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.