This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

Johnnie Bryan Hunt, eponymous founder of J.B. Hunt (NASDAQ: JBHT), was, like so many Depression-era children, a jack-of-many-trades. He picked cotton, harvested grain, sold lumber, auctioned livestock, sold lawn sod, and drove a truck. He was a handy soul, inventing a rice hull press and designing a unique poultry truck.

It was the rice hulls that would be the start of J.B. Hunt. J.B. came up with the concept of using rice hulls for chicken bedding. He and a partner used the rice hull business as seed money to buy five trucks and seven trailers and in 1969 started J.B. Hunt Transport. Today the company operates 11,000 trucks and about 47,000 trailers and containers, though its founder died in 2006 -- in time to see his little transport business become the largest publicly-traded trucking company in the world.

It's fitting that J.B. Hunt, which made its start on the profit earned from chicken farmers, should be based in rural Arkansas -- the land of poultry. Lowell, Arkansas is a tiny town, made up of only about 5,000 residents, so J.B. Hunt is a big force. With 16,000 employees, the company could triple the town's size based on its payroll alone.

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

• Abbott Laboratories Inc. (NYSE: ABT) first-quarter profit soared on overseas demand for Humira.
• Advanced Micro Devices Inc. (NYSE: AMD) posted a bigger-than-expected loss, its sixth straight.
• Coca-Cola Co. (NYSE: KO) posted better-than-expected first-quarter results on strength overseas.
• CSX Corp. (NYSE: CSX) first-quarter profit soared on strong demand for grain, ethanol, and coal.
• eBay Inc. (NASDAQ: EBAY) beat first-quarter expectations but the outlook was uninspiring.
• Google Inc. (NASDAQ: GOOG) first-quarter profit soared 42%, beating Wall Street estimates.
• Intel Corp. (NASDAQ: INTC) first-quarter earnings slipped but exceeded expectations.
• Intuitive Surgical Inc. (NASDAQ: ISRG) beat first-quarter estimates and offered a disappointing outlook.
• J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) missed first-quarter estimates on rising fuel prices.
• Nokia Corp. (NYSE: NOK) first-quarter profit missed expectations and it warned of a coming decline.
• Pfizer Inc. (NYSE: PFE) first-quarter profits fell and missed analysts' expectations.
• Reliance Steel & Aluminum Co. (NYSE: RS) lowered its second-quarter outlook.
• Royal Philips Electronics posted a bigger-than-expected fall in profit on weak North America TV sales.
• Wolverine World Wide Inc. (NYSE: WWW) beat earnings estimates but shareholders were not impressed.
• Xerox Corp. (NYSE: XRX) posted a first-quarter loss that matched analysts' estimates.

Also, Jim Cramer doesn't think General Electric (NYSE: GE) is the bellwhether some take it for. Goldman Sachs (NYSE: GS) is pessimistic about this earnings season. And here's a look at some companies that reported this week that could bounce back after the recession, as well as earnings expectations for "barometer" companies reporting next week.

Upcoming results to watch for include Bank of America (NYSE: BAC), Halliburton (NYSE: HAL), Merck (NYSE: MRK) Texas Instruments (NYSE: TXN), AT&T (NYSE: T), DuPont (NYSE: DD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Boeing (NYSE: BA), UPS (NYSE: UPS), 3M (NYSE: MMM), PepsiCo (NYSE: PEP), Microsoft (NASDAQ: MSFT), Motorola (NYSE: MOT), and McDonald's (NYSE: MCD).

Visit AOL Money & Finance for more earnings coverage.

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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.

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• Rochdale upgraded Polaris Industries (NYSE: PII) to Buy from Hold, as they have increased confidence in the company's ability to achieve estimates.
  
• Piper upgraded shares of Edwards Lifesciences (NYSE: EW) as they believe the bad news is behind the company with a U.S. turnaround expected in 2008.
  
• Jefferies raised shares of BearingPoint (NYSE: BE) to Hold from Underperform on valuation as they believe the risk/reward is neutral following the recent pullback.
  
• Fortis (OTC: FORSY) was upgraded to Outperform from Peer Perform at Bear Stearns. The firm upgraded shares on valuation as they believe the recent weakness is overdone.

• Goldman Sachs added Research in Motion Limited (NASDAQ: RIMM) and Commercial Metals (NYSE: CMC) to its Conviction Buy List.
• Credit Suisse upgraded Varian Semiconductor (NASDAQ: VSEA) to Outperform from Neutral.
  
