Despite the apparent values in retail stocks, there are few reasons to get excited about the retailers. Consumer spending will remain subdued for the next few quarters, and that will lead to retailers' earnings estimates declining for the next several months.

OUTLOOK

The holidays are right around the corner. This is the most important period for retailers, as many generate about half of their annual sales during the holiday shopping season. The way things are shaping up, this may be one of the worst holiday shopping seasons in recent memory.

Economic data from this summer suggest that consumer spending may have turned negative in the third quarter, which means the consumer was in a tough spot before the credit crunch turned into a full-blown crisis. The problems in the credit markets will only exacerbate the problems negatively affecting consumer spending. As a result, earnings estimates for retailers will continue

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Stock markets in Asia and Europe opened sharply lower after Lehman Brothers (LEH) announces bankruptcy. Another news is about Merrill Lynch (MER) which was surprisingly bought by Bank of America (BAC). From Big five financial firms only Goldman Sachs (GS) and Morgan Stanley (MS) remain. These two will release earnings results this week.Monday:Economic Empire (1.4) CU & IP (79.6%, -0.3%)Earnings Titan Machinery (TITN), Discover (DFS), Pall (PLL)Tuesday:Economic CPI & Core (0.2%, 0.0%), FOMC StatementEarnings Best Buy (BBY), CBRL (CBRL), Goldman (GS), Kroger (KR), AAR (AIR), Adobe (ADBE), Darden (DRI)Wednesday:Economic Weekly Crude, Bldg P’s & Starts (925K, 950K)Earnings General Mills (GIS), Morgan Stanley (MS), CKE (CKR), Dress Barn (DBRN)Thursday:Economic Weekly Claims, Leading Indicators (-0.2%), Philly Fed (-10.0)Earnings Carnival (CCL), ConAgra (CAG), FedEx (FDX), Cintas (CTAS), Oracle (ORCL), Palm (PALM)http://stockweb.blogspot.com/atom.xml

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Reed’s, Inc. (REED) is a maker of sodas, candies and ice creams with natural ingredients targeted at health conscious consumers. Reeds product line includes various flavors of ginger-brewed beverages such as original, extra, premium, raspberry, spiced apple, and cherry ginger; root beer, cream soda, black cherry cream soda, diet root beer, diet black cherry cream soda, diet cream soda, and Bavarian nutmeg root beer; and original china cola and cherry china cola. The company’s products can be found primarily in specialty food stores and gourmet outlets, in addition to the company’s website.

California-based Reeds is following in the footsteps of other natural soda makers like Jones Soda and Hansen’s in targeting consumers that crave carbonated beverages, but demand choices beyond traditional colas like Coca-Cola and Pepsi. It is estimated that carbonated sodas had a total of almost $66 billion in global sales in 2007, but sales of traditional sodas have been

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In last week's edition of Trading Tools, Cincinnati-based grocery guru Kroger (KR) was examined, as it showed up on the Zacks Unusually High Options Volume screener. This week, I'm utilizing the Zacks Put/Call Ratio Greater than 1.0 filter in an effort to find stocks surrounded by heavy pessimism in the options arena. Digging through the results, one equity caught my attention: New Hampshire-based e-learning company SkillSoft (SKIL).

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone

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In last week's edition of Trading Tools, China-based travel firm Ctrip.com (CTRP) was featured, as it appeared on the Zacks Unusually High Options Volume screener. Utilizing the same filter today, I found another equity that caught my eye: Cincinnati-based grocery Kroger (KR).

(Disclaimer: Schaeffer's Investment Research is also based in Cincy. Therefore, expect plenty of puns about the Queen City...)

Before we begin, let's explain the contrarian stance that makes Schaeffer's so unique. When searching for a bullish pick, we like to see heavy skepticism toward an outperforming stock, as this leaves ample room for upgrades or other positive catalysts to fuel the stock higher. When searching for a bearish pick, on the other hand, contrarians are looking for significant bullish sentiment toward an underperforming stock, as we believe an excess of optimism is a sign that everyone has already bought into the stock and sideline money

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Kodak Announces $1 Billion Buyback; Kroger Lowers Prices, Posts Profit; BP Breaks Ground on Wind Farm; Reliance and Dreamworks in Talks; Lukoil Joins Up With Italy’s ERG; Wachovia Brings in Goldman Sachs; Dow Hikes Prices; Yahoo and Microsoft Back in Talks Shares of Eastman Kodak Co. (EK) rose the most in 20 years as it boldly announced it will buyback $1 billion of its stock using a tax refund. The refund comes from an audit of the company’s taxes from 1993 to 1998, Bloomberg reported. The company posted a first-quarter loss in April. Kroger Co. (KR), the largest chain of U.S. grocery stores, beat analysts’ first-quarter earnings by lowering prices on the shelves and offering gasoline discounts, Reuters reported. The Cincinnati-based company Kroger posted a profit of $386 million, or 58 cents per share, compared with a profit ...

Some interesting thoughts about Wal-Mart (WMT)

The stock hit an 8 yr. low today despite earnings over those same 8 yr’s going in the opposite direction, up. Eight years ago Wal-Mart traded for the $42 a share it hit today and earned $1.25, this year it will exceed $3 a share in earnings and trade for the same $42. Hmmm.

Recently Wal-Mart said it is considering new store sizes and types in the U.S. market but played down the possibility of acquisitions as it faces slowing sales growth at its older stores and the expected new competition from British rival Tesco PLC.

I’m Still wondering how the FTC lost this one:

First, bringing the suit to stop the Whole Food (WFMI) and Wild Oats (OATS) merger on “anti-trust” grounds was moronic especially when you consider the #1 “organic food” seller in the US after the merger is complete will not be the combined entity but will still be Wal-Mart (WMT). But, they filed it anyway so let’s go from there.

Then we had Whole Foods CEO John Mackey in what can only be described as an acid induced rant saying in an email to his board that the merger would help Whole Foods eliminate “almost forever” the threat that a rival could enter the organic space.

As if Starbucks (SBUX) did not have enough problems dealing with the competition for store traffic, now they have more competition for shelf space.

Proctor & Gamble (PG) and Dunkin’ Donuts are teaming up to distribute Dunkin’ Donuts coffee in big retailers nationwide. They will distribute the coffee through retailers such as Wal-Mart (WMT), Kroger (KR), Costco (COST), and even CVS Caremark (CVS) across the country.