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Filed under: Market matters, Penney (J.C.) (JCP), Sears Holdings (SHLD), Lowe's Cos (LOW), Kohl's Corp (KSS), Wachovia Corp (WB), Washington Mutual (WM), Stocks to Buy, Cramer on BloggingStocks

The latest economic developments seem to support a rebound to US consumer confidence and hence improvement to retailers' earnings. The immediate drivers that come to mind include;

 - Strength of the US$ against EUR and GBP

 - Decrease in oil prices will help improve US economic indicators due to the dependence on oil and increase household disposable income

JCP, Wal-Mart and Macy's have already posted earnings that exceeded analysts' estimates, but issued cautious forecasts for the second half of the year amid concerns on slow consumer spending, as published in an article by

Stock Upgrade of the Day

Deutsche Bank upgrades JC Penny (NYSE: JCP ) from Hold to Buy and raises their price target to $46.  DB said sales trends have improved, maybe due to stimulus checks or the weather.  They are calling JCP a 'value story', with a compelling risk/reward profile.

Shares of JCP are down 50% over the last year.