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TheStreet.com's Jim Cramer says there's some reason for caution, but no reason to get out of the market here.

There all right there. Don't you feel it? Hundreds of stocks at resistance. Hundreds have formed a nice base. The Transports and the Dow are moving in synch. The earnings period surprisingly great, with so many companies not stung by the raw costs. Three straight up weeks, with all the commodity stocks showing signs of rolling over; most at crucial "must hold" levels except for gold, which has already crashed, making the inflation case much dimmer in the eyes of the traders.

Yet, you simply can't read the papers. They are too awful. The cost to the consumers for everything from food to gasoline is humongous and going higher, according to all the food execs I had on last week. We are getting nowhere near a bottom in housing. The layoffs, while not significant in the Labor Report on Friday, sure seem endless. The two major presidential candidates from the Democratic side want to tax the oil companies into oblivion, the leaders of the last year. Exxon (NYSE: XOM) (Cramer's Take) blew the quarter. So did GE (NYSE: GE) (Cramer's Take).

Too far, too fast, based on those grim items.

To me, this is the first week since the Bear Stearns (NYSE: BSC) (Cramer's Take) bottom that I think seems aimless.

But perhaps there's a "split the difference" way to approach this week: options expiration.

Parker Hannifin Corporation (NYSE: PH) manufactures fluid power systems, electromechanical controls and related components. Its Industrial unit offers hydraulic systems, filters, sealing devices, pneumatic components and electromechanical instrumentation to OEMs in various production and processing industries. The firm's Aerospace segment provides hydraulic, fuel, and pneumatic systems used in commercial and military airframe and engine programs. The Climate and Industrial Controls division makes refrigeration and air conditioning systems. The company employs more than 57,000 people in 43 countries around the world. Eaton Corporation (NYSE: ETN) and Honeywell International (NYSE: HON) are competitors.

Investors were pleased last week, when the firm reported fiscal Q3 EPS of $1.49 and revenues of $3.18 billion. Analysts had been looking for $1.34 and $3 billion. Management pointed to growth in many key markets, including aerospace. The firm also guided FY08 EPS to $5.40-$5.60, versus consensus of $5.28.

TheStreet.com's Jim Cramer says they can't be profitable with this huge cost – it's time to move on.

Here's a revelation. The airline industry is disappearing right before our eyes. And it doesn't even matter. They can merge all they want, they can try to cut costs through synergy, but the business can't survive $120 oil. The variable cost is 35% of their expense. That's not tenable and it is going higher. Fares have to double to make it up. That's just not tenable. The Dreamliner's a nice savings, but this American industry won't get there in time to be saved by it.

Last week we saw the big give-up, the departure of even the longest-term investors. The stocks are signaling that most of them will have to restructure through bankruptcy. They have done it before, but this time it doesn't matter. The fare increases have to occur, and they are such that the airline structures can't be profitable. It is one of those industries that can't stay afloat without massive federal subsidies, and that can't happen.

I have hated the airline stocks ever since 1985 when I recommended Delta (NYSE: DAL) (Cramer's Take) and my clients promptly dropped 50%. I reiterate that after the tremendous declines these stocks have, they are still worth avoiding. Don't be tempted to pick up these stocks if oil "swoons" down to $115. The airlines will rally, but they will need to do every bit of financing possible if a rally occurs.

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

• Bear Stearns Cos. Inc. (NYSE: BSC) reported a profit that missed expectations by a penny.
• Caterpillar Inc. (NYSE: CAT) posted higher profits in the first quarter, boosted by global gains.
• Charles Schwab Corp. (NASDAQ: SCHW) first-quarter earnings were in line with expectations.
• Citigroup Inc. (NYSE: C) posted a bigger-than-expected loss on further write-downs.
• Crocs Inc. (NASDAQ: CROX) lowered first-quarter guidance led the stock to a new 52-week low.
• Eaton Corp. (NYSE: ETN) beat first-quarter estimates due to strong demand overseas.
• Gilead Sciences Inc. (NASDAQ: GILD) posted better-than-expected first-quarter earnings.
• ITT Corp. (NYSE: ITT) raised its first-quarter and full-year earnings guidance.
• Johnson & Johnson (NYSE: JNJ) reported better-than-expected first-quarter earnings.
• JPMorgan Chase & Co. (NYSE: JPM) beat expectations though first-quarter profits fell
• Merrill Lynch & Co. (NYSE: MER) posted a bigger-than-expected first-quarter loss due to write-downs.
• TD Ameritrade Holding Corp. (NASDAQ: AMTD) second-quarter EPS rose 35%, but revenue fell.
• U.S. Bancorp (NYSE: USB) beat first-quarter earnings expectations thought profits slipped.
• Wachovia Corp. (NYSE: WB) posted its first quarterly loss since 2001 and cut its dividend.
• Washington Mutual Inc. (NYSE: WM) swung to a first-quarter loss of more than $1 billion.
• Wells Fargo & Co. (NYSE: WFC) beat expectations though first-quarter profits fell.

