Dear Subscribers,

In many ways, the market activity on Friday made no sense at all. Bond traders ran for cover and pushed down the yield on the 10 year Treasury to the lowest level since May 2009 (when the Dow was at 8000). Yet stock investors gobbled up riskier small caps with the Russell 2000 gaining 6X more than the S&P 500. Usually if there is a disagreement between stock and bond investors…it's the bond investors who prove to be correct. What they see is that the GDP got revised down again to +2.7% when it was originally at +3.2%. That simply is not the kind of robust reading you expect coming out of a deep recession. So the bond investors are willing to take a measly 3.1% return on their money as they feel it's better odds than being in the stock market. That, my friends, is a warning that should be heeded. I sure did by adding to my short positions mid day on Friday. If you haven't lightened up your stock holdings already, then you might want to do that now.

Certainly I don't want to come off as too much of an alarmist because history has shown time and time again that the economy is a tricky read…the stock market even trickier. So I fully realize that I could be 100% wrong on this call and am willing to become more bullish if that's what the tea leaves tell me. Right now they seem to be saying "weakness ahead".

Profit from the Pros TV- New Episode
•  Yours truly explains what happened last week and what's on tap for this week.
•  Kevin Matras discusses what investors need to know in this market.
•  Bull and Bear Stocks of the Week with Sheraz Mian
•  Screening for Earnings Yield
•  Roundtable Review: Some reasons to be bullish…some reasons to be bearish. Plus 3 top    picks.

View Profit from the Pros TV

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

Today's Top Stories: Monday- June 28, 2010

ZACKS RANK BUY STOCKS

• Aggressive Growth - SanDisk Corp. (SNDK) analysts raised estimates across the board. The Zacks Consensus Estimate for 2010 rose more than $1 to $3.46 per share. Next year's projections are averaging $3.20, up 47 cents. While the earnings do tapper slightly in 2011, the estimates are calling for income to double before 2012. Read More...
   
• Growth & Income - LaCrosse Footwear (BOOT) has an expected long-term EPS growth of 17.5%, a dividend yield of 2.6%, and it trades at 15x 2010 estimate. The Zacks Consensus for 2010 increased 16 cents to $1.24, while the Zacks Consensus for 2011 is higher climbed 3 cents to $1.19. Read More...
   
• Momentum - Monro Muffler Brake, Inc. (MNRO) Q1 revenue was up 26% from last year to a record $147 million. Earnings also came in strong at 28 cents, 12% ahead of the Zacks Consensus Estimate, pushing its average earnings surprise to 7% over the last four quarters. Read More...
   
• Value - America's Car-Mart Inc. (CRMT) fiscal fourth-quarter earnings per share were 62 cents per share compared to 43 cents in the year ago quarter. The Zacks Consensus was calling for 58 cents. Revenue continued to rebound, growing 14% to $88.8 million from $77.9 million a year ago. Same store sales rose 11.8%. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Top 5 Pacific Funds
  Add pacific stocks to your portfolio with Fidelity Pacific Basin (FPBFX), T. Rowe Price New Asia (PRASX), Matthews Korea (MAKOX), Pacific Capital New Asia Growth A (PNAAX) and Wells Fargo Advantage Asia Pacific (SASPX). Read More...
  

See all the great mutual fund resources.

• Bull Of The Day: Spherix, Inc. (SPEX)
  Full Zacks research report: Read More...
  
  
• Bear Of The Day: Alcoa Inc. (AA)
  Full Zacks research report: Read More...
  
  
• ZACKS INDUSTRY OUTLOOK: Hotels & Lodging Stock Review - June 2010
  The hotels and lodging industry is experiencing an increase in demand. The operating metrics are looking up, and year-over-year comparisons are becoming easier as the operating environment was significantly stressed in the prior year. Read More...
  
  
• Everest Re (RE) Upgraded to Neutral
• Ford (F) to Build New Thai Plant
• Santander (STD) to Buy Citi's $3.2B Auto Loans

• Where old iPhones go to die @ CNNMoney.com
• Oil Rises on Fear of Gulf Hurricane Impact @ TheStreet.com
• The Most Peaceful Countries @ MAINSTREET.com
• Banks Fear the Worst from Basel III @ FOXBUSINESS.com
• 7 Ways to Use Social Networking to Land Your Next Job @ Kiplinger.com

EDUCATION: Aggressive Growth

Earnings Manipulation Read More...

PeopleAndPicks.com:

VIP "ThisColoradoKid" is minimizing his losses with BUY calls in (CLF), (HLF) and (UNG). Read More...

• Momentum Stock Picks-June 24, 2010
• Broker Recommendations vs. Zacks Rank
• Aggressive Growth Stock Picks-June 23, 2010

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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