Good morning, and welcome to another edition of Weekend Reading.First a look back at the week that just finished, then a look forward at the week ahead, and, lastly, a summary of articles and papersworth reading.

It was a good week for the major markets. Buoyed by technologystocks and a sense that the world's economies are bottoming, marketstrended markedly higher. Last week the Dow Jones Industrial Averagerose 7.3%, the S&P 500 advanced 7% and the NasdaqComposite gained 7.4%. The gains were helped by better-than-expected results from a few earnings bellwethers including IBM ( IBM).

Looking forward to next week, most of the action will be tied to second-quarter earnings. Reports will be coming in a steady stream and are likely to alternately cheer or unsettle investors given the current preoccupation with supporting or refuting the recovery thesis. At a deeper level, however, the real questions should be about the shape of the recovery. It is still far from clear whether consumers' shift to lower spending is transient or permanent. I stubbornly persist in arguing that it's a significant long-term shift as consumers try to heal their balance sheets while protecting themselves from taxes and changing benefit programs in the future.

Turning to economic news, Federal Reserve Chairman BenBernanke will be on Capitol Hill twice next week to talk about the U.S. economicoutlook and monetary policy. Next week will also bring data on Juneexisting-homes sales, plus weekly jobless claims and July consumersentiment.

As for earnings, companies reporting next week include AmericanExpress ( AXP), Apple ( AAPL), Boeing ( BA), Caterpillar ( CAT), DuPont ( DD), McDonald's ( MCD), Microsoft ( MSFT),and 3M ( MMM).

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. Pleasecheck the individual links for each site's policy.

  • China revs up its deal-making machine. ( BusinessWeek)
  • Barron's picks media companies, plus Banco Santander (STD). ( Barron's)
  • China's evolving external wealth and rising creditor position.(Bank for International Settlements)
  • Windscapes - American Vistas Where Energy Is in the Air. ( The New York Times)
  • California Property Taxes Are On a Very Bad Roll. ( BondBuyer)
  • U.S. refining capacity continues to climb. ( Energy Information Administration)
  • Commodity trader John Henry is back in the game. ( Bloomberg)
  • Toyota (TM) is stalling amid an onslaught from the Koreans. ( Bloomberg)
  • Britain faces massive spending cuts and a possible currencycrisis. (Bloomberg)
  • Keynes Arouses Fed as ECB Looks for Monetary Exit. ( Bloomberg)
  • Obama's Tax-and-Spend Tastes Seduce Democrats. ( Bloomberg)
  • Commercial brokers are swimming in empty space. ( LosAngeles Times)
  • Fiscal ruin of the Western world beckons. ( Telegraph)
  • In Washington, One Bank Chief -- JPMorgan's (JPM) Dimon -- Still Holds Sway. ( The New York Times)
  • Picking Winners in the Next Bull Market. ( The New York Times)
  • Mutual fund incubation. ( TheJournal of Finance)
  • Personal bankruptcy and credit market competition. ( TheJournal of Finance)
  • Residents set for typhoon fury. ( Shanghai Daily)
  • CIT (CIT) in talks with bondholders as bankruptcy looms. ( Reuters)
  • California's budget gap won't close for long. ( Reuters)
  • China index market cap will surpass in 3 years, says Mobius. ( Bloomberg)
  • Yellowstone resort changes hands out of bankruptcy. ( The New York Times)

RealMoney Barometer Poll
1 What would best describe your stance heading into the coming week of trading?
Bullish
Bearish
Neutral
2 Which of these sectors do you think is set to move up in the coming week?
3 Which of these sectors do you think is set to move down in the coming week?

View the results without voting

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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