The deficit commission's pledge to bring the deficit down to a managed level and the hope that the Euro-Zone won't implode gave markets a steady boost today. Add in higher ISM data and higher jobs data than expected, along with predictions of solid retail numbers, and we had a huge rally. A gain of more than 200 points qualifies as a huge day.

Here were today's unofficial closing bells:

Dow Jones 11,255.78 +249.76 (2.27%)
S&P 500 1,206.07 +19.47 (1.64%)
Nasdaq 2,549.43 +51.20 (2.05%)

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Starbucks (SBUX - option chain) shares are rising today after the company's CEO, Howard Schultz spoke at a conference about how SBUX is planning to buy other firms to help increase its sales of products in grocery stores. SBUX recently scrapped a contract with Kraft (KFT), who had previously provided Starbucks products to grocery stores. SBUX thinks the consumer packaged goods business should grow faster than its retail cafes. Investors are also enthused about the company's plan to expand its Chinese presence. by If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SBUX.

SBUX opened this morning at $31.01. So far today the stock has hit a low of $20.95 and a high of $31.79. As of 12:10, SBUX is trading at $31.78 up $1.18 (3.8%). The chart for SBUX looks neutral and S&P gives SBUX a neutral 3 STARS (out of 5) hold ranking.

Starbucks (SBUX) is hosting an investor's conference on December 1. Overall option implied volatility of 30 is near its 26-week average of 32, according to Track Data, suggesting non-directional price movement.

Lowe's (LOW) is hosting its annual analyst meeting on November 30. Overall option implied volatility of 29 is below its 26-week average of 32, according to Track Data, suggesting decreasing price movement.

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

It appears that there is some trouble brewing in the agreement between Starbucks (SBUX) and Kraft (KFT). As part of the agreement, Kraft distributed Starbucks bagged coffee and the Seattle's Best brand in supermarkets and other food retailers. The agreement dates back to 1998 and has grown to $500 million in annual sales (initially the deal net sales of $50 million).

The intentions were made public by Starbucks last night. The latest salvo fired in this java jive is a mere continuation of a fight that has included both companies accusing each other of having "improperly characterized the terms of the pact." According to Kraft, it requires Starbucks to pay the fair-market value of the business along with a premium in "certain instances."

Coffee giant Starbucks (SBUX) had a strong quarter. Net profit jumped 86% to $278.9 million from $150 million a year earlier, according to its earnings release. For the year to October, net profit more than doubled to $945.6 million from $390.6 million.

Revenue for the period was $2.84 billion, up 17% from $2.42 billion. Starbucks boss Howard Schultz said, "I am delighted with the record fourth quarter and full year results we announced today. ... These results are particularly gratifying in light of the formidable economic challenges that our customers and we continue to confront in virtually every country and every market in which we operate."

It will be a busy week. Republicans are poised to gain control of the House of Representatives and gain governorships in Tuesday's mid-term elections. Also, the Federal Reserve is expected to announce another round of quantitative easing Wednesday, following the FOMC meeting. Major retailers are scheduled to report October same-store sales Thursday, while the October unemployment rate, announced on Friday, is expected to remain at 9.6%.

Toyota's (TM) fiscal second-quarter results will be one of the highlights on the earnings front this week. After three periods of way underestimating Toyota's earnings, have the analysts surveyed by Thomson Reuters got it right this time? The stock sure could use a boost. Teva Pharmaceuticals (TEVA) is in a similar situation; i.e., high expectations for this week's quarterly results but a stock in need of a boost. Marathon (MRO) and Starbucks (SBUX) are also expected to post strong earnings growth this week, but both stocks are riding high.

Starbucks (SBUX - option chain) shares are rising today after the company said after the close yesterday that it plans to raise prices on certain beverages in response to an increase in the price of their beans. Up until this point, SBUX had kept prices steady and seen lower margins due to the increasing costs.

Also mentioned was the possibility that their packaged goods would see price increases. If you will need a little extra cash to cover your morning joe and think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SBUX.

"I find it very interesting that seven of the top ten scoring stocks in my database of 6,000 stocks and ETFs are food-related companies," says trading specialist Mike Turner.

The editor of Mastering the Markets adds, "And one of the top-scoring stocks that has caught my eye out of this group is the Starbucks Corp. (SBUX).

"This is a fundamentally solid company, that has been in a technical buy mode since March of 2009. This is one of those stocks that looks to be firing on all cylinders, and could continue its pricing trend for as long as the general market does not implode -- a potential development I am concerned about.

