Weekend Reading: Magnetic Attraction

The Dow's proximity to 11,000 is likely to pull the market higher in the year's final sessions.
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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

Dow

and the

S&P 500

advanced 0.9% and 0.6%, respectively, while the

Nasdaq

lost 0.2%.

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:

Circuit City

(CC) - Get Report

,

MorganStanley

(MS) - Get Report

,

Nike

(NIKE)

, and

General Mills

(GIS) - Get Report

.

Finally, here are some articles and papers worth reading:

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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

pkedrosky@thestreet.com.

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