Weekly Market Overview

Wall Street was mixed during today's session after a series of major events. Pfizer announcedthat it would acquire rival Wyeth for $68 billion while existing home sales made a surprise jump in December. Pfizer's move reassured investors that dealmaking could continue amid a difficult recession while home sales reignited hopes of a turnaround in the housing sector. Finally, investors were reassured about financials and other companies facing difficulties after Standard & Poor's reaffirmed their credit rating on General Electric.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Noble Energy, Inc. (NBL) - Noble Energy shares opened sharply higher after the discovery of a major natural gas field that could turn the country into an energy exporter. The Tamar-1 drilling site, located 90 kilometers west of the port of Haifa, is the largest discovery in the eastern Mediterranean and is significant even by global standards. The value of the offshore gas is estimated at $15 billion, but could be more. (Read More)
   
2. Emergent BioSolutions Inc. (EBS) - Emergent shares opened lower despite positive recommendations by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the biotechnology firm is well-positioned as an anti-terrorism Obama play. However, Cramer suggested that viewers let the stock come down a bit before picking up shares. (Read More)
3. The Walt Disney Company (DIS) - Walt Disney shares opened higher after CNBC’s Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the American icon is a buy below $20 with strong management and robust performance. (Read More)
4. Optimer Pharmaceuticals, Inc. (OPTR) - Optimer shares gave up some ground after a strong rally on Thursday. The move also came despite a positive recommendation by CNBC’s Jim Cramer  on his Mad Money Lightning Round. The hedge fund manager turned television star said that the company could be a big winner as nobody else seems to be working on gastrointestinal research. (Read More)
5. Paychex, Inc. (PAYX) - PayChex shares opened lower despite receiving a positive recommendation by CNBC’s Jim Cramer on his Mad Money program. The hedge fund manager turned television star believes that the firm’s high 5 percent dividend yield has now made it an “accidental high yielder” worthy of buying on the way down. As a result, Cramer recommended “pulling the trigger” at these levels. (Read More)
   

Technical Analysis

1. Alliance Resource Partners (ARLP) - Intermediate-term bullish bottom triangle.
2. Rangold Resources Ltd (GOLD) - Long-term bullish continuation diamond.
3. Unitedhealth Group Incorporated (UNH) - Long-term bullish head and shoulders bottom.
4. Calgon Carbon Corporation (CCC) - Intermediate-term bullish bottom triangle.
5. Gold Resource Corporation (GORO) - Intermediate-term bullish bottom triangle.
   

Stocks of the Week : Noble Energy (NBL)

Noble Energy shares opened sharply higher after the discovery of a major natural gas field that could turn the country into an energy exporter. The Tamar-1 drilling site, located 90 kilometers west of the port of Haifa, is the largest discovery in the eastern Mediterranean and is significant even by global standards. The value of the offshore gas is estimated at $15 billion, but could be more. (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

The market moved down on Monday as investors worried about earnings reports expected to come out this week. Meanwhile, energy companies also fell as oil prices opened the week lower once again. Wall Street is expecting fourth quarter earnings to be very bleak, especially after several companies warned last week that they are being hit hard by the global recession. Oil fell below $40 a barrel as investors worried that a worsening economy may hurt demand. Financial stocks also declined as investors were careful to watch Citigroup and Morgan Stanley in their attempt to decline. Investors are now in a wait-and-see mode until all of the upcoming data this week is out of the way.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. Ingersoll-Rand Company Limited (NYSE: IR) - Ingersoll shares opened lower despite positive comments by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the diversified technology company is going to report a disappointing quarter, but remains confident that the company will be strong in the long-term. As a result, Cramer recommended that viewers wait until $16 per share before “pulling the trigger”. (Read More)
2. Quanta Services, Inc. (NYSE: PWR) - Quanta shares opened lower despite positive comments from CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that the construction services company is an Obama play that many people do not realize. Obama has talked about the notion of improving the grid many times and the only company that really makes money off of that is Quanta. As a result, Cramer recommended the stock to viewers. (Read More)
3. Life Partners Holdings, Inc. (NDAQ: LPHI) - Life Partners is definitely not in a “dead” industry as shares continue to trade near their 52-week highs. The life insurance broker helps policyholders sell their life insurance policies on the secondary market to investors that pay them cash and hold the policies until maturity. Given the current market conditions, Life Partners is broker with strong demand on both sides of the equation. (Read More)
4. Novo Nordisk A/S (NYSE: NVO) - Novo Nordisk shares moved higher over the past few days after CNBC’s Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund manager turned television star believes that global stock markets are slowing down and drug stocks stand to benefit as a result. Cramer had also recommended the stock in the past given its promising diabetes drug candidates, but the stock continued to drop over time until recently. (Read More)
5. Netflix, Inc. (NDAQ: NFLX) - Netflix shares opened lower despite positive comments from CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star has been a fan of the company since it was in the $20 range, but cautioned that investors may want to wait until next quarter’s results are posted before investing given its substantial move higher. (Read More)
   

