By Bob Blandeburgo Associate Editor Money Morning

Stimulus measures in Japan helped the world’s second-largest economy grow at its fastest pace in more than two years, but it’s unlikely policymakers will reduce spending despite the nation’s rapidly growing debt.

Gross domestic product (GDP) in Japan grew at 4.8% annual rate in the third quarter, surpassing all the forecasts of 20 economists polled by Bloomberg News. That follows a revised gain of 2.7% in the three months ended June 30, according to Japan’s Cabinet Office. Japan’s economy grew 1.2% on a quarterly basis.

“The turnaround in public investment has definitely contributed to the rebound in GDP, so if they do start to cut it’ll weigh on growth,” Hiromichi Shirakawa, chief Japan economist at Credit Suisse Group AG (NYSE ADR: CS), told Bloomberg.

Stimulus measures around the world helped Japan’s exports grow 6.4%, but as global economies withdraw stimulus measures,

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The earnings season beginning today (Tuesday) is shaping up to be an important one, as it could have a significant impact on a struggling stock market rally.

Since the stock market rally reached a pinnacle nearly two weeks ago, the Dow Jones Industrial Average has lost about 3.3% while the Standard & Poor’s 500 Index has fallen about 3.7%. And if this week’s earnings report come in below expectations, the rally that helped stock prices surge more than 50% could come to an abrupt end.

Fortunately, many of the companies set to report earnings this week are traditionally strong performers and for the most part, companies that have weathered the financial crisis. But not all of them have met Wall Street’s expectations.

The quarterly results for five companies in particular – Yum! Brands Inc. (NYSE: YUM), Alcoa Inc. (NYSE: AA), Costco Wholesale Corp. (Nasdaq: COST), Monsanto Corp. (NYSE:

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Investment banks have gotten fat off the land since 1982, when the great U.S. bull market got its start. Their business has multiplied many-fold, and their earnings have soared into the stratosphere, to a level far higher than any other sector.

Now, JPMorgan Chase & Co.  (NYSE: JPM) has issued a report suggesting that investment-banking returns on capital will be sharply down over the next few years. Perhaps this will be only a moderate downturn.

However, there’s also a good chance that labor-cost pressures – combined with tightening margins – will take the likes of JPMorgan and Goldman Sachs Group Inc. (NYSE: GS) down a path similar to that of General Motors Corp. (NYSE: GRM) and Chrysler Group LLP, both of which earlier this year declared bankruptcy.

Challenging Headwinds

JPMorgan anticipates that the regulatory changes that are likely to take place over the next year or so

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For Immediate Release

Chicago, IL – September 14, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Citigroup Inc. (C), UBS AG (UBS), Credit Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Bank of America Corporation (BAC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Citgroup Wins Lawsuit Dismissal

Citigroup Inc.’s (C) officers and directors (including Chief Executive Officer Vikram Pandit) won the dismissal of a lawsuit claiming they breached their duty to the bank by manipulating the market for auction-rate securities (ARS).

On Sep 10,

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On Sep 10, 2009, Metropolitan Life Global Funding I, a unit of MetLife Inc (MET) announced the sale of fixed-rate funding agreement-backed notes in the 144a private placement market worth $1 billion. The size of the deal represents a 100% increase from the originally planned $500 million. Bank of America Corporation (BAC), Credit Suisse Group AG (CS), and Deutsche Bank AG (DB) were the joint book-running managers for the sale. The notes are non-callable and carry a coupon rate of 2.875% and will mature on Sep 17, 2012. The notes will pay coupons semi-annually with the first payment expected on Mar 17, 2010. The company will use the sale proceeds of the debentures for general corporate purposes. Standard &Poor's Ratings Services (S&P) assigned 'AA-' rating while Moody's assigned 'AA2' rating to the notes. MetLife’s ...

Citigroup Inc.’s (C) officers and directors (including Chief Executive Officer Vikram Pandit) won the dismissal of a lawsuit claiming they breached their duty to the bank by manipulating the market for auction-rate securities (ARS). On Sep 10, U.S. District Judge Laura Taylor Swain in New York dismissed the derivative lawsuit on procedural grounds because the plaintiffs failed to ask the bank to bring the case itself. She gave the plaintiffs an opportunity to file a new complaint. In a derivative lawsuit, shareholders seek to recover damages from the company instead of being paid to individual shareholders. Damages would be sought from executives or board members. The judge's written ruling said the pension fund could file an amended complaint by Oct 1, but failure to do so would result in a judgment dismissing the complaint. Plaintiffs led by the Louisiana ...

China is Investing Billions in Renewable Energy One firm has already built China’s largest wind turbine manufacturing factory. And it’s working with the Chinese Science Academy to develop new wind, solar, and geothermal technologies… for which it will own 70% of the rights. But this company’s business reaches far beyond the Chinese border, with operations in Southeast Asia, the Middle East, Africa and Eastern Europe. It’s first quarter net income increased by 294% over a year ago. Click here for the full report.

The financial services industry in the United States and Europe is still reeling from the financial crisis, shedding tens of thousands of jobs each month – even a year after the crisis hit its apex.

However, recent evidence suggests that the financial services industry in Asia – particularly China, which was largely isolated from the toxic assets that caused the crisis – is starting to rebound.

Indeed, many …

Credit Suisse Group (...

The $300 Trillion “Money Bang” Keith Fitz-Gerald and his team have just produced a groundbreaking report that shows how this historic “Money Bang” is gaining steam. You’ll find out why China is investing $200 billion in one company – and why it’s expected to gain 356%… Why the Dept. of Energy is “backing” one solar company – and why it’s 506% revenue jump is a “smidgen”… And why one recently IPO’d water company is headed for a 600% run. Just go here for details.

It wasn’t long ago that Venezuelan President Hugo Chavez’s decision to nationalize state oil company Petroleos de Venezuela SA (PDVSA) resulted in a failed coup that very nearly cost him his post.

Now, Chavez’s aggressive economic policies are again being called into question, this time as the country slides into what could be a protracted period of stagflation, which is …

Precious Metals

Gold jumped up about midway through trading in the Far East and continued its rise through London and the Comex open to an intraday high just north of $955. But at around 10 a.m. in New York the yellow metal got knocked down below $950 where it stayed through the Globex close, finishing at $949.10/oz., up $11.40. Overnight, gold is little changed.

Platinum experienced a sharp sell-off late in Hong Kong, but clawed its way back to post a decent gain for the day, closing at $1181/oz., up $9. Overnight, platinum is slightly higher.

Silver made big gains through Hong Kong and early London trading that were far too substantial to get wiped out by the 10 a.m. sell-off in New York, after which it remained range-bound between $13.60 and $13.65 and closed near the middle at $13.63/oz., up 22 cents. Overnight, silver is trending lower. (Click here for

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