In earnings reports Monday, Eaton Corp. (NYSE: ETN) posted first-quarter profit gains, while J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) and Stanley Furniture Co. (NASDAQ: STLY) reported smaller profits compared to the same period in 2007.

Eaton, a maker of industrial parts and systems, said that first-quarter earnings rose 5% as demand from international markets pushed sales higher. Net income rose to $247 million, or $1.64 per share, beating Wall Street expectations. Sales rose 12% to $3.5 billion. Eaton shares rose $1.09 in trading Monday to $80.39, but slipped 13 cents in after-hours trading.

J.B. Hunt, which provides truckload and intermodal shipping services, said its first-quarter profit fell 18% because of weak demand and a rising fuel prices. The company earned $36.4 million, or 28 cents per share, missing Wall Street estimates. Total operating revenue rose 10% to $878.4 million. Shares fell 31 cents to $29.15 Monday, and continued to fall in aftermarket trading.

Stanley Furniture, which makes wood furniture for the residential market, said its first-quarter profit tumbled 37%, but beat Wall Street's expectations. The company reported income of $1 million, or 10 cents per share. Sales fell 17% to $62.5 million. Shares fell 15 cents Monday, then plunged another $1, or 9.4%, in after-hours trading to $9.59.

Visit AOL Money & Finance for more earnings coverage.

Esterline Technologies (NYSE: ESL) is engaged in the design, manufacture, and marketing of engineered products and systems for application in the aerospace and defense industries. The Avionics & Controls unit makes communications systems, medical equipment, and interface systems for aircraft and military vehicles. The Sensors & Systems operation manufactures temperature and pressure sensors, as well as fluid and motion control products. The Advanced Materials segment makes elastomer products, combustible ammunition components and electronic warfare countermeasures. Boeing (NYSE: BA) is a major customer. Eaton Corporation (NYSE: ETN) is a competitor.

The company surprised investors late last month, when it reported Q1 EPS of $1.04 and revenues of $372.4 million. The Street had been expecting 59 cents and $342.3 million. The CEO noted that quarterly organic growth of nearly 25% was well balanced between the military and commercial businesses. Management also guided FY08 EPS to $3.35-$3.50, versus consensus of $3.17.

MOST NOTEWORTHY: Limelight Networks, Diebold and Charles & Colvard were today's noteworthy upgrades:

• Jefferies upgraded shares of Limelight Networks (NASDAQ: LLNW) to Hold from Underperform on valuation and believes it impossible to know what will happen to the company from here. On the downside, Jefferies notes a permanent injunction means the business is nearly worthless, but on the upside, is the possibility of sale to Akamai (NASDAQ: AKAM) or a large telecomm service provider.
• Baird raised Diebold (NYSE: DBD) to Outperform from Neutral citing expectations of a higher bid from United Technologies (NYSE: UTX).
• Merriman upgraded shares of Charles & Colvard (NASDAQ: CTHR) to Buy from Neutral on valuation, as they believe the current share price does not account for the potential wholesale value of the company's manufactured inventory and method patent. They believe Charles & Colvard is a potential acquisition target.

OTHER UPGRADES:

• Goldman raised Eaton (NYSE: ETN) to Conviction Buy from Neutral and added Royal Caribbean (NYSE: RCL) to its Conviction Buy List.

TheStreet.com's Jim Cramer says if you can show you're immune to Bernanke, you're going higher.

Cyclicals are on fire here. Stocks like Caterpillar (NYSE: CAT) (Cramer's Take) and Terex (NYSE: TEX) (Cramer's Take) and Joy Global (NASDAQ: JOYG) (Cramer's Take) just can't be stopped. Manitowoc (NYSE: MTW) (Cramer's Take) is a good one. I am thinking United Tech (NYSE: UTX) (Cramer's Take) and Honeywell (NYSE: HON) (Cramer's Take). The rails are on fire.

All of them, what do they have in common? They have left the U.S. behind. We are an afterthought. If you can prove on a conference call that Ben Bernanke has nothing to do with your book of business, you are going higher.

Notice Eaton (NYSE: ETN) (Cramer's Take) and Emerson (NYSE: EMR) (Cramer's Take). They can't quit. When the coal operators come to their sense and realize that they can make fortunes digging for more, then Joy Global will take out the high. I am using any weakness to buy Foster Wheeler (NASDAQ: FWLT) (Cramer's Take), the tug of the non-U.S. cyclicals is that strong.

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

• Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
• AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
• Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
• Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
• Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
• Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
• Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
• Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
• ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
• CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
• Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
• Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
• Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
• Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
• Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
• Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
• Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Eaton Corporation (NYSE: ETN) manufactures electrical systems and components for fluid power systems for industrial, automotive and aerospace industries. While the stock market continues to gyrate, Eaton continues to post solid results quarter after quarter. 4Q2007 results proved no exception. Across the board, numbers are up. Net income increased 6% to $256 million, sales grew by 10% due to both acquisitions and organic growth. Operating earnings increased 7% to $269 million. The story is the same for FY 2007 results.

