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.