Wall Street is cheering the latest earnings report from Costco Wholesale Corporation (NASDAQ: COST), with the shares adding more than 3% within the first hour of trading. This morning, as Tom Johansmeyer reported, the wholesale club reported a 6% slide in fiscal fourth-quarter earnings, but the results nevertheless exceeded analysts' expectations.

In the wake of COST's report, analyst Brian Sozzi of Wall Street Strategies reiterated his Buy rating and $66 price target on the equity. "In our view, 4Q09 will go a long way in supporting a higher valuation for Costco," wrote Sozzi in a research note this morning. "The company has managed to control costs, drive traffic to its warehouses consistently throughout the economic downturn, paid $300 million in annual dividends in FY09 (payout ratio of 26.0% second to only Wal-Mart in the sector), and has catalysts on the horizon to showcase earnings power above currently modeled for consensus EPS."

Bright and early this morning, Goldman Sachs downgraded gaming guru Activision Blizzard (NASDAQ: ATVI) from Conviction Buy to Buy. In a note to clients, the brokerage firm explained that it sees greater relative potential for near-term price appreciation in other stocks. Goldman maintains a six-month price target of $16 on ATVI, implying expected upside of more than 29% from the shares' closing price on Wednesday.

ATVI is a ripe target for downgrades, if only because analysts are so lopsidedly optimistic toward the "Guitar Hero" parent. Zacks reports that the equity has attracted no fewer than 18 Strong Buy recommendations, plus two Buys -- with not a single Hold, Sell, or Strong Sell to be found.

Isle of Capri Casinos (NASDAQ: ISLE) is getting hammered today in the wake of its latest earnings report. This morning, the company reported that it swung to a fiscal first-quarter profit of $900,000, or 3 cents per share, while revenue for the period slipped 6.3% to $259.9 million. The results were far worse than expected, with consensus estimates on Wall Street predicting a profit of 13 cents per share on $273 million in revenue.

On the cost-cutting front, ISLE's previously planned departure from the international market is on pace, reported Chairman and CEO James B. Perry. "... we remain on track to exit our international operations in the near term, as we will exit the Bahamas no later than October 31, and expect to exit our remaining UK operations by the end of the calendar year."

For the first time in two months, short interest increased on the major exchanges from the May 15 - May 29 period. On the NYSE, the overall number of shorted shares rose 1% to 15.29 billion; Nasdaq short interest rose 3.6% to 6.6 billion shares.

The NYSE short-interest ratio reached 2.7, while the Nasdaq's ratio hit 3.1. The short-interest ratio can be loosely defined as the number of days, at the average daily trading volume, it would take to buy back all shares currently sold short.

This potentially indicates a turning tide toward bearishness after a March-May period that was painful for the short sellers and others maintaining a bearish disposition. With the S&P 500 Index moving back to challenge the 950 area, the bears may becoming a bit more brave. Are we range-bound, do we have further to run, or are we setting up for another correction phase? Share your thoughts in the comments field.

Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.

Reports today indicate that American International Group, Inc. (NYSE: AIG) may need yet another bailout from the federal government. This time, The New York Post states that AIG will likely require additional government guarantees before it can successfully sell its International Lease Finance Corp. (ILFC) aircraft leasing business.

"Already, the government has agreed to guarantee $5 billion of debt, but those remaining in the auction now want either more government aid or support from airline manufacturers," reports the Post. The newspaper notes that ILFC carries a $30 billion debt load, portions of which will soon mature, along with $50 billion in assets. The unit, which has been up on the auction block since last September, has a book value of $7.5 billion.

AIG shares slipped more than 6% this morning to trade at $1.46, extending their 52-week swoon of 95.7%. After smacking into resistance from its 10-month moving average, the stock is now struggling to maintain a foothold atop its recently supportive 10-week trendline.

Even though the security is trading fairly low on the charts already, some traders are betting on continued losses from AIG. Despite a 16.4% drop in short interest during the most recent reporting period, shorted shares still account for a hefty 9.7% of the stock's available float. Plus, peak put open interest in the June series lies at the 2 strike, with 17,975 contracts in residence.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Goldcorp Inc. (NYSE: GG) shares turned lower this morning after the company announced a $750 million offering of convertible senior notes due 2014. The commodity issue said that proceeds from the offering will be used to repay outstanding debt under its revolving term credit facility, with any remaining funds to be applied toward general corporate purposes.

Despite today's drop, GG shares have blazed an impressive path higher during the past month. Since finding a floor near the $27 level in late April, the stock has added 48.7%.

The shares of First Solar, Inc. (NASDAQ: FSLR) have started the week on a rocky note. Not only did Friedman, Billings, Ramsey & Co. downgrade the stock from Market Perform to Underperform, the alternative energy issue was also the topic of a skeptical Barron's article over the weekend.

In a note to clients, brokerage firm Friedman cited weak polysilicon prices and the stock's overrich valuation for its downgrade. FSLR closed last Friday at $191.72 per share, compared to Friedman's price target of $110.