Technical Analysis

1. Lloyds Tsb Group (LYG) - Intermediate-term bullish bottom triangle.
2. Blackrock Muniyield (MQT) - Intermediate-term bullish double bottom.
3. Nuveen Insured Premium Income (NPX) - Intermediate-term bullish double bottom.
4. Lindsay Corporation (LNN) - Intermediate-term bullish diamond bottom.
5. Thq Incorporated (THQI) - Intermediate-term bullish double bottom.
   

Stocks of the Week : NetFlix (NFLX)

Netflix shares opened lower despite positive comments from CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star has been a fan of the company since it was in the $20 range, but cautioned that investors may want to wait until next quarter’s results are posted before investing given its substantial move higher. (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

The major indexes started the week on a negative note as investors saw lower construction spending as a negative sign for the economy. Meanwhile, investors also had a chance to take a closer look at president-elect Barack Obama's proposed tax cut as he called on Congress to pass an economic stimulus plan to create 3 million jobs. Meanwhile, traders dismissed the drop today as selling from Friday's sharp rally that sent the DJIA to a two-moth high.

Top 10 Stocks to Watch this Week

Fundamental Analysis

1. United States Steel Corporation (X) - U.S. Steel, Nucor Corporation and other steelmakers may not be in the most attractive sector right now, but the stars may be aligning for these troubled stocks. Obama’s proposed $1 trillion economic stimulus package will focus on infrastructure projects as a means to create jobs, which is good news for the base of almost all infrastructure projects – steel. So, is now the right time to get involved in the steel industry? (Read More)
2. Gramercy Capital Corporation (GKK) - Gramercy shares fell sharply after the real estate firm elected not to pay its fourth quarter dividend. The decision raises concerns about the finance company’s balance sheet as real estate investment trusts are forced to distribute 90 percent of their income to shareholders via dividends. The move also mirrors that of many other REITs in the market that have dropped 40 to 70 percent in recent months as the economic crisis deepens. (Read More)
3. BorgWarner Inc. (BWA) - BorgWarner shareholders may want to keep a close eye on their stock after TRC Capital Corporation announced a so-called “mini-tender offer”. The below-market $20 per share tender offer is for approximately 2.16 percent of the firm’s outstanding shares and represents a 4.21 percent discount to the closing price on December 18th. Moreover, the offer is subject to numerous conditions and contingencies including the availability of financing on terms satisfactory to TRC. (Read More)
4. Pall Corporation (PLL) - Pall Corporation may be in the purification business, but its business has very little to clean up. The company has a great business and solid management that is ready to guide it through the ongoing economic decline. And after a strong earnings report last quarter, many shareholders are bullish on the prospects for this company going forward. So, is now the time to pull the trigger on this recession-resistant stock? (Read More)
5. Caterpillar Inc. (CAT) - Caterpillar shares have begun to recover from their 52-week lows amid speculation that president-elect Barack Obama’s economic stimulus plan may increase demand for the equipment-maker’s products. The plan contains billions in provisions for infrastructure projects that will likely require construction and mining equipment to fully realize. So, is now the time to pick up shares of Caterpillar? (Read More)
   

Technical Analysis

1. Mobile Mini Inc. (MINI) - Intermediate-term bullish head and shoulders bottom.
2. John Wiley & Sons Inc. Cl A (JWA) - Intermediate-term bullish head and shoulders bottom.
3. Endurance Specialty Holdings Ltd. (ENH) - Intermediate-term bullish double bottom.
4. Laboratory Corporation Of America Holdings (LH) - Intermediate-term bullish diamond bottom.
5. Usec Inc. (USU) - Long-term bullish bottom triangle.
   

Stocks of the Week : The Finish Line, Inc. (FINL)

The Finish Line, Inc. (FINL), the ubiquitous mall athletic shoe retailer, is down more than 1% in midday trading ahead of tomorrow's third quarter earnings announcement. Given the terrible state of retail sales, things could be especially ugly for a non-discount specialty store like Finish Line. Here's what to expect for the three months ending November 2008... (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.