Goldman Sachs (NYSE: GS) sure is a downer. I was starting to feel a little better about the market when it decided to say some bad things about the upcoming earnings season. Thanks a lot, Goldman! According to this Bloomberg article, Goldman believes that earnings for companies will be, overall, very bad, and that the broad market will be brought down by them. Already, reports by General Electric (NYSE: GE) and Alcoa (NYSE: AA) have rocked Wall Street -- and not in a good way, let me tell you. Goldman's David Kostin is, in fact, disagreeing with other analysts who believe that the quarter won't be so terrible; he also thinks the S&P 500 will be lower by the end of the year by perhaps 6%.

So, what does this tells us as investors? First of all, let me say that I think the guy has a point -- when you see GE miss like it did on 4/11, you've got to take notice and be on your guard. In other words, if you're planning on doing some cute buy-a-stock-just-before-it's-about-to-report trading, be extra careful! Now is not the time to take ridiculous chances with investment capital. If you are going to do it, make sure you do it with extra-safe stocks -- then again, if GE wasn't a worthwhile trade in the category I just described, what the heck qualifies for "extra-safe" this quarter? Probably not much. All of us have to realize that the recession is, most likely, real, and that stocks are going to be difficult equities to own.

Minneapolis-based food maker General Mills Inc. (NYSE: GIS) announced today that it is raising its fiscal 2008 earnings guidance on higher-than-expected sales growth and cost cutting. For fiscal 2008, ending in May, General Mills expects earnings per share of $3.45 to $3.47. The previous range had been $3.39 to $3.43 per share, and analysts surveyed by Thomson Financial had expected $3.45 per share.

Despite raising grain prices, General Mills has seen strong results from such products as Oat Cluster Crunch cereal, Progresso soups, and Fiber One bars.

Harley-Davidson Inc. (NYSE: HOG) recently revised downward its 1Q 2007 and FY 2007 guidance due to a nearly month-long strike at its York, PA manufacturing plant. The strike was finally settled in late February but the damage has already been done. Instead of shipping 82,000-84,000 motorcycles as had been planned prior to the strike, Harley will ship 64,000-66,000 motorcycles, a loss in production of 18,000 units. That's a lot of disappointed HOG loyalists who will have to spend more time on the waiting list for a bike. Although Harley will increase production in coming months, its still predicts a shortfall of 14,000 units for FY 2007.

As a result of the loss in production, Harley management forecast only moderate growth, lower margins and 4-6% EPS. Harley predicts a return to double-digit EPS growth rate by 2008. Due to the recent labor troubles, the stock has taken a beating. Prior to the strike, the stock traded right around $75 per share. Harley-Davidson stock closed at $63.54, up $.24 on March, down almost 15% since the beginning of the year.

Boston Scientific (NYSE:BSX) issued a weaker than expected forecast for Q3 2006 revenue and earnings, based primarily on problems associated with its pacemakers and defibrillators. These were the products manufactured by Guidant Corporation which Boston Scientific acquired in April 2006 for $27.5 billion. At the time of acquisition, Boston Scientific knew of at least 500 cases against Guidant in the U.S. The suits have since been consolidated. The suits allege that Guidant's cardiac pacemakers and defibrillators are defective and have the possibility to cause harm or death to patients in whom they have been implanted. Boston Scientific has set aside $381 million for legal defense costs, but still does not have an accurate estimate of the cost to settle all the suits related to Guidant's defective products. Also, Boston Scientific's own product, a drug-coated cardiac stent used to open clogged arteries, has suffered a decline in sales as heart surgeons turn to alternative devices perceived to have a lower risk of causing blood clots.

Q3 sales had originally been estimated at $2.18 billion, but have been revised downwards to just under $2 billion. Q2 stent sales in the US were $429 million, but Q3 sales are forecast to drop to $375 million. Global stent sales for Q2 were $647 million, but Q3 global stent sales are forecast to be approximately $565 million.

Boston Scientific stock lost 9% on Friday, 22 September, closing at $14.85, down $1.51. Do not look for an improvement in Boston Scientific's stock performance until the suits are settled or a ballpark settlement estimate has been made public.