RAPAPORT...  Shares in Zale Corporation (NYSE: ZLC) slid by double digits following the jewelry chain's conference call this morning, during which the company discussed its cooperation with a Securities and Exchange Commission (SEC) probe and its financial results for fiscal 2009. Rapaport News first reported the SEC probe on October 29, along with analysis of  Zale’s fiscal-year 2009 results and restated financials. Zale shares fell 25.98 percent on Friday to close at $4.73 in New York.

Even given today's slide, Zale's shares have rebounded nicely from a historic trading low of 89 cents on March 6. ZLC held at $17.06 a share one year ago. Competitor Signet Group's (NYSE: SIG) shares closed at $25.21, down 2.29 percent, whileTiffany's (NYSE: TIF) shares dropped 3.7 percent to close at $39.61. Shares in Blue Nile (NYSE: NILE) fell 3.24 percent to $60.08. The Dow Jones Industrial average decreased by 2.5 percent to close at 9,712.73, driven largely by worries that consumers will fail to sustain an immediate economic recovery in the U.S.
 
LH