• Bear upgraded Bruker Biosciences (NASDAQ: BRKR) and Hutchison Telecom (NYSE: HTX) to Outperform from Peer Perform.
  
• Banc of America upgraded Werner Enterprises (NASDAQ: WERN) and J.B. Hunt (NASDAQ: JBHT) to Neutral from Sell.

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MOST NOTEWORTHY:

• Wachovia upgraded shares of J.B. Hunt Transport (NASDAQ: JBHT) to Outperform from Market Perform citing strength in the company's Intermodal franchise.

• Matrix USA upgraded Gold Fields (NYSE: GFI) to Buy from Sell, citing the strong demand for gold jewelry from affluent customers in developing markets and investors.

• AG Edwards upgraded Anheuser-Busch (NYSE: BUD) to Buy from Hold based on valuation and improving fundamentals.

• CBS Corp (NYSE: CBS) was upgraded to Buy from Neutral at SMH Capital based on expectations for CBS to continue to increase its annual dividend 10% a year.

• Jefferies is more confident in Amerigroup's (NYSE: AGP) ability to see further medical cost improvements in its GA market and it its TN expansion, upgrading shares to Buy from Hold...

• Goldman upgraded Micron Tech (NYSE: MU) and Novellus Systems (NVLS) to Neutral from Sell.

• CIBC raised Darden Restaurants (NYSE: DRI) to Sector Outperformer from Sector Performer.

• BMO Capital upgraded National City (NYSE: NCC) to Market Perform from Underperform.

• Needham raised OmniVision Tech (NASDAQ: OVTI) to Buy from Hold.

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MOST NOTEWORTHY:

• Goldman upgraded shares of Toyota Motor Corp (NYSE: TM) to Buy from Neutral to reflect expectations for greater operating profits and margin expansion in 2007.

• Keybanc upgraded shares of J.B. Hunt Transport (NASDAQ: JBHT) to Buy from Hold based on increased conviction in JBHT's ability to increase intermodal volumes, easier 2H and 2008 comps, buybacks and valuation.

• Jefferies upgraded SourceFire Inc (NASDAQ: FIRE) to Buy from Hold after their checks indicated better Federal IT spending and solid sales activity.

• Kohl's Corp (NYSE: KSS) was raised to Outperform from Neutral at Baird on valuation.

• Millennium Pharmaceuticals (NASDAQ: MLNM) was upgraded to Market Perform from Underperform at Friedman Billings, citing recent monthly Velcade prescription trends for the move higher...

• Credit Suisse upgraded Arch Capital Group (NASDAQ: ACGL) to Buy from Neutral.

• Bear Stearns raised Parexel International Corp (NASDAQ: PRXL) to Peer Perform from Underperform.

• Morgan Joseph upgraded West Marine (NASDAQ: WMAR) to Buy from Hold.

• Morgan Keegan raised Cost Plus Inc (NASDAQ: CPWM) to Market Perform from Underperform.

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MOST NOTEWORTHY:

• Wachovia downgraded shares of J.B. Hunt Transport Services (NASDAQ: JBHT) to Market Perform from Outperform citing a more tempered outlook for the U.S. Intermodal market.

• QLogic Corp's (NASDAQ: QLGC) downgrade to Market Perform from Outperform at Friedman Billings was based on weaker then planned HBA and switch revenue and low gross margins on new Infiniband products that spiked up in the mix.

• Buckingham cut General Motors (NYSE: GM) to Underperform from Neutral.

• Oppenheimer downgraded Big 5 Sporting Goods (NASDAQ: BGFV) to Neutral from Buy believing current trends suggest a lagging west coast customer.

• RBC Capital Markets cut Biogen Idec Inc (NASDAQ: BIIB) to Sector Perform from Outperform citing mixed feedback at AAN that indicates longer-term safety data will be needed to drive adoption of Tysabri and lingering long-term concerns over Rituxan royalties and profit share.

• Goldman downgraded Steelcase Inc (NYSE: SCS) to sell from Neutral.

• MeadWestvaco Corp (NYSE: MWV) was downgraded to Underweight from Neutral at Prudential.

• Jefferies cut Ista Pharmaceuticals, Inc (NASDAQ: ISTA) to Underperform from Hold.

