Weekly Market Overview

Stocks moved higher today as investors showed their relief over falling oil prices and waited for second quarter corporate earnings this week. There's little economic news expected, so the drop in oil prices appears to be drawing some value investors back into the market. Investors have been concerned that consumers faced with soaring energy costs will continue to trim spending in other areas and hurt the economy. As a result, many are eager to see the effects of consumer spending on upcoming earnings reports to see if there has been any kind of a turnaround.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. The Procter & Gamble Company (PG) - Procter & Gamble may provide the basic necessities to consumers, but that doesn't mean consumers are as willing to open their pocketbooks. A tough consumer spending environment has tightened the margin for the consumer products conglomorate and led to a sharp decline in the stock price since the beginning of 2008. (Read More)
2. Caterpillar Inc. (CAT) - Caterpillar may be the next big beneficiary of China's massive investment in its infrastructure. The construction equipment maker recently announced that its sales in China are likely to hit $4 billion in 2010 compared to around $2 billion this year, according to the head of its Asia-Pacific operations. Meanwhile, its revenues in the region have already doubled during the past two years as the world's fastest-growing major economy continues to heat up. (Read More)
3. Coach, Inc. (COH) - Coach shares are trading just off of their 52-week low as the retail industry continues to struggle. The luxury retailer saw higher revenues during its most recent quarter, but it was due primarily to steep discounts on its merchandise. Net income rose some 8% during the company's third quarter on a 19% increase in sales, but its profit margins sank substantially due to huge discounts on its handbags. (Read More)
4. Union Pacific Corporation (UNP) - Railroads like Union Pacific and CSX Corporation (CSX) have seen a sharp run-up this year despite rising fuel costs that have brought down the rest of the transportation sector. The catalyst behind the move is the soaring cost of commodities, which has increased demand and prices for rail services since 2007. In fact, the industry known for losing money even started to turn a profit during the past year. (Read More)
5. United Parcel Service, Inc. (UPS) - UPS shares moved higher today after dropping more than 7 percent so far this week. The premeir transportation company has seen its shares fall as the price of fuel has skyrocketed. Investors are concerned that higher fuel costs will hit its margins and dramatically hurt the firm's profits in future quarters. As a result, investors have pushed shares to new 52-week lows of just over $60 per share. (Read More)
   

Technical Analysis

1. St. Jude Medical Incorporated (STJ) - Long-term bullish continuation diamond.
2. Glaxosmithkline Plc (GSK) - Long-term bullish double bottom.
3. Schering-Plough Corporation (SGP) - Intermediate-term bullish bottom triangle.
4. Natus Medical Incorporated (BABY) - Intermediate-term bullish upside breakout.
5. Perrigo Company (PRGO) - Intermediate-term bullish continuation wedge.
   

Stock of the Week : United Parcel Service (UPS)

UPS shares moved higher today after dropping more than 7 percent so far this week. The premeir transportation company has seen its shares fall as the price of fuel has skyrocketed. Investors are concerned that higher fuel costs will hit its margins and dramatically hurt the firm's profits in future quarters. As a result, investors have pushed shares to new 52-week lows of just over $60 per share. (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 healing, but consumers may lag a bit behind as weakness in spending is seen for at least a couple more quarters.