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First it was Barron's on Monday saying Red Hat (NYSE: RHT), a provider of Linux open-source operating-system software, will likely be in play.

"What makes it strategically important is that it sells the dominant operating system (other than Windows) favored by big corporate users," Barron's Mark Veverka said. The possible interested parties? IBM (NYSE: IBM), Oracle (NASDAQ: ORCL) and Hewlett-Packard (NYSE: HPQ).

Then, today, Jefferis analyst Katherine Egbert supported that argument, saying that it is "inevitable that Red Hat will be subsumed into a larger entity, probably IBM." Egbert reiterated her Buy rating and upped her price target to $21, from $18.

General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler CEOs will be back on Capitol Hill for a second day of testimony as they continue to press for a $34 billion government bailout. GM's Wagoner told lawmakers he would accept strict conditions, including a promise to return the money and file for bankruptcy if his company doesn't fulfill the terms. GM and Chrysler also said on Thursday they would be open to a merger if the U.S. government mandated it. On a lighter note, the auto industry bailout received support from an unlikely source -- Jon Stewart on The Daily Show explains why he supports it.

Boeing Co. (NYSE: BA) may again delay deliveries for the 787 Dreamliner at least six more months, according to a report in The Wall Street Journal. This would be the fifth delay and first deliveries of the jet may not occur until as late as summer 2010. BA shares traded 3% lower in premarket (8:06 am).

Microsoft Corp. (NASDAQ: MSFT) on Thursday named a former Yahoo! Inc. (NASDAQ: YHOO) executive, Qi Lu, to

Today started out as though we were going to break the losing streak. After a mixed trading day we markets indeed ended up higher to gain ground rather than posting a third day of triple-digit losses. Oil started out higher this morning, getting back over $116 per barrel before coming back down slightly.

Below are today's unofficial closing bell levels:
DJIA 11,482.33 (+69.78)
S&P500 1274.81 (+8.12)
NASDAQ 2,389.85 (+5.49)
10YR T-Note 3.799% (-0.043%)
52-Week Lows
Top Analyst Upgrades
Top Analyst Downgrades

Hewlett-Packard Co. (NYSE: HPQ) came out with strong earnings last night and guided inline to higher without the EDS integration. Shares were up almost 6% at $46.29 at the end of the day. This name alone is probably responsible for more cheers than any today as 32 million shares changed hands.

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

• Big Lots Inc. (NYSE: BIG) Q1 earnings rose 20%, driven by cash-strapped bargain hunters.
• Borders Group Inc. (NYSE: BGP) narrowed its loss in the first quarter though same-store sales fell.
• Costco Wholesale Corp. (NASDAQ: COST) Q3 profits climbed 32%, beating analysts' estimates.
• Dell Inc. (NASDAQ: DELL) posted solid Q1 results that beat analysts' expectations (see the transcript).
• DSW Inc. (NYSE: DSW) Q1 earnings declined, hurt by weak same-store sales.
• H.J. Heinz Co. (NYSE: HNZ) better-than-expected Q4 results sent the stock to a 52-week high.
• Integra LifeSciences Holdings Corp. (NASDAQ: IART) beat Q4 estimates and offered Q1 guidance.
• J. Crew Group Inc. (NYSE: JCG) lowered its full-year forecast, leading to analyst downgrades.
• Joy Global Inc. (NASDAQ: JOYG) Q2 results beat expectations, and it raised its full-year guidance.
• Lions Gate Entertainment Corp. (NYSE: LGF) posted record Q4 revenues but a bigger-than-expected loss.
• Marvell Technology Group (NASDAQ: MRVL) Q1 profits beat estimates and led to analyst upgrades.
• Medtronic Inc. (NYSE: MDT) beat Q4 estimates and offered full-year guidance.
• Novell Inc. (NASDAQ: NOVL) swung to a profit that was in line with analysts estimates.
• Salesforce.com Inc. (NYSE: CRM) Q1 revenues surged on new customers and demand in Asia.

