The pace of economic contraction slowed to a 1.0% pace in the second-quarter, far better than economists had expected. (The consensus forecast called for a 1.5% drop.) More importantly, the Q2 number cements the observation many of us have been drawing -- the economy is starting to hit bottom. Several economic reports have shown signs of a slowing pace of deterioration over the past few months. And, in the most recent Beige Book, the Fed discussed "stabilization" 5 times. Though the number will be we cheered by the bulls, it is critical to understand that bottoming and growth are 2 very different things. More importantly, the recovery will not feel like a recovery to many Americans. Jobs will continue to be cut and the "pent-up demand" will not change into a dramatic increase in spending anytime soon. Furthermore, the economy still has a long way to ...

Coca-Cola Enterprises (CCE) reported its second consecutive quarter of strong results, with earnings of $0.67 per share. Earnings were $0.24 above Zacks Consensus Estimate of $0.43, driven by benefits of price and package initiatives in North America, volume and pricing growth in Europe and efficient cost control mechanisms.     Net operating revenues during the quarter were almost flat year over year, declining marginally by 0.5%. Benefits of positive net pricing (+8.5% in North America and +4.0% in Europe) was partially offset by 3.5% volume declines in North America. Volumes in Europe grew 6.5%. Currency translations negatively impacted the top-line by 6.5%. Overall physical case and can volume declined 1.1% while net revenue per case increased 8.0% year-over-year.

The Board also raised dividend by $0.04 to $0.32 per share, effective with the dividend payment in September. The dividend increase is testimony of the company’s confidence in its key growth strategies

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For Immediate Release

Chicago, IL – July 28, 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  Growth

Second-quarter total net income expected to be down 28.7% year-over-year Third quarter expected to be down 23.2% year-over-year Staples and Health Care only sectors expected to post positive growth in second quarter Surprise Early results much stronger than expected, median surprise 6.8% Early positive surprises lead disappointments by 4.7:1 margin Consumer Discretionary Sector has 31 positive surprises, no disappointments Margins the cause, not revenue growth Full-Year Forecast Bottom up estimate for S&P ...

Key Points:

Growth Second-quarter total net income expected to be down 28.7% year-over-year Third quarter expected to be down 23.2% year-over-year Staples and Health Care only sectors expected to post positive growth in second quarter Surprise Early results much stronger than expected, median surprise 6.8% Early positive surprises lead disappointments by 4.7:1 margin Consumer Discretionary Sector has 31 positive surprises, no disappointments Margins the cause, not revenue growth Full-Year Forecast Bottom up estimate for S&P 500 now $60.12 in 2009 versus $59.82 last week. S&P 500 now expected to earn $74.41 in 2010 versus $74.48 last week Top down estimates $56.54 and $67.79, respectively Revisions Total estimate increases outnumber cuts by almost 6:5 for 2009 Upward Revisions outnumber cuts by almost 11:10 for 2010 Level of increases small given positive earnings surprises For 2009, Staples and Health Care lead; Utilities, Telecom lag Valuation S&P 500 P/E at 16.24x based on 2009 earnings, equates to an earnings yield of 6.16% P/E of 13.12x based on 2010 earnings, equates to an earnings

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Pepsico and AmBev - a Cola and a Beer, Together?

Tony Daltorio, The Investment U Research Team

According to a recent research study for the Financial Times prepared by the consulting firm Wolff Olins, the world’s next top brands are set to rise in the east. A strategist at Wolff Olins, Melanie McShane, stated that “It used to be possible to be a global brand by dominating the US market. That’s changing rapidly. Now you have to be number one in Asia.”

The findings of the Wolff Olins research echo research by the US-based consulting firm, Bain & Co. Their research estimated that one-third of the FT Global 500 companies could come from emerging markets by 2015 thanks to what it calls a “seismic shift” away from developed markets.

A partner with Bain & Co. said that established western consumer

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For Immediate Release

Chicago, IL - July 6, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Alcoa (AA), Family Dollar (FDO), Pepsi Bottling Group (PBG) and 3Com (COMS). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.

This Week's Events

Second-quarter earnings season "officially" starts on Wednesday afternoon with Alcoa's (AA) report. The aluminum producer is expected to have lost 34 cents per share.

Joining AA will be 19 other companies, including Family Dollar (FDO) and Pepsi Bottling Group (PBG).

Analysts are forecasting a 21% drop in median S&P 500 earnings. The actual decline could be far smaller, especially given that 18 of

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Second-quarter earnings season "officially" starts on Wednesday afternoon with Alcoa's (...

For Immediate Release

Chicago, IL - June 22, 2009 - Zacks Equity Research highlights NCR Corporation (NCR) as the Bull of the Day and Rite Aid Corporation (RAD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Avon Products (AVP), Kimberly-Clark (KMB) and Pepsi Bottling Group (PBG).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in

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For Immediate Release

Chicago, IL - June 22, 2009 - Zacks Equity Research highlights NCR Corporation (NCR) as the Bull of the Day and Rite Aid Corporation (RAD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Avon Products (AVP), Kimberly-Clark (KMB) and Pepsi Bottling Group (PBG).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in

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When you are about to invest in a penny stock, the number one question you need to ask yourself is: What’s the catalyst?

Without some big event or monolithic development coming down the road, there’s no reason for investors to care about these tiny companies.

You see, the majority of investors are only interested in making 5%–10% per year. That’s pretty much the maximum you can expect to gain if you are investing in blue chips. Here at Penny Sleuth, we view the stock market a little differently.

We want the money multipliers — double-, triple-, even quadruple-digit gains. For that to happen, we need some kind of spark to set our penny stocks apart from the rest. After all, there are currently over 6,000 to choose from.

So, what kind of catalysts can make a penny stock pop? Let’s look at a couple big ones:

Commercialization — After years of research and development, and ...