Weekly Market Overview

Wall Street fluctuated in early trading today as a rebound in oil prices sparked more uncertainty in the stock market. A rebound in oil could hurt consumers, the major drivers of the economy, who are already struggling with higher consumer prices and inflation. Meanwhile, Lowe's Company issued an outlook that came in below analyst expectations, but its 7.9 percent decline in Q2 profits was smaller than predicted. Overall, markets declined sharply towards the close and erased some of last week's gains.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. PetroChina Company Limited (PTR) - PetroChina shares continued their fall this week on oil and inflation fears. Chinese markets fell to their lowest level in 19 months following a 10% rise in China's producer price index, which measures the price of goods as they leave the factories. The rise is primarily due to rising energy costs, which is squeezing profit margins. Meanwhile, oil prices continue to fall on the spot market while existing contracts are still in place at higher prices. (Read More)
2. Chesapeake Energy Corporation (CHK) - Chespeake Energy shares may be well off of their highs this year, but a recovery isn't out of the question, according to many experts. The largest natural gas producer in the United States has come under pressure recently thanks to lower natural gas prices. However, many experts believe that natural gas prices have bottomed and that companieslike Chesapeake Energy are a bargain at these low levels. So, is this a company that investors should keep an eye on going forward? (Read More)
3. Walgreen Company (WAG) - Walgreen Company's shares extended their gains today after receiving a bullish recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star noted that he loved the drug store chain more than competitor CVS Caremark Corporation (CVS) and has been buying WAG consistantly for his charitable trust. The comments sparked a rally last week that many are expecting to extend through this week. (Read More)
4. Potash Corporation (POT) - Potash shares are continuing to fall last week amid worker strikes and the implications associated with the strike; however, the company expects expansion work on its Canadian potash mines to continue. These expansions will help boost capacity by 76 percent to 18 million tons by 2012 to help meet soaring demand. For now, the 500 workers on strike are likely to be a temporary supply disruption that will only end up jumping prices. (Read More)
5. Target Corporation (TGT) - Target's largest shareholder may get even larger as the retailer begins to buy back its own shares. William Ackman's Pershing Square already owns a 9.5 percent stake in Target, but announced it would seek regulatory approval if its stake goes above 10 percent during the retailer's repurchasing program. Target's actions to buy back shares would result in less shares on the market and could push Pershing's stake above 10 percent and trigger a "change of control" rule requiring such approval. (Read More)
   

Technical Analysis

1. Allion Healthcare Incorporated (ALLI) - Intermediate-term bullish bottom triangle.
2. Sanofi-Aventis Ads (SNY) - Intermediate-term bullish bottom triangle.
3. Wal-Mart Stores Incorporated (WMT) - Intermediate-term bullish continuation diamond.
4. Cascade Corporation (CAE) - Long-term bullish double bottom.
5. Energy Conversion Devices Inc. (ENER) - Intermediate-term bullish symmetrical continuation triangle.
   

Stocks of the Week : Ackman Continues Bet on Target

Target Corporation's (TGT) largest shareholder may get even larger as the retailer begins to buy back its own shares. William Ackman's Pershing Square already owns a 9.5 percent stake in Target, but announced it would seek regulatory approval if its stake goes above 10 percent during the retailer's repurchasing program. Target's actions to buy back shares would result in less shares on the market and could push Pershing's stake above 10 percent and trigger a "change of control" rule requiring such approval. (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 as inflation continues to rise. 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.