• Intel (NASDAQ:INTC) agreed to pay Advanced Micro Devices (NYSE:AMD) $1.25 billion to settle a private antitrust lawsuit

• Dell (NASDAQ:DELL) announced plans to enter the smartphone business, in partnership with China Mobile and Claro. Its first product, the Mini 3, will be designed around Google's (NASDAQ:GOOG) Android operating system

• Disney (NYSE:DIS) reported fiscal fourth quarter results after yesterday's close, with earnings ex-items coming in 5 cents a share better-than-expected at 46 cents. Revenues of $9.87 billion came in well ahead of Zacks estimates of $9.18 billion

• McDonald's (NYSE:MCD) addressed its plans to open 1,000 additional restaurants next year, and provide an image makeover to the rest.  The firm set targets for average annual sales growth of 3-5% and average annual operating earnings growth of 6-7%

• Abercrombie and Fitch (NYSE:ANF) reported third quarter non-GAAP earnings of 30 cents a share, well above Zacks estimates of 20 cents, as revenues of $765.4

• Novellus (NASDAQ:NVLS) CEO Rick Hill provided optimistic outlooks for the current quarter and next. He narrowed the gain in bookings to an expected 40-55% rise from 20-50%, the range of shipments to $150 -$170 million from $140-$170 million, with earnings expected to range between a nine cent loss and breakeven, up from a 15 cent loss and breakeven

• Citigroup (NYSE:C) analysts lowered their rating on Abercrombie and Fitch (NYSE:ANF) to "sell" from "hold" and cut the price target to $24 from $33

• Costco (NASDAQ:COST) received an upgrade from JP Morgan (NYSE:JPM)

• H&R Block (NYSE:HRB) reported fiscal first quarter loss from continuing operations of 39 cents a share, a bit worse than the Zacks expectations of a 37 cent loss, as revenues grew 1.3% to $275.5 million, off estimates of $281 million. The firm, however, maintained full year projections of $1.60-$1.80

• Cooper Companies (NYSE:COO) reported third quarter earnings of 54

Stocks broke a four-day losing streak, helped by better-than-projected August sales from retailers but the advance was lukewarm as investors chose to play it safe ahead of today’s non-farm payrolls report.  After touching their 2009 highs, stocks have drifted lower this week on concerns that a major correction is in the offing.  Sentiments are also shaky as September has historically been a rough month for stocks.  

Yesterday, the 30-stock Dow Jones industrial average finished higher by 63.94 points, or 0.69%, at 9,344.61.  The broad Standard & Poor's 500-stock index rose 8.49 points, or 0.85%, at 1,003.24, closing above 1,000 for the first time since Monday; the technology-laden Nasdaq composite index gained 16.13 points, or 0.82%, to 1,983.20.  Twenty two of the thirty DJIA components advanced.

Although stocks traded in a tight range yesterday, the final hour of trading witnessed activity as traders picked up technology and financial stocks.  Better-than-expected

* Reports said General Motors (NYSE:GM) is nearing a UAW deal that could lower hourly labor costs by over $1 billion per year. The firm is also expected to give notice to its dealers of plans to cut 42% of its network

* Today's WSJ reports a number of insurers have received approval for up to $22 billion in TARP funds. The companies include: Hartford Financial Services (NYSE:HIG), Prudential Financial (NYSE:PRU), Lincoln National (NYSE:LNC), Allstate (NYSE:ALL), Ameriprise Financial (NYSE:AMP) and Principal Financial Group (NYSE:PFG)

* Barclays (NYSE:BCS) is reportedly in talks to sell its Global Investors division, with BlackRock (NYSE:BLK) and Bank of New York Mellon (NYSE:BK) named as possible suitors

* Abercrombie and Fitch (NYSE:ANF) reported a first quarter loss of 31 cents per share, which missed Street estimates by 17 cents, as revenues declined 23.5% year-over-year to $612 million

With U.S. employers cutting fewer jobs in April and banks' stress test results throwing up less-than-expected surprises, U.S. stocks advanced helping S&P 500 erase this year's losses and tech-heavy Nasdaq recorded its ninth straight weekly gain.  Reassuring signs emerging from the employment front indicated the economy is starting to find its footing as even a $75 billion deficit in capital failed to deter investors.  Stock buyers helped broad-based S&P 500 end the week 5.9% higher - the index is up 37% from a 12-year low hit on March 9. During the week, the Dow Jones Industrial Average added 362.24 points, or 4.4%, to 8,574.65. The Chicago Board Options Exchange Volatility Index, a measure of market volatility, declined 9.2% to 32.05. Volume on the NYSE was a heavy 1.9 billion as advancing issues outpacing declining stocks by a five-to-one margin. Among S&P sector groupings, financials were the leading gainers

This is the first major report coming out this week, and could have a real impact on the markets. Expectations are for a decline in sales since last month, albeit at a slower rate than previous months.

Tuesday

Earnings Announcements: AMAT

Wednesday

Economic Reports: Retail Sales

I’ve mentioned it before, but until Americans feel confident about the future of the economy, they won’t spend money. A slowing decline could show some hope that things are bottoming out. Tied into this report, and worth noting, is the large number of clothing retailers that are reporting this week (Macy’s, Nordstrom’s, JC Penney, Abercrombie and Fitch, Kohl’s, and American Apparel), and Wal-Mart’s earnings are announced on Thursday.

Earnings Announcements: FRE

Thursday

Economic Calendar: PPI, Core PPI

It looks as if inflation has been kept under control for at least another month. Both the PPI and Core PPI readings that are announced on Thursday are expected to show only the slightest increases since