Dear Subscribers,

The investment media outlets all have different reasons for the decline of the market on Tuesday. Some say it was the weak retail sales report. Others say it is growing unrest in the Middle East. And yet others claim it is concern over our exploding deficit that Washington is not taking seriously enough.

The answer my friends is...None of the Above.

Stocks have gone up unabated for over 2 weeks. So it had to take a rest sooner or later because the rally is simply tired. And yes, that slumber may extend for a few more sessions as the gains were coming too fast and too furious. A modest correction back to around 12,000 would shake the excess off some stocks and retest investor conviction for the next move higher. And yes, I fully expect the market to move higher after this retracement is over.

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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Today's Top Stories: Wednesday- February 16, 2011

ZACKS RANK BUY STOCKS

• Aggressive Growth - Varian Semiconductor (VSEA) first-quarter earnings per share was $0.95, beating the Zacks Consensus Estimate by $0.08, marking 7 consecutive earnings surprises. Read More...
   
• Growth & Income - Destination Maternity Corporation (DEST) earnings per share came in at 81 cents, crushing the Zacks Consensus Estimate of 69 cents. Net sales increased 1.2% over the same quarter in 2010. Read More...
   
• Momentum - Sirona Dental Systems, Inc. (SIRO) fourth-quarter revenue was up 10% from last year to $236 million. Earnings were also strong at 96 cents, 19% ahead of the Zacks Consensus Estimate. Read More...
   
• Value - Stanley Black & Decker, Inc. (SWK) reported fourth quarter and full year 2010 results surprised on the Zacks Consensus Estimate for the 11 straight earnings surprise. Read More...
   

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

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• Bull Of The Day: The Walt Disney Company
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• Bear Of The Day: Hasbro, Inc.
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• Zacks Industry Outlook: Non-U.S. Banks Stock Update - Feb. 2011
  Though the malice spread by the financial crisis is behind us, banks are now dealing with regulatory pressures now that they have been rescued by taxpayers' money and government intervention. Read More...
  
  
• Analyst Blog Highlights
• RLI Corp. Forms New Treaty Group
• Sohu Remains Neutral
• La-Z-Boy Works Harder to Beat
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• First Profit
• Value Stock Picks- February 15, 2011
• PFP-TV: Inflation Simmers While Bull Rolls On

EDUCATION: Aggressive Growth

There's More to Aggressive Growth Than Technology Read More...

PeopleAndPicks.com:

VIP "smallstk" is reaping benefit with a carefully crafted portfolio of BUY calls in (CMI), (IGE), (JNPR) and (PAG). Read More...

• Pimco's Gross slashes U.S. debt holdings @ CNNMoney.com
• Understanding Market Momentum @ TheStreet.com
• The Best & Worst Cities for Dating @ MAINSTREET.com
• Dell 4Q Net Handily Tops Expectations, Shares Rise @ FOXBUSINESS.com

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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