Sears Holdings Corporation (SHLD) is having a sale today. On its stock. Question is, do you think it's cheap enough to be a value?

I have reservations about buying the current dip. At the time of this writing, shares of the retailer were off by 5.8% to $82.19. Active volume backed the move. Granted, it's not like the stock is at the 52-week low of $59.21. Things aren't that dire. But the company isn't close to the 52-week high of of $125.42, either. And as for the one-year chart, well, I'm not sure the image is one to praise.

Barnes & Noble, the Gap, RadioShack, and Sears -- that may sound like the lineup at the local mall, but in fact they are just a few of the retailers scheduled to step into the earnings spotlight this week. Following last week's disappointing January retail sales numbers from the Commerce Department but strong fourth-quarter reports from Abercrombie & Fitch (ANF) and Nordstrom (JWN), the coming week will offer plenty more data on the sector for investors to mull over.

Walmart

Bentonville-based Walmart (WMT) offered free holiday shipping, closed its Moscow office and named a chief merchandising officer during its fourth quarter. Analysts surveyed by Thomson Reuters forecast earnings for that period to come to $1.31 per share, up from $1.17 in the same quarter of last year. The world's largest retailer also is expected to post revenues of $117.7 billion for the three months that ended in January. That's 3.5% more than a year earlier.

On Thursday, Dillard's (DDS) announced that it plans to form a wholly-owned real estate investment trust. The company will transfer some of its properties to the REIT and then lease back the properties from the entity. The company said that the move may enhance its ability to access debt or preferred stock and improve its liquidity.

The market is currently pricing REITs at rich valuations, and the transaction will allow Dillard's to better monetize its significant real-estate assets. By transferring these holdings into a publicly traded REIT, Dillard's should be able to unlock additional shareholder value. According to Craig Johnson, an analyst at Customer Growth Partners, "the sum of the parts can be greater than the sum of the whole."

With about two hours to go before the end of the trading day, Sears Holdings (SHLD) was up over 6% to $74.38. The company cannot be called a shining star in the retail sector. Connie Madon wrote about the business last month, placing it in the laggard category.

But there has been interesting activity today in terms of call options associated with the equity, as noted by TheFly. Here's another point to ponder: Benzinga has highlighted the big volume driving the trade of the common stock. There seems to be some confusion over why this is happening. It can't be the news about the movie-download initiative, right?

It's been a strange marriage right from the start. Kmart, the discounter, joined with Sears, the department store retailer in 2005.
Both lines are in stiff competition with other brands, the USA Today reports. Kmart's competing with Walmart (WMT) and Target (TGT), while Sears's competitors include Home Depot (HD) and Lowe's (LOW).

The Kmart-Sears combo has been lagging in the retail sector. On Thursday, Sears Holdings (SHLD) posted a loss of $218 million or $1.98 per share, compared with a loss of $127 million or $1.09 per share in the period last year. Revenue fell 5% to $9.68 billion. Analysts had expected $9.89 billion.

Sears Holdings (SHLD - option chain) stock is trading lower today after the company reported Q3 earnings this morning, posting a loss of $218 million, or $1.98 per share, on revenue of $9.68 billion. Analysts had forecast a loss of $1.07 per share on revenue of $9.95 billion. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SHLD.

This morning, SHLD opened at $63.00. So far today the stock has hit a high of $64.44 and a low of $62.02. As of 12:10, SHLD is trading at $62.44, down $3.76 (-5.7%). The chart for SHLD looks bearish and S&P gives SHLD a negative 2 STARS (out of 5) sell ranking.

Freeport McMoRan (FCX) closed up $1.52 to $84.51. Copper prices closed up 2.54% according to Bloomberg. Overall option implied volatility of 40 is near its 26-week average of 43 according to Track Data, suggesting non-directional price movement.

Sears Holding Corporation (SHLD) closed up $3.62 to $71.77. SHLD October call option implied volatility is at 38, puts are at 54. This is versus its 26 week average of 42, according to Track Data. Active volume suggesting larger price movement. Puts are trading higher than calls on SHLD being difficult to borrow.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Sears Holdings (SHLD - option chain) stock is trading lower today after the company posting a second-quarter loss of $39 million, or 35 cents per share this morning. Excluding one-time items, SHLD lost 19 cents per share on revenue of $10.46 billion. Analysts had forecast a loss of 18 cents per share on revenue of $10.62 billion. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SHLD.

