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Wednesday, July 19, 2006

Retail Details

Stocks: (MCD)(WMT)(TGT)(CMG)(BJ)

By William Trent, CFA of Stock Market Beat

Summary: Watch List

News:BJ’s Wholesale Club Inc. stock got an upgrade from a Credit Suisse analyst Monday who said shares have almost bottomed out, though he lowered his earnings forecasts in light of competitive concerns.

Other news:McDonald’s Corp. (MCD) on Monday posted preliminary quarterly earnings that topped analysts’ expectations, pushing shares 4.1 percent higher. June sales at stores open-at least 13 months rose a better-than-expected 5.9 percent, with sales in Germany lifted as it hosted the World Cup. The company earned about 67 cents a share for the second quarter, including 10 cents a share in income from the sale of shares in Chipotle Mexican Grill Inc. (CMG) and an expense of 2 cent a share from a tax law change. Excluding one-time items, earnings were 59 cents a share. Analysts, on average, looked for 56 cents a share, according to Reuters Research. Some are reading the McDonald’s earnings surprise as a sign that consumers are shifting to lower-priced goods. Wal-Mart (WMT) may disagree.

Target (TGT) now expects 3 percent to 4 percent growth in July same store sales down from the original forecast of 4 to 6 percent.

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