NYSE up 33.95 (+0.49%) to 7,033.89DJIA up 28.23 (+0.3%) to 10,415S&P 500 up 5.31 (+0.48%) to 1,104Nasdaq up 7.33 (+0.3%) to 2,236

GLOBAL SENTIMENT

Hang Seng up 0.37%Nikkei up 0.82%FTSE up 1.19%

UPSIDE MOVERS

(+) TIN upgraded.

(+) HMY upgraded.

(+) GS handed fine by U.K. regulator.

(+) ARM launches new high-end core processor.

(+) VZ names new CFO.

(+) MVIS gains as analyst coverage initiated at Buy.

(+) GERN gains on report of successful lengthening of Telomeres to extend human lifespan.

DOWNSIDE MOVERS

(-) QCOR continues evening decline that followed FDA delay.

(-) MCD down despite reporting August global comparable sales up 4.9%.

(-) FUQI gets SEC subpoena.

MARKET DIRECTION

Stocks cling to a narrow gain at today’s close as the initial reaction to a better-than-expected weekly jobless claims report faded. A report saying Deutsche Bank (DB) might sell stock to raise billions in cash limited bullish enthusiasm.

Oil for October delivery fell 42 cents, or 0.6%, to $74.25 a barrel by the close of floor trading on the New York Mercantile Exchange. Natural gas closed down 5 cents, or 1.2%, at $3.768 per million British thermal units, reversing lower after weekly inventories data.

Reported this morning, initial unemployment benefit claims fell by a stronger-than-expected 27,000 to 451,000 last week, according to the Labor Department.

But post-report gains faded after Bloomberg reported Deutsche Bank AG is considering a stock sale to raise as much as $11.4 billion. Financial stocks have been having trouble gaining traction this week.

McDonald’s (MCD) fell after reporting a smaller-than-expected gain in August sales.

Tech stocks were broadly higher as Adobe Systems (ADBE) remains up sharply after Apple (AAPL) eased restrictions that had curbed use of Adobe’s Flash software.

DJIA up 127.8 (1.2%) to 10,448S&P 500 up 14.4 (1.3%) to 1,105Nasdaq up 33.7 (1.5%) to 2,234

GLOBAL SENTIMENT

Hang Seng up 0.49%Nikkei up 0.57%FTSE up 1.06%

UPSIDE MOVERS

(+) TTWO continued evening jump that followed surprise profit.

(+) FNSR continued evening jump that followed better-than-expected earnings.

(+) MTG reported positive August operating statistics.

(+) ULTA continued evening gain that followed an earnings beat and guidance mostly above the Street view.

(+) WAG said August same-store sales up 2.1%.

(+) FORTY reported change of control.

(+) BP put latest spill costs at $8 billion.

DOWNSIDE MOVERS

(-) CLDX regains rights to cancer vaccine as partner Pfizer (PFE) says program no longer a strategic priority.

(-) PSS downgraded.

(-) CPB meets with earnings, guides mostly below Street view.

MARKET DIRECTION

The major stock averages close up 1.2%-1.5%, making another charge toward the session high late in the day. It’s the fourth winning session in a row. The Dow industrials are up 2.9% for the week, the S&P 500 is up 3.8% for the week and the Nasdaq Composite is up 3.7% for the week. For the Dow and the S&P 500, it’s the first positive week since early August.

Stocks soared out of the gate with the Dow briefly up more than 100 points on an upbeat jobs report, but the markets quickly gave back almost half their gains after a key service sector index disappointed economists.

Wall Street clearly cheered this morning’s jobs report, especially signs of life in the private sector. But a 67,000 job gain there is shy of the 100,000 or so gains that investors want to see to declare a job market recovery.

Crude for October delivery lost 42 cents, or 0.6%, to $74.60 a barrel on the New York Mercantile Exchange after posting steeper losses earlier. Oil lost 0.8% this week, following gains of nearly 2% the week before.

According to Labor Department figures, the U.S. lost 54,000 jobs excluding the farm sector in August. The decline was smaller than the 105,000 loss expected by Wall Street economists polled by MarketWatch. Excluding census workers and other government employees, private payrolls grew 67,000 in August, more than doubling the 30,000 gain expected. That figure is down from a revised 107,000 private-sector gain in July.

