If Amazon (AMZN) was comfortable with its spot atop the e-reader market, it just got a wakeup call from Barnes & Noble (BKS). The brick-and-mortar book retailer's e-reader, the Nook, which hasn't even hit stores yet, is in pre-order nirvana right now. The first run for the Nook occurred at the end of October (the product was introduced on October 20). These buyers were told the reader would ship on November 30. High demand resulted in backorders, so the next wave of pre-orders was scheduled to ship on December 7. Now, a third group will have to wait until December 11.

This product is on fire, and it still isn't even on shelves yet.

Mary Ellen Keating, a spokeswoman for Barnes & Noble wouldn't reveal how many of these devices have been pre-ordered, but she did say, "Demand for the product in our stores and online has surpassed our expectations." She also noted, "We are working hard to meet demand for the holidays."

As expected, Barnes & Noble (NYSE: BKS) has announced its entry into the e-reader market. The top bookseller, with green stores all over the country (and, for that matter, my neighborhood) is eager to get a taste of of the success Amazon (NASDAQ: AMZN) has realized with the Kindle.

The Barnes & Noble e-reader, which will be called the Nook, will be available at the company's more than 750 locations in the United States at a price of $259. Essentially, it's coming in at the same spot as the Kindle, which currently owns 60% of the U.S. market.

For retailers, the crucial season is on its way. Blow the Christmas rush, and next year starts off on a miserable foot. Success, of course, also delivers a healthy dose of momentum -- and a little bit of wiggle room, important in what will continue to be a tough economy through at least the first half of next year. For booksellers, now contending with a new variable in the form of digital readers, e-readers will play a major role in defining the winners and losers. So far, it looks like Amazon (NASDAQ: AMZN) is off to a great start, and it will take some genuine innovation for the competition to chip away at its market share.

Barnes & Noble (NYSE: BKS), once the leading names in literary retail, is expected to release its own e-reader this week. It will look a bit like Amazon's Kindle, according to Reuters, but with a touch screen intended to make the reader's experience easier. The price hasn't been disclosed yet, but rumor has it that it'll be higher than the Kindle's $259. BKS is staying mum on its plans in this space. There are others in the space, as well, including IREX Technologies, which is a spinoff of Royal Philips Electronics (NYSE: PHG), Asutek (tk: tk) and a project called FirstPaper that has Hearst behind it.

Digital technologies have wreaked havoc on media like newspapers and music. Might books be next?

Well, Amazon.com's (NASDAQ: AMZN) Kindle has shown that people are willing to curl up with a device when reading a book. But how big is this market really?

It's too early to tell. But this isn't stopping the competition. On Thursday, Google (NASDAQ: GOOG) said it will launch its own digital book selling service. It's called Google Editions and is expected to hit the market in the first half of next year (in the U.S. and Europe).

Albert Gonzalez faced the music in a U.S. District Court in Boston on Friday, pleading guilty to masterminding one of the biggest cases of identity theft in history. The deal he struck with prosecutors could have him turning big rocks into little ones for up to a quarter of a century.

The Miami resident compromised the computer systems of large, high-profile retailers, including TJX (NYSE: TJX), BJ's Wholesale Club (NYSE: BJ), OfficeMax (NYSE: OMX), Barnes & Noble (NYSE: BKS) and Sports Authority. Tens of millions of credit card numbers were swiped in this scheme, leading to 19 counts of conspiracy, computer fraud, wire fraud, access device fraud and aggravated identity theft -- if there are other charges ... well, you get the point.

Albert Gonzalez is calling it quits. Accused of masterminding the largest identity theft in the United States ever, he has agreed to plead guilty in U.S. District Court in Massachusetts. Separate charges filed in New Jersey, however, remain.

The 28 year-old faces 15 to 25 years in prison and will forfeit $1.65 million and a Miami condo (in addition to $1.1 million already seized). If the judge accepts the terms, this would be the longest sentence ever recorded for a hacking case.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) strong Q2 results beat expectations due to rising same-store sales.
• Agilent Technologies Inc. (NYSE: A) Q3 earnings topped low expectations and revenue declined.
• Analog Devices Inc. (NYSE: ADI) posted better-than-expected Q3 results but shares fell on weaker margins.
• Baidu Inc. (NASDAQ: BIDU) CEO said its new advertising efforts will boost sales over the long run.
• Barnes & Noble Inc. (NYSE: BKS) had a better-than-expected Q2 profit but same-store sales fell.
• BJ's Wholesale Club Inc. (NYSE: BJ) reported solid Q2 numbers and raised its full-year guidance.

