• Research In Motion Ltd. (NASDAQ:RIMM) reported Q2 EPS of $1.03; revenues surged 37% year-over-year to $3.53 billion. The company sees Q3 revenues of $3.60-$3.85 billion and Q3 EPS of $1.00-$1.08. • McDonald's (NYSE:MCD) raised its quarterly dividend 10% to 55 cents, offering a current yield of 3.92%. • Citigroup (NYSE:C) shares sank on news the firm plans to shrink its retail banking operations. • Unilever (NYSE:UL) agreed to the $1.87 billion purchase of Sara Lee's (NYSE:SLE) personal care business consisting of the Sanax and Duschdas brands. • Twitter is reportedly ready to raise about $100 million in a new funding, which would value the company at about $1 billion.Zacks Investment Research

Retailers will start to release second-quarter results this week, accounting for nearly 10% of the 246 scheduled reports. Dow component Wal-Mart (WMT) will be joined by 15 other members of the S&P 500, including J.C. Penney (JCP), Kohl's (KSS) and Macy's (M).

The Fed will hold a 2-day meeting on Tuesday and Wednesday. No change in interest rates will be made, though the statement should acknowledge that the economy is nearing stabilization.

The bond markets could be volatile, not only because of the Fed meeting, but also because of quarterly refunding. The Treasury Department will auction 3-year, 10-year and 30-year bonds. The offerings should total $75 billion.

Most of the week's economic data will be released after the Fed's meeting, with the exception of the preliminary estimate of Q2 productivity. We'll see the latest industrial production and consumer sentiment numbers on Friday.

Tuesday: Q2 productivity Wednesday: June

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General Mills (GIS) raised its annualized dividend by 9% to $1.88 from $1.72 per share, earlier. The quarterly dividend increased by 4% to $0.47 and is payable on August 3, 2009, to shareholders on record as of July 10, 2009. The dividend increase is a testimony of the company’s robust financial health, confidence in its key growth strategies and excellent growth prospects, going forward. GIS reported strong fourth quarter and full year 2009 results. The company’s U.S. retail unit, which includes Pillsbury baking products and Green Giant Frozen vegetables, posted a strong 12% increase. In addition, core brands such as Yoplait and Big G cereals also posted double-digit revenue increase. GAAP earnings almost doubled to $1.07 per share versus $0.53 in the comparable prior-year quarter of 2008, while excluding certain one-time items, earnings were $0.86 per share (increasing 17.8% year-over-year). In addition, the company ...

U.S. employers cut 467,000 jobs last month, sending the unemployment rate up to 9.5%. This was the first time since January that nonfarm payrolls worsened.The June drop was also far worse than economists had projected. Offsetting the bad news was a positive revision to May's number, with "just" 322,000 jobs being shed in the month.Though the June unemployment rate was only fractionally higher than the month previous, it does imply that more than 1 out of every 11 Americans is unemployed. This is a conservative estimate, given that the unemployment rate has been previously criticized for under-counting the number of jobless workers.This morning's data reinforces what I have said before: the economy is not out of the woods. Though economic conditions are clearly better than they were a few months ago, we remain in the midst of a recession.Furthermore, once the ...

Despite the recessionary environment, demand for specialty coffee has been rising. According to the data provided by the National Coffee Association's (NCA) 2009 National Coffee Drinking Trends market research survey, coffee consumption has remained steady at 59% so far in 2009, and the NCA also stated that the at home consumption has hit the highest levels in 2009 since 2003 increasing by 5%.

Further, Andrew Hetzel, President and Founder of Cafemakers, states that, a smaller-sized coffee with strong flavors provides more satisfaction to the consumer and therefore customers are also willing to pay more. Customers choose specialty coffee brands based on the total value proposition that includes quality, variety, convenience, and price. Therefore, companies such as Green Mountain Coffee Roasters (GMCR), Peet's Coffee & Tea (PEET), Kraft Foods (KFT), Sara Lee (SLE)

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There is an increasing shift towards private labels, as branded products become dearer for budget-conscious consumers.Private Label products are gaining momentum since the third quarter of 2008, especially among budget-conscious consumers in a recession struck economy. According to a survey conducted by the Private Label Manufacturers Association (PLMA) and Gfk Custom Research, 91% of the people surveyed stated that, they will continue buying private label products even after the recession ends.More than 60% of the U.S. population considers private label brands as good as branded products, and approximately 30% rate the private label products higher than branded ones. Even retail giants like Wal-Mart (WMT) are revamping their shelves with more private label products to increase profit and store visits by customers.Further, according to a report on private label food and beverage trends by NPD Group, 24% of the overall consumption ...

With the Treasury Department officially releasing the stress test results later today, Asian stocks swung into action amid some media reports that suggested major banks are better capitalized than once projected.  Reports trickling out over the days have suggested the bailout funds will be enough to plug the hole.  In Japan, where the markets opened after a three-day holiday, the Nikkei average charged ahead with a 4.6% gain. The Hang Seng Index in Hong Kong added 2.3% to close at 17,217.89.  Investors also took heart from ADP's employment report yesterday that said private sector jobs in the U.S. fell by a less than expected 491,000 inApril.  U.S. stock futures suggested a higher opening at the Wall Street.  Dow futures edged up 0.5% to 8,513.00 and Standard & Poor's 500 futures rose 0.5% to 921.50.

On Wednesday, U.S. markets advanced as some media reports suggested the balance

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Stable Demand for Consumer Staples

The stock market has discounted the high probability of a global recession. Prior declines of similar magnitude proceeded the recession in the mid-1970's and the depression in the 1930's. The stock market's decline should be not only a function of magnitude, but also time.

Stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life -- food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in

...

Stable Demand for Consumer Staples

The stock market has discounted the high probability of a global recession. Prior declines of similar magnitude proceeded the recession in the mid-1970's and the depression in the 1930's. The stock market's decline should be not only a function of magnitude, but also time.

Stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life -- food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in

...

Stable Demand for Consumer Staples

The stock market is discounting the high probability of a global recession. Prior declines of similar magnitude preceded the recession in the mid-1970's and the Great Depression in the 1930's.

The stock market's decline is not only a function of magnitude, but also time. As the market continues to decline, stock selection will be more important than usual. Avoid stocks with high debt levels. For now, concentrate on high quality companies with stable and consistent cash flow. Also, focus on stocks with high dividend yields (above 5%), which should give additional support.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet

...