The unemployment rate ticked higher to 9.6% in August from 9.5% in the previous month, meeting economists’ expectations. This is the highest unemployment rate since May. Average hourly earnings increased 3 cents, or 0.2% to $19.08, slightly better than expected. Earnings are up 1.7% in the past year. The average workweek was unchanged at 34.2 hours.

Also hitting today, the Institute for Supply Management’s report on service sector activity took a bite out of the market rally, after it fell to 51.5 in August compared with 54.3 in July. Economists were looking for a reading of 53.5. Still, the index signal growth because it was above 50, the dividing line between expansion and contraction in the economy.

ReneSola (SOL)
I wrote about SOL several times last year as bullish options activity brought the stock to my attention. I completely lost track of SOL this year. Too bad. SOL has nearly doubled this year and is sitting at two-year highs. I cannot recall the last time I could say something like that about a solar stock!

SOL issued a bullish earnings report last month, including increasing guidance for Q3 revenue to $300-320M vs. $273M consensus. The company also slightly boosted full-year revenue guidance to $1.00-1.05B vs. $991M consensus. The stock remains relatively cheap at a forward P/E of 6.7, price-to-book (P/B) of 1.7, and price-to-sales (P/S) of 1.0. However, debt versus cash is a bit higher than I would like, $577M vs. $171M respectively.

Until this trend breaks and/or SOL reports poor earnings, the stock is a buy on the dips.

SOL on an amazing run in 2010

Solarfun Power Holdings Co Ltd (SOLF)
I have never taken SOLF seriously. Yet, here it is up 53% for the year and re-challenging its 52-week and two-year highs. Trading has been extremely choppy, but good earnings news has prevailed for SOLF. SOLF is even cheaper than SOL with only a 2x debt-to-cash ratio. Despite this, I still cannot get over my bias that SOLF is only for pure speculation.

SOLF has survived steep sell-offs before setting 52-week highs

LDK Solar Co Ltd (LDK)
I essentially wrote off LDK last year after revelations in financial disclosures that the company was struggling to remain a going concern. Nine months later and LDK is still humming along. The stock is up 9% for the year, but it has also been down as much as 29% – not a good risk/reward balance. The stock has a low valuation (of course), but the company sits on a massive $2.1B debt load. LDK holds $441K in cash. During August earnings, LDK issued revenue guidance that blew away analysts: Q3 revenue $570-600M vs. $422M consensus; FY10 revenue $1.95-2.00B vs. $1.59B consensus. A week after earnings, LDK announced it will heavily invest in a new solar cell and module facility. If LDK is doomed, the company is going down swinging.

Weekly chart of LDK is a reminder that the stock has a lot of work to do

Trina Solar Ltd (TSL)

Trina Solar was the darling of the solar industry last year and was its best performer with an amazing 482% gain. TSL did so well that the company could even boast about challenging First Solar. As is so often the case, and as expected, performance championships last no longer than a year, and in 2010, TSL is fortunate to eek out a 3.4% year-to-date gain (this is much better than the -57% performance of last year’s other darling, Canadian Solar, CSIQ!). TSL was down as much as 38% at the nadir in May.

TSL has sprinted 25% since reporting earnings in August when it reported strong year-over-year gains. For example, revenues rose 147% year-over-year to $371M on a 249% increase in shipments to 225MW. Gross margin of 32.1% far exceeded company projections for the high 20s. TSL boosted full year guidance on PV module shipments to 900 – 930 MW, far exceeding earlier guidance of 750 – 800 MW. Naturally, TSL is extremely bullish on its prospects; the company is aggressively expanding capacity and expects to continue driving the costs of its modules downward.

TSL remains relatively inexpensive: 9.8 forward P/E, 1.5 P/S, 2.1 P/B, $640M in cash, and just $627M in debt. The stock’s recent moves put it over its April highs and on a trajectory to regain the momentum it left behind in 2009.