Barnes & Noble, Inc. (NYSE: BKS), a bookseller that competes with Amazon.com, Inc. (NASDAQ: AMZN), Wal-Mart Stores, Inc. (NYSE: WMT), and Borders Group, Inc. (NYSE: BGP), issued a Q2 earnings report on Thursday morning that in no way makes me want to invest in the company. As far as I'm concerned, the retailer has a lot of work to do, and I wouldn't want to involve my portfolio with a business that is still trying to find its way.

Barnes & Noble earned 14 cents per share on an adjusted basis. Earnings.com reports an expectation of 10 cents per share. So management went beyond projections. Should shareholders be content with such news and call it a day?

We've all heard of Amazon.com's (NASDAQ: AMZN) Kindle -- perhaps you've even seen it in the flesh. It's portable, well-lit, and comes equipped with wireless technology so a user can download a new novel on the fly.

The competing device, Sony Corp.'s (NYSE: SNE) e-reader ... well, it's portable and well-lit. But if you run out of reading material and you're away from home, too bad. Until now.

Rumors continue to swirl that Sony is not far off from unveiling a wireless version of its Reader. The company's e-reader group has extended an invitation to reporters for a meeting on August 25. Could a wireless announcement be in the offing?

This is not an abstraction: buildings large and small are showing gaping vacancies. Storefronts are empty. Entire buildings sit waiting to be occupied. In Manhattan, retail vacancies have reached their highest rates since 2001. For the second quarter of this year, vacancies hit the absurd height of 12.4%, thanks to unemployment trends that won't quit and consumers reluctant to pry open their wallets.

Retailers are being hit just like the residential market.

Twilight and Harry Potter sales notwithstanding, there's a growing reality in our fair nation -- people just don't read like they used to. And with the slowdown in reading comes a definite decline in book sales.

The Book Industry Study Group reported that publishers sold fewer books in 2008, down 1.5% from 2007 to 3.08 billion. Of course, all was not lost -- total revenue edged 1% higher thanks to increased prices.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• AnnTaylor Stores Corp. (NYSE: ANN) reported a smaller-than-expected Q1 loss as sales slumped.
• Barnes & Noble Inc. (NYSE: BKS) smaller-than-expected Q1 net loss sent shares higher.
• Children's Place Retail Stores Inc. (NASDAQ: PLCE) solid Q1 results were in line with expectations.
• Dick's Sporting Goods Inc. (NYSE: DKS) posted higher-than-expected Q1 results but same-store sales fell.
• Gap Inc. (NYSE: GPS) lower Q1 earnings beat expectations and lower revenue was in line.

Barnes & Noble (NYSE: BKS - option chain) shares are rising today after the company reported a first-quarter loss of $2.7 million or 5 cents per share. Excluding one-time items, BKS lost 4 cents per share, while analysts had forecast a loss of 15 cents per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BKS.

BKS opened this morning at $25.48. So far today the stock has hit a low of $24.17 and a high of $25.90. As of 11:20, BKS is trading at $24.23 up 0.34 (1.4%). The chart for BKS looks bearish and S&P gives BKS a negative 1 STARS (out of 5) strong sell ranking.

Amazon (NASDAQ: AMZN) is having a good day. At the time of this writing, shares of the online retailer are up well over 6% on great volume. The catalyst is the earnings report that was released on Thursday after the bell. Should individual investors share this euphoric mood and buy along with the institutions?

Well, the numbers do look nice. Sales rose 18% in the first quarter. Net income increased 20% to $0.41 per share. And free cash flow was said to have rocketed higher by over 80% over the last twelve months. These are impressive stats. And according to this news article, Amazon management beat analysts by a whopping ten pennies. That's a whole dime, my friends! Looks like people are using the electronic shopping cart a lot these days. Perhaps they find value in shopping at home during a recession. Saves fuel costs, and it's a lot easier to research prices and find deals.

Borders Group (NYSE: BGP), a book retailer that competes with Barnes & Noble (NYSE: BKS), Wal-Mart (NYSE: WMT), and Amazon (NASDAQ: AMZN), reported fourth-quarter earnings on Tuesday, and I'm happy to say that they beat analyst projections! I'm sad to say, however, that beating the analysts doesn't make me want to buy this awful stock.

According to this news source, Borders delivered adjusted income equal to $1.05 per share. The market was looking for $0.95 per share. Beating by a dime is a pretty wide margin and something to celebrate. If you're a healthy company, that is. Borders is not a healthy company. It's had all kinds of problems. For instance, Zac Bissonnette recently reported on the bookseller's debt problems and how it needed to secure a loan to stay running. Elizabeth Harrow discussed the terrible holiday-selling season and the replacement of the CEO back in January. And there have been workforce reductions.