Last week Wal-Mart Stores, Inc. (WMT) reported its first quarter earnings. The company beat market expectations.

The retailer reported total sales of $112.3 billion for the quarter, an increase of 8.6% from the same period last year. The company's international sales grew 15% in the quarter.

Wal-Mart reported income of $6.4 billion, an increase of 8.3% from last year. On an earnings per share basis, Wal-Mart reported earnings of $1.09 per share.

"We are very pleased that Wal-Mart delivered earnings and comparable sales above guidance for the first quarter. Despite a negative impact from currency, we grew sales and operating profit over last year," said Mike Duke, Wal-Mart's President and Chief Executive Officer. "Our overall performance reflects the success of Wal-Mart's business model: driving the productivity loop, leveraging expenses and investing in price leadership. We believe that the momentum throughout our business positions us very well for the rest of the year."

Wal-Mart serves more than 200 million customers worldwide each week. The company operates 10,231 retail stores in 27 countries.

Shares of Wal-Mart Stores, Inc. (WMT) closed the week at $62.37.

Sears Sees Turnaround in Latest Earnings

Illinois-based retailer Sears Holdings Corporation (SHLD) reported its latest quarterly earnings last week. The retailer continues to take steps in its corporate turnaround.

Sears revenue declined by $270 for the quarter, to $9.3 billion. The decrease was largely attributed to the fact that the company had shuttered many of its Sears and K-Mart stores over the past year.

The company also reported income of $315 million for the quarter. In the same period last year, Sears reported an operating loss of $172 million. Accordingly, Sears had a net income improvement of $487 million for the quarter.

Sears' President and Chief Executive Officer, Lou D'Ambrosio, commented on the earnings report. He stated, "We are pleased with the results for the first quarter and our progress towards restoring profit growth and transforming our Company. Our actions were driven by a focus on three core priorities: enhancing financial and operational discipline; improving our core retail operations; and leading customer based innovation through integrated retail and an engaging membership program."

Sears Holdings Corp. (SHLD) shares closed the week at $52.23.

Stein Mart Reports Earnings

Stein Mart, Inc. reported its latest quarterly earnings last week. For the first quarter, Stein Mart's earnings remained relatively unchanged from the same period last year.

Stein Mart reported first-quarter sales of $303.4 million. The company's sales remained flat from the same period last year when the company reported sales totaling $303.5 million.

For the quarter, Stein Mart produced net income of $11.8 million, or $0.27 per share. In the comparable period last year, the company reported net income of $15.9 million, or $0.35 per share.

"It is very important for us to reinforce the value of our merchandise at their regular prices," said Jay Stein, the company's Interim Chief Executive Officer. "We have made substantial progress on this initiative during the first quarter with only a minimal impact to our comparable store sales. I feel encouraged given the reduction in coupon-associated sales. We are establishing a much healthier sales and gross margin base from which to grow in the future."

Shares of Stein Mart, Inc. (SMRT) ended the week trading at $6.58.

The Dow started the week at 12,821 and closed at 12,369. The NASDAQ started the week at 2,934 and finished at 2,779. The S&P 500 started the week at 1,353 and ended at 1,295.

Fitch Ratings downgraded Greece's credit ratings over concerns the nation will be unable to achieve the necessary reforms to remain in the European Union. Greece's rating fell from B- to CCC.

The results of Greece's parliamentary elections on May 6 saw several political parties opposed to austerity gain seats. The New Democracy party, which won a plurality of seats in the election, failed to form a coalition government within the required three days. Under Greek law, when a coalition cannot be formed within three days, the party with the second highest number of seats is given the chance to form a coalition government. The second place party, SYRIZA, likewise failed to form a coalition and a new election has now been scheduled for June.

The resulting turmoil from Greece's failure to form a government has lead to concern that Greece will renege on pledges the Mediterranean nation made in exchange for two European Union bailouts. Those bailouts totaled €240 billion ($305 billion). Any Greek failure to restructure its sovereign debt could threaten Greece's ability to remain as part of the EU.

In its statement on the downgrade, Fitch stated that "The strong showing of 'anti-austerity' parties in the May 6 parliamentary elections and subsequent failure to form a government underscores the lack of public and political support" for the terms required by the European Union and International Monetary Fund bailout. Despite public opposition to the austerity measures necessary for Greece to remain in the EU, a recent Greek poll revealed 78% of Greeks polled wanted their country to remain in the EU. A separate poll found that only 45% of respondents thought it likely that Greece would be asked to leave the EU even if austerity measures were not imposed.

The 10-year Treasury note yield finished the week at 1.75% while the 30-year Treasury note yield finished the week at 3.00%.

Freddie Mac issued its most recent Primary Mortgage Market Survey (PMMS) this past week. For the third time in three weeks, the average interest rate for fixed rate mortgages (FRM) reached record lows.

Last week, the 30-year FRM reached a record low, averaging 3.79%. In the week prior the rate averaged 3.83% and last year at this time averaged 4.61%.

The 15-year FRM also reached a new record low last week. The rate was 3.04% last week, down from 3.05% in the prior week. Last year at this time, the 15-year FRM averaged 3.80%

Frank Northaft, Freddie Mac's Vice-President and Chief Economist commented on the PMMS saying, "The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week." He also noted that industrial production had risen 1.1% in April and consumer sentiment had risen in May to its highest reading since January 2008.

The money market finished this week at 0.50%. The 1-year CD finished at 0.70%.