Starbucks (SBUX) CEO Howard Schultz said Monday that beginning July 1, the coffee king will offer free WiFi in all company-owned stores. This is a change from the current policy, which allows two free hours to customers with a registered SBUX card, or free unrestricted service for AT&T (T) customers.

Not only will the surfing be free, but SBUX-based users will have access to a free version of The Wall Street Journal, content from Zagats, and a free "pick of the week" iTunes download. Not too shabby. Why bother paying for service at home?

This move makes sense, of course, and was a long time coming, as SBUX has to keep up with its competitors. Panera Bread (PNRA) has offered free WiFi for years; so do most McDonald's (MCD).

Analyst Upgrades

• FBR Capital upgraded Microsoft (MSFT) to outperform from market perform, citing valuation and the ongoing corporate PC cycle refresh. The firm upped its target for shares to $32 from $31.
• Oppenheimer upgraded BP (BP) to outperform from perform with a $55 price target as it sees greater upside potential than downside risk from the oil spill.
• Wunderlich upgraded Stericycle (SRCL) to hold from sell and raised its target for shares to $50 from $42, citing the company's alliance with Republic Services (RSG).
• Illinois Tool Works (ITW) was upgraded to overweight from equal weight at Barclays.
• GameStop (GME) was upgraded to buy from neutral at Janney Montgomery.
• Fluor (FLR) was upgraded to buy from neutral at Goldman.

Starbucks (SBUX) announced recently that it is hanging its hopes on a lower-priced coffee line under its Seattle's Best brand. But investors who were excited about this news have gotten a cold bucket of water thrown on them by a seemingly innocuous move: A logo change.

The public, however, overwhelmingly seems to think Starbucks should try again, at least according to one online poll by the Seattle Times. And readers have levied criticism that includes likening the logo to "Seattle's Best Blood Bank," among other quips.

It used to be that McDonald's (MCD) was known for its fast food like Happy Meals, Egg McMuffins and Big Macs. But increasingly, the burger giant has been looking to brand itself as a beverage leader. It's no secret why -- drinks are high-margin products, providing the biggest bang for a restaurant's buck. And with the non-alcoholic beverage business in the U.S worth $153 billion, Mickey D's would be crazy not to try to get a slice of that pie.

Its latest effort: The addition of smoothies and iced frappes to its already impressive suite of McCafe gourmet coffees. Flavors include wild berry, strawberry banana, mango and strawberry flavors at select locations.

Seattle coffee icon Starbucks (SBUX) has been on the resurgence in 2010 after consumers fled during the Great Recession. In order to keep the profits percolating, SBUX is looking to roll out a fresh new menu of Frappucinos and iced coffee for the hot summer months.

Growth is crucial for SBUX stock now after it has weathered the worst of the economic downturn. Notable achievements over the past few months include:

• The announcement of the first-ever cash dividend to SBUX stock owners.
• Gains of about 220% in Starbucks shares since the 2009 lows, from $8.24 on March 9, 2009, to the mid-$26 range today.
• Four straight earnings reports topping Wall Street forecasts, with an average earnings surprise of almost 20%.

But despite these strides, SBUX stock is still down about 33% from its 2006 peak at about $40 a share. And the coffee marketplace has become increasingly crowded in the intervening years, so returning to its lofty perch as the coffee queen is no easy task.

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

• Lockheed Martin Corp. (LMT) lower Q1 earnings were better than expected but it lowered its full-year outlook.
• McDonald's Corp. (MCD) solid Q1 numbers were driven by its value menu, McCafe, and strength overseas.
• Microsoft Corp. (MSFT) topped Q1 earnings expectations and cash from operations rose, but shares declined.
• Netflix Inc. (NFLX) shares were lifted after its strong Q1 earnings beat consensus estimates.
• PepsiCo Inc. (PEP) fell short of Q1 revenue estimates but beat earnings per share expectations by a penny.

March PPI rose 0.7%, but core prices rose only 0.1%. The annual rate of inflation fell marginally to 0.9% in March versus 1.0% in February. That was much higher a year ago. Today's news gave the Fed a reason to stand pat on no rate hikes. The other good news is those pesky jobless claims showed the first drop in 3 weeks by 24,000 down to 456,000. Even the continuing claims (the long-lived army of the unemployed) fell 40,000 to 4,646,000.

And despite more calls for more regulation from the Obama administration, stocks staged a much better close than they indicated this morning before the open, even if the Black-Red verdict was not evident until the final minutes of the day.

Here were today's closing bell levels:

Dow 11,134.29 +9.37 (0.08%)
S&P 500 1,208.67 +2.74 (0.23%)
Nasdaq 2,519.07 +14.46 (0.58%)

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