Meanwhile, the cautious Barron's write up [subscription required] observes that the Intersolar trade show begins Wednesday in Munich, and pits FSLR against many lower-priced rivals. "One leading customer says it will ditch First Solar's 'thin-film' panels if crystalline silicon alternatives keep getting cheaper.

That seems likely. Silicon prices are expected to drop another 30% by year end. First Solar profits -- and its shares -- could get cut in half," commented the financial paper.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) has enjoyed a stellar run higher in 2009, with the shares up 105% year-to-date.

Today, the company announced that its board has approved a three-for-two stock split in the form of a stock dividend. All shareholders of record as of May 29 will receive one additional share of GMCR common stock for every two shares currently held, with distribution scheduled for June 8.

"This stock dividend allows us to share our success with our loyal stockholders to the extent of our authorized stock and underscores our confidence in the strength of our Company and its prospects for the future," said President and CEO Larry Blanford in a statement.

Late last Friday, The Wall Street Journal reported that the Defense Department has ordered Lockheed Martin Corporation (NYSE: LMT) to cease work on a $13 billion contract to build helicopters for the White House.

The move was widely expected, since the Obama administration has previously pointed to the revamped copters as an example of excessive defense spending. However, the contract's cancellation will no doubt bring fresh job losses to Owego, NY, where the Marine One copter is being designed.

Coal concern Alpha Natural Resources, Inc. (NYSE: ANR) has spiked more than 20% today on the heels of its first-quarter earnings report. The company reported a 61% improvement in net income, which rose to $41 million, or 58 cents per share, compared to $25.5 million, or 39 cents per share, in the first quarter of 2008.

Revenue for the period inched higher to $424.4 million. ANR's profit easily exceeded Wall Street's expectations; analysts were looking for a profit of 48 cents per share on $515.5 million.

ANR gapped higher with the sound of the opening bell today, extending its year-to-date advance of 56.4%. If the stock keeps climbing, it could soon have a chance to challenge resistance from its 10-month moving average, which is currently hovering in the $33 neighborhood.

In a distinctly depressing sign of the times, BJ's Wholesale Club, Inc. (NYSE: BJ) announced today that it will begin accepting food stamps as payment at all 180 of its retail locations. Food-stamp payments will be processed through the Electronic Benefit Transfer (EBT) system.

"BJ's recognizes the diverse financial status and changing needs of its members," commented president and CEO Laura Sen in a statement. "We are proud to help members stretch their food budgets by offering savings on a large selection of fresh fruits, vegetables, meats and baked goods, along with name-brand, non-perishable staples."

Tech stock VMware, Inc. (NYSE: VMW) is broadly higher today on the heels of an upbeat note from Goldman Sachs. VMW was added to the brokerage firm's Conviction Buy list, with Goldman noting an expected boost in sales. The firm also thinks that VMW is better-positioned than many of its competitors to ride out the economic recession.

In addition to the Conviction Buy nod, Goldman also hiked its price target on VMW to $29, representing a premium of 22.8% to the equity's Tuesday closing price. The stock could attract additional price-target increases during the short term, as Thomson Reuters pegs its average 12-month target from analysts as $23.31 -- a modest discount to yesterday's close.

Shares of trendy retailer The Buckle, Inc. (NYSE: BKE) are climbing today, boosted by a better-than-expected fourth-quarter earnings report. Net income rose 18% to $34.3 million, or 74 cents per share, while gross margin swelled to 46.1%. Ahead of the report, analysts were expecting a quarterly profit of 73 cents per share.

The Buckle reported that net sales for the quarter increased by 22% to $251.4 million, thanks to a 14.3% spike in same-store sales. Sales at stores open for at least one year escalated 21% in February, marking the 19th consecutive month of double-digit same-store sales growth.

The shares of Geron Corporation (NASDAQ: GERN) rocketed sharply higher on Jan. 23, when the Food and Drug Administration (FDA) granted approval for the world's first clinical trial of human stem cells. Now, GERN has collected an impressive year-to-date gain of 57.8%. However, CEO Thomas Okarma isn't feeling too complacent with his stock's respectable rally. He told Reuters Tuesday, "If this were a normal macro environment, our stock would have tripled with this kind of advance."

No doubt, the FDA's timing could have been better, since Okarma says more money is needed for academic stem cell research -- and demands on federal funding have rarely been greater. "There's no question that there are a lot of big fish in the Washington frying pan these days," commented the CEO. He's calling for the establishment of a presidential commission on stem cell policy to keep the industry on Washington's radar.

Short sellers have increased their activity in Wal-Mart Stores inc. (NYSE: WMT) and in Target Corp. (NYSE: TGT), although it seems that Wal-Mart is looking less targeted, compared to the prior short sale reports.

At the end of May, its short interest was 51,073,300 shares versus 49,535,900 in the reading before.

Elsewhere, short sellers also raised their efforts against Target, as its new short reading is 49,754,100 shares versus 44,418,500.

So it seems that the 3.1% increase in Wal-Mart short selling versus the 12% gain in short selling at Target puts the recession-winner in the lead again as far as which company is the place to hide out in during a recession.

Wal-Mart has definitely been the beneficiary of the "trading down" environment in consumers right now and shares are only about 1% under their 52-week highs.