Weekend Reading

Good Sunday morning, and welcome to another edition of Weekend Reading. First a look back at the week that just finished, and then a look at the week ahead. Finally, I highlight some articles and papers worth reading.

It was a crummy week on the markets. Subprime worries escalated (again), and the tech sector delivered some bad news. The result was the worst week for the major U.S. indices since July. The Dow Jones Industrial Average lost 4.1%, the Standard & Poor's 500 dropped 3.7%, and the Nasdaq Composite fell 6.5% on tech sector worries.

It was a combination of things that did the trick this past week. First of all, we had another round of subprime-related writeoffs from major banks, which didn't help investors feel like the worst of this credit crisis is entirely past. At the same time, the tech sector, which, until now, had been regarded as something of a subprime safe haven, saw indifferent earnings from Cisco(CSCO Quote), a former stalwart, plus weak guidance from wireless leader Qualcomm(QCOM Quote). The combination was enough to bring the tech sector its worst week this year, with some big names down by double-digit percentages.

Looking forward to next week, the tech sector may be out of the line of fire, but investors will be squarely focused on economic data. Are we, or are we not, heading toward a recession? There is no question the economy is weakening, but most observers are still in the camp that says the weakening won't turn into an outright recession, despite the housing sector's woes.

Turning to economic data, the Commerce Department's (likely weak) retail sales report is due Wednesday. Also that day, the Labor Department will release the producer price index for October. On Thursday, the Labor Department will release October consumer price data.

As for earnings, we will see a raft of retailers report. Companies to watch include Wal-Mart(WMT Quote), Home Depot(HD Quote), Macy's(M Quote), J.C. Penney(JCP Quote) and Kohl's(KSS Quote).

Finally, here are some articles and papers worth reading:

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• Sam Zell likes the waste industry, and he doesn't mean subprime. (New York Post)
• Interview with Sam Zell: no recession in 2008, the housing crisis isn't that bad, and yes, I top-ticked with my sale to Blackstone(BX Quote). (Time)
• Corporate credit spreads do a good job of predicting upcoming recessions. (Federal Reserve)
• Lengthy profile of Countrywide's(CFC Quote) Angelo Mozilo. (The New York Times' Gretchen Morgenson)
• HSBC(HBC Quote) will reveal this week $1 billion in subprime-related writedowns. (Telegraph)
• Is Matt Drudge a contrarian indicator? (Bespoke Investment Group)
• The business of hockey. (Forbes)
• Soaring Canadian currency is causing a rapid deterioration in business conditions. (Globe and Mail)
• How likely is a dollar collapse? Not too likely -- yet. (The Economist)
• Dollar is battered and bruised, but not yet out. (Bloomberg)
• Global residential housing starts. (BusinessWeek)
• Nicely nuanced discussion of how things got this bad in credit markets. (IDD)
• John Mauldin catches a few more pundits using the "R" (recession) word. (Frontline)
• House members demand energy bill with energy in it. (Oil & Gas Journal)
• Fears are growing of a mass unwinding of the yen/dollar carry trade. (Reuters)
• Oil shale may finally be set for its moment. (Fortune)
• Biomass fuels are on the rise. (The New York Times)
• Price-rent ratios for real estate in major U.S. markets. (Fortune)
• Michael Lewis on college football profits. (The New York Times)
• Oil as the newest bubble. (The Washington Post)
• The GAO says the IRS is still out of control. (CFO)
• Why Wall Street can't model mortgage risk. (Forbes)
• Japan's bluefin tuna is loved too much. (The Washington Post)
• Will the 4-hour workweek make it to Wall Street? Don't bet on it. (The New York Times)
• Charlie Rangel's AMT/private equity carry swap. (BusinessWeek)
• Barron's picks Qualcomm and Citigroup(C Quote), frets about Asia and pans big-cap tech. (Barron's)

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting