Kevin Turner was seen as an up-and-comer within senior management ranks, so the departure does result in a loss of talent.

While the timing of this executive departure is not particularly good for Wal-Mart in light of the Coughlin situation, which exposed weakness inside the upper ranks of Wal-Mart management, the loss of Kevin Turner is not going to alter the course of the company.

A slight premium to the market is about as far as the P/E multiple should go until management provides us with a clear action plan to lower controllable costs.

A slight premium to the market is about as far as the P/E multiple should go until management provides us with a clear action plan to lower controllable costs,

However, the importance of this transaction is that it provides Nordstrom with additional talent, expertise and access to the designer category. This should allow Nordstrom to capitalize on strong sales trends they have been experiencing over the past two years.

The most surprising aspect of the earnings release was management's more conservative outlook for the rest of the year, driven by the impact of higher oil prices on consumer spending.