Before the bell: Dell, oil help futures rise

Marvell Technology (NASDAQ: MRVL) reported late Thursday a first-quarter profit, beating analyst estimates. Revenue rose 27%. MRVL shares are up nearly 17% in premarket trading. J.P. Morgan upgraded Marvell from Neutral to Overweight and Oppenheimer from Perform to Outperform with a target price of $21.

J. Crew (NYSE: JCG) shares, on the other hand, are dropping over 18% after it said late Thursday it cut its full-year earnings outlook. Seems the high-flying retailer is not immune to weak U.S. consumer spending. Citigroup downgraded JCG from Hold to Sell and cut the target price from $42 to $34. Wachovia downgraded JCG from Outperform to Market Perform.

Ford Motor Co. (NYSE: F) shares are up over 1.3% this morning after Tracinda Corp., the investment arm of billionaire activist investor Kirk Kerkorian, said Friday it will waive a condition on its $170 million cash tender offer that the market price of Ford shares does not fall by 10% or more from its May 8 close of $8.20. Since the time of the offer to buy up to 20 million shares at $8.50 per share -- at the time a slight premium -- shares have fallen 18%. The offer expires June 9.

MOST NOTEWORTHY: Amazon.com, Altria Group and Skilled Healthcare were today's noteworthy initiations:

• Canaccord Adams expects Amazon.com (NASDAQ: AMZN) growth to be driven by its expanding international reach, mix shift to third-party revenue, product innovation, and category expansion. The firm initiated shares with a Buy rating and $78 target.
  
• UBS is positive on Altria's (NYSE: MO) growth, low likelihood of downward EPS revisions, and best-in-class cash flow distribution; shares were started with a Buy rating.
  
• Skilled Healthcare (NYSE: SKH) was initiated with an Outperform rating at Morgan Keegan, as they believe nursing home reimbursement risk is already reflected in its valuation.

OTHER INITIATIONS:

• KeyBank assumed Callaway Golf (NYSE: ELY) with a Buy rating and $19 target.
  
• Credit Suisse initiated Intuit (NASDAQ: INTU) with an Outperform rating and $35 target.
  
• Broadpoint initiated Novell (NASDAQ: NOVL) with a Buy rating.

Here are highlights of some other earnings reports from Thursday:

• Gap Inc. (NYSE: GPS) reported a 21% increase in its fourth-quarter profit year over year. The $265 million, or 35 cents per share, matched analysts' expectations. Revenue totaled $4.68 billion, down 5% from the previous year.
• Kohls Corp. (NYSE: KSS) fourth-quarter profit fell about 15% year over year to $411.7 million, or $1.31 per share, just beating analysts' estimates. Sales rose less than 1% $5.49 billion, but same-store sales fell.
• Revlon Inc. (NYSE: REV) said Thursday it swung to a fourth-quarter profit of $40.8 million, or 8 cents per share, matching expectations. Revenue rose 1% to $382.6 million.
• Dell Inc. (NASDAQ: DELL) posted a lower-than-expected quarterly profit of $679 million, or 31 cents per share. Revenue rose to $16 billion from $14.5 billion a year ago.
• Novell Inc. (NASDAQ: NOVL) swung to a profit in its fiscal first quarter: $16.8 million, or 5 cents per share, matching expectations. Revenue rose to $230.9 million from $218.4 million a year ago.
• Freddie Mac (NYSE: FRE) reported that its loss widened to $2.5 billion, or $3.97 a share, in the fourth quarter as mortgage defaults increased. On Wednesday, Fannie Mae (NYSE: FNM) reported a $3.6 billion loss for the fourth quarter, or $3.80 a share.
• American International Group Inc. (NYSE: AIG) swung to a loss of $5.29 billion, or $2.08 per share, in the fourth quarter, on home loan related investment losses.
• Del Monte Foods Co. (NYSE: DLM) fiscal third-quarter 2008 net income rose 15% year over year to to $53.3 million, or 26 cents per share. Revenue rose 10% to $1 billion. Both EPS and revenue beat expectations.
• XM Satellite Radio Holdings Inc. (NASDAQ: XMSR) said narrowed its fourth-quarter loss to $239 million, or 78 cents per share, thanks to a 20% jump in revenue year over year to $307.7 million.