TSL reaches for 2009′s momentum

First Solar (FSLR)

I have actively followed FSLR throughout the year. I last claimed the stock would stay stuck in limbo without any positive catalysts on the near-term horizon. This limbo lasted for a month. On Friday, FSLR pushed to break the deadlock with a small break-out that finally closed the gap down from July’s earnings. The move also flattened FSLR’s performance for the year, barely qualifying it as a “winner” for this list. FSLR has been down as much as 24% this year as it has tested its $100 support line twice.

FSLR is now right back to its downtrend line,and at the same time the stock is getting overbought, making it ripe for a pullback. I chose to fade the move as part of a hedge on other (non-solar) positions ahead of Friday’s job’s report and the expected return of trading volume after Labor Day. A continuation of the buying pressure from here will be very bullish for the stock.

FSLR remains as “expensive” as ever: 16.6 forward P/E, 3.8 P/B, 5.1 P/S. The cash horde remains impressive at 796M with a paltry $141M in debt.

FSLR tries to break out

As we go through the final trading months of the year, I will be watching these and other solar stocks more closely. With long-time survivor Evergreen Solar (ESLR) on the ropes, the industry could finally be heading for a year in which the winners put a permanent distance between themselves and the losers (amongst the publicly-traded companies anyway).

Full disclosure: Long FSLR puts

NYSE up 26.07 (0.38%) to 6,937.05DJIA up 6.13 (0.06%) to 10,275.60S&P 500 up 5.09 (0.47%) to 1,085.38Nasdaq up 13.75 (0.63%) to 2,190.59

GLOBAL SENTIMENT

Hang Seng up 1.19%Nikkei up 1.52%FTSE up 0.19%

UPSIDE MOVERS

(+) GPS says August same-store sales flat.

(+) KSS says August same-store sales up 4.5%.

(+) SKS says August sales up 1%.

(+) ROST says August same-store sales up 5%.

(+) BNVID gets NIH grant for obesity drug.

(+) M says August same-store sales up 4.3%.

(+) BKC reportedly to be bought for $24 a share.

(+) CRME earns milestone payment.

(+) COST August same-store sales up 6%, ex-fuel sales up 5%.

(+) HPQ gets upgraded.

(+) OREX inks pact with Takeda.

DOWNSIDE MOVERS

(-) ARO says August same-store sales fall 1%.

(-) ANF down even as August sales up 6%.

(-) CSIQ earnings miss.

MARKET DIRECTION

Stock averages end near the day’s highs ahead of Friday’s much-anticipated August jobs report. Additional signs in data out Thursday that the bottom isn’t falling out of the recovery allowed for a second day of stock gains after a weak August performance. The S&P 500 gained for a third straight day.

A trio of economic reports issued early Thursday added to positive sentiment found in manufacturing data a day earlier.

The Labor Department said first-time claims for unemployment benefits fell slightly last week, but remain well above levels that indicate a healthy economy. Claims dipped for the second straight week.

Meanwhile, the number of buyers who signed contracts to purchase homes rose 5.2 percent in July after hitting a record low in June, according to the National Association of Realtors. Sales plummeted in the months following the expiration of the government’s home buyer tax credit in April and economists were expecting that trend to continue for a third straight month.

Factory orders also climbed, rising 0.1 percent in July. The rise in orders backs up a report Wednesday showing the manufacturing sector continues to expand. Major indexes jumped more than 2 percent Wednesday after a surprising rise in manufacturing activity.

Wall Street is looking ahead to Friday’s release of the August jobs report. Economists polled by Thomson Reuters predict the unemployment rate inched up to 9.6% last month from 9.5% in July as private employers hired just 41,000 workers last month.

Retailers also weighed in with mostly positive August same-store sales results. Overall, retailers were expected to post a 2.8% increase for August, after the 2.3% decline in August 2009. Department stores and some discounters were also seen boosting the overall sales performance.

Deal news is also supportive.

HP (HPQ) boosted its bid for 3Par (PAR) to $33 a share, and the move had the intended effect. Dell (DELL), a rival to take over the company, dropped out of the bidding.

Burger King (BKC) was up sharply following an agreement to be acquired by 3G for $24 per share.

