Weekly Market Overview

Stocks declined moderately today after the government issued a stronger-than-expected report on consumer spending that also showed a jump in inflation. Inflation adjusted consumer spending fell 0.2% after the inflation indicator itself jumped a near-record 0.8% in one month, which is second only to a one percent jump back in 1981. Meanwhile, the Federal Reserve is set to keep interest rates steady at 2% despite the inflation in order to keep credit affordable for Americans.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Graham Corporation (GHM) - Last week, Graham Corporation reported first quarter profits that were up 113% on a sales growth of 38%. Meanwhile, the firm also hiked its dividend 33% and instituted a two-for-one stock split to lower its share price. The results are clearly bullish for the company while the dividend and stock split are clear signs of management's confidence in the future of the company. (Read More)
2. Entergy Corporation (ETR) - Entergy shares jumped higher this week after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star suggested that the company was a premier provider of cheap energy - nuclear energy. (Read More)
3. Elan Corporation (ELN) - shares opened higher on Monday after falling sharply last week after more safety concerns hit its Tysabri drug. Reports about new potentially deadly infections linked to the MS drug have many investors concerned that some physicians will steer patients away from the therapy while also raising some questions about whether it's effective long-term. The same infection was discovered in 2005 when the drug was pulled from the market, but it returned in 2006 with a warning to consumers. (Read More)
4. Petrohawk Energy (HK) - Petrohawk shares surged higher Friday after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television personality reiterated his belief that selling natural gas at $8 is a mistake and recommended that investors start looking at natural gas stocks. (Read More)
5. Honda Motor Company (HMC) - Japan's second-largest automaker has avoided much of the sector's troubles by boosting its international sales as well as marketing itself in the United States as the most gas-efficient brand. These efforts have made it one of the best performing car companies in the world. (Read More)
   

Technical Analysis

1. Monolithic Power Systems (MPWR) - Intermediate-term bullish symmetrical continuation triangle.
2. Acadia Realty Trust (AKR) - Intermediate-term bullish double bottom.
3. Ambac Financial Group (AKT) - Intermediate-term bullish double bottom.
4. Proshares Trust Ultrashort Russell2000 Index Fund (TWM) - Long-term bullish continuation diamond.
5. Haemonetics Corporation (HAE) - Intermediate-term bullish upside breakout.
   

Stock of the Week : Bank of America (BAC)

Bank of America (NYSE: BAC) and other mortgage lenders may face even more trouble down the road as an even bigger wave of mortgage defaults moves towards the shores. Homeowners with good credit are falling behind on their payments in growing numbers, just as sub-prime borrowers are showing signs of recovery. The number of so-called Alt-A mortgages are up 12 percent in April from a year ago while delinquencies in prime loans doulbed to 2.7 percent during the same time period. (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.

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.

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.

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.

Weekly Market Overview

Stocks started out the week mixed as oil prices set a new record and investors awaited a regional manufacturing survey for hints about where the market might be headed after last week's steep sell-off. Crude rose above $143 per barrel for the first time in history on the New York Mercantile Exchange. The dramatic move is seen as hurting consumer spending, which accounts for more than two-thirds of economic activity in the U.S. economy. Many investors are hoping that such spending will not slow after the government's tax rebate program put more money into the economy.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Petroleo Brasiliero (PBR) - Petroleo Brasiliero, better known as Petrobras, rose sharply on the day after a positive report in Barron's. The financial weekly noted that the Brazilian oil giant could rise another 25 percent if its recently discovered offshore wells off the coast of Rio de Janeiro near Tupi become as profitable as some expect. The speculation sent shares more than two percent higher in early trading today. (Read More)
2. Kona Grill, Inc. (KONA) - Kona Grill shares continue to trade lower despite a standing buyout offer at a substantial premium. Mill Road Capital offered to acquire the restaurant chain for $10.75 in cash, which represents a 30 percent premium over yesterday's closing price. News of the offer sent shares higher last week, but the speculation quickly died when investors realized that the deal was stale... or did it? (Read More)
3. Grubb & Ellis Company (GBE) - A major Grubb & Ellis Company shareholder requested that he be reinstated to the board of directors in order to help the company navigate through these troubled times. Anthony Thompson left the board of directors three months ago and has seen the stock price plunge nearly 42% and 21% during the past week alone. (Read More)
4. Royal Bank of Scotland Group plc (RBS) - Royal Bank of Scotland shares moved higher this week after rumors surfaced that The Children's Investment Fund was building a stake in the firm. The speculation originated from traders that noticed stronger volume in RBS shares ahead of a deadline for its massive rights issue at the end of the week. (Read More)
5. Emerson Electric Company (EMR) - Emerson Electric shares dropped sharply today despite a bullish recommendation from CNBC's Jim Cramer. The electronics conglomorate was recently downgraded by Credit Suisse, which sent shares lower this past week. The analyst lowered its target price from $60 to $56 per share based on concerns that the firm's margins appear to be reaching peak levels as its price increases may now be limited in scope. (Read More)
   

Technical Analysis

1. Azz Incorporated (AZZ) - Long-term bullish continuation diamond.
2. Hercules Offshore Incorporated (HERO) - Long-term bullish upside breakout.
3. Ameron International Corporation (AMN) - Intermediate-term bullish symmetrical continuation triangle.
4. Hovnanian Enterprises (HOV) - Intermediate-term bullish continuation wedge.
5. Accenture Ltd. (ACN) - Long-term bullish continuation diamond.
   

