Staples; ConAgra; Corning; S&P Downgrades; Auto Sales; Boston Fed

Staples, #1 office supply chain, reported a 16% Yoy drop in Q2 EPS.

ConAgra & Corning both issued earnings warnings... the latter due to lower than expected shipments of LCD glass.

Translated... less flat screen TV's & PC monitors being made... guilt by association, semis were punished -4%.

S&P downgraded the credit ratings of regional banks First Horizon and National City.

Zions Bancorp and Regions Financials had their ratings affirmed, but their outlooks were revised to negative from stable.

Auto Sales Aug: GM -20%; Ford -26%; SUV's -53%; Trucks -39%; Toyota -9%; Nissan +13%

Jim Farley, Ford group vice president of marketing:

"We expect the second half of 2008 will be more challenging than the first half, as weak economic conditions and the consumer credit crunch continues."

Boston Fed Head Rosengren: a low fed funds rate provides much less stimulus than usual during a credit crunch.

The U.S. economy is expected to soften in the second half of 2008, so the unemployment rate could rise above 6%
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