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.

Weekly Market Overview

U.S. markets rose today after Ben Bernanke reiterated his belief that the economy will improve later this year. Recent interest rate cust, loans to banks and tax rebates were cited as catalysts for a recovery in the second half of the year. The confidence helped the dollar rally on the day, which sparked a much-needed drop in oil prices. Meanwhile, better-than-expected results from Toll Brothers helped to cool concerns about the troubled housing market - which remains the biggest problem with the economy. Overall, this was good news for the markets.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Agrium Inc. (AGU) - Agrium shares continued their rally today as the agricultural chemicals industry continues to skyrocket. The global producer of agricultural nutrients is one of the few publicly traded suppliers of fertilizer, which is a product that is in extremely high demand these days.
2. NCI Building Systems, Inc. (NCS) - NCI is up significantly in midday trading Tuesday on about six times average trading volume after releasing surprising second quarter results. Houston-based NCI, a producer of metal components for commercial construction, reported second quarter net income more than double to $14.9 million, or 76 cents per share, from $6.5 million, or 31 cents per share, a year earlier – despite having a 9 cent charge on the most recent quarter’s earnings. Sales were also strong, rising 13.1% to $416.1 million.
3. Brigham Exploration Company (BEXP) -Brigham Exploration Company is up more than 22% in midday trading Monday on higher than average trading volume after announcing the completion of three new wells and an increase in available credit.
4. Foster Wheeler Ltd. (FWLT) - Foster Wheeler is one of the largest energy construction companies and is up more than 200% since the beginning of 2007. The company designs and constructs onshore and offhsre oil and gas processing facilities and related infrastructure. Despite strong growth, Foster Wheeler still trades at a reasonable 27x earnings while its return on equity stands at a strong 89.66%.
5. McDermott International (MDR) - McDermott International is another such energy construction company that has profited handsomely from the increase in energy prices and decline in the construction industry. The company has experienced some troubles with its most recent quarter, but continues to see better spending than most construction companies. Meanwhile, McDermott trades at just 25x earnings with a 59.25% return on equity.

Technical Analysis

1. Diamond Offshore Drilling Inc. (DO) - Long-term bullish continuation diamond.
2. Compania De Minas Buenaventura Sa Ads (BVN) - Intermediate-term bullish symmetrical continuation triangle.
3. Solera Holdings Llc (SLH) - Intermediate-term bullish upside breakout.
4. Ultralife Batteries Incorporated (ULBI) - Intermediate-term bullish megaphone bottom.
5. Ada-Es Inc. (ADES) - Long-term bullish diamond bottom.
   

Stock of the Week : Agrium (AGU)

Agrium Inc. (NYSE: AGU) shares continued their rally today as the agricultural chemicals industry continues to skyrocket. The global producer of agricultural nutrients is one of the few publicly traded suppliers of fertilizer, which is a product that is in extremely high demand these days. Global food prices have soared in recent months as demand for ethanol has taken up millions of acres of corn fields. The high prices can be traced all the way down to the most basic level - fertilizer. Demand is so great for fertilizer that prices have skyrocketed. As a result, farmers must charge more in order to cover costs. (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.