• Lazard downgraded Talbots, Inc (NYSE: TLB) to Hold from Buy.

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MOST NOTEWORTHY:

• Baird upgraded J.B. Hunt Transport Services Inc (NASDAQ: JBHT) to Outperform from Market Perform based on strong trends in Intermodel, valuation, and a $500M share buyback.

• Pacific Growth upgraded shares of Nvidia Corp (NASDAQ: NVDA) to Buy from Neutral citing valuation.

• Buckingham upgraded International Flavors (NYSE: IFF) to Accumulate from Neutral following the company's Q1 report.

• RealNetworks Inc (NASDAQ: RNWK) was raised to Buy from Accumulate at ThinkEquity after its Q1 report.

• Susquehanna upgraded Marchex Inc (NASDAQ: MCHX) to Positive from Neutral. Susquehanna has increased confidence that Marchex will be able to increase monetization via Yahoo!'s (YHOO) Panama upgrade, improving 2008 TAC rates and increased value of owned sites following a major upgrade for 2H07.
  

• Jefferies raised Symantec Corp (NASDAQ: SYMC) shares to Buy from Hold with a $21 target.

• JP Morgan upgraded Comverse Technology Inc (NASDAQ: CMVT).

• Raytheon Co (NYSE: RTN) was upgraded to Overweight from Equal Weight at Lehman Brothers.

• SPX Corp (NYSE: SPW) was raised to Neutral from Underperform at Needham.

• Wachovia upgraded IntercontinentalExchange, Inc (NYSE: ICE) to Outperform from Market Perform.

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MOST NOTEWORTHY:

• Freidman Billings cut Medimmune inc (NASDAQ: MEDI) to Market Perform from Outperform on valuation. Prudential downgraded shares to Neutral from Overweight and recommended investors take profits in the company.
• J.B. Hunt Transport Services Inc (NASDAQ: JBHT) was downgraded to Peer Perform from Outperform at Bear Stearns citing valuation.
• Lockheed Martin (NYSE: LMT) was removed from Goldman Sachs Conviction Buy List and prefers L-3 Communication (LLL) over the large-cap aerospace/defense company.
• Komag Inc (NASDAQ: KOMG) was downgraded to Sell from Neutral at American Technology as they believe industry fundamentals have weakened and that the Seagate (STX) preannouncement will increase pricing pressure.

• Stifel downgraded Mercantile Bank (NASDAQ: MBWM) to Hold from Buy at Stifel.
• Soliel downgraded shares of Limited Brands (NYSE: LTD) to Hold from Buy.
• Matrix USA cut DSP Group (NASDAQ: DSPG) to Strong Sell from Hold.
• Brean Murray downgraded shares of Keithley Instruments (NYSE: KEI) to Sell from Buy with a $13 target following the company's Q2 pre-announcement.
• Needham cut Semitool Inc (NASDAQ: SMTL) to Hold from Buy.

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We started the second quarter with small gains on late buying in today's session. March ISM manufacturing data came in at 50.90, below estimates of 51.50.

The NYSE had volume of 2.8 billion shares with 2,056 shares advancing while 1,214 declined for a gain of 43.73 points to close at 9,305.55. On the NASDAQ, 1.8 billion shares traded, 1,519 advanced and 1,522 declined for a loss of 0.62 to 2,422.26.

Stocks moving today included: First Data Corporation (NYSE: FDC) rose $5.55 (21%) to $32.45 on a buyout from KKR. J.B. Hunt Transport Services (NASDAQ: JBHT) rose $1.36 (5%) to $27.60. Starwood Hotels & Resorts Worldwide (NYSE: HOT) rose $2.97 (5%) to $67.82. Altria Group (NYSE: MO) rose $2.32 (4%) to $68.22 after the Kraft spinout.

Motorola Inc. (NYSE: MOT) saw heavy volume on the April 17.50 calls (MOTDW) with 23,000 calls moving and the April 19 calls (MOTDT) with over 21,000 contracts traded. The May months also had activity on Motorola, most notably the May 17 calls (MOTER) with over 21,000 contracts and the May 16 puts (MOTQQ) with over 23,000 contracts. Puts were popular on Advanced Micro Devices (NYSE: AMD) April 12.50 strike (AMDPS) with over 53,000 contracts crossed. The April 20 puts (AMDPD) crossed another 58,000 options while the July 20 puts (AMDSD) moved 45,000 contracts.

