Even if the national headlines weren't already providing enough focus on the economy, plenty of economic data is due out as the month and the quarter wind down. U.S. economic data scheduled to be released this week include:
Flow International Corp. (NASDAQ: FLOW), which makes industrial waterjet equipment, swung to a better-than-expected fiscal fourth-quarter profit of $13.3 million, or 35 cents per share, helped by a boost in sales due to strong demand and an income tax benefit. Revenue rose 21% to $63.3 million. Shares are creeping up from a 52-week low of $6.81 a week ago.
Motor sports company International Speedway Corp.'s (NASDAQ: ISCA) second-quarter profit rose 41% to $26 million, or 52 cents per share. However, revenue slipped 3% to $174.9 million as admission and food and merchandise sales declined. Results fell short of Wall Street expectations, and shares fell to a 52-week low of $36.36.
Apparel and footwear company Wolverine World Wide Inc. (NYSE: WWW), second-quarter profit of $16.8 million, or 33 cents per share, topped Wall Street expectations, as strong international results linked to the weaker dollar largely offset increased product and freight costs. Revenue climbed 7% to $267.4 million. But shares fell $3.11 to $23.46 in morning trading.
The new quarter brings with it a new earnings season. While the earnings crunch doesn't begin in earnest until the following week, Alcoa as usual helps kick things off this coming week.
One of the world's leading producers of aluminum, Pittsburgh-based Alcoa Inc. (NYSE: AA) is scheduled to report second-quarter results Tuesday after market close. Analysts surveyed by Thomson Financial on average expect the company to report net income of 68 cents per share on revenue of $7.4 billion. That's down 16% from EPS a year ago. Alcoa has missed estimates in two of the past five quarters -- by four cents in the previous quarter. Analysts have recommend buying AA for more than 90 days. Shares have fallen 10.3% year to date, but the long-term EPS growth forecast is 21.6%.
Beverage distributor Pepsi Bottling Group Inc. (NYSE: PBG) is scheduled to report its second-quarter results Tuesday morning. Analysts are looking for earnings of 75 cents per share, up 6.6% from the same period of the previous year, on revenue of $3.6 billion. PBG has offered up positive surprises recently, by a penny in the previous quarter. However, analysts recommend holding PBG, and have for more than 90 days. The long-term EPS growth forecast is 9.1%, which is better than the industry average. Shares have fallen 27.6% year to date.
"Pepsi Bottling Group (NYSE: PBG), is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages, with annual sales of nearly $13 billion," says David Fried, a long-standing specialist in companies engaged in corporate repurchases.
The editor of The Buyback Letter, "Pepsi Bottling has gobbled up its own shares, reducing shares outstanding by 5.2% in the past 12 months." Here is his review.
"What is a Pepsi Bottling Group beverage, besides Pepsi? A better question might be what isn't, since Mountain Dew, Sierra Mist, Aquafina, Tropicana, Mug Root Beer, Lipton, SoBe, Starbucks Frappuccino, Dole, 7UP, KAS, Aqua Minerale, Mirinda, Manzanita Sol, Dr Pepper, Squirt, Electropura, e-pura, and Garci Crespo, among others, are all part of the PBG drink portfolio.
MOST NOTEWORTHY: General Communications, Glu Mobile, Town Sports, Blackboard and Lance were today's noteworthy downgrades:
Jefferies downgraded shares of General Communications (NASDAQ: GNCMA) to Hold from Buy after the company's mixed quarter to reflect increased uncertainty from the recent weakness in its network access and commercial business.
Glu Mobile (NASDAQ: GLUU) was downgraded to Hold from Buy at Deutsche Bank and to Neutral from Buy at Goldman Sachs following its Q3 report. Cantor downgraded shares after the company issued reduced growth expectations.
William Blair downgraded shares of Town Sports (NASDAQ: CLUB) to Market Perform from Outperform to reflect the recent slowdown in new membership additions at mature clubs which they believe creates enhanced risk of operating margin contraction and decelerating EPS growth in 2008.
Baird downgraded Blackboard (NASDAQ: BBBB) to Neutral from Outperform on valuation and expectations for only modest margin expansion.
Lance (NASDAQ: LNCE) was downgraded at Oppenheimer to Neutral from Buy, as they expect higher wheat costs to significantly impact Q4 and 2008 EPS.
MOST NOTEWORTHY: RadiSys, Diageo plc, Vitesse, Big 5 Sporting Goods and Coca-Cola Enterprises were today's noteworthy upgrades:
Jefferies upgraded shares of RadiSys (NASDAQ: RSYS) to Buy from Hold following the Q3 upside to reflect the large ramp of new business expected in 2008.
Lehman raised its rating on Diageo plc (NYSE: DEO) to Equal Weight from Underweight and has increased confidence that the group can increase margins.
CIBC upgraded shares of Vitesse (NASDAQ: VTSS) to Sector Performer from Sector Underperformer following the company's business update, as they believe progress is being made on numerous fronts.
