I had a great weekend: I hung out at my brother-in-law's home on Saturday, where my wife and I polished off $3 worth of some cheap l wine I like to call “2-Buck Chuck." And on Sunday, I went out to breakfast with my wife and kids for Father’s Day. Back to reality.

Asian markets rose overnight. The Hang Seng was up 0.77% and the Nikkei was up 0.41%. However, European markets were in negative territory earlier this morning. And here in the US, we're currently trading lower.

Here's what I’m focused on this fine Monday morning:

Abercrombie & Fitch (ANF):
 Those of you that actively follow Ticker Shock know I’m sweet on retail stocks for the long run. This is simply because I believe there's a huge amount of upside potential to be had, as Americans are generally big spenders.

In spite of my longer-term bullish outlook, I haven’t been so crazy about Abercrombie & Fitch, as of late. After all, its first-quarter results left a lot to be desired. Additionally, its stock has seen better days.

However, there was some positive news that deserved a little more attention than it got. The news came out last week that it's going to close its Ruehl stores.

My thoughts:

1. The idea of closing the concept is a good one, if for no other reason than its recent comp-store results were awful, making the overall company look bad. In May, the concept’s comps (Ruehl’s) were down 33%. In April, they were off 30%.

2. This move sends a message to the Street that it’s not going to sit idly by and accept such underperformance.

3. If this economy gets fired up, this is one retailer that could really smoke. I’m particularly taken in because it seems the Street’s overall expectations are very low.

4. I wouldn’t mind seeing executives try the stock on for size. That would impress the Street and give existing shareholders a bit more confidence.

5. I’m wondering if we could start to see the estimates for next year ratchet higher?

These guys have my attention and are on my watch list. Stay tuned.

Yahoo (YHOO):
 A couple of quick comments here on news that was being circulated after the bell on Friday:

“Yahoo Inc. said it will incur $22 million to $27 million in restructuring charges in the current quarter to account for previously announced layoffs of 5% of its staff. The Internet company detailed the charges in a regulatory filing on Friday, 2 months after CEO Carol Bartz announced plans to cut nearly 700 jobs.”

My thoughts: 

1. Nobody likes when the word “charge” is thrown around, but I think the move is a good thing. I’m glad Bartz seems to be getting off the dime, and I expect more from her on the cost-cutting front (and in other areas) going forward.

2. I know I’ve said it previously, but I'm going to offer it again: I wouldn’t count out the possibility that Microsoft (MSFT) and Yahoo could still end up in a warm embrace. I’m a bull, what can I say?