MOST NOTEWORTHY: Novell, Con-Way and Flamel Technologies were today's noteworthy upgrades:

• Jefferies named Novell (NASDAQ: NOVL) its Tuesday Value Pick and upgraded shares to Buy from Hold based on expectation for revenue stabilization and gradually improving margins throughout 2008. They note the company has $3.64 in cash per share.
  
• JP Morgan upgraded Con-Way (NYSE: CNW) to Overweight from Neutral, citing strong execution following the company's Q4 report.
  
• Flamel Tech (NASDAQ: FLML) was raised to Buy from Neutral at Merriman, as they believe low expectations and the company's robust pipeline create upside the potential for upside in 2008.

OTHER UPGRADES:

• Toyota (NYSE: TM) was upgraded to Neutral from Underweight at HSBC.
  
• UBS upgraded Arris (NASDAQ: ARRS) to Buy from Neutral.
  
• BNP Paribas raised Siliconware Precision (NASDAQ: SPIL) to Buy from Hold.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Analogic Corp. (NASDAQ: ALOG) easily beat expectations, sending shares higher.
• Ciena Corp. (NASDAQ: CIEN) posted a loss and forecast sales for 2008 below estimates.
• Coca-Cola Enterprises Inc.'s (NYSE: CCE) earnings outlook led shares to a 52-week high.
• Cooper Cos. (NYSE: COO) swung to a loss on acquistion costs and litigation.
• Copart Inc. (NASDAQ: CPRT) beat expectations, sending shares to a new high.
• Costco Wholesale Corp. (NASDAQ: COST) posted a solid quarter, in line with expectations.
• Cost Plus Inc. (NASDAQ: CPWM) posted a smaller-than-expected net loss.
• Fleetwood Enterprises Inc. (NYSE: FLE) narrowed its loss through improved efficiency.
• General Electric Co. (NYSE: GE) reaffirmed its 4Q forecast, but the forward outlook disappointed investors.
• H&R Block Inc. (NYSE: HRB) warned of a deep loss due to the mortgage meltdown.
• Korn/Ferry International (NYSE: KFY) beat estimates and revised its guidance.
• Leap Wireless International Inc. (NASDAQ: LEAP) posted a loss, but share prices rose anyway.
• Lehman Brothers Holdings Inc. (NYSE: LEH) earnings fell for the third quarter in a row.
• Methode Electronics Inc. (NYSE: MEI) beat estimates, spurred by international sales.
• Novell Inc. (NASDAQ: NOVL) swung to a loss, surprising Wall Street.
• Synopsys Inc. (NASDAQ: SNPS) beat expectations and offered guidance.
• Texas Instruments Inc. (NYSE: TXN) raised its guidance for the fourth quarter.

For more than a week, Novell, Inc. (Nasdaq: NOVL) has delayed its earnings. But, we got the results yesterday -- and they were fairly ho-hum. Fiscal Q4 revenues increased 5% to $244.9 million but there was a net loss of $17.9 million or $0.05 per share. Keep in mind that there were one-time expenses for the sale of a consulting division.

Novell got a big boost from its Linux platform, which saw a 69% increase in revenues and 4,700 new customers, such as Wal-Mart Stores, Inc. (NYSE: WMT), Credit Suisse Group (ADR) (NYSE: CS) and Wachovia Corporation (NYSE: WB). There were also some key enterprise deals with Dell Inc. (Nasdaq: DELL) and Lenovo.

No doubt, Novell is still in the restructuring mode. Some of the initiatives include: outsourcing technical talent to low-wage countries; stronger partner relationships; and shared services with its back office.

However, with $1.3 billion in the bank -- which represents more than half of Novell's market cap -- there will likely be pressure from investors, such as for buybacks.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Luminent Mortgage (NYSE: LUM): Enters into a new financing agreement to improve capital base. Shares up 31%.

Evergreen Solar (NASDAQ:ESLR): UBS upgrades the stock, which is trading higher by 19%.

Novell (NASDAQ:NOVL): Falling 9% on fiscal Q4 loss.

Rio Tinto (NYSE:RTP): Selling off almost 4% on concerns about whether the firm will be bought out.

