Weekly Market Overview

Stocks started the week on a positive note after oil prices plunged on reports that the Gulf Coast and its oil facilities have been spared from heavy damages from Hurricane Gustav. Light sweet crude is now down more than $8 per barrel on the New York Mercantile Exchange, easing Wall Street's concerns about Gustav and inflation's impact on the broader econom. The market optimism was also boosted by news that Korea Development Bank is in talks about taking part in a possible acquisition of Lehman Brothers.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. 99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
2. Smith International, Inc. (SII) - Smith International shares moved marginally higher after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes the stock is a cheap oil driller that has been hammered by the market. With politicians increasingly in support of offshore drilling to relieve oil prices, Cramer believes that Smith is a winner going forward and a buy at these levels. (Read More)
3. Transocean Inc. (RIG) - Transocean shares began the week lower as oil prices dropped and the dollar strengthened. Any sustained drop in oil prices could make deepwater drilling projects less viable and decrease business for companies like Transocean. Meanwhile, a higher dollar tends to hurt pricing points for companies based in the United States. However, many experts remain bullish on the stock given their solid operating results and hefty backlog. (Read More)
4. Target Corporation (TGT) - Target shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy prices. (Read More)
5. Emerson Electric Co. (EMR) - Emerson shares rose marginally after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star is very bullish on the stock, saying that shares should be trading $5 higher. However, many analysts are bearish on the stock, citing a downturn in the U.S. industrial sector. So, where are Emerson Electric shares headed in the future? (Read More)
   

Technical Analysis

1. Syngenta Ag For Nvs (SYT) - Intermediate-term bullish continuation wedge.
2. Schnitzer Steel Industries  Inc. (SCHN) - Intermediate-term bullish continuation wedge.
3. Tele Norte Leste Partticipacoes Sa (TNE) - Intermediate-term bullish symmetrical continuation triangle.
4. Geomet Incorporated (GMET) - Intermediate-term bullish symmetrical continuation triangle.
5. Calgon Carbon Corporation (CCC) - Intermediate-term bullish ascending continuation triangle.
   

Stocks of the Week : Target Corporation Moves Higher

Target Corporation (NYSE: TGT) shares started the week on a positive note as lower oil prices and a stronger dollar helped the recovering retailer. Oil futures dropped $7 per barrel after Hurricane Gustav hit the Gulf region with less force than initially feared. Prices were also impacted by a stronger dollar and concerns that the economic slowdown has curbed demand for energy. Retail stocks benefited as they tend to trade opposite of energy 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 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

Stocks started the week lower on concerns about the financial sector despite positive reports about the housing sector. All of the Dow 30 declined, led by AIG that saw declines of more than five percent. Wall Street also has a close eye on oil prices, which have risen after last week's sharp decline. The only sector seeing a positive rebound was the housing market, which was helped by a successful auction at Freddie Mac and positive home sales news from an economic report. However, some weren't so sure about the news, saying that foreclosures boosted existing home sales, but ended up depressing home prices.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. 99 Cents Only Stores (NDN) - 99 Cents Only Stores may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (Read More)
2. NVIDIA Corporation (NVDA) - Nvidia shares dropped marginally despite a positive recommendation by Joe Terranova on CNBC's Fast Money Final Trade. Shares declined today on analyst reports that the chipmaker may be falling behind compared to rival AMD Corporation's (AMD) products gained from its acquisition of ATI Technologies. Analysts hailed AMD's "asset lite" strategy to revamp its manufacturing operations as a great move in the right direction. (Read More)
3. Textron Inc. (TXT) - Textron shares rose marginally after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes that shares are coming off of their lows and the stock represents a compelling buy at these levels. The stock is trading at an affordable 9.73x earnings with a dividend yield of 2.41%, which makes it a buy for many value investors looking to get in at low levels. (Read More)
4. Genesco Inc. (GCO) - Genesco shares moved sharply higher after rival Foot Locker (NYSE: FL) announced better than expected earnings. The footwear retailer earned $0.25 per share in the second quarter, which is $0.23 better than analysts' $0.02 estimate. The better-than-expected earnings were driven by improvements in gross margins despite the poor economy. News of these improvements led to bullishness in Genesco and other companies in the sector. (Read More)
5. Smith International, Inc. (SII) - Smith International shares moved marginally higher after CNBC's Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes the stock is a cheap oil driller that has been hammered by the market. With politicians increasingly in support of offshore drilling to relieve oil prices, Cramer believes that Smith is a winner going forward and a buy at these levels. (Read More)
   

