Sears, Roebuck and Co's stock wasdowngraded one notch from a neutral rating, said E.F. Hutton
analyst Bernard Sosnick.
    The company's stock closed at 50, off 1-1/4.
    Sosnick said "sluggish sales cloud the economic picture and
concern about the outlook for credit income diminish Sears'
near-term investment prospects." He said the retail sales in
May were weak, which would mean sales have been below plan for
the past two months.
    Sosnick said indications are that Sears may not be as
strong a performer as other retailers.
    However, he said his earnings estimate for the company for
1987 remains unchanged at 4.50 dlrs a share compared to 3.62
dlrs a share in 1986. He added that "as a result of weakening
sales momentum, we have less confidence in that estimate."
    The analyst said it projects second quarter earnings in the
1.05 to 1.10 dlrs a share range, up from 77 cts a year ago. The
1987 estimate includes an 18 ct a share gain from the sale of
50 savings bank branches and strong earnings contribution from
Allstate Insurance.
 Reuter
