASDAQ: CAJ). Lexmark's stock was doing better for a while last year, but in the past month alone it has fallen from about $71 to $61 and UBS just downgraded it to "reduce" a week ago -- ouch!

A new crop of pureplay favorites on the consumables theme hasn't surfaced yet. But a recent feature from SmartMoney.com on when to replace common household items, suggests some new stocks to consider as possible consumables plays:

Estee Lauder (NYSE: EL) makes cosmetics, which should be either used up or replaced every three months to two years, according to SmartMoney. Most analysts rate it a hold, but the stock jumped about $6 in late January and is still trading around $47. Avon Products (NYSE: AVP) and Elizabeth Arden (NASDAQ: RDEN) shares have also performed well on a general uptick among several cosmetics makers.

Also part of this trend, is International Flavors & Fragrances (NYSE: IFF). It is under-followed by Wall Street (brokers give it one buy rating and two holds), but it has been a great stock over the past year. SmartMoney says perfume ought to be replaced every two years.

Running shoes have to be replaced regularly (as does all athletic apparel used by serious athletes). Nike Inc. 'B'(NYSE: NKE) gets high marks on Wall Street and is a clear beneficiary of sports-related consumables.

Spices are another item on SmartMoney's list and McCormick & Co. (NYSE: MCK), which gets six buys, four strong buys and eight holds among analysts, looks like a decent stock for future investigation to me.

Mattresses, which some people keep for decades, ought to be part of the new consumables trend, according to SmartMoney. Mattress-maker Sealy (NYSE: ZZ), seems the favorite in this not-so-favored industry, with three analysts rating it a strong buy, five a hold and one a sell. Tempur-Pedic International (NYSE: TPX) is rated by most as a hold, as is high-end bedmaker Select Comfort (NASDAQ: SCSS). But Select Comfort surprised Wall Street with a growth forecast for 2007 when it reported earnings on Feb 7, making it an interesting choice.

And lets throw computers, which the magazine says should be replaced every four years, into the mix. After a turbulent year, Dell Inc. (NASDAQ: DELL) is starting to get some strong buys once again, now that it boasts founder Michael Dell back in the CEO role. Hewlett-Packard has been a favorite stock for the past two years and is still much-loved. Both those companies also do a booming business in printers and printer cartridge sales, which make them good fits for the consumables trend.

Finally, Procter & Gamble, which not only owns Gillette but makes toothbrushes, soaps and all manner of consumer goods, deserves to make the list. It may not be a pureplay on the consumables trend, but it makes more consumer products than just about any company out there and is a safe harbor stock worthy of any long-term portfolio.

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MOST NOTEWORTHY:

• Lear Corp (NYSE: LEA) was upgraded to Neutral from Underperform at Credit Suisse following the $2.31B cash bid from Carl Icahn.

• Merrill Lynch upgraded Tellabs Inc (NASDAQ: TLAB) to Buy from Neutral, citing expectations for an improvement in cross-connect demand and margins; the firm expects Tellabs to benefit from AT&T's (NYSE: T) new broadband initiatives, a demand recovery at Cingular, T-Mobile 3G deployment plans and an increase in Sprint/Nextel (NYSE: S) base stations.

• JP Morgan upgraded Nvidia Corp (NASDAQ: NVDA) to Overweight from Neutral based on expectations for gross margin upside to be driven by improved unit costs and market share gains in the notebook segment.

• Raymond James upgraded shares of AirTran Holdings Inc (NYSE: AAI) to Outperform from Market Perform with a $14 target.

• CIBC upgraded Kronos Inc (NASDAQ: KRON) to Sector Outperformer from Sector Perform, with a $46 target, as they find valuation attractive at current levels given their increasing confidence operations are improving.

• State Street Corp (NYSE: STT) was upgraded to Equal Weight from Underweight at Morgan Stanley following the news of the Investors Financial Services Corp (NASDAQ: IFIN) acquisition.

• Triad Hospitals Inc (NYSE: TRI) was upgraded to Neutral from Sell at Bank of America.

• Overstock.com Inc (NASDAQ: OSTK) was upgraded to Neural from Sell at First Albany, as the worst is already reflected in the stock's valuation.

• Matrix USA upgraded Estee Lauder Co Inc (NYSE: EL) to Hold from Sell based on fundamental trends.

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The markets moved sharply higher after the Federal Reserve left interest rates unchanged at 5.25% and indicated inflation readings have improved. Fourth Quarter GDP (Gross Domestic Product) rose at a 3.5% annual pace, beating expectations and indicating the economy is growing at a healthy pace.

Lauder (Estee) Co. (NYSE:EL) jumped up $6.03 (14.5%) to $47.05 after reporting earnings of 99 cents, beating last year's 38 cents. CH Robinson Worldwide (NASDAQ:CHRW) also reported good earnings and was up $9.44 (21.5%) to $53.20.

The NYSE had volume of 2.6 billion shares traded with 2,233 issues advancing, while 1,080 declined for a gain of 48.33 points to close at 9,254.72. On the NASDAQ, 2.1 billion shares were traded, 1,718 stocks advanced and 1,336 declined for a rise of 15.27 points closing at 2,463.93.

Today's list of most active stocks include Juniper Networks Inc, (NASDAQ:JNPR) down $1.70 to close at $18.12, SanDisk Corp. (NASDAQ:SNDK) down $2.65 to $40.18 and Cisco Systems (NASDAQ:CSCO) up $0.20 to $6.43.

Today's put/call option volume ratio was a neutral 0.69 with 2.6 million puts and 3.7 million calls traded. Options on Citigroup (NYSE:C) were active with over 173,000 contracts trading on the February 52.50 calls (CBX). The February 50 calls (CBJ) were also active with over 159,000 contracts changing hands. The options on Bristol-Myers Squibb (NYSE:BMY) March 30 calls (BMYCF) were active with 34,000 contracts trading. Altria Group (NYSE:MO) had active February 90 call options (MOCR) with 32,000 contracts moving across the board. Altria's option activity could be related to the earnings reported earlier today.

We expect tomorrow's action to be dominated by Google Inc. (NASDAQ:GOOG), which just reported (and is down mildly) and by more economic reports. Jobless claims and Personal Income Numbers will be coming in before the market opens with Home sales and ISM Manufacturing Index coming out at 10 AM EST.

Kevin Kersten is an analyst with InvestorsObserver.

DISCLOSURE NOTE: Mr. Kersten owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

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