• General Motors (NYSE:GM) announced plans to hike production levels in the second half, adding it is also looking to rehire 1,350 employees as the successful "cash-for-clunkers" program heightens demand

• Sony (NYSE:SNE) unveiled its slimmer, lighter and less expensive Playstation 3 console for September launch

• Hewlett-Packard (NYSE:HPQ) reported third quarter earnings one cent above Zacks estimates at 91 cents, as revenues dropped 2.1% from a year earlier to $27.45 billion, inline with Zacks estimates.  The firm reiterated mid-point guidance of its previous fiscal 2009 range of $3.76 to $3.88 a share, with revenues expected to decline 4-5%

• Analog Devices (NYSE:ADI) reported third quarter earnings of 22 cents ex-items, 2 cents above Zacks estimates, on revenues of $492 million, off 25.3% YoY.  The company said it expects fourth quarter earnings of 24-26 cents a share

• Deere (NYSE:DE) reported third quarter earnings of 99 cents a share, sharply ahead of Zacks estimates

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Why Is Beijing Investing $200 Billion in One Company? The answer is simple. This rail company hauls 25% of the world’s freight – but it only has 6% of the world’s track. Right now, freight supply is 65% shy of demand. Sales for this company have grown on average 47% over the last five year. And now, with a $200 billion infusion, it’s about to jump even higher. Estimates show the potential gains at 356%. Click here for the full report.

By Bob Blandeburgo
Associate Editor
Money Morning

The much-anticipated earnings report from Wal-Mart Stores Inc. (NYSE: WMT) and new data from the U.S. Department of Commerce yesterday (Thursday) showed that consumers are not only reeling in their discretionary spending, but may also be pulling the reins on the necessities.

Retail sales fell 0.1% in July from the previous month, and 8.3% from a …

• Ruby Tuesday (NYSE:RT) reported fourth quarter earnings of 28 cents per share, besting analysts' estimates of 19 cents, on revenues of $317.3 million, ahead of estimates of $303.95 million. The company expects fiscal 2010 earnings of 50-65 cents versus estimates of 55 cents, and sees same-store-sales declining 2.5-3.5%

• Amgen (NASDAQ:AMGN) reported the successful completion of a Phase 3 trial of its bone drug for the treatment of bone metastases in advanced breast cancer patients

• Goldman Sachs (NYSE:GS) upgraded Kohl's (NYSE:KSS), saying the firm is best positioned department store to show positive comparable sales in its fourth quarter

• BJs Wholesale Club (NYSE:BJ) received a downgrade from Goldman Sachs (NYSE:GS) on concerns consumers may shift from bargain hunting to more discretionary retailers

• Google (NASDAQ:GOOG) is planning the launch of a full operating system as it extends its Chrome browser, beginning with an introduction on netbooks in the second half of 2010.

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Shares of Big Lots, Inc. (BIG) are surging approximately 20% Wednesday after the broadline closeout retailer reported fiscal fourth-quarter results, which included an encouraging outlook for the current fiscal year.

BIG expects fiscal 2009 earnings per share from continuing operations between $1.75 and $1.90, which gives the company a good chance to beat analysts' estimates at $1.76. For fiscal 2008, the company reported $1.89.

Same-store sales are expected in a range between flat and a 2% decline.

For its fiscal fourth quarter, BIG capped off "a record year for EPS and income from continuing operations" with EPS from continuing operations of $1. That result was 6 cents better than the consensus of 94 cents.

Meanwhile, net sales declined slightly year over year to $1.37 billion from $1.41 billion. Same-store sales for stores open at least 2 years at the beginning of the fiscal year declined 3.2%.

BIG is currently

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This morning, two membership warehouses reported 4th quarter results. Costco (COST) missed Zacks consensus EPS estimates by $0.05, while revenues were in line. BJ's Wholesale Club (BJ) reported earnings of $0.89 per share $0.03 above the Zacks consensus estimate, while falling a little short on revenue.Both companies were negatively affected by gasoline deflation. As gasoline prices fall, BJ's and Costco's overall gasoline sales fall. Costco, which generates about 20% of its sales outside the US, was also hurt by the stronger US dollar.Those trends were largely offset by an increasing number of consumers looking to get the most value for the dollar. This is evident in the 3.7% rise in Costco's membership fees and a 7% increase in BJ's store traffic (excluding gasoline sales). Both companies are attracting shoppers because of their prices are so low. The companies' razor-thin gross margins ...

It’s clear that 2009 is going to be grim in economic terms. Martin Denholm says investors should stick to sectors that fare better during recessions. The healthcare sector, discount retailers and utilities companies provide essential products and generate repeat business. Martin picks the strongest companies in these “safe haven” sectors.

This from Smart Profits Report

A Healthcare Haven

It stands to reason that the sectors and companies that traditionally fare better during economic recessions are those that garner essential repeat business.

As my colleague Marc Lichtenfeld has pointed out many times here before, that includes the healthcare and biotech sectors. And far from procrastinating, Marc just issued his “Five Predictions For The Healthcare Sector In 2009″ for Xcelerated Profits Report subscribers in the January issue. If you’re not a subscriber, you should be! You can get more information on that here.

No matter what happens with the broader economy, people will still

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Brite-Strike Tactical Illumination Products, Inc., makers of high-tech illumination devices for police and government use as well as for personal self-defense, announced today that its “Lightning Strike” Personal Protection System will be featured in this year’s prestigious Frontgate Christmas catalog. The company’s “Tactical Blue-Dot” flashlight is already the top selling product at its price point in the high-end Herrington Catalog.

Brite-Strike president, Glenn Bushee, commented on the increased demand for self-defense products. “In tough economic times, such as now, the number of robberies and assaults rise dramatically, which increases the demand for all our products. This product, for the money, may be the most effective defensive tool available for women today, particularly in preventing assaults and rapes.”

The personal defense gift set includes a powerful, but compact, tactical flashlight, with the patented tactical touch hi-low-strobe switch, a leather holster, and a personal

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Barry James, president of the James Advantage
Funds, thinks the market is in a bottoming phase, and he sees a rally
on the horizon.

“We
don’t think we’re out of the overall bear market, but we think it’s
time to buy, and you should look at securities that will hold over the
long haul,” he said.

Track his picks at:

http://trackthepros.com/stocks/category/780

Recommendations:

His first pick is BJ’s Wholesale Club which he says is relatively cheap right now.

“They’ve
had membership hold up very strongly, they’ve had good earnings gains
and good sales gains in this environment,” he added.

In the tech sector, he thinks Hewlett-Packard is best in breed.

“They’ve got revenue gains in every
segment…except the printer hardware.  Their earnings have been
strong…they’re obviously laying off a lot of people, which isn’t good
for those folks, but that’s going to add to the bottom line.”His last

…

This morning, several retailers reported August same-store sales. This is an important report because it provides investors with an idea of how strong or weak the back-to-school shopping season was.

Quick Take: Overall, the back-to-school season was weak. Below is a sample of 22 retailers that reported same-store sales and only 8 of those companies reported a positive number. And despite ankle-high expectations, half of those companies reporting same-store sales missed those low expectations.

The trade down trend is still working with positive comps from Wal-Mart (WMT), Costco (COST), BJ's Wholesale Club (BJ), and TJX Companies (TJX). Department stores in the mid-to-high end continue to struggle. Specialty retailers were all over the map, with Abercrombie & Fitch (ANF) down 11% while Buckle (BKL) was up 22% and Aeropostale (ARO) was up 13%.

Closing thought: Retail stocks have caught a bid over the last several weeks,

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