In addition, all these companies have attractive valuations. Each stock in this list has a trailing twelve month (TTM) Price/Earnings and Price/Sales ratio below industry averages.

Valuation ratios sourced from Reuters.com, and dividend yield data sourced from Finviz.

The list has been sorted by dividend yield.

1. Ameren Corporation (AEE): Diversified Utilities Industry. Dividend yield of 5.49%, with a current ratio of 1.61. TTM P/E ratio at 11.5 vs. the industy avg. at 12.69. TTM P/S ratio at 0.94 vs. the industry avg. at 1.1. The stock has gained 10.51% over the last year.

2. Bristol-Myers Squibb Company (BMY): Drug Manufacturer. Dividend yield of 4.91%, with a current ratio of 2.2. TTM P/E ratio at 14.24 vs. the industy avg. at 43.13. TTM P/S ratio at 2.31 vs. the industry avg. at 2.61. The stock has gained 24.01% over the last year.

3. Novartis AG (NVS): Drug Manufacturer. Dividend yield of 3.71%, with a current ratio of 2.17. TTM P/E ratio at 12.31 vs. the industy avg. at 42.55. TTM P/S ratio at 2.46 vs. the industry avg. at 2.61. The stock has gained 17.14% over the last year.

4. Compania Cervecerias Unidas S.A. (CCU): Brewers Industry. Dividend yield of 3.37%, with a current ratio of 2.02. TTM P/E ratio at 18.53 vs. the industy avg. at 19.91. TTM P/S ratio at 2.28 vs. the industry avg. at 3.64. The stock has gained 87.08% over the last year.

5. CNOOC Ltd. (CEO): Independent Oil & Gas Industry. Dividend yield of 3.1%, with a current ratio of 1.53. TTM P/E ratio at 12.02 vs. the industy avg. at 22.94. TTM P/S ratio at 3.49 vs. the industry avg. at 6.3. The stock has gained 36.9% over the last year.

6. Broadridge Financial Solutions Inc. (BR): Information & Delivery Services Industry. Dividend yield of 2.81%, with a current ratio of 2.04. TTM P/E ratio at 13.14 vs. the industy avg. at 30.51. TTM P/S ratio at 1.22 vs. the industry avg. at 8.81. The stock has gained 5.28% over the last year.

7. Ultrapar Holdings Inc. (UGP): Oil & Gas Refining & Marketing Industry. Dividend yield of 2.56%, with a current ratio of 3.25. TTM P/E ratio at 21.42 vs. the industy avg. at 24.35. TTM P/S ratio at 0.33 vs. the industry avg. at 6.37. The stock has gained 57.56% over the last year.

8. ABB Ltd. (ABB): Industrial Electrical Equipment Industry. Dividend yield of 2.5%, with a current ratio of 1.7. TTM P/E ratio at 16.64 vs. the industy avg. at 33.3. TTM P/S ratio at 1.42 vs. the industry avg. at 3.07. The stock has gained 3.69% over the last year.

9. Fortune Brands Inc. (FO): Home Furnishings & Fixtures Industry. Dividend yield of 1.7%, with a current ratio of 1.99. TTM P/E ratio at 15.77 vs. the industy avg. at 18.14. TTM P/S ratio at 0.97 vs. the industry avg. at 3.45. The stock has gained 14.52% over the last year.

10. Freeport-McMoRan Copper & Gold Inc. (FCX): Copper Industry. Dividend yield of 1.67%, with a current ratio of 2.44. TTM P/E ratio at 9.28 vs. the industy avg. at 23.97. TTM P/S ratio at 1.99 vs. the industry avg. at 7.71. The stock has gained 15.26% over the last year.

11. Corn Products International Inc. (CPO): Processed & Packaged Goods Industry. Dividend yield of 1.64%, with a current ratio of 2.18. TTM P/E ratio at 13.71 vs. the industy avg. at 21.85. TTM P/S ratio at 0.66 vs. the industry avg. at 0.82. The stock has gained 17.16% over the last year.

