Consumers started to spend a little more money last month, but many retailers are still finding themselves swimming with the sharks. Wal-Mart was one of the companies to report improved earnings while apparel companies like J.C. Penney dropped sharply. These earnings announcements are clear indications that consumer spending is quickly shifting from luxury goods to just the necessities. Credit card companies like MasterCard have confirmed this sentiment in their own earnings announcements saying that consumers are now purchasing more staples than anything else. So, while this is a relief to some consumers it is a clear indication that there are still many problems facing the economy...

From the New York Times:
Consumers gave the nation's stores some relief in February, spending a little more freely although they mostly gravitated toward discounters and grocers. The challenge for merchants in coming months is to get shoppers to splurge on spring fashions -- a tough task when Americans are worried about plunging home values, tighter credit and rising gas prices.