DAVE HARRIS: Welcome to Dave On Stocks podcast #59. It's Thursday May 24^th 2007. I'm Dave Harris. I'm a long term investor with a perspective on the stock market and individual stock advice.

We're getting closer to the holiday weekend, Memorial Day, and investors took in some profits today. I'm somewhat surprised because there's pretty encouraging economic data out today including a stronger than expected durable goods report. Excluding transportation, orders rose by 1.5% which beat the street's expectations. There's strength here when it comes to business spending. On the job front, I think the data looks pretty good. The business reporters may tell you employment is weak because unemployment claims rose more than expected last week. But I think the 4 week moving average is a more important indicator. That was down by 3,500 to 302,000 claims. There was even positive housing news today. New home sales rose by over 16%. That was better than expected. However, prices have dropped significantly. The market is reading this news as a possibility the housing market is stabilizing.

But I would still avoid the home builders like Toll Brothers (TOL). Today they said the second quarter fell nearly 80%. The company's chief exec Robert Toll said the bad times may not be behind them yet. This stock is a sell. TOL closed up .30 to $30.07.

Barnes & Noble (BKS) the bookstore said new releases helped sales in the first quarter. Although they reported a loss, a 3% increase in revenue beat expectations. The company said big hardcover release sales were offset by the member discounts. Although I like to browse my local Barnes & Noble store, I can't recommend the stock as an investment. They face too much competition from the likes of Target (TGT) and Wal-Mart (WMT).

Speaking of Target, spring merchandise was a hit for the retailer. The first quarter rose a better than expected 18%. Same store sales rose 4.3%. The company also said full year earnings would be 3.60 per share. I have a strong buy recommendation on Target (TGT). I think it's going to $73. The stock ended higher by 1.56 at $60.16.

McDonalds (MCD) announced they would be using new trans-fat-free oil nationwide within the year. Also on tap, iced coffee, Angus burgers and healthier side options like fruits and vegetables. Roughly 3,500 U.S. locations currently use trans-fat-free oil.

The DOW closed down 84.52 to 13,441.13. The NASDAQ fell 39.13 at 2,537.92. The S&P 500 was off by 14.77 to 1,507.51.

That's all for today's podcast of Dave On Stocks. I'm Dave Harris. Write me with any suggestions or questions at the "contact us" link on this page. My website is www.daveonstocks.com.