Weekend Reading: Bracing for Bankruptcy

Welcome to another edition of Weekend Reading. First, a look back at the week that just finished, then a look forward to the week ahead and, finally, a summary of articles and papers worth reading.

It was a week of consolidation on the major markets. After an upbeat beginning, at least outside of Japan, things never really got back on track. The major U.S. indices ended the week up slightly.

Looking ahead to next week, autos are going to be front and center, with GM's(GM Quote) June 1 deadline looming. A bankruptcy filing by the automaker is the biggest risk the market faces, even if market participants believe they already understand the implications and have incorporated its likelihood into their thinking and trading. Also next week, there is going to be continuing skittishness about the behavior of U.S. credit markets, with many feeling that last week marked an important inflection point in the perception of U.S. creditworthiness.

Turning to economic indicators, on Friday we will see an estimate of U.S. gross domestic product for the first quarter. It is forecast to have shrunk at an annual rate of 5.5%. This week will also see May consumer confidence and May housing data, including existing-home sales.

As for earnings, it will be a quiet week, although names like Tiffany(TIF Quote), American Eagle(AEO Quote), Costco(COST Quote), Marvell Technology(MRVL Quote) and Dell(DELL Quote) plan to report.