The bulk of Eaton's growth and profits for 2007 came from outside the U.S., which remains a weak market, particularly in the NAFTA truck segment, which declined 14%. To offset this decline, European medium-duty truck production increased 12% and Brazilian agricultural equipment, still a small market, increased 63%. Electrical and fluid power segments each posted sales increases of 17%. Operating profits in these segments increased by 17% and 37% respectively. Aerospace segment grew by 6%.

Eaton CEO Alexander Cutler forecasts overall revenue growth at 25% for 2008, due both to organic growth as well as continued acquisitions. Operating earnings per share for 2008 are forecast at $7.75-$8.25. With the stock price right around $80 per share, coupled with an annual dividend of $0.50 per share, conservative investors may wish to take a look at Eaton as a safe place to park money.

MOST NOTEWORTHY: Air Products, Eaton and Pharmaceutical Product Development were today's noteworthy downgrades:

• Jefferies downgraded shares of Air Products (NYSE: APD) to Hold from Buy and lowered their target to $105 from $112 as they believe investors should wait for a better entry point given the company's more cyclical growth portfolio. They see downside risks to its electronics, chemicals and equipment businesses.
  
• Eaton Corp. (NYSE: ETN) was downgraded to Neutral from Buy at Goldman due to its high exposure to the U.S. economy.
  
• Baird downgraded Pharmaceutical Product Development (NASDAQ: PPDI) to Neutral from Outperform as its 2008 development guidance appears full and margins look full.

OTHER DOWNGRADES:

• Goldman downgraded the U.S. non-life insurance sector to Neutral from Attractive and removed Synchronoss (NASDAQ: SNCR) from its Conviction Buy List.
  
• ING downgraded Fortis (OTC: FORSY) to Hold from Buy.

AZZ incorporated (NYSE: AZZ) makes electrical products that distribute power to and from generators, transformers, switching devices, and other electrical configurations. It also offers lighting products for the petroleum, food processing, and power generation industries. Its Galvanizing Services segment provides hot-dip galvanizing to the steel fabrication industry. Competitors include General Electric (NYSE: GE) and Eaton Corporation (NYSE: ETN).

The company pleased investors last week, when it reported Q3 EPS of 66 cents and revenues of $86.6 million. Analysts had been expecting 53 cents and $78.0 million. Management also guided FY08 EPS to $2.12-$2.22 ($2.12 consensus) and FY08 revenues to $315-$325 million ($321 million consensus). The stock popped into the initial stage of a bullish "flag" pattern on the news. Equities frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Whether it's tools, or complex engineered solutions, some folks just know electro-hydraulics. There is an outfit in Butler, Wisconsin that has been engineering answers along that line for 97 years.

Actuant Corporation (NYSE: ATU) is engaged in the manufacture and marketing of industrial products and systems. Its Tools and Supplies group offers high-force hydraulic tools, electrical tools and electrical consumables to the general industrial, construction, production automation and do-it-yourself retail markets. Its Engineered Solutions group provides motion control systems for the heavy-duty truck market. These include recreational vehicle slide-outs and leveling systems, heavy truck cab-tilt systems and electro-hydraulic convertible top actuation systems. Eaton Corporation (NYSE: ETN) is a major competitor.

The company surprised the Street last week, when it reported Q1 EPS of 52 cents and revenues of $415.1 million. Analysts had been looking for 48 cents and $394.7 million. In discussing the solid numbers, the CEO cited "robust industrial segment sales as well as continued strength in the European truck market." Management also guided Q2 EPS to 39-42 cents (42 cent consensus), Q2 revenues to $385-$395 million ($379.56M consensus), FY08 EPS to $1.95-$2.05 ($1.96M consensus) and FY08 revenues to $1.62-$1.66 billion ($1.6B consensus). BMO Capital Markets subsequently reiterated its "outperform" rating on the issue and boosted its price target to $40. ATU shares popped on the news and then moved into the initial stage of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

TheStreet.com's Jim Cramer says a comment by the Cisco CEO about systems spending caused more damage than it should have.

Everyone thinks we lost tech. That's because everyone was hiding in tech. They thought it was "safe."

Perhaps we confused tech with Coke (NYSE: KO) (Cramer's Take) and Pepsi (NYSE: PEP) (Cramer's Take).

First, the root cause of all of this is the somewhat off-handed comment about how the financial services industry has cut back on spending for systems.

We never want to hear any company say anything about spending cuts by customers. It is intriguing that the only place where spending was hit was by these customers. It was enough to kill all tech, though.

Is it right? If tech hadn't been so hyped and if tech wasn't so linked to financial services, I don't know how much we would be down.