Weekly Market Overview

Wall Street began the week on a mixed note with the potential failure of Dow Chemical's merger being offset by higher oil prices that helped that sector. Israel continued its attack on the Gaza strip for a third day, which sparked concern that oil supplies may be disrupted. Oil rebounded to nearly $40 a barrel in response, which could signal the beginning of a recovery in the commodity that has been trading near its 4-year lows on slowing demand. Overall, the markets remained largely mixed on relatively low volume on account of the holiday season in the United States.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Petroleo Brasileiro (PBR) - Petrobras shares opened higher after crude oil prices rallied higher. The news comes as many oil exploration companies like Petrobras have been hit hard by lower prices. Lower prices equate to less revenues and lower profits while also jeopardizing many projects that were justified by higher oil prices – especially offshore. (Read More)
2. Ivanhoe Mines Ltd. (IVH) - Ivanhoe and Rio Tinto (RIO) received some good news over the past few weeks.  Mongolia’s parliament voted to set a deadline of February 2009 for completing a long-awaited draft investment agreement for its giant Oyu Tolgoi project. Ivanhoe and Rio Tinto are the two miners who have rights to what many believe is the largest undeveloped copper and gold mine in the world. (Read More)
3. Red Hat, Inc. (RHT) - Red Hat is one of the premier providers of open source solutions designed to cut costs for corporations with a large information technology footprint. The firm has capitalized on the worldwide recession by touting its software as a way to trim costs. The results of this campaign were apparent in its fourth quarter earnings that surpassed analyst estimates. (Read More)
4. Oshkosh Corporation (OSK) - Oshkosh Corporation looks like a compelling value to many value investors, but the transportation industry may take some time to recover. The stock trades at a price-earnings multiple of 7x while paying a 5.1 percent dividend yield, but slower spending and higher costs continue eating into top and bottom line results. So, when is the right time to buy this stock? (Read More)
5. Kimberly-Clark Corporation (KMB) - Kimberly Clark shares have been under pressure over the last few months as consumer spending continues to drop precipitously. However, the stock’s robust product line and strong dividend yield have proven to be a glimmer of hope for shareholders. So, is now the right time for investors to buy shares of the consumer products manufacturer? (Read More)
   

Technical Analysis

1. Applied Industrial Technologies Inc. (AIT) - Intermediate-term bullish head and shoulders bottom.
2. Entergy Corporation (ETR) - Intermediate-term bullish bottom triangle.
3. Cogdell Spencer Incorporated (CSA) - Intermediate-term bullish head and shoulders bottom.
4. Blackrock Munivest Fund (MVT) - Intermediate-term bullish bottom triangle.
5. Halozyme Therapeutics Incorporated (HALO) - Intermediate-term bullish head and shoulders buttom.
   

Stocks of the Week : Berkshire Hathaway (BRK)

Shares of Warren Buffett’s philosophy embodied and incorporated, better known as Berkshire Hathaway Inc. (BRK-A), are managing to beat the return of the S&P 500 Index as the year comes to a close – but with the S&P down more than 41% year-to-date and Berkshire not that far behind with more than a 35% loss, that is not much to brag about. Not despite the loss, but because of the loss, the question now becomes: are Berkshire Hathaway shares a buy? (Read More)

Article of the Week : High End Retailers Suffer during Holidays

Macy’s Inc. (M), Saks Incorporation (SKS), and other high end retailers fell after reports of a weak holiday season hit the market. Retailers’ sales fell around 4 percent during the holiday season as the weak economy took its toll on consumer spending, according to a report earlier this week by MasterCard’s SpendingPulse. Many experts have seen this holiday season as one of the most difficult on record with soaring unemployment and a sharply lower stock market eating into consumer spending. (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 began the week on a mixed note as investors' shifted their worries from the automotive industry to the firms affected by investment manager Bernard Madoff. The Senate rejected a $14 billion bailout for the big three automakers, but President Bush told the press that "we're now in the process of working with the stakeholders on a way forward". Meanwhile, investors are also hesitant to make any major moves until after the Federal Reserve makes its interest rate decision on Tuesday. The big focus, however, will be on the statement that the central bank releases about the economy and the possibility of future policy actions.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Time Warner Cable Inc. (TWC) - Time Warner Cable may have one of the largest data networks in the United States, but the only thing investors are watching is a diving share price. Analysts also remain bearish on the entertainment sector going into 2009 as consumer spending slows and the economy contracts. However, others are seeing big opportunities in the firm’s strong cash flows and low debt load. (Read More)
2. Wachovia Corporation (WB) - Wachovia may not be in the most attractive sector in the market, but many investors are bullish on its prospects. CNBC’s Jim Cramer is one of these investors that recommended the stock on his Mad Money program. The hedge fund manager turned television star believes that the bank is a buy given that the combined entity will dominate the mortgage market for a long time. (Read More)
3. Teekay Tankers Ltd. (TNK) - Teekay shares are trading well off of their 52-week highs as the prospects of a bottom in oil have increased. Tankers can be used in a variety of ways in low-priced environments, including as storage vehicles and driller support vessels. As a result, the potential for Teekay Tankers going forward has improved greatly and sent shares higher. (Read More)
4. Joy Global Inc. (JOYG) - Joy Global shares jumped higher after receiving a positive recommendation by CNBC’s Jim Cramer on his Mad Money program. The hedge fund manager turned television star believes that there could be a bottoming out in the Chinese market, which means mining equipment manufacturers may be the first to benefit from renewed commodities demand. (Read More)
5. Express Scripts, Inc. (ESRX) - Express Scripts may be the perfect prescription for a struggling portfolio. The pharmacy benefits management company was recommended by CNBC’s Jim Cramer on his Mad Money program as a “good stock in this environment”. The hedge fund manager turned television star noted that the firm helps companies save money because it deals in bulk prescriptions and therefore is a strong buy in an environment when everyone is looking to cut costs. (Read More)
   

Technical Analysis

1. Platinum Underwriters Holdings Ltd. (PTP) - Intermediate-term bullish bottom triangle.
2. Family Dollar Stores Inc. (FDO) - Intermediate-term bullish continuation diamond.
3. Shuffle Master Inc. (SHFL) - Intermediate-term bullish megaphone bottom.
4. Agl Resources Inc. (ATG) - Intermediate-term bullish diamond bottom.
5. Watson Wyatt Worldwide Incorporated (WW) - Intermediate-term bullish megaphone bottom.
   

Stocks of the Week : Time Warner Cable (TWC)

Time Warner Cable Inc. (NYSE: TWC) may have one of the largest data networks in the United States, but the only thing investors are watching is a diving share price. Analysts also remain bearish on the entertainment sector going into 2009 as consumer spending slows and the economy contracts. However, others are seeing big opportunities in the firm’s strong cash flows and low debt load. (Read More)

Article of the Week : Litigation Threatens Tobacco Industry

Tobacco companies may soon be taking an unpleasant trip down memory lane – one that primarily involves the interior of a court house. In particular, America’s most prominent tobacco companies - Reynolds American, Inc. (RAI) and Altria Group, Inc. (MO) – are down on news of a U.S. Supreme Court ruling. In a 5-4 decision, justices ruled that federal labeling law and oversight of cigarette testing doesn’t prevent lawsuits claiming consumers were deceived by describing cigarettes as "low tar" or "light." (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.