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

Stock futures were lower this morning, pointing to a similar start for U.S. stocks. Investors are eying Citi's decision to move some $49 billion of SIV assets onto its balance sheet, while awaiting consumer prices to be released an hour before the opening bell.

Yesterday, U.S. stocks closed mixed. Renewed inflation worries as the PPI climbed 3.2% in November put pressure on stocks, but better-than-expected retail sales and a good earnings forecast from industrial Honeywell International (NYSE: HON) helped lift 's earnings forecasts helping lift sentiment. The Dow ended up 41 points, or 0.33%, the S&P 500 added 1.8 points, or 0.12%, while the Nasdaq Composite Index ended the day down 2.6 points, or 0.1%.

Today, prices at the consumer level will be reported at 8:30 a.m. EST. CPI, a closely watched inflation gauge, is expected to have risen 0.6% in November, after a 0.3% climb in October. Core CPI, which strips the volatile food and energy costs, is estimated to have risen 0.2% in November, same as the month before.
Also being released today just before the opening bell is November industrial production and capacity utilization.

Coca-Cola (NYSE: KO) -

KO announced Muhtar Kent as its new CEO, succeeding resining chairman and CEO Neville Isdell. Isdell will remain chairman until April 2009. KO overall option implied volatility of 21 is near its 26-week average of 20 according to Track Data, suggesting non-directional risk.

Novell (NASDAQ: NOVL) -

NOVL postponed its Q4 and full year 2007 earnings release because of inquiries from the SEC about NOVL's accounting practices. NOVL, a provider of network software, closed at $6.94. NOVL overall implied volatility of 46 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

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

As firms become increasingly dependent on efficient and secure access to enterprise data, the advantages of a unified architectural approach to database management become increasingly apparent. There is an outfit in Oceanport, New Jersey, noted for the degree to which its systems employ that approach.

CommVault Systems (NASDAQ: CVLT) provides data management software and related services. Its unified suite of applications is used for enterprise-wide data migration, backup, archiving, data replication and disaster recovery. The firm serves customers in manufacturing, financial services, health care, transportation and the public sector. It has strategic partnerships with the likes of Dell (NASDAQ: DELL), Hitachi (NYSE: HIT) and Novell (NASDAQ: NOVL).

The firm pleased investors last week when it announced fiscal Q2 EPS of 12 cents and revenues of $47.4 million. Analysts had been expecting 12 cents and $45.9 million. The revenue figure was a company record. Management also guided FY08 EPS to 57-59 cents (56 cent consensus) and FY08 revenues to $194-$196 million ($192.81 million consensus). In discussing the favorable outlook, the CEO noted significant progress in expanding the company's market positions in backup and emerging products.

The key to the effectiveness of network software is the experience of the provider. There is an outfit in Waltham, Massachusetts that shapes up pretty good along that line. It has been in business for nearly a quarter of a century and serves more than 50,000 customers.

Novell Inc. (NASDAQ: NOVL) is engaged in the development, implementation and support of mixed source and open source business software. The firm's flagship NetWare operating system integrates corporate networks, connecting servers with PCs, storage systems and printers. Novell also provides network management software, directory services products, a version of the Linux operating system and IT consulting services. Strategic partners include Dell (NASDAQ: DELL), Intel (NASDAQ: INTC) and Oracle (NASDAQ: ORCL).

The company pleased investors last week, when it reported fiscal Q3 EPS of five cents and revenues of $243 million. Analysts had been looking for two cents and $234.8 million. Management also guided FY07 revenues to $925-$955 ($942.42M consensus). First Albany subsequently spoke well of the stock, citing an improved balance sheet, a low valuation and potential future restructuring/buyback catalysts. The NOVL price popped on the news and has since settled into a bullish "flag" consolidation pattern. Equities frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys," three "buys," seven "holds" and one "sell." Analysts expect a 43% growth rate through the next year. The NOVL Price to Sales ratio (2.68), Price to Book ratio (2.23), Price to Free Cash Flow ratio (6.70) and EPS Growth rate (66.67%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 73% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $5.70 and $8.26. A stop-loss of $6.35 looks good here.

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