Kohl's Corporation ( KSS ), a much smaller rival retailer, said that second-quarter earnings fell 3.5% to $1.04 per share from $1.00 a year earlier as costs rose. Stocks are heading lower this morning as economic reports show that inflation is still tame and Wal-Mart ( WMT ) booked a rare dip in US sales. The capacity utilization rate is likely to have ticked up just one-tenth of a percentage point to 77.9% The Philadelphia Federal Reserve will also publish its survey of general business conditions in the in its region.