Standard & Poor's Positive About Autumn Economic Outlook in the U.S.

On Wednesday, Standard & Poor's Equity Research Services stated that the Back-to-School, Back-to-College Seasons are poised to be strong seasons for the United States economy in spite of the recent volatility and downward trends on Wall Street due to the national housing market bust, interest rate and loan default concerns, and continued high prices for oil and gasoline.

In spite of the gloom-and-doom specters, S&P sees rises in hourly wages, strong employment data in most sectors, continued consumer confidence, the surge of spending and cash exchanges brought on by college freshmen, and the spike in retail spending brought on by kids returning to school keeping the core economy robust, which could have a very positive effect on the minds and attitudes of investors.

In addition, S&P sees the introduction of hot new electronics products into the market as another positive stimulant for the economy which is likely to last through the end of the year, when the biggest spending season of the entire year (Christmas and Hanukkah) occurs.

"In light of the recent market volatility, it's easy to assume that the Retail Outlook for the 2007 Back-to-School Season will be gloomy. However, we believe a number of companies have made shrewd moves, which will benefit them significantly. These include launching lifestyle brands and expanding brand portfolios, the widening use of the store-within-a-store concept, and the opening of new stores, many in untapped markets. Recognizing this foresight, we remain bullish on the prospects for many of these companies," said Marie Driscoll, Director of the Consumer Discretionary-Retail Group for Standard & Poor's Equity Research Services.