Stock of the Week : Transocean Inc. (RIG)

Transocean Inc. announced that a contract has been renewed for one of its ultra-deepwater rigs at a rate of about $581,000 per day compared to its prior daily rate of $208,000 per day. The news helped send shares of rivals Diamond Offshore Drilling and Rowan Companies higher on the day as well. These contractors can thank large oil companies like Petroleo Brasileiro for keeping demand for rigs (and prices) at record highs. (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.

Weekly Market Overview

Stocks rose moderately today as investors looked to recover some of last week's steep losses. However, investors remain anxious as oil prices rose yet again to $136 per barrel in premarket trading. Investors are also positioning themsevles ahead of the federal reserves two-day meeting that gets out on Wednesday. Most investors expected the fed to keep its key federal funds rate on hold and emphasize the rising threat of inflation in its economic statement.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Transocean Inc. (RIG) - Transocean Inc. announced that a contract has been renewed for one of its ultra-deepwater rigs at a rate of about $581,000 per day compared to its prior daily rate of $208,000 per day. The news helped send shares of rivals Diamond Offshore Drilling and Rowan Companies higher on the day as well. These contractors can thank large oil companies like Petroleo Brasileiro for keeping demand for rigs (and prices) at record highs. (Read More)
   
2. Southwestern Energy Company (SWN) - Southwestern Energy Company shares moved sharply higher today after CNBC's Jim Cramer recommended the stock on his Mad Money program. The hedge fund manager turned television star said the company was the cheapest natural gas play in the market. People are focused on Haynesville, Fayetteville and Marcellus when they should be focused on Barnett Shale. (Read More)
   
3. Deere & Company (DE) - Deere & Company shares moved marginally higher after CNBC's Jim Cramer revealed that he purchased some shares for his charitable trust. The hedge fund manager turned television star recommended the stock after its recent drop, saying that it is the world's greatest agricultural equipment stock on sale for $33 billion. (Read More)
   
4. Baidu.com (BIDU) - The state-run China Internet Information Center recently reported that China will surpass the U.S. as the nation with the largest number of Internet users sometime this year. China recorded a staggering 53% increase in users from 137 million in December 2006 to 210 million in December 2007. (Read More)
   
5. Winnebago Industries, Inc. (WGO) - Recently, Winnebago announced it would suspend production at its Charles City manufacturing plant starting on August 1, as a challenging economy coupled with record-high fuel prices have killed demand for the large, gas-gulping RVs. (Read More)
   

Technical Analysis

1. Shengdatech Incorporated (SDTH) - Intermediate-term bullish symmetrical continuation triangle.
2. Golden Star Resources Ltd. (GSS) - Intermediate-term bullish symmetrical continuation triangle.
3. Kinross Gold Corporation (KGC) - Intermediate-term bullish continuation wedge.
4. Adtran Incorporated (ADTN) - Intermediate-term bullish bottom triangle.
5. Apollo Group Inc. (APOL) - Intermediate-term bullish bottom triangle.
   

Stock of the Week : Transocean Inc. (RIG)

Transocean Inc. announced that a contract has been renewed for one of its ultra-deepwater rigs at a rate of about $581,000 per day compared to its prior daily rate of $208,000 per day. The news helped send shares of rivals Diamond Offshore Drilling and Rowan Companies higher on the day as well. These contractors can thank large oil companies like Petroleo Brasileiro for keeping demand for rigs (and prices) at record highs. (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.

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.

Weekly Market Overview

Stocks began the week mixed after yesterday's massive sell-off that left Wall Street quite nervous. Large losses at Lehman Brothers combined with higher energy costs have cast a shadow that remains well-over the marketplace. The Dow Industrial Average is up around 70 points as investors flee speculative stocks to the safer blue chips. However, it is uncertain how long even those will fare in these tough times. Many traders believe that today's move up may have simply been a 'dead cat bounce' off of yesterday's 400 point drop.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. DWS Global Commodities Stock Fund, Inc. (GCS) - DWS Global should be benefiting from the boom in commodity prices, but shares have remained relatively stagnant over the past year. Western Investment LLC, which owns a substantial of the fund, has taken notice and demanded change. The activist hedge fund nominated its own directors to the fund's board of directors in an attempt to effect change. (Read More)
2. 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)
3. 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)
4. VAALCO Energy, Inc. (EGY) - VAALCO shares surged higher after CNBC's Jim Cramer recommended his stock on the popular Mad Money program. The hedge fund manager turned television star has been recommending the stock since $4 per share despite the company's operations being off the west coast of Africa. Cramer insists that with oil at $127 per barrel, it is hard to resist this energy company regardless of the political and technical difficulties. (Read More)
5. Windstream Corporation (WIN) - Windstream shares moved higher in early trading today after Jim Cramer mentioned the stock on CNBC's Mad Money. The hedge fund manager turned television star believes that Windstream is the best play off of the Verizon (NYSE:VZ) merger with Alltel. (Read More)
   

Technical Analysis

1. Compania De Minas Buenaventura (BVN) - Intermediate-term bullish symmetrical continuation triangle.
2. Rostelecom (ROS) - Long-term bullish continuation diamond.
3. Cal-Maine Foods (CALM) - Intermediate-term bullish symmetrical continuation triangle.
4. Silver Wheaton Corporation (SLW) - Intermediate-term bullish symmetrical continuation triangle.
5. Cybersource Corporation (CYBS) - Long-term bullish continuation diamond.
   

Stock of the Week : DWS Global Commodities Fund (DWS)

DWS Global Commodities Fund (NYSE: DWS) should be benefiting from the boom in commodity prices, but shares have remained relatively stagnant over the past year. Western Investment LLC, which owns a substantial of the fund, has taken notice and demanded change. The activist hedge fund nominated its own directors to the fund's board of directors in an attempt to effect change. (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.