U.S. stocks rose Friday, for their second consecutive weekly advance, as upbeat earnings reports from a number of companies, including Walt Disney and JC Penny, spurred optimism that the economic recovery is gaining momentum.  A dip in the value of dollar, on concerns consumer spending is likely to remain bleak, sent shares of commodity-related companies up. 

On Friday, the 30-stock Dow Jones industrial average rose 73 points, or 0.72%, to 10,270.47. The broad Standard & Poor's 500-stock index was up 6.24 points, or 0.57%, at 1,093.48. The tech-heavy Nasdaq composite index advanced 18.86 points, or 0.88%, to 2,167.88.  For the week the Standard & Poor’s 500 Index jumped 2.3% to 1,093.48.  The Dow average rose 247.05 points, or 2.5%, to 10,270.47, following its 3.2% advance the prior week.

The spike in commodities came after the greenback fell Friday on news that the trade deficit widened more than expected in

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Unemployment his some groups harder than others The monthly jobs report was much better than expected. I will not go over the basic headline numbers, but if you want to see them go here. The picture is still pretty ugly, though, even if not quite as bad as had been feared, as shown in the graph below (from http://www.calculatedriskblog.com/). There is a lot of important data in the report that is generally not widely discussed. First is the disparate impact that this recession has had by gender. Men have been absolutely slammed by it, with the adult male unemployment rate now at 9.8%, up from 9.4% last month. The unemployment rate for women also increased by 0.4%, but only reached 7.5%. A year ago, the unemployment rates were almost the same between the sexes, at 4.8% for Women and 5.0% for Men. Adult men ...

Shares of Abercrombie & Fitch Co. (ANF) plunged more than 12% on heavy volume of 9.8 million shares. The daily average volume is around 4.9 million.

The company reported a 28% fall in same-store sales for May.

In its fiscal first quarter, this Zacks #4 Rank ("Sell") company lost 31 cents per share, which was wider than the consensus' loss estimate by 18 cents, or more than 138%.

The average forecast for the current year has declined to $1.09 per share from $1.59 in the past month, as 23 analysts out of 26 reduced expectations.

"ANF" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

We all know consumption is the most prominent victim of this recession.  Not only do we have to deal with soaring unemployment and tightening credit, but also the behavioral shift in America of spending less as a percentage of income.  Obviously these factors are going to disproportionately hurt the sub sectors with the highest priced goods, or those considered the most discretionary such as luxury cars, high-end women’s clothing, etc.  One sub-sector that will surely feel tremendous pain, however, is teen retail.

It is common knowledge the national unemployment rate is expected to reach 10% or higher in the foreseeable future.  This is well known, and priced in to most retail stocks.  When you break unemployment down by age, however, a very grim signal for teenage spending in particular emerges.  According to the U.S. Bureau of Labor Statistics, the current unemployment rate for men and women between the ages of

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Abercrombie & Fitch Co. (ANF) today reported a wider-than-expected first-quarter loss, as consumers pulled back on spending.

Shares are down more than 2.5% today.

Abercrombie incurred a loss of 31 cents per share, 18 cents worse than analysts' expectations. Sales slumped 24% to $612.1 million, while same-store sales declined 30%.

The retailer also indicated that it is conducting a strategic review of its Ruehl chain, which experienced a 34% drop in comparable store sales this quarter.

The full-year estimate for this Zacks #3 Rank ("Hold") company has dipped to $1.47 per share from $1.59 in just the past week. Nine analysts out of 26 have revised downward in that time span.

Abercrombie is moving on volume of 6.4 million shares, a little above its daily average of 4 million.

"ANF" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

For Immediate Release

Chicago, IL - May 11, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Wal-Mart (WMT), Applied Materials (AMAT), J.C. Penney (JCP), Kohl's (KSS) and TW Telecom (TWTC). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.

The Week's Events

Retailers will step into the spotlight this week with their first-quarter results. Joining Dow component Wal-Mart (WMT) will be Abercrombie & Fitch (ANF), J.C. Penney (JCP), J.W. Nordstrom (JWN), Kohl's (KSS), and Macy's (M).

Overall, we have confirmed scheduled reports from 255 companies, 16 of which are in the S&P 500.

The economic calendar will also shine the light

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Wal-Mart (

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Highlights include Wal-Mart Stores, Inc. (WMT), Abercrombie & Fitch Co. (ANF), Aeropostale, Inc. (ARO), Macy's, Inc. (M), down 9% vs. down 8% and Hot Topic, Inc. (HOTT).April retail sales were better than expected, with about 60% of retailers beating forecasts. That is an improvement from March, when about half of the retailers beat forecasts.Our sample of 20 retailers reported that April sales increased 1.7%, including Wal-Mart (WMT), but decreased 2.6% excluding Wal-Mart. Among those retailers beating forecasts were Wal-Mart, up 4% vs. expectations of up 3%, Abercrombie (ANF), down 22% vs. down 28%, and Aeropostale (ARO), up 20% vs. up 9%. Those retailers that fell short were Macy's (M), down 9% vs. down 8% and Hot Topic (HOTT), up 3% vs. up 7%.Retail sales have stabilized from the awful 2008 holiday season, but overall ...

The economic downturn may finally be easing, after all. Ahead of the release of results from regulatory stress tests for banks on Thursday, retailers reported a 1.2% rise in same-store sales for April.

However, industry experts cautioned against a sweeping idea that these early gains would extend into a broader upswing for the industry that has been gasping for relief from a prolonged sales drought. Market watchers indicate that many stores are still seeing declines, including big names like Costco Wholesale Corp. (COST) and Saks Inc. (SKS). While Costco saw an 8% decline in comparable-store sales in April, Saks posted a 32% drop in comps during the period.

Industry behemoth Wal-Mart Stores Inc. (WMT), however, cleared the gloom for investors. The retailer posted a 5% gain in April sales on the strength of Easter-related shopping at its U.S. stores open at least

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A.F. analysts clash… can the niche retailer survive the credit crunch?…Crisis begets steadfast citizens… Americans move about the country at lowest rate in 47 years…A long-term outlook on the American stock market…The latest sector to catch Chris Mayer’s attention…U.K. launches historic spending spree, hikes taxes to 50%..

If the credit-strapped suburban mall culture is truly on the rocks, how long do you think this can survive:

Lady Amaranth, Goth Temptress

Among our analysts, a debate brews at the heart of the current consumer conundrum: “Cutting-edge apparel retailer Hot Topic,” writes Wayne Burritt, about the purveyor of goth clothing and lip-piercing paraphernalia, “is loaded with attractive fundamentals and technicals, while its call options offer an oversized premium. Hot Topic is a mall and Web-based specialty retailer that has a proven track record in the often-fickle teen

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