It's a relatively quiet week on the earnings front with only 50 companies scheduled to report, including a smattering of retailers and food companies. Only 2 S&P 500 members are on tap to report including Campbell Soup Co. (CPB) and National Semiconductor (NSM).

The economic calendar is also quiet to start the first "real" trading week in September, as Wall Street comes back from August vacations. It's a shortened trading week due to the Labor Day holiday on Monday.
* Monday: Markets closed for Labor Day
* Tuesday: ICSC-Goldman Store Sales, Redbook
* Wednesday: Beige Book
* Thursday: International trade, weekly jobless claims, weekly natural gas inventories, weekly crude inventories
* Friday: Import and export prices, University of Michigan consumer sentiment survey for September, Treasury budget

Volume is likely to return to more "normal" levels to start the week. Despite recent weakness in the markets, the bulls remain in charge. Wall Street will also be watching trading in the commodities complex, especially gold and silver, as gold attempts to bust through the $1000 an ounce level for the third time in the last 2 years and silver trades at 13-month highs.

Companies That Could Issue Negative Earnings Surprises
Smithfield Foods (SFD), the largest hog and pork producer in the U.S., is struggling as pork demand falls due to the recession and worries about pork products somehow being connected to the swine flu. According to a Reuters report, the company has cut its hog breeding herd by 13% this year. Higher feed costs are also pressuring the food manufacturer.

While Smithfield has surprised on estimates 3 out of the last 4 quarters, covering analysts have been lowering the estimates going into the fiscal 2010 first quarter earnings release. In the last month, the Zacks Consensus Estimate has fallen 4 cents to a loss of 55 cents. It is scheduled to report before the market opens on Sep 8.

Keep an eye on the Aerovironment Inc. (AVAV), the maker of unmanned aircraft systems, as it reports its fiscal 2010 first quarter earnings. The Zacks Consensus Estimate has fallen by nearly 50% to 13 cents in the past 90 days. The most accurate estimate is even more bearish at 6 cents per share. The company is scheduled to report on Sep 8 after the market close.