Weekend Reading

Good Sunday morning, 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 a down week on the major markets, with all three major U.S. indices declining. The Dow Jones Industrials Average lost 0.57%, the S&P 500 fell 0.60% and the Nasdaq Composite was down 0.65%.

Looking forward to next week, it's likely to be choppy, with crude oil playing the spoiler role. Now that the commodity has rebroken the $60-a-barrel mark, all eyes are on it and the factors that could boost its price: growing tension with Iran over that country's nuclear program, Iran's apparent supplying of weapons to Iraqi insurgents and the reduction in Nigerian exports.

Turning to economic indicators, the trade deficit for December is scheduled for release Tuesday. The forecast is for it to rise slightly from November. Next up will be January retail sales, slated for Wednesday. The Reuters forecast is for a 0.3% gain, both overall and excluding autos. Other releases next week include PPI and housing starts, both due Friday, and the preliminary University of Michigan consumer sentiment figures for February.

Turning to earnings reports, things are really slowing down now, but there are still a few companies worth watching. S&P 500 member MetLife(MET Quote) will report, as will Coca-Cola(KO Quote), Yum! Brands(YUM Quote), Applied Materials(AMAT Quote), Whole Foods(WFMI Quote), Garmin (GRMN Quote), Build a Bear(BBW Quote) (a huge short-seller target), and IPO bust Vonage(VG Quote).

Finally, here are some articles and papers worth reading:

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• Fortress'(FIG Quote) IPO is a watershed moment for hedge funds. (Bloomberg)
• One reaction to the Fortress post-IPO pop: Are you stoned? (Information Arbitrage)
• People had a similar (wrong) reaction to Goldman Sachs'(GS Quote) IPO. (Los Angeles Times)
• Funny "two cows" descriptions of hedge funds, mutual funds, etc. (Bloomberg's Mark Gilbert)
• Craigslist continues to confound. (The Christian Science Monitor)
• Calpers complains loudly about hedge fund fees: It doesn't like paying up for average market risk. (Bloomberg)
• Much-heralded Google(GOOG Quote) radio ad strategy is seemingly falling apart. (InfoWorld)
• Interview with new FDA chief shows his laissez-faire approach. (The New York Times)
• Barron's tips Costco(COST Quote) and Novo Nordisk(NVO Quote), while planning Blackstone's purchase of Equity Office Properties(EOP Quote). (Barron's)
• The threat of regulation is the biggest risk currently facing private equity. (The Economist)
• Almost half the hedge funds that relocated to the Virgin Islands have left, citing IRS harrassment. (Bloomberg)
• Rock star Bono is an investment empire. (Bloomberg Markets)
• The history and importance of the ARCH model for stock volatility. (Bloomberg Markets)
• University of Phoenix's troubles continue to grow. (The New York Times)
• New survey shows median down payment of recent first-time purchasers was 2%. (Los Angeles Times)
• Renewable energy has brought out the penny stock promoters. (Forbes)
• Another fairly savage pan of Microsoft's(MSFT Quote). Windows Vista. (Forbes)
• Speculators and low rates have made for a cheap yen, while putting the economy at risk. (The Economist)
• Dollar-sorted list of winners from Google's YouTube purchase. (Dabble)
• New Web techniques are messing up online traffic statistics. (AP)
• Books: A new book on the biotech business is getting positive press. (Amazon/The New York Times)

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