Several key second-quarter earnings reports could either validate or undercut assertions that the U.S. economy is poised for recovery.

After the Commerce Department reported last week that retail sales fell 0.1% in July from June, and 8.3% year-over-year, retailers will stay in the limelight this week as several high-profile companies report second-quarter earnings. Target Corp. (NYSE: TGT), Limited Brands Inc. (NYSE: LTD), and Gap Stores (NYSE: GPS) are among the big-name retailers set to report.

Meanwhile, the Hewlett-Packard Co’s (NYSE: HPQ) report will provide a further glimpse into the world of technology, and The Home Depot Co.’s (NYSE: HD) results will confirm or counter claims that the recent housing rebound is for real.  On that note, the upcoming economic releases include July housing starts and existing home sales, while the wholesale inflation gauge may show that price pressures are not

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Mcdonalds Corp.’s (MCD) share price has entered into oversold territory with a stochastic value of 14.61. The Zacks #2 Rank (“Buy") stock has topped the consensus forecast in each of the last 4 quarters with an average surprise of 3.83%, or 4 cents per share. Analysts have been increasing their estimates on the company’s full-year earnings, with the consensus up 9 cents over the past 2 months to $3.88 per share."MCD" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

The probably bankruptcy of CIT Group Inc. (NYSE: CIT) could have major implications on the retail and manufacturing sectors this week, as many related companies are reliant on the financing giant.

With options running out over the weekend, CIT advisors began preparations for a bankruptcy filing. As of Sunday, JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (MS) were talking with other banks about a debtor-in-possession loan, used to fund a company’s operations after it seeks court protection from creditors, Bloomberg News reported.

Bondholders held calls last week to discuss whether to swap some claims for equity to reduce indebtedness. Thomas Lauria, a lawyer at White & Case LLP, told Bloomberg that a group of CIT creditors he represents offered to provide $3 billion in new loans to bridge CIT to an out-of-court restructuring or an orderly bankruptcy, but had yet to hear back from CIT management.

“It seems CIT was

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For Immediate Release

Chicago, IL – July 9, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Genesco, Inc. (GCO), McDonalds Corp. (MCD), Andersons Inc. (ANDE) and The Gymboree Corporation (GYMB).      Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +28%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained +43.8%.

Here is a summary

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McDonalds Corp. (MCD) continues to rack up impressive gains, distinguishing itself as a steady player in a very choppy market.

Company Description

McDonalds Corp, operates one of the world's largest fast food chains, with over 35,000 restaurants world wide. The company has a market cap of $63 billion.

McDonalds is set to report its second-quarter results on July 15, and if the company's first-quarter results, reported on Apr 22 are any indication, investors should be pleased.

First-Quarter Results

Although sales were down 10% from last year, income was up to $979.5 million from $946.1 million last year. Earnings came in at 83 cents, one penny better than the consensus.

Global same-store sales were up 4.3%, with Asia/Pacific, Middle East and Africa regions leading the way at 5.5%.

McDonalds also noted that its McCafe initiative was trending ahead of schedule

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Microsoft Corp. (MSFT) is reportedly looking to unload its digital advertising agency Razorfish and has hired Morgan Stanley for that purpose.

The report by the Financial Times on Sunday also said that French marketing company Publicis Groupe SA could emerge as a possible bidder.

The FT stated that an analyst has valued the agency at $600 million to $700 million based on last-year's revenue of $400 million and profit margins for similar businesses of 12% to 13%.

Microsoft acquired Razorfish in 2007 as part of its $6 billion takeover of aQuantive.

The Seattle-based digital agency has more than 2,000 employees and boasts of a client list, which includes AT&T Inc. (T), McDonald's Corp. (MCD) and NIKE Inc. (NKE).

MSFT, a Zacks #3 Rank ("Hold") stock, have gained nearly 2% on lower-than-usual volume of approximately 40 million, against the average daily volume of about 64.1 million.

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For Immediate Release

Chicago, IL - June 22, 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: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

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:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

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For Immediate Release

Chicago, IL - June 22, 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: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

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:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

...

For Immediate Release

Chicago, IL - June 22, 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: Jack in the Box Inc. (JACK), McDonald's Corp. (MCD), Burger King Holdings Inc. (BKC), Yum! Brands Inc. (YUM) and Medtronic (MDT).

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:

Jack in the Box Gets Focused

Jack in the Box Inc. (JACK) agreed to sell 55 of its 61 Quick Stuff convenience stores and gas stations, taking another step toward its goal of shrinking its capital base and focusing

...

GM Cans Mid-Size Trucks; Treasury Yields Soar to 7-month High; Airlines Grounded by $9 Billion Loss; Copper Sinks as Dollar Rises; Supreme Court Delays Chrysler Sale; McDonald’s misses estimates; Apple debuts new iPhone

After repeated attempts to sell its medium-duty truck operations,General Motors Corp. (OTC: GMGQ), yesterday (Monday) said that it would halt their production by July 31. Reuters reported. “After four years of working with multiple potential buyers, General Motors has decided to wind down its medium-duty truck operations,” the automaker said in a statement.  GM plans to cease production of Chevrolet Kodiak and GMC Topkick. The automaker sold about 20,000 of the vehicles last year, down from roughly 30,000 in 2007, as the U.S. economy sank into a deep recession. Yields on two-year treasuries soared to the highest level since November, as investors expressed concern that record issuance of U.S. debt may overwhelm demand ...