This morning, SHLD opened at $66.80. So far today the stock has hit a high of $66.80 and a low of $61.89. As of 12:10, SHLD is trading at $62.25, down $5.00 (-7.4%). The chart for SHLD looks bearish and S&P gives SHLD a negative 2 STARS (out of 5) sell ranking.

As the earnings season begins to wind down, retail earnings move into the spotlight. Already, JCPenney (JCP), Kohl's (KSS) and Macy's (M) have posted earnings that topped consensus estimates, though the former two also offered disappointing guidance, and Nordstrom (JWN) met earnings expectations.

Many more retailers are scheduled to post their second-quarter results this week, including Walmart (WMT), Abercrombie & Fitch (ANF), and Dollar Tree Stores (DLTR), whose earnings expectations we'll take a closer look at here.

Walmart (WMT) is a big-cap, blue-chip business in retail, one that competes with Sears Holdings (SHLD) and Target (TGT), among others. It's generally considered one of the safer, although considerably more boring, names in the universe of equities. However, could it be a defensive play in this economy?

Difficult to say for certain. As I've said before, I don't care what stock you hold in your portfolio, it'll go down if the markets become very choppy, defensive reputation or not. And Walmart isn't necessarily the first idea you think of when you think defensive. Usually, you might come up with a Coca-Cola (KO) or a Kraft (KFT) ... something with food involved, something that sells products consumers use and need every single day and can buy at multiple locations, not just at one single shopping source.

Below are some highlights from this past week's earnings coverage on BloggingStocks. Click through to the original posts for more details.

• Abercrombie & Fitch Co. (ANF) shares sold off after it posted a narrower Q1 net loss, but same-store sales rose.
• Applied Materials Inc. (AMAT) swung from a year-ago loss to a Q2 profit that was better than expected.
• Deere & Co. (DE) reported better-than-expected Q2 earnings and improved sales, and raised its full-year outlook.
• Dell Inc. (DELL) posted better-than-expected Q1 earnings, but the gross margin was disappointing, and shares fell.
• GameStop Corp. (GME) higher Q1 earnings beat consensus estimates but same-store sales declined.
• Gap Inc. (GPS) said its higher Q1 earnings beat expectations while revenue fell in line with estimates.

In very contrarian fashion, Bernie Schaeffer has used the market pullback to initiate two positions in retail stocks.

The editor of Schaeffer's Research -- who uses a combination of technical, fundamental and sentiment-based metrics to select his trading positions -- has bought shares of Sears Holdings (SHLD) and Williams-Sonoma (WSM).

Schaeffer explains, "I initiated a long position in Sears Holdings. Price action for SHLD has been strong, with the equity up 13 percent year-to-date and 75 percent in the past 52 weeks.

Retailer Sears Holding (SHLD) announced this morning that its first-quarter profit dropped 38%. The company blamed the drop on increased discounts that it used to promote, appliances along with dropping demand for its tools and home electronics.

During the first quarter, Sears earned 14 cents per share, which is down from 21 cents per share last year. Adjusted earnings checked in at 16 cents per share, which topped the consensus estimate of 12 cents per share. Quarterly revenue fell to $10.05 billion, which is short of the consensus estimate of $10.22 billion.

Wal-Mart Stores, Inc. (WMT), perhaps the most famous retailer in the world, whose competitors include Costco Wholesale Corporation (COST), Sears Holdings (SHLD), and Target Corporation (TGT), is actually in the green as I compose this opening sentence during the afternoon trading session. Can you believe it? A stock actually in the green! After an earnings report, no less! It is currently higher by $1.62, or 3%, to $54.35. The traders are loving it, because volume is above average with a couple hours left to go before the bell tolls.

Wal-Mart hasn't been the most exciting stock over the last twelve months. The range hasn't been too wide, with a 52-week low of $47.35 and a 52-week high of $56.27. And the stock has sort of meandered around in something of a sideways pattern (you do get a dividend with the shares, though, so there is a total-return situation going on).

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

• American International Group Inc. (AIG) posted a big loss and warned it may require additional assistance.
• Athenahealth (ATHN) shares sank after it delayed earnings and its annual report, and warned of restatements.
• Barnes & Noble Inc. (BKS) Q3 sales jumped on popularity of the Nook reader but same-store sales declined.
• Brocade Communications Systems Inc. (BRCD) disappointing report and guidance caused a sell-off in shares.
• Dell Inc. (DELL) acquisitions and better-than-expected earnings may not be enough to stop shrinking market share.
• Gap Inc. (GPS) rose after it beat earnings estimates, raised its dividend and announced stock buybacks.