12. Cummins Inc. (CMI): Diversified Machinery Industry. Dividend yield of 1.41%, with a current ratio of 1.94. TTM P/E ratio at 19.4 vs. the industy avg. at 21.44. TTM P/S ratio at 1.27 vs. the industry avg. at 2.02. The stock has gained 66.24% over the last year.

13. FactSet Research Systems Inc. (FDS): Information & Delivery Services Industry. Dividend yield of 1.25%, with a current ratio of 3.47. TTM P/E ratio at 24.17 vs. the industy avg. at 30.51. TTM P/S ratio at 5.42 vs. the industry avg. at 8.81. The stock has gained 35.3% over the last year.

14. Joy Global, Inc. (JOYG): Farm & Construction Machinery Industry. Dividend yield of 1.23%, with a current ratio of 2.45. TTM P/E ratio at 640.329 vs. the industy avg. at 754.896. TTM P/S ratio at 1.65 vs. the industry avg. at 2.02. The stock has gained 48.17% over the last year.

15. Noble Energy, Inc. (NBL): Independent Oil & Gas Industry. Dividend yield of 1.03%, with a current ratio of 1.8. TTM P/E ratio at 22.55 vs. the industy avg. at 22.94. TTM P/S ratio at 4.26 vs. the industry avg. at 6.3. The stock has gained 16.59% over the last year.

Disclosure: No positions

As the market grinds down toward the end of the summer, we’re seeing the typical seasonal malaise when a number of good companies quietly drifts down to 52-week lows. And the selling may not be over. The S&P 500 has historically been the weakest in September, dropping an average of -1.3%. The good news: stocks really build a head of steam after that. The S&P 500 typically rises +0.7% in October, followed by average monthly gains of +1.5%, +1.9% and +2.1% in each of the next three months.

Savvy investors always keep some cash on hand for these summer doldrums, as it can be a fertile time to start researching unloved stocks that should find new appreciation as summer turns to fall. Here are four names hitting new 52-week lows on Friday that should be quite appealing for long-term investors.

MedcoHealth Solutions (NYSE: MHS)
Earlier this summer, we saw a considerable dust-up between CVS and Walgreen (NYSE: WAG) as those two firms fought over a pharmacy benefits manager (PBM) contract. As we looked into the PBM sector in June, we saw still-considerable growth prospects, especially for rival MedcoHealth.

Since then, shares have fallen out of favor. In late July, the company issued second-quarter results that were in-line with expectations, but it became apparent that the company saw only a +3% year-over-year profit boost for each prescription filled, below the +5% growth rate analysts had expected. The company also admitted that a +5% to +10% growth rate for this metric would no longer be achieved.

Notably, analysts’ earnings estimates have barely budged, yet the shares are now some -20% lower. It’s important to know that PBM firms always show erratic quarterly trends due to the lag time between changing drug prices and the PBM’s ability to pass along those changes. Yet this still remains as a solid growth play: profits are expected to grow roughly +20% this year, and another +17% in 2011. Shares trade for less than 12 times next year’s forecast.

Winnebago (NYSE: WGO)
This maker of recreational vehicles (RVs) saw its shares surge this spring as word spread that baby boomers were returning to RV showrooms in droves. Fiscal third quarter results released in June reflected an earnings blowout. Since then, shares have lost roughly half their value on ever-shrinking trading volume. Part of the share price malaise is due to the fact that Winnebago has already released results for its seasonally most important quarter. The company’s fiscal fourth quarter results, which should be released in early September, are likely to be comparatively uninspiring.

Winnebago lost more than $1 a share last year, but thanks to massive cost cuts and a rebound in demand, the company should earn roughly $0.30 in the fiscal year ending this month. That’s hardly a profit level to inspire shares, but it’s worth remembering that Winnebago earned $4 to $5 a share back in the middle of the last decade. The company is likely still a few years away from that kind of earnings power again, but shares below $9 are cheap in the context of that long-term earnings strength.

Wells Fargo (NYSE: WFC)
This is a classic case of the baby being tossed out with the bath water. As we saw in the economic crisis of 2008, Wells Fargo has proven to be an extremely well-run bank, avoiding imprudent risks while aggressively acquiring weaker financial franchises on the cheap. Of course, the economy is pretty dicey right now, and bank stocks in general are being shunned, so there’s little interest in loading up on solid players like Wells Fargo right now.

