Investors appear worried that the economy is not keeping up with the eight-month old rally in the stock market.  Disappointing outlook and grim economic data are further fueling concerns that markets are ripe for a pullback and a full-blown economic recovery would take time.

On Friday, the 30-share Dow Jones industrial average fell 14 points, or 0.1%, to close at 10,318.16.  The broader S&P 500 index closed 0.3% lower at 1091.38 and the tech-heavy Nasdaq finished the day at 2146.04, off 0.5%.  On the week, the Dow average managed to hang on to gains, registering a paltry 0.5% advance.  The S&P 500 and the Nasdaq fell 0.2% and 1%, respectively.  On the New York Stock Exchange, 1.1 billion shares exchanged hands, with declining issues ahead of those that advanced in price by a three-to-two margin.

Last week’s disappointing reports on housing and weak forecasts from technology companies had antsy

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For Immediate Release

Chicago, IL – October 22, 2009 - Zacks Research Equity Strategist, Dirk Van Dijk says that S&P 500 earnings are continuing to show red ink. He tracks companies on the Zacks.com web site, naming names, while forecasting trends for the months ahead.

Key Points from Van Dijk's Latest Earnings Assessment Earnings Trends Key Points:

Earnings surprise ratio (#beat / #miss) at 5.56 Median Earnings Surprise 7.90% Year-over-year earnings growth ratio (# Positive Growth/# Negative Growth) at 0.74 Sales surprise ratio at 2.0 Sales growth ratio at just 0.35 Total net income for S&P 500 reported firms is 12.1%. This is above what those same 66 firms reported a year ago and 4.9% above what they earned in Q209 Total S&P 500 revenues reported down 4.7% ...

Campbell Soup Co. (CPB) reported fourth-quarter earnings of 30 cents per share, which was above the Zacks Consensus Estimate of 26 cents. Earnings were also up 15.4% compared to the prior-year quarter. For the full year, profit was $2.22, up 10.4% versus fiscal 2008, primarily driven by effective pricing actions.

Quarterly net sales declined 10.9% year over year due to a 2% impact of volume and mix, 1% from increased promotional spending, 4% effect of currency translation and 2% from divestitures and acquisitions. These were partially offset by a 5% benefit from pricing. Organic sales rose 2% for the quarter driven by gains in US soups, US sauces and Canada, which were partially offset by declines in North America food service and U.S. beverages.

Sales of the US Soup, Sauces, and Beverages segment fell 3% year over year. US soup sales increased 7% driven by growth in condensed,

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• The Sunday Telegraph reported Deutsche Telekom (NYSE:DT) is considering a takeover bid for Sprint Nextel (NYSE:S).  Deutsche Telekom (NYSE:DT) shares rose more than 10% in premarket trading

• According to the WSJ, China's sovereign wealth fund is in talks to acquire a minority share of AES Corp (NYSE:AES)

• Johnson & Johnson (NYSE:JNJ) is reportedly in talks to lower the price tag of its $1.5 billion Elan (NYSE:ELN) bid

• Salix Pharmaceuticals (NASDAQ:SLXP) reported the successful outcome of two late-stage trials of the efficacy and safety of its rifaximin drug in relieving irritable bowel syndrome symptoms

• Bank of America (NYSE:BAC) lowered its rating on Campbell Soup (NYSE:CPB) to "neutral"

• UBS (NYSE:UBS) upgraded Motorola (NYSE:MOT) to "buy"

Zacks Investment Research

It's a relatively quiet week on the earnings front with only 50 companies scheduled to report, including a smattering of retailers and food companies. Only 2 S&P 500 members are on tap to report including Campbell Soup Co. (CPB) and National Semiconductor (NSM).

The economic calendar is also quiet to start the first "real" trading week in September, as Wall Street comes back from August vacations. It's a shortened trading week due to the Labor Day holiday on Monday.

Monday: Markets closed for Labor Day Tuesday: ICSC-Goldman Store Sales, Redbook Wednesday: Beige Book Thursday: International trade, weekly jobless claims, weekly natural gas inventories, weekly crude inventories Friday: Import and export prices, University of Michigan consumer sentiment survey for September, Treasury budget Volume is likely to return to more "normal" levels to start the week. Despite recent weakness in the markets, the bulls remain in charge. Wall Street will also be watching trading

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Del Monte (DLM) increased its quarterly dividend by 25% to $0.05 from $0.04 per share. The dividend is payable on August 6, 2009 to shareholders on record as of the close on July 23, 2009. The increase in dividend reflects Del Monte’s confidence in its ability to execute the Accelerated Growth Plan to deliver long-term sustainable earnings growth and cash flow.

The company generated strong cash flow in fiscal 2009 (an increase of 25% to $287 million) both from its operations and from the divestiture of Starkist seafood, allowing Del Monte to reduce its leverage to the low end of the target. This further resulted in increased financial flexibility and the opportunity to return more value to its shareholders.

Del Monte has a large stable of brand names, with 66% of the total sales being generated by brands that hold the number one market position. New products and innovative packaging have

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Most companies like Avon (AVP), Campbell Soup (CPB), Coca-Cola (KO), PepsiCo (PEP), H.J. Heinz (HNZ) and Procter & Gamble (PG) are depending on the developing markets of Asia/Pacific and China for growth.

In spite of the current economic meltdown, sales growth has been recorded across companies for this segment. For example, Avon's sales grew 9% in China while Procter & Gamble saw sales growth of 11% in the Asia Pacific region. In addition, soup companies such as Campbell Soup are also targeting markets, including China (Shanghai is the leading soup market in China with highest per capita soup consumption with almost 72% of the population consuming a bowl of soup everyday) for expansion. Also, in case of Heinz, Asia accounts for a big market, although sales in 2009 increased only 1.6%,

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Coca-Cola Hellenic Bottling Company (CCH) has announced that the company will distribute Campbell's soup and broth products in Russia. Under the terms of an agreement with Campbell Soup (CPB), Coca-Cola Hellenic will be responsible for sales, distribution, in-store marketing and trade receivables management for the soup and broth products, while Campbell's will be responsible for brand management, market research, marketing, product development and production.Coca-Cola Hellenic already distributes Campbell's Domashnaya Klassika products in the Moscow region. In August this year, CCH will expand the distribution of Domashnaya Klassika products to over 100 cities in Russia. The nationwide Russian distribution network will follow.Campbell's entered the Russian market in 2007, and hopes to capitalize on the Russia soup market, which is more than twice the size of the U.S. market. However, so far, Campbell's distribution has been limited to four broths (mushroom, beef and mushroom, chicken ...

* BankUnited Financial Corporation (NASDAQ:BKUNA) became the largest US bank failure of the year, sold to private investors led by Wilbur Ross

* A Washington Post article said the administration if preparing to send General Motors (NYSE:GM) into bankruptcy as soon as next week: however, Treasury officials advised the June 1 deadline will remain

* AIG (NYSE:AIG) CEO Liddy announced plans to leave the company as soon as a replacement is found

* Citigroup (NYSE:C) announced likely savings of over $1 billion from technology savings this year

* Johnson & Johnson (NYSE:JNJ) announced plans to purchase Cougar Biotech (NASDAQ:CGRB) for $1 billion, or $43 per share

* Sears Holding (NASDAQ:SHLD) reported earnings of 38 cents per share, ex-items, versus last year's 43 cent per share loss, and up from Street estimates of an 88 cent loss

* Gap (NYSE:GPS) announced first quarter earnings of 31 cents per share, one cent above Street estimates, versus 34 cents

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First-quarter earnings season nears an end with Hewlett-Packard (

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