Weekly Market Overview

Wall Street rose modestly today in a volatile session after Bank of America posted better-than-expected results, which sparked hopes that the credit crisis may be easing for large retail banks. The nation's second largest bank by assets reported higher investment banking and record revenue helped drive results during this second quarter. Interestingly, four of the nation's five largest banks have reported better-than-expected results which has many optimistic. The other big story was Yahoo's concessions to Carl Icahn, although many see this as a victory for the company.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Schlumberger Limited (SLB) - Schlumberger shares began the week on a positive note after the firm announced strong second quarter results. The stock is trading just off of its 52-week high after lofty crude oil prices have kept it rising. The spending cycle for energy exploration and production also tends to be less correlated to crude prices, although the recent spike has certainly been a catalyst for the stock. (Read More)
2. Illumina, Inc. (ILMN) - Illumina shares are down slightly Monday ahead of Tuesday’s second quarter earnings announcement scheduled for after market close. The San Diego-based manufacturer of equipment for analyzing genetic variation is expected to earn 28 cents per share on revenue of $130 million for the three months ending June 30, representing 65% earnings growth and 54% revenue growth from the second quarter of 2007. (Read More)
3. IMAX Corporation (IMAX) - IMAX shares rose sharply on news of a joint venture and strong performance by hit "Batman: The Dark Knight" over the weekend. The motion picture company has been steadily recovering this year after hitting all-time lows in the late 2006 and trading low in 2007. Finally, it appears that IMAX technology is hitting the mainstream and expanding internationally - things that have made many shareholders believers. (Read More)
4. Marathon Oil Corporation (MRO) - Marathon shares dropped marginally last week despite a bullish recommendation by CNBC's Jim Cramer on his Mad Money program. The hedge fund manager turned television star called the company an example of the lunacy in the market and said he would buy the whole company if he were in the oil business. Cramer believes that the premium refiner with great properties overseas should not be at a 52-week low and recommended that investors pick up shares at these levels. (Read More)
5. Parametric Technology (PMTC) - Parametric shares are slipping Monday in anticipation of tomorrow’s third quarter earnings announcement, but the market’s reaction may be more cold feet than legitimate concerns. (Read More)
   

Technical Analysis

1. Aaron Rents (RNT) - Intermediate-term bullish upside breakout.
2. Hormel Foods Corporation (HRL) - Intermediate-term bullish head and shoulders bottom.
3. Forest Laboratories (FRX) - Intermediate-term bullish megaphone bottom.
4. Aar Corp. (AIR) - Intermediate-term bullish head and shoulders bottom.
5. Novagold Resources (NG) - Intermediate-term bullish double bottom.
   

Stock of the Week : IMAX Corporation (IMAX)

IMAX shares rose sharply on news of a joint venture and strong performance by hit "Batman: The Dark Knight" over the weekend. The motion picture company has been steadily recovering this year after hitting all-time lows in the late 2006 and trading low in 2007. Finally, it appears that IMAX technology is hitting the mainstream and expanding internationally - things that have made many shareholders believers. (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.