Weekend Reading: Carnival Ride

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

It was a solid week for equities after weeks of losses. Nervousness about inflation and oil prices receded for the moment, and the result was that all three major markets climbed higher. The Dow and the S&P 500 were up 1.2% and 1.0%, respectively, while the Nasdaq ended up 0.8%. Click here for the weekly performance.

The coming holiday-shortened trading week will almost certainly be a fun up-and-down ride, with some convinced that the recent selloff has created bargains. Others, however, will remain nervous about inflation data and hanging around the exits.

Turning to economic news, the big report next week is obviously May nonfarm payrolls, scheduled for Friday morning. But there will also be May consumer confidence numbers on Tuesday, the Chicago Purchasing Managers Index on Wednesday, as well as factory orders on Friday.

Next week will be fairly quiet on the earnings front, but two highlights will come in the form of reports from Albertson's (ABS - Cramer's Take - Stockpickr) (Tuesday) and Costco (COST - Cramer's Take - Stockpickr) (Wednesday).

Finally, here are some articles and papers worth reading:

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• Hedge fund manager Steven Cohen is having issues. (Institutional Investor)
• Annual survey of highest-paid hedge fund managers. (Alpha)
• Vonage should have merged rather than gone public. (Fortune)
• Hummingbird is being beaten up for accepting a lower-than-expected buyout offer. (Reuters)
• Fed official: A weak U.S. dollar could mean continued rate increases. (Reuters)
• Technology continues to teem with analysts, although that looks set to change. (The Wall Street Journal)
• Barron's pans second homes and First Avenue, and picks gold and Philips (PHG - Cramer's Take - Stockpickr). (Barron's)
• Petite sizes are getting a pass at major retailers. (The New York Times)
• The other legacy of Enron: Everything is tradable. (The New York Times)
• How the dying real estate boom could be moving to middle America. (Los Angeles Times)
• The European Union is still searching for its purpose. (The Economist)
• Southwest CEO Gary Kelly on the airline's underhedged fuel supplies. (The Boston Globe)
• The tricks and techniques of the best trader on Bay Street. (Globe and Mail)
• Southern England may be headed for its worst drought in 100 years. (The Washington Post)
• Television is shrinking for cellphones, and producers can't keep up. (The New York Times)
• Research: Kidnappings are bad for the economy. (SSRN)
• Research: Stock and bond returns with moody investors. (SSRN)
• Why gasoline prices have increased in 2006. (doe.gov)

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