Good Sunday morning, happy holidays, and welcome to Weekend Reading. 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 the first downbeat week on the major markets in weeks, with the Dow and the S&P 500 losing 0.8% and 1.1%, respectively, while the Nasdaq Composite lost 2.3%. Click here for the weekly performance.
Bears are somewhat mollified after what has been, for them, a horrific end to the year, with markets in nonstop ascendancy. But now they can enter 2007 somewhat reassured, with negative economic data leading to crummy market performance, at least for last week.
While you might think next week will be dead quiet on the economic front, you would be wrong. On Wednesday we will see the latest data on new homes sales, followed Thursday by the latest figures on consumer confidence and existing home sales. Lastly, on Friday we will see the Chicago purchasing managers index.Turning to earnings reports, it is pretty much silent. While Meade Instruments (MEAD) and Learning Tree (LTRE) are both set to report, let's just pretend they're not and take the week off. Finally, here are some articles and papers worth reading: Editor's note: To access some of these stories, registration or a subscription may be required. Please check the individual links for the site's policy.
- Oil continues to slide, in part because of bizarre high temperatures in the northeast U.S. -- as much as 14 degrees Fahrenheit above normal. (Reuters)
- Modelling the economic impact of climate change: Anywhere from a 3% to a 9% reduction in global GDP. (U.K./Stern)
- Strategists call for a 7% year on U.S. exchanges in 2007, with technology leading the way. (BusinessWeek)
- Peru led global stock exchanges in 2006 with a 182% gain. China led the larger economies. (Times of London)
- Nintendo's Wii has stolen the Christmas show from Sony and Microsoft. (Times of London)
- STMicroelectronics is a major supplier of sensor units in lauded Wii controllers. (The New York Times)
- Biggest year for M&A since the dotcom bubble is likely a cycle peak. (Daily Telegraph)
- Michael Lewis with tips for investment bankers looking to slum with family over Christmas dinner. (Bloomberg)
- Barron's picks the U.S. economy (for having shed manufacturing) and Peabody Energy, and pans ... nothing! (Barron's)
- Research: The effect of Asian countries hoarding large international reserves. (IMF)
- Research: Professional traders are better than amateurs at separating signals from noise. (NBER)
- Founder of futures trading loves housing futures on foreign exchange. (Fortune)
- Iran says it will forge ahead with nuclear enrichment, despite sanctions. (Reuters)
- Expensive tech products -- and not just flat-screen TVs -- are the hot Christmas gifts. (Los Angeles Times)
- AT&T still has global dominance ambitions. (Forbes)
- Johnson Controls is a beneficiary of climate change and the greening of everything. (Forbes)
- Beware overpriced debt markets in 2007. (The Economist)
- Investors are pouring back into equities all over the world. (Daily Telegraph)
- The DVD business is flatlining and looks set for major declines. (New York Post)
- Forbes editor predicts 4% global GDP growth -- and even flat-screen-driven growth for hockey and soccer. (Forbes)
- 2006 IPO reviews show that IPO returns beat the broader market, and that public offerings are set for more growth. (IPOHome)
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