Lawson, Visteon on Under $10 Watch List

After the latest round of economic and earnings data, we felt it was a good time to give readers a quick update on what we expect from the market in the short term. In addition, we are adding two stocks to our Watch List today. (Much of this article was sent earlier to our subscribers. If you would like to see all our alerts and stock picks, click here for a free trial.)

On Friday after the close, FedEx(FDX Quote - Cramer on FDX - Stock Picks) sharply lowered its fourth-quarter guidance. From the headlines we read, the miss was caused by a rise in oil prices, as the company said, "While we have dynamic fuel surcharges in place, they cannot keep pace in the short term with rapidly rising fuel prices." However, management also said, "The weak economy has restrained demand for U.S. domestic express package and LTL freight services."

FedEx is widely viewed by many as an economic bellwether, and despite the warning, shares finished Monday's trading day relatively flat. We also saw negative news from bond insurer MBIA(MBI Quote - Cramer on MBI - Stock Picks) on Monday, which included a quarterly loss of $2.4 billion, and the stock closed 5% higher that day.

Turning to the economy, a number of media reports suggested that Monday's broad rally in equities was due to the stronger dollar. However, during this most recent earnings season, most S&P 500 companies exceeded estimates because of the weaker dollar, as a large amount of business is now conducted overseas. Also, most economists suggest that the only reason first-quarter GDP (gross domestic product) was not negative was the surge in exports -- again attributed to the weak dollar.