Yet Wells Fargo has all of the traits I look for when seeking long-term holdings: A very solid brand, a track record of playing defense in tough times, rising profit estimates and a robust balance sheet.

To be sure, the ongoing mortgage crisis means that Wells Fargo may still report some weak results in its consumer lending division, so some investors are waiting to see how the ongoing housing slump plays out during the October earnings season. There’s no rush to buy this name immediately, but shares should be a solid rebound candidate when the economy starts to show initial signs of life.

Best Buy (NYSE: BBY)
I recently wrote about this consumer electronics retailer, so I’ll refrain from further commentary here except to note that shares hit a fresh 52-week low on Friday, owing in large part to the fact that few near-term catalysts exist.

The company’s fiscal second quarter results (due for release in mid-September) are likely to be so-so. The same may be said of the subsequent quarter, which ends in November. But after that, we get the all-important holiday season, which could still be quite solid, thanks to a raft of hot new products and an ever-shrinking set of retail competitors.

All four of these stocks are great long-term holdings, as they have strong brands and solid market share in their respective industries.

In order of timeliness, Medco looks to be the first one to find fresh appeal, followed by Best Buy (thanks to the holiday selling season), Wells Fargo (as expectations for an improving economy in late 2011 and into 2012 could perk up shares this winter), followed by Winnebago, which may stay out of favor until the RV maker approaches its next season of strength. Yet Winnebago likely has the greatest long-term upside of these names, and could eventually double or even triple from current levels.

Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
Original post

DJIA down 58.8 (-0.6%) to 10,320S&P 500 down 5.86 (-0.5%) to 1,084Nasdaq down 18.4 (-0.8%) to 2,190

GLOBAL SENTIMENT

Hang Seng down 0.89%Nikkei down 0.86%FTSE up 0.4%

UPSIDE MOVERS

(+) EXP upgraded.

(+) NVAX announces positive respiratory virus vaccine study.

(+) RDEN costs cuts, higher revenue generate Q4 profit

(+) BKS Barnes & Noble nears deal with Ron Burkle on board seats

DOWNSIDE MOVERS

(-) CSCO beats with earnings but revenue guidance disappoints.

(-) BRCM downgraded.

(-) TXN downgraded.

(-) XLNX downgraded.

(-) BCS reports say job cuts may be announced.

(-) ALTR downgraded.

(-) MSFT downgraded.

(-) ARO downgrade.

(-) KSS declines after latest results.

(-) KBH says treasurer resigns.

(-) CRYP loss widens, misses Street view.

(-) HEAT beats earnings estimates.

MARKET DIRECTION

Stock averages finish lower though pared the day’s losses late to close in the upper end of the session’s range. It’s the third straight decline for the major averages and comes as Cisco’s (CSCO) outlook weighed on tech shares and an unexpected rise in jobless claims added to the mounting signs of a weakening recovery.

Tech stocks were leading decliners and Cisco remained down 9% late in the day, after disappointing revenue guidance. Sara Lee (SLE) also missed with revenue and Kohl’s (KSS) cut its earnings outlook.

Stocks also fell after the Labor Department reported that the number of people filing for unemployment benefits rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The report was yet one more sign that the recovery is slowing.

Crude oil futures ended at a one-month low as concern about the economic recovery remained, clouding hope that demand for oil would pick up. Oil for September delivery lost $2.28, or 2.9%, to settle at $75.74 a barrel, the lowest price since closing at $74.95 a barrel on July 12.

In company news:

Actively traded Cisco (CSCO) fell after the tech bellwether late Wednesday reported Q4 sales of $10.8 bln, in line with Street estimates of $10.8 bln. Non-GAAP EPS was $0.43 per share, a penny better than the Street view. In its conference call, CSCO said it expects Q1 revenue to be up 18% to 20% year-over-year, less than Wall Street was hoping for. Gross margin is seen at about 64%. Cash flow from operations are estimated at $1.2 to $1.5 billion for Q1.

