Weekly Market Overview

The markets began the week mixed as investors appeared unethusiastic about acquisition news and were cautious of upcoming earnings and economic reports. The big news of the day was Mars Inc.'s offer to purchase Wm. Wrigley Jr. Co. for about $23 billion in cash, which will be financed with the help of billionaire investor Warren Buffett. Activist Kirk Kerkorian also plans to make an offer to extend his stake in Ford, saying he sees signs that the firm's turnaround plan is working. On the flip side, Continental Airlines decided that it would not join with United Airlines despite rumors to the contrary last week. Meanwhile, the Federal Reserve is expected to cut interest rates by a quarter point before leaving them steady for the remainder of the year.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Alliance Resource Partners (ARLP) - The coal industry is starting to reignite after Alliance Resource Partners reported strong quarterly earnings that beat analyst expectations. Record revenues and coal sales volume helped the coal company report an increase in EBITDA despite lower net income due to the loss of synfuel-related benefits along with capital expenditures associated with various growth initiatives. Regardless, the bottom-line improvement has many investors bullish on the news. (Read More)
2. Baidu.com Inc. (BIDU) - China's Internet presence is growing and several companies are well positioned to reap the rewards. Baidu.com Inc. and Sohu.com Inc. are two portal operators that stand to benefit the most as China's online adult population now stands at 221 million, which puts them on par with the United States. However, great potential remains with just 16% of China's population online, compared to 71% of the United States population. (Read More)
3. Hyperdynamics Corporation (HDY) - Hyperdynamics Corporation surged more than 50% Friday after confirming it has discovered giant structures in West Africa usually associated with oil and gas reserves. The Texas-based oil and gas exploration and production company owns the rights to 31,000 square miles of land off the coast of the Republic of Guinea in West Africa where these geological discoveries were made. (Read More)
4. Tenet Healthcare (THC) - Tenet Healthcare shares soared over 10 percent last week after it was upgraded by Credit Suisse to outperform from neutral based on improving hospital pricing trends and progress in its turnaround. The analyst also raised the price target on the stock to $8 per share from $6 per share. (Read More)
5. Goodrich Corporation (GR) - Goodrich Corporation, the world’s largest maker of airplane landing gear, is up nearly 10% today after beating first quarter earnings expectations and increasing its full year profit outlook. (Read More)
   

Technical Analysis

1. E Trade Financial Corporation (ETFC) - Intermediate-term bullish diamond bottom.
2. Wells Fargo & Company (WFC) - Intermediate-term bullish diamond bottom.
3. Foundry Networks Incorporated (FDRY) - Intermediate-term bullish double bottom.
4. Home Depot Incorporated (HD) - Long-term bullish diamond bottom.
5. Qlogic Corporation (QLGC) - Intermediate-term bullish continuation diamond.
   

Stock of the Week : Candidates' Plans Could Boost Cable Operators

Broadband Internet has become a hot topic for debate among the U.S. presidential candidates. Many believe that broadband is one of the key components needed to maintain competitive advantage over other nations. The Internet not only affords a vast amount of information, but can also create information jobs and support small businesses. Unfortunately, the United States has already dropped from a #1 position in worldwide broadband penetration down to #15. (Read More)

Article of the Week : Retirement Savings with Roth IRAs

Roth IRAs are a great way to supplement your retirement income without paying the government too much. The retirement account was designed in 1998 as part of the Taxpayer Relief Act and enables individuals to forego deductions on contributions to instead cash out all of your earnings tax free. The program also provides some more lenient guidelines on early withdrawal for valid purposes. (Read More)

Final Words

The future of the U.S. economy remains uncertain despite an improvement in the financial sector thanks to dealmaking. Overall, the economy seems to be heeling, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.