Weekend Reading: Year-End Cheer

Good Sunday. Here are some articles and papers worth reading. First, however, a look back at the week that just finished, and a look forward at the week ahead.

The major markets all advanced again. The Dow advanced 1.5%, while the S&P 500 gained 1.2%. The Nasdaq Composite turned in a 1.5% gain, a nice addition to the prior week's increase, which was the Nasdaq's biggest weekly move up since August 2004. Click here for the weekly performance.

It was another good week, fueled by lower energy prices and a general sense that a year-end rally is now a given. There is also a stock rotation going on, with money moving out of energy stocks and into other sectors that are seen as less expensive, such as technology, which is newly in vogue.

The economic week ahead will be busy. On Tuesday, we have the U.S. Senate Banking Committee's hearing on Ben Bernanke's nomination to be Fed chairman. Also Tuesday, we have Michael Moskow, president of the Federal Reserve Bank of Chicago, talking in Chicago about the economic outlook. Meanwhile in Dallas, Richard Fisher, president of that city's Fed bank, will be speaking about globalization and its effect on the Fed's decision making. Also that day, the government is set to release the producer price index, followed by the consumer price index Wednesday. On Thursday, St. Louis Fed President William Poole gives a talk about inflation. Finally, the October housing starts report is due on Thursday, and many expect it will point to a slackening of growth, if not an outright weakening.

Next week is fairly quiet in terms of earnings reports, but three giants are on tap. On Monday, we have home-improvement chain Lowe's (LOW Quote) and retail giant Wal-Mart Stores (WMT Quote). On Tuesday, Lowe's larger twin, Home Depot (HD Quote) reports.

Finally, here are some articles and papers worth reading:

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• Apple's iPod is losing its cool (InfoWorld)
• Bush to press China's Hu on currency flexibility (Reuters)
• Barron's tips a technology equity revival, plus AVI BioPharma, but pans small-caps -- and also contains a Dell-bearish Fred Hickey (Barron's)
• Popping the private equity buyout bubble -- Does it happen now or later? (The New York Times)
• Qualcomm's Paul Jacobs' difficult task in following-up his father (Forbes)
• Buy IPOs when there aren't any (Forbes)
• Airlines are at the beginning of a massive boom (Economist)
• Yahoo!'s strategic thrust into user-generated content is being driven by some young additions (Business 2.0)
• Thirty-six of 47 U.S. states in a recent survey expected water shortages within 10 years (The New York Times)
• Generic drug makers are poised to devastate big pharma (Globe & Mail)
• Electronics industry faces an uncertain fourth quarter (EETimes.com)
• The SEC is getting aggressive in investing option execution at brokerage firms (Institutional Investor)
• Books: "The Google Story" is getting good buzz (Amazon/Washington Post)
• Research: Selling 'variance risk' accounts for a significant chunk of hedge fund returns (SSRN)

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