Bristol-Myers Squibb (NYSE: BMY) saw heavy volume on the April 25 calls (BMYDE) with over 45,000 options trading. Halliburton Co. (NYSE: HAL) saw heavy volume on the April 40 puts (HALPH) with over 80,000 options trading. In total there were 3.9 million puts and 3.7 million calls traded today for a put/call open interest ratio of 1.07.

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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A brief look at railroad freight traffic numbers offers some tell-tale signs as to where our economy is heading. I like to review railroad loading statistics because they can give you a crystal-ball edge in guessing where the big money is leaning in the volatile economic food chain. Basically, right now the numbers are firm year over year, but the freight demographics are what I find interesting.

According to the Association of American Railroads: Total rail freight volume is up 8.9% as compared to 2006, but while container volume is up about 14%, trailer volume is down 6.2%. That indicates that for the year so far, the railroads are probably moving more imported product than domestic product.

While total carload freight (not including inter-modal) was down nearly 1% this week as compared to the same week last year, total ton-miles increased 0.3%, indicating that less freight is moving but it is traveling more miles. That is clearly due to the decreasing inventories of manufactured product, which should bode well for manufacturers in the second and third quarters. That's assuming that consumer spending maintains current levels.

Nonmetallic mineral shipments have increased nearly 20% by volume over last year. This shows strength in base chemicals, base raw materials, glass, concrete, asphalt, industrial construction, and infrastructural improvements. Metallic ore shipments are down over 50%; I believe that shows weakness most especially in steel, tin, aluminum, and copper. Lumber and wood product shipments declined nearly 25% -- no reprieve for the home building market there! Petroleum product shipments are up 9.2% year over year, and coal shipments have increased 3.1%. Here's a tip, it looks like road building and resurfacing will be a big gainer this summer!

Canadian rail shipments are down slightly year to year, showing declines of 4.3% for shipment originations and a 0.2% decrease in containers and trailers. Mexican rail traffic on the Mexican railroad Kansas City Southern de Mexico (KCSM) is mixed, with rail cars down 7.6% but trailers and containers up 7.6%.

The American Association of Railroads states: "Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail inter-modal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator."

One additional note: We wish to express our gratitude to and admiration for the American railroad industry for being recognized as having the safest year ever in their history. Railroads had 402 fewer train accidents in 2006 than 2005, down 12.4 percent. American railroads are to be respected and revered as a shining example of the way business in America should be done.

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I've been reading the January 2007 issue of Material Handling Management. In this issue, there is a fine article by Tom Andel that discusses the current realities regarding hydrogen fuel cell use in commercial operations utilizing lift truck fleets. The MHM article brings home some truths of just how close we are to finally beginning the replacement of currently accepted methods of providing the energy to operate various industrial equipment. Consumers (and investors), sometimes don't realize that when it comes to heavy duty technology conversions in our day to day world, most often those changes are implemented and perfected on the industrial side well before the consumer side gets its hands on them. Such seems to be the case in the matter of hydrogen fuel cells.

MHM research suggests that while increasing improvements are still being aggressively sought, hydrogen fuel cell technology has reached the point of being completely practical in replacing some of today's current energy provision systems. The single largest hurdle that developers are addressing is in making the technology more economical. With current incentive programs for energy provision change over, it's almost a dead heat between hydrogen fuel cells and current methods in use. Developers have already begun their marketing programs while the scientists and engineers continue to push towards their goals for economical hydrogen deployment absent of outside financial incentives. Their goal is to make hydrogen fuel cell technology a stand alone proposition.

Lift truck manufacturers are operating in concert with fuel cell and battery manufacturers to find winning options in energy provision systems. There are design teams which are focusing on complete battery displacement systems and there are other developers who are seeking a hybrid solution which blends fuel cell utilization with current battery technology. Already, Toyota Motor Corp. (NYSE:TM) has developed a fuel cell lift truck model FCHV-F, which utilizes a "drop in" hydrogen fuel cell module. From all appearances, the module would seem to be shaping up as a total battery replacement.

Engineers are still tackling issues surrounding the control of current flow and the power increases needed for constant heavy lifting. The power delivered by hydrogen fuel cell units seems more suited to continuous loads at lower levels, whereas batteries can quickly deliver heavy power surges with total user control. Based on what I've seen and read it appears to me that fuel cells for now will require an associate battery to assist in delivering the power range and control that lift trucks require. The battery would deliver the current and the fuel cell would work as an on board recharging system. Lift truck fleets would then be freed from the downtimes and dangers of routine daily battery change out.