In its conference call, CSCO said it expects Q1 revenue to be up 18% to 20% year-over-year, less than Wall Street was hoping for. Gross margin is seen at about 64%. Cash flow from operations are estimated at $1.2 to $1.5 billion for Q1.

Juniper Networks (JNPR) slumped as Cisco warned that customers were becoming more cautious in the weak economy. In a note to clients, Wedbush Morgan analyst Rohit Chopra stated that Cisco’s concerns “could potentially have negative implications for Juniper.” The stock was also downgraded this morning.

Kohl’s (KSS) reports Q2 EPS of $0.84 compared to $0.75 a year earlier and beating the Thomson Reuters mean analyst estimate for $0.82 by two cents. Net sales were $4.1 billion, an increase of 7.7% for the quarter. Comparable store sales for the quarter increased 4.6%.

For Q3, the company expects total sales to increase between 4.5% and 6.5%; comparable store sales to increase 2% to 4%; and gross margin as a percent of sales to increase 20 to 40 basis points over last year. EPS are put at $0.57 to $0.63. The Street expects $0.74.

For Q4, the company expects total sales to increase between 4.5% and 6.5%; comparable store sales to increase 2% to 4%; and gross margin as a percent of sales to increase 20 to 40 basis points over last year. EPS are put at $1.51 to $1.59. The Street expects $1.56. The company’s updated guidance for fiscal 2010 is $3.57 to $3.70 per diluted share. Analysts on average look for $3.75.

Sara Lee Corp (SLE) fell after its 2011 earnings projection disapointed investors, even though it returned to the black in the fourth quarter. The food manufacturer anticipates earnings for the current fiscal year to fall between 93 cents and $1.02 a share on revenue of $11.2 billion to $11.5 billion. Analysts polled by Thomson Reuters expected earnings of 94 cents on revenue of $11.0 billion.

Barnes & Noble (BKS) is near an agreement with billionaire Ron Burkle in which the bookstore chain will give him three board seats in exchange for dropping his lawsuit over limits on his stake in the company, according to Bloomberg, citing two people with knowledge of the matter. Burkle, along with his investment entity, will likely support a sale of the bookstore chain, the report said, citing the sources.

CVS Caremark (CVS) is cutting prices for some of its Medicare services in a bid to regain business it has lost to rival firms, Bloomberg reported. CVS bids every year on the right to provide drugs to Americans covered by Medicare Part D. The results for the 2011 contracts are due later this month, the report said.

Pharmasset (VRUS) said its experimental drug for treatment of chronic hepatitis C infection was given the “fast track” designation from the Food and Drug Administration, according to Reuters report. In May, the drug showed short-term antiviral activity, according to the report. Fast track Status is the category given to a drug that treats unmet medical needs.

Novavax (NVAX) said results from a pre-clinical toxicology study of its vaccine candidate to prevent respiratory syncytial virus (RSV) showed the vaccine to be safe and well-tolerated at all doses tested.

Financial overhaul measures rile small banksHow the major stock indexes fared on Wednesday (AP)

CHINA FEARS: Asian markets led Wall Street lower after an index that forecasts economic activity for China was revised lower.

SLUMPING CONFIDENCE: The drop worsened in the U.S. after the Conference Board said its Consumer Confidence Index fell nearly 10 points in June. It was the steepest drop since February.

Stocks slide on weak jobs reportSummary Box: Retailers, banks drag down stocks (AP)

The Dow Jones industrial average fell 8.99, or 0.1 percent, to 10,143.81.

The Standard & Poor’s 500 index rose 3.07, or 0.3 percent, to 1,076.76.

The Nasdaq composite index rose 6.06, or 0.3 percent, to 2,223.48.

For the week:

The Dow is down 306.83, or 2.9 percent.

The S&P is down 40.75, or 3.6 percent.

The Nasdaq is down 86.32, or 3.7 percent.

For the year:

The Dow is down 284.24, or 2.7 percent.

The S&P is down 38.34, or 3.4 percent.

The Nasdaq is down 45.67, or 2 percent.

Stocks slide on weak jobs reportHow the major stock indexes fared on Friday (AP)