Nollenberger upgraded shares of Big 5 Sporting Goods (NASDAQ: BGFV) to Buy from Neutral following the better-than-expected Q3 results and improved full-year outlook, as they believe visibility has improved significantly.
Citigroup upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Hold on valuation as they believe the stock is undervalued given Glaceau's expansion to European markets. The broker recommends taking profits in Pepsi Bottling Group (NYSE: PBG) and swapping into CCE.
MOST NOTEWORTHY: UQM Technologies, Blue Nile, NPS Pharmaceuticals, Massey Energy and Hartford Financial were today's noteworthy downgrades:
Merriman downgraded shares of UQM Technologies Inc (AMEX: UQM) to Neutral from Buy after Phoenix Motorcars delayed its electric vehicle manufacturing ramp, as they view the company's Phoenix Motorcars relationship as the primary driver for near-term growth.
Citigroup downgraded shares of Blue Nile Inc (NASDAQ: NILE) to Sell from Hold on valuation as they believe near-term risks outweigh rewards. They see risk to Q3 revenue estimates and their analysis suggests an in-line quarter at best.
NPS Pharmaceuticals Inc (NASDAQ: NPSP) was downgraded to Neutral from Buy at Oppenheimer and to Hold from Buy at Jefferies. Oppenheimer lowered shares following disappointing Gattex data; Jefferies believes the P3 GATTEX results in short bowel syndrome make the chances of successful low-dose approval unpredictable.
Friedman Billings downgraded Massey Energy Company (NYSE: MEE) to Underperform from Market Perform based on valuation, 2008/2009 outlook, spinoff of Patriot Coal appears to be a better investment option, and another blow to mountaintop mining and permit issues.
JP Morgan removed The Hartford Financial Services Group Inc (NYSE: HIG) from their Focus List; however, they believe the company's fundamental outlook remains positive and expects strong Q3 results.
OTHER DOWNGRADES:
Morgan Stanley downgraded EV3 Inc (NASDAQ: EVVV) to Underweight from Equal Weight.
MOST NOTEWORTHY: The ethanol sector, BT Group, AMR Corp and Kyphon were today's noteworthy downgrades:
Friedman Billings downgraded Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol Inc (NASDAQ: PEIX) to Underperform and VeraSun Energy Corporation (NYSE: VSE) was downgraded to Market Perform from Outperform. The firm said the ethanol market has become increasingly challenging as spot market prices have declined by 30% in the past few months and expect pressure to remain through 2008 as the industry's growing pains continue.
Morgan Stanley downgraded shares of BT Group (NYSE: BT) to Underweight from Equal Weight on valuation and regulation uncertainty ahead of Ofcom's first consultation document next week.
AMR Corporation (NYSE: AMR) was downgraded to Sell from Neutral at Goldman to reflect the company's U.S. exposure as they expect the U.S. economy to slow.
Banc of America downgraded shares of Kyphon Inc (NASDAQ: KYPH) to Neutral from Buy on valuation as the spread on the acquisition by Medtronic Inc (NYSE: MDT) has now narrowed.
MOST NOTEWORTHY: Kraft Foods (KFT) and the US beverage market were today's most notable downgrades.
Bank of America downgraded Kraft Foods 'A' (NYSE: KFT) to Neutral from Buy to reflect an outlook for higher input cost inflation as well as their caution ahead of the company's new strategic plan in February.
Bear Stearns downgraded the U.S. beverage market to Market Underweight from Market Overweight, as they believe the defensive trade for the group may be over and sector leadership may be in the form of interest-sensitive stocks. Note that Bear Stearns kept their Outperform ratings on PepsiCo Inc (NYSE: PEP), Coca-Cola Co (NYSE: KO) and Pepsi Bottling Group (NYSE: PBG).
OTHER DOWNGRADES:
As Credit Suisse believes 2007 will be a year of slowing growth, they remains cautious on regional banks, which is not reflected in the valuations of BB&T Corp (NYSE: BBT) and National City Corp. (NYSE: NCC); both stocks were downgraded to Underperform from Neutral.
Office Depot (NYSE: ODP) was downgraded to Market Perform from Outperform at William Blair, citing high expectations, less-than-compelling cash flow story and difficult comps.
Arch Coal (NYSE: ACI) was removed from Morgan Stanley's Focus List, citing concerns of high inventories and the warm weather impact.
Even if the national headlines weren't already providing enough focus on the economy, plenty of economic data is due out as the month and the quarter wind down. U.S. economic data scheduled to be released this week include:
The new quarter brings with it a new earnings season. While the earnings crunch doesn't begin in earnest until the following week, Alcoa as usual helps kick things off this coming week.
Here are some highlights from this past week's 
.gif){kind=logo}
.gif){kind=logo}
.gif){kind=logo}
Best & Worst in Money 2008: Most shocking financial collapse
Closing Bell: Stocks slump as AMD, AT&T, GM and Merck decline
Global Q&A: A rocky road, but profits ahead
