Good Sunday morning. Here are some articles and papers worthreading. First, however, a look back at the week that just finished,and a look forward at the week ahead.
It was an uncertain week last week for the major markets, with twoof the three indices gaining ground. The
advanced 0.9% and 0.6%, respectively, while the
Click here for the weekly performance.
So what awaits next week, the last real trading week of 2005? Thegeneral view is that the 11,000 level on the Dow will continue to exert a significantmagnetic attraction, pulling the market higher into the end of the year.While that would put the Dow only just above its March highs, it would mean a single-digit gain for the whole year. The incoming data, while mixed, are generally skewed to the positive side, so traders are likely right about the strange attraction of Dow 11,000.
Turning to the economic week ahead, it is busy. We have theproducer price index, an inflation measure, due Tuesday, along with November housing starts. Thursday will see the release of November's leading economic indicators. The week ends with a bevy of data, with durable goods orders, the University of Michigan's consumer confidence report and same-month new home sales all due Friday.
Next week is fairly quiet on the domestic earnings front. Here aresome of the companies expected to report results:
Finally, here are some articles and papers worth reading:
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- BusinessWeek'sroundtable on 2006 fairly neutral on equity outlook (BusinessWeek)
- Biotechsector has had a good run in last half of 2005, but there arestill some interesting ideas out there (BusinessWeek)
- Barron's getshappy, tipping Napster and Tribune as takeover targets, and sayingnice things about AIG and Boeing (Barron's)
- Googlemay be near a dangerous cusp in its growing struggle withincreasing amounts of data (Byte & Switch)
- Someworry that Google's decision to give high ad placement to AOL inits new deal amounts to "jumping theshark" ( Bloomberg/Battelle)
- Novartisrumored to be set to launch a rival bid for drug-maker BernaBiotech (Reuters)
- PayPalis increasingly becoming the choice of small business invoicing,taking a chunk out of high-margin credit businesses (The New York Times)
- Portablealpha-enhanced index funds are drawing fans and detractors (The New York Times)
- NewYork Life is making a push into hedge funds (IDD)
- Thetechnology IPO market was down from 2005, but optimists looksforward to 2006 (IDD)
- Pfizer'spatent win against generics in the Lipitor case is a serious blowto generic drug makers (Financial Times)
- Internetretailers like Amazon and Ebay look to be markedly largerbeneficiaries of holiday shopping this year (The Washington Post)
- Anotherbrokerage firm, Fulcrum Global Partners, is backing out of equityresearch (Institutional Investor)
- ex-EnronCEO Kenneth Lay had a point in his public self-defense this pastweek (Bloomberg)
- Thereal news from the WTO is not the small step on agriculturesubsidies, but that Doha is back on track (Bloomberg)
Dr. Paul Kedrosky is a former highly ranked sell-side technology equity analyst, and he currently runs a technology finance institute at the University of California, San Diego. He is also a venture partner with Ventures West, an institutional venture capital firm with more than $400-million under management. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Kedrosky cannot provide investment advice or recommendations, he welcomes your feedback and invites you to send your comments to
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