In an investment sense I would consider hydrogen fuel cells as an excellent long term strategy play. The technology is far enough along for me to believe that it will be fully successful. There are some big players in the game and there is a very hard push forward. Hydrogen fuel cells are real, my friends, and their use should become commonplace in the not so distant future. I see fuel cells as having a significant future in the industrial workplace. The question still remains, will hydrogen fuel cells become practical technology for the automobile? My answer is: I just don't know.

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MOST NOTEWORTHY:

• Bear Stearns downgraded Amazon.com Inc (NASDAQ: AMZN) to Underperform from Outperform to reflect the company's margin erosion, lack of near-term earnings leverage and valuation. They note that margins declined for the fourth consecutive quarter year-over-year in Q4.

• Wachovia downgraded Vornado Realty Trust (NYSE: VNO) to Market Perform from Outperform citing the higher bid of $56 for Equity Office Properties Trust (NYSE: EOP), which increases the company's risk profile.

• Citigroup downgraded shares of Apache Corp (NYSE: APA) to Hold from Buy on concerns that the company's poor 2006 reserve replacement cost in the Gulf of Mexico may suggest maturing project inventory.

• JP Morgan downgraded Avid Technology Inc (NASDAQ: AVID) to Underweight from Overweight to reflect the company's weak forecasting and execution after disappointing fourth-quarter results and guidance.

• Matrix USA downgraded J.B. Hunt Transport Services (NASDAQ: JBHT) to Buy from Strong Buy on valuation.

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MOST NOTEWORTHY: Today's notable initiations include NetFlix (NFLX) and Diamond Foods (DMND):

• Bank of America started NetFlix Inc. (NASDAQ:NFLX) with a Sell rating and $24 target, as they expect increasing subscriber acquisition costs and decreasing average revenue per subscriber to be challenging for the long-term;
• Diamond Foods Inc. (NASDAQ:DMND) was initiated with a Buy rating and $23 target at Oppenheimer, as the firm believes Diamond Foods has a solid core business and sees healthy growth with the Emerald products division.

OTHER INITIATIONS:

• JB Hunt Transort Services Inc. (NASDAQ:JBHT) was initiated with a Hold rating at McDonald.
• Duke Energy Corp. Holding Co. (NYSE:DUK) was initiated with a Hold rating and $35 target at Deutsche Bank, citing valuation.
• JP Morgan initiated shares of International Coal Group Inc. (NYSE:ICO) with an Underweight rating, citing difficult business conditions for Central Appalachian coal miners.
• Rochdale initiated Cypress Semiconductor Inc. (NYSE:CY) with a Buy rating and $21 target; the firm believes new business, operating efficiencies and the SunPower (SPWR) investment will improve profitability in 2007.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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MOST NOTEWORTHY: Circuit City (CC), Best Buy (BBY) and Eli Lilly (LLY) top today's list of downgrades.

• Prudential downgraded Circuit City Stores Inc. (NYSE:CC) to Underweight from Neutral, with a $22 target, citing concerns of flat-panel TV price erosion and the high cost structure as compared with Best Buy and other retailers.
• In addition, Best Buy Co., Inc. (NYSE:BBY) was also downgraded by the firm to Neutral from Overweight with a $50 target, citing third-quarter margins that were below expectations.
• Credit Suisse removed Eli Lilly & Co. (NYSE:LLY) from their U.S. Focus List.

OTHER DOWNGRADES:

• Deutsche Bank downgraded L-T-L transporters JB Hunt Transportation Services Inc. (NASDAQ:JBHT) and YRC Worldwide Inc. (NASDAQ:YRCW), citing valuation.
• Sirius Satellite Radio Inc. (NASDAQ:SIRI) was downgraded at Bernstein to Market Perform from Outperform, based on the lower subs forecasts and the fact that Sirius is more reliant in the retail after-market than competitor XM Satellite Radio Holdings Inc. (NASDAQ:XMSR).
• AG Edwards downgraded Micron Technology Inc. (NYSE:MU) to Sell from Hold, citing the DRAM pricing risk; the firm said prices are currently running at more than twice its projected trend and it sees a risk of a correction in the next few months.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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