CONSUMER IN THE SPOTLIGHT

Saturday 8/9/08 7:16 PM CT

By Dave Harris

The market is on the upside with lower oil prices and the rise in the dollar encouraging investors. Oil is down nearly $115 a barrel. The belief is lower energy prices will encourage consumer spending. In fact, the consumer is the market’s main focus in the week ahead.

Hump day, the Commerce Department will report retail sales figures for last month. Wall-Mart (WMT) reported a 3 percent rise in same store sales last week. I think the stock is going higher from here. At 57.86, it sells at a pretty good multiple compared to the likes of Costco (COST). I would buy it. I also think McDonald's (MCD) is a bit undervalued here. July same-store sales performance around the world rose by 8 percent! I think coffee and breakfast are hot items for the restaurant. MCD closed at $65.67 Friday.

I would like to bring to your attention a great industrial company, Emerson Electric (EMR). They're worldwide, providing engineering and technology for many industries such as construction, agriculture, mining and more. Recently, EMR beat expectations with EPS at .82 cents. I see real growth and further profitability for the company and like it at $49.

Disney (DIS) and Procter & Gamble (PG) also reported good numbers last week, also on my buy list.

Also on the economic agenda this week, consumer inflation (the CPI) comes out Thursday with initial jobless claims. Friday is industrial production and capacity utilization from the Central Bank

Companies of note with earnings include, farm equipment maker Deere & Company (DE) and retailer Macy's (M) Wednesday. Thursday is jelly maker Smucker (SJM), Kohl's (KSS), and Wal-Mart (WMT).