Corning (GLW) shares are under pressure this morning after ThinkPanmure analyst Vijay Rakesh this morning cut his EPS estimate on the company, citing ongoing weakness in the U.S. television market.

“Our checks through the electronic retail outlets indicate TV sales continue to decline despite Street expectations that August sales could stabilize,” he writes in a research note this morning. He says TV sales at both Best Buy (BBY) and Circuit City (CC) have continued to declined this month, while the Street had expected stabilization.

“Foot traffic through electronics outlets is down [month-over-month] in August, we believe as a result of the ’stay-at-home’ phenomenon to watch the Beijing Olympics,” he says. Rakesh also contends that aggressive TV retail pricing in Q2 has left second- and third-tier OEMs like Westinghouse and Vizio unprofitable, reducing the possibility of aggressive promotions and upside TV industry sales during the holidays. “Panel manufacturers will be under increasing pressure to reduce pricing and fab utilization into Q4,” he writes.

Rakesh believes that the slowdown in foot traffic at electronics retailers will affect Samsung and Sony (SNE) just as much as the less prominent brands; he notes that recent strength in demand from Samsung “may not be sustainable in the current weak macro environment.” And he thinks sales in China may slow further following the Olympics.

Rakesh cut his 2008 EPS estimate on Corning to $1.81 from $1.84; for 2009 he goes to $1.86, from $1.91. He is below the Street, which sees $1.92 this year, and $1.98 next year.

GLW today is down 44 cents, or 2.1%, to $20.49.