The Week Ahead: Despite a strong GDP report showing a resilient and flexible economy, selling capped a wild week in the stock market. Tighter credit and a slower housing market are seen as big concerns going forward. Reports to watch include the construction spending numbers for June, consumer confidence figures for July, and