Weekend Reading: More Churning

 

Good Sunday morning, and 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 the first down week in ages for most of the major markets, even if the Nasdaq didn't go along. (See table below.) Nervousness about banks, weak earnings and a slowing of recent gains -- which have taken the markets up 25%-plus -- were all causes.

Next week looks like more of the churning same. We face more earnings reports, more chatter around the bank stress tests, a teetering auto sector, capital raises and a host of economic indicators. While that doesn't mean that the market will weaken materially, it does mean -- when combined with much higher equity levels -- that we likely will churn in place for a spell.

Turning to economic indicators, next week we will see the S&P/Case-Shiller home price index, the Conference Board's April consumer confidence reading and the first-quarter GDP number. Other data set to be released include weekly jobless claims, March personal income and spending, and a report from the Institute for Supply Management on manufacturing activity.

As for earnings, the coming week will bring reports from Exxon Mobil (XOM), Chevron (CVX), Pfizer (PFE), Verizon (VZ), Procter & Gamble (PG), Viacom (VIA), Clorox (CLX), Kellogg (K) and Colgate-Palmolive (CL).

Finally, here are some articles and papers worth reading:

Editor's note: To access some of these stories, registration or a subscription may be required. Please check the individual links for each site's policy.

 

  • How Bernie Madoff did it. (Fortune)

 

 

 

 

  • Barron's poll is very bullish, plus a Suncor Energy (SU) pick. (Barron's)

 

 

 

 

  • Hooray for Boring Banks. (Time)

 

 

  • The recession is withering the alternative-energy business. (CFO Magazine)

 

 

  • The capital well is running dry and some economies will wither. (Telegraph)

 

 

 

 

  • Chrysler bankruptcy not liquidation sign. (MarketWatch)

 

 

  • The scary rise of the "empty creditor." (Slate)

 

 

 

 

  • Swine flu epidemic fear grows, world on alert. (Reuters)

 

 

  • GM's Doomed Future. (Forbes)

 

 

  • Crash of the Rocket Scientists. (Forbes)

 

 

  • Bound to Burn: Carbon trading and the future. (City Journal)

 

 

 

 

 

 

 

 

 

 

 

 

  • Fear of Fire Sales and the Credit Freeze. (NBER)

 

 

  • Experts and Their Records. (NBER)

At time of publication, Kedrosky had no positions in stocks mentioned, although holdings can change at any time.

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. He maintains a widely read blog called Infectious Greed.

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 appreciates your feedback; click here to send him an email.

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