Analyst Upgrades

• Wells Fargo upgraded Gap (GPS) to outperform from market perform, citing valuation and expectations for EPS to grow in FY11. The firm thinks consensus estimates are achievable and has a $20 to $22 target valuation range for shares.
• BMO Capital upgraded Abercrombie (ANF) to outperform from market perform and has a $43 target on the stock. The firm believes Abercrombie's domestic business is turning and that the company is beginning to take share from competitors.
• Piper Jaffray upgraded Codexis (CDXS) to overweight from neutral as it believes Shell's (RDS.A) biofuel commercialization plans and a potential carbon capture partnership present near-term catalysts for the stock. The firm upped its target for shares to $12 from $11.
• Tortoise Energy Capital (TYY) and Tortoise Energy (TYG) were upgraded to buy from hold at Wunderlich.
• Comerica (CMA) was upgraded to outperform from neutral at Baird.
• Methanex (MEOH) was upgraded to strong buy from outperform at Raymond James.

Aeropostale, Inc. (ARO), a mall retailer whose related companies include American Eagle Outfitters (AEO) and The Gap Inc. (GPS), was down this afternoon as the market digested the Q2 numbers that were released yesterday after the bell. With a little over two hours to go before the end of the session, shares of the business were off by 2.5% to $22.64. Volume, so far, was below average.

Perhaps the fact that the volume was relatively slow in coming is a good sign. Maybe the net-income stat is an even better sign. As the press release glowingly reports, earnings per share jumped 21% to 46 cents per share.

Below are some highlights from this past week's earnings coverage on BloggingStocks. Click through to the original posts for more details.

• Abercrombie & Fitch Co. (ANF) shares sold off after it posted a narrower Q1 net loss, but same-store sales rose.
• Applied Materials Inc. (AMAT) swung from a year-ago loss to a Q2 profit that was better than expected.
• Deere & Co. (DE) reported better-than-expected Q2 earnings and improved sales, and raised its full-year outlook.
• Dell Inc. (DELL) posted better-than-expected Q1 earnings, but the gross margin was disappointing, and shares fell.
• GameStop Corp. (GME) higher Q1 earnings beat consensus estimates but same-store sales declined.
• Gap Inc. (GPS) said its higher Q1 earnings beat expectations while revenue fell in line with estimates.

Abercrombie & Fitch (ANF), a fashion chain that competes for the attention of the mall shopper with American Eagle Outfitters (AEO) and Gap (GPS), is selling off in afternoon trading while I write this. My screen showed the shares down $1.72, or 4.2%, to $39.06. Volume, however, wasn't too bad with roughly a few hours to go before the close of the trading session; it was below the norm, but I do expect it to be above average by the time all is said and done. The company reported Q1 stats today, and that is obviously what's driving the bearish sentiment, in part at least.

As can be seen from the one-year chart, the stock has sailed some choppy seas over the last several months. After hitting a 52-week high of over $50, the shares started to slide. Some of that weakness can be attributed to what's happening in the market vis-a-vis the Greece situation.

Nordstrom, Inc. (JWN) is down in afternoon trading. A quote of $39.58 just went by my screen, which represents a decline of $1.71, or over 4%. Volume is high. The market as a whole is pretty bad, so some of the stock's bleeding has to be related to the negative sentiment hitting the major indexes, but the retailer, whose colleagues include The Gap, Inc. (GPS) and J.C. Penney Company, Inc. (JCP), did issue a first-quarter earnings report yesterday after the bell, so we'll have to check that out to see if anything fundamental might be up.

I'll tell you, I thought the press release contained some impressive numbers. Earnings per share increased 40% to 52 cents. Same-store sales rocked with a double-digit jump of 12%. How can the traders be down on that data?

Macy's Inc. (M) is trading higher today. With a little less than two hours to go before the close of the regular session, the retailer, whose competitors include The Gap Inc. (GPS) and Kohl's Corporation (KSS), was higher by 63 cents, or 2.6%, to $24.53. Volume was healthy.

The stock isn't far from the 52-week high of $25.25. The 52-week low is $10.27, so the equity has come a long way since it was stuck in the doldrums. The one-year chart shows a reasonably attractive uptrend. Earlier today, the company reported its Q1 numbers. How did they look?

Some investors have already made up their minds the stock market rally is over. Others are convinced there's nowhere to go but up. Both views are oversimplified market predictions, considering the complicated economic environment.

A closer look at the latest stock market news proves that while things aren't all coming up roses on Wall Street, there are plenty of reasons to be cautiously optimistic the bull market will continue. Here are three of the latest reasons we learned about in the past few days: strong retail sales, strength in one of the worst housing markets and significant increases in corporate spending and dividends.

Guess (GES), a fashion concept whose related companies include Abercrombie & Fitch (ANF), Gap (GPS), and Polo Ralph Lauren (RL), posted fourth-quarter results Wednesday after the bell. Adjusted income went up well over 40% to 96 cents per diluted share. According to Earnings.com, Wall Street believed 81 cents per share would be the bottom-line number.

Total net sales increased 14%. Same-store sales were up 5.3% (they were better by 2% if you look at the metric in constant dollars). Net cash from operating activities over the last twelve months experienced significant expansion.