Weekly Market Overview

Stocks rose sharply in early trading this week after last week's disappointing session and the government's relief plans to shore up confidence in mortgage financiers Fannie Mae and Freddie Mac. Shares of the government-chartered companies surged after tumbling last week amid concerns they would succumb to losses in their mortgage portfolios. The weak housing market has eroded the value of many of the securities backed by mortgages. The question is now: How long will investors have to wait for things to turn around?

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Skyworks Solutions (SWKS) - Skyworks shares declined today despite upbeat comments by CNBC's Jim Cramer on his Mad Money program. The hedge fund manager turned television superstar said he hated the technology sector, but chief executive David Aldrich has delivered two years of solid quarters. As a result, Cramer believes that the stock will not suffer as much from many of the issues affecting others in the industry. (Read More)
2. Tenaris S.A. (TS) - Tenaris is one steel producer that has kept itself under the radar. Shares in the firm have rallied some 60 percent so far in 2008, but that is far less than many larger companies. Tenaris focuses on manufacturing steel pipe products and related services for the energy industry. Higher energy prices in the industry have therefore sparked demand for the steel products that make it possible to ramp up production and take advantage of the favorable pricing environment. (Read More)
3. Freeport-McMoRan Copper & Gold Inc. (FCX) - Freeport-McMoRan shares rose sharply higher in pre-market as oil prices have began to soar. The metal mining company is not only being purchased as an inflation hedge, but also as a growth play. Metal prices have not only been soaring for inflationary reasons, but also supply and demand reasons. Increased construction and energy usage, particularly in China, has jumped the prices for almost all commodities. (Read More)
4. M&T Bank Corp. (MTB) - M&T Bank is down more than 1% in midday trading Friday ahead of Monday’s pre-market second quarter earnings announcement. The Buffalo, New York-based bank, like many other financial firms, has been battered over the last three months, losing almost 19% of its value. For the three months ending June 30, M&T Bank is expected to earn $1.51 per share on revenue of $754 million – representing a 22% drop in earnings from the same quarter last year. (Read More)
5. Edwards Lifesciences Corporation (EW) - Edwards Lifesciences shares continued to rally amid speculation that the heart valve maker may be a ripe acquisition target for two of the world's biggest device makers. Johnson and Johnson (NYSE: JNJ) and Medtronic Inc. (NYSE: MDT) both announced plans to enter the heart market that Edwards Lifesciences leads earlier this week. The crown jewel: Edwards' Sapien valve may win U.S. approval by 2011, which is five years before rivals could emerge, according to analysts. (Read More)
   

Technical Analysis

1. Endo Pharmaceuticals Holdings (ENDP) - Intermediate-term bullish diamond bottom.
2. Symyx Technologies (SMMX) - Intermediate-term bullish contuation wedge.
3. Meridian Biosciences (VIVO) - Intermediate-term bullish symmetrical triangle.
4. Momenta Pharmaceuticals Inc (MNTA) - Intermediate-term bullish symmetrical continuation triangle.
5. Supportsoft (SPRT) - Intermediate-term bullish bottom triangle.
   

Stock of the Week : Freeport-McMoRan (FCX)

Freeport-McMoRan shares rose sharply higher in pre-market as oil prices have began to soar. The metal mining company is not only being purchased as an inflation hedge, but also as a growth play. Metal prices have not only been soaring for inflationary reasons, but also supply and demand reasons. Increased construction and energy usage, particularly in China, has jumped the prices for almost all commodities. (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.