Technical Analysis

1. Carbo Ceramics Inc. (CRR) - Intermediate-term bullish symmetrical triangle.
2. Burlington Northern Santa Fe Corporation (BNI) - Intermediate-term bullish symmetrical triangle.
3. Oneok Partners Limited Partnership (OKS) - Intermediate-term bullish triple bottom.
4. H & E Equipment Services Incorporated (HEES) - Intermediate-term bullish double bottom.
5. Diebold Incorporated (DBD) - Intermediate-term bullish ascending continuation triangle.
   

Stocks of the Week : Activist Gives NDN Its 2 Cents

99 Cents Only Stores (NDN) may be getting more than they bargained for with one large investor. Akre Capital Management disclosed an 11.26 percent stake in the discount chain and recommended that it explore strategic alternatives to unlock shareholder value in a Schedule 13D/A filing with the SEC last week. These alternatives may include discontinuing certain businesses, repurchasing shares with excess cash and refocusing on maximizing profitability rather than expanding. (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 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.

Weekly Market Overview

Stocks started the week with a modest decline in a volatile session amid mixed concerns about the economy. Oil prices fluxuated on concerns over fighting between Russia and Georgia as traders speculation on whether or not there would be supply disruptions as a result. Meanwhile, the dollar was mixed while gold prices rose slightly on the day. Light, sweet crude rose 52 cents to $115.72 per barrel on the New York Mercantile Exchange. Despite Monday's moves, Wall Street is relieved that the price of oil has fallen more than $30 from its July 11 high of $147.27, easing worries about overall inflation and a key pressure point for consumers.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Petrohawk Energy (HK) - Petrohawk shares surged higher in recent weeks 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)
2. 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)
3. 99 Cents Only Stores (NDN) - 99 Cents Only Stores rose sharply after MKM Partners maintained their "buy" rating and reduced their 12-month price from $11.50 to $9.50. The downward revision was far less than many were expecting and remains above the average analyst estimates for the company. (Read More)
4. 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)
5. Petroleo Brasileiro SA (PBR) - Petroleo Brasileiro, better known as Petrobras, shares have fallen sharply in recent weeks along with the price of oil. The brazilian oil giant is trading well off of its 52-week high of $77.61 and now resides in the low $50s. The big question now is whether or not the move is justified or simply another Wall Street overreaction. (Read More)
   

Technical Analysis

1. Optium Corporation (OPTM) - Long-term bullish bottom triangle.
2. Actuant Corporation (ATU) - Long-term bullish bottom triangle.
3. Meritage Home Corporation (MTH) - Long-term bullish diamond bottom.
4. First Bancorp Puerto Rico (FBP) - Intermediate-term bullish head and shoulders bottom.
5. Urban Outfitters Incorporated (URBN) - Intermediate-term bullish continuation diamond.
   

Stocks of the Week : Ethanol's Struggle with Corn Prices Continues

VeraSun Energy Corporation (NYSE: VSE) and Aventine Renewable Energy Holdings (NYSE: AVR) shares declined in early trading after Pacific Ethanol Inc. (NDAQ: PEIX) reported a steep second-quarter loss. The ethanol producer posted a 74% increase in net sales, but a wider net loss of $8.3 million compared to a net income of $2.2 million during the same period in 2007. The catalyst behind the drop has been the 67% increase in the price of corn, which is used in the production of ethanol. (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

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.