CHICAGO, Aug. 29 (UPI) -- Kmart, the discount retailer caught in a deep business slump with troubled partner Sears, faces a questionable future, analysts are predicting.

Market-trouncing returns could be written in this 5-Star.

Hold on tight!

Tiffany's and Zales are in the same business, but on very different paths.

Sears (NasdaqNM: SHLD) closed yesterday at $90.62. So far the stock has hit a 52-week low of $67.36 and 52-week high of $152.91. Sears stock has been showing support around 82.89 and resistance in the 95.05 range. Technical indicators for the stock are Bullish and S&P gives SHLD a weak 2 STAR (out of 5) sell rating. SHLD appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at an Oct '08 90 covered call (KTQ JR) for a net debit in the $86.02 area. That is also the break even stock price for this trade. This covered call has a 50 day duration, provides 5.08% downside protection and a 4.63% assigned retur...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)

Fannie and Freddie employees have taken a hit in the value of their ESOP accounts.  (NYTimes.com) Without some plausible reason it is difficult to believe September is a particularly bad month for the stock market.  (Marketwatch.com) Gold seasonality is about to turn positive through the end of the year.  (Trader’s Narrative) 12(b)-1 fees at closed mutual funds are [...]

Filed under: Earnings reports, Wal-Mart (WMT), Target Corp. (TGT), Sears Holdings (SHLD)

Just as soon as Sears Holdings (NYSE: SHLD) re-arranged deck chairs on the Titanic, the retailer, headed by hedge-fund guru Eddie Lampert, reported another absolutely dismal quarter Thursday morning. In 2008, shares in Sears Holdings have sunk 36% as the retailer continued to report quarter after quarter of slugging sales, declining revenue and underinvestment in its retailer locations.

Lampert's idea of cutting investment in stores to boost actual investment returns has failed, and failed miserably. One thing customers respond to is constant change in their shopping environment, and this is where Sears has failed. Its stores look the exact same as they did four years ago. Even the logo has not changed.

Retailers like Target Corp. (NYSE: TGT) and Wal-Mart Stores, Inc. (NYSE: WMT) apparently know way better how to get seasonal and high-request goods to their stores. They do it in a fashion that turns inventory and makes sales far better than Sears' manages with its current grip on retail. In fact, I am not sure Sears even has a current grip of retail. It's a goldfish (albeit a large one) nearing the top of the fishbowl. With Lampert's track record, one would think he would have made changes a year ago. He has not, and Sears continues to flounder badly. The Wall Street Journal thinks Lampert should go, and go now. What do you think?

Even Lampert's acumen in taking out pieces of an investment and selling for a profit hasn't worked out. What about selling off a good portion of its real estate holdings under the combined Sears/KMart umbrella to help make a profit? Even that time has passed though. Lampert's original prediction for Sears Holdings has failed, and unfortunately he won't be adding this experiment to his resume that includes the years-ago notion that he was the next Warren Buffett.

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As the Democratic Convention rolled on with another star-studded political night, the morning Markets turned positive from the opening bell. While the majors opened nearly half a percent higher, several news points stood out.[More...]

U.S. stock futures rose after better-than-estimated G.D.P growth data and jobless claims data bolstered expectations the economy will recover from the collapse of the subprime mortgage market. Commerce Department said gross domestic product expanded[More...]

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Apple Inc (AAPL), Dell (DELL), Coca-Cola (KO), Toyota Motor Corp. (TM), Market matters, Tiffany and Co (TIF), Sears Holdings (SHLD), Federal Natl Mtge (FNM), Economic data, Gilead Sciences (GILD), Oil

Stock futures were falttish Thursday morning as oil prices rose due to continued concern over Gustav. However, some retailers have posted better-than-expected earnings. Still, there are several economic reports due before the open that could sway sentiment either way, including revised GDP for the second quarter.

U.S. jeweler Tiffany & Co (NYSE: TIF) posted double the quarterly profit from a year ago on Thursday, benefiting from strong international sales and solid tourist spending at its New York flagship store. Net profit was $80.8 million, or 63 cents per share, in its fiscal second quarter, up from $40.5 million, or 29 cents per share a year earlier, and beating estimates of 55 cents per share. Revenue grew 11%. Tiffany also raised its 2008 profit outlook on strong sales in Europe and Asia and expected improvement in the U.S. TIF shares are up over 6% in premarket trading.

On the other hand, department store retailer Sears Holdings (NASDAQ: SHLD) reported a 62% plunge in second-quarter net profit to $65 million, or 50 cents per share. Excluding a gain, Sears earned 21 cents, trailing some analysts' estimates by 15 cents. Chief Executive Bruce Johnson said the results were affected by the "slowing economy." It seems some, though, still have confidence in Chairman Lampert.

Fannie Mae (NYSE: FNM), the mortgage finance giant, shook up its executive ranks Wednesday. "Its chief financial officer and two other top executives are leaving the company. Three current executives were promoted to replace them." CEO Mudd kept his job. Shares of Fannie and sibling Freddie Mac (NYSE: FRE) have been rising after concern over a government bailout lessened. In premarket trading, FNM and FRE shares are up over 6% and 5% respectively.

Continue reading Before the bell: Stocks flat; TIF, FNM, TIVO, AAPL, GILD, JAS ...

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Schaeffer's Laura Houser takes a look at activity on the Street after the market close

The Masters had a chance to talk with financial blogger Todd Sullivan of ValuePlays about Sears. What better person to provide insight into Sears Holdings Corp. (NASDAQ:SHLD) other than Sullivan is there besides Lampert himself.  With Sears on the mind, let's get into it.

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Schaeffer's Laura Houser takes a look at activity on the Street after the market close

Schaeffer's Carly Schaeffer takes a look at today's options activity

Schaeffer's Laura Houser takes a look at activity on the Street after the market close