Weekly Market Overview

Stocks are trading higher on the day as oil prices moved lower and Goldman Sachs beat the street's estimates. Crude moved down well below $134 per barrel after Saudi Arabia said that it would increase production. Meanwhile, Goldman Sachs posted an unexpected profit of $2.05 billion amid a crisis that has rocked its industry. Tuesday's economic data, however, was troublesome to many investors. The government report showed producer prices higher by 1.4 percent in May and home construction numbers that declined some 3.3 percent.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Oceaneering International (OII) - Oceaneering International shares moved higher after CNBC's Jim Cramer recommended the stock on his Mad Money program. The hedge fund manager turned television star believes that the company possesses the best deep sea drilling technology in the world and represents an excellent growth play. As a result, Cramer recommended that investors buy the stock on any keeps and they will "have a winner". (Read More)
2. Petroleo Brasileiro (PBR) - Petroleo Brasileiro, better known as Petrobras, announced last week that its second well in the Santos Basin confirmed the presence of light oil after the previously announced Carioca discovery. The discovery was made at the BM-S-9 block, which is 310 kilometers off the coast of Sao Paulo, and showed the presence of 28 degree light sweet crude oil. This is another great piece of news for one of the fastest growing oil companies on earth. (Read More)
3. Wal-Mart Stores, Inc. (WMT) - Wal-Mart shares continue to rise as consumers continue to pinch pennies. Shares in the discount retailer are just off their 52-week high as investors continue to see cost conscience consumers head through the doors of the world's largest discount retailer. Wal-Mart's brand strength and pricing power simply cannot be matched in the retail sector when a recession seems imminent. The only question is: How long will the bad economy persist and keep Wal-Mart shares high? (Read More)
4. Patriot Coal (PCX) - Patriot Coal shares are trading higher after recording huge gains late last week. The leading producer of coal in the eastern United States has seen its shares rally around 400% since October when coal prices first began their stratospheric rise. Patriot Coal was also recognized by CNBC's Jim Cramer as a strong buy on his latest Mad Money show, which helped boost the stock even more in today's action. (Read More)
5. LDK Solar Co., Ltd. (LDK) - LDK Solar shares jumped sharply on higher-than-average volume this morning on renewed takeover speculation. Call option volume spiked today as 2,466 contracts traded compared to an open interest of just 4,197. Some reports surfaced saying an overseas buyer may be interested in acquiring the solar company for as much as $75 per share; however, the rumors remain unsubstantiated. (Read More)
   

Technical Analysis

1. Agco Corporation (AG) - Intermediate-term bullish continuation wedge.
2. Aflac Incorporated (AFL) - Intermediate-term bullish continuation diamond.
3. Astoria Financial Corporation (AF) - Intermediate-term bullish continuation wedge.
4. Gladstone Capital Corporation (GLAD) - Intermediate-term bullish bottom triangle.
5. First Financial Bankshares Incorporated (FFIN) - Intermediate-term bullish continuation diamond.
   

Stock of the Week : DryShips Inc. (DRYS)

DryShips Inc. (NDAQ: DRYS) and Diana Shipping Inc. (NYSE: DSX) shares moved higher today after a key competitor announced that it would acquire six drybulk new-builds for $530 million. Genco Shipping & Trading has agreed to purchase the new drybulk ships in a deal that instilled confidence within investors who were recently shaken up by a sharp drop in spot prices. (Read More)

Article of the Week : Who Really Benefits from Higher Oil Prices?

Oil prices rose today to hit a new record of $126.98 per barrel as inflation continues to soar. Higher oil prices tend to hit the same groups of stocks day after day: Exploration and production companies tend to increase sharply, transportation companies rise marginally, and refiners tend to drop sharply. The rationale for this price movement is simple... (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.