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 papers worth reading.

It was a good week for the major markets. Buoyed by technology stocks and a sense that the world's economies are bottoming, markets trended markedly higher. Last week the Dow Jones Industrial Average rose 7.3%, the S&P 500 advanced 7% and the Nasdaq Composite 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 Ben Bernanke will be on Capitol Hill twice next week to talk about the U.S. economic outlook and monetary policy. Next week will also bring data on June existing-homes sales, plus weekly jobless claims and July consumer sentiment.

As for earnings, companies reporting next week include American Express ( 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. Please check the individual links for each site's policy.

RealMoney Barometer Poll
1 What would best describe your stance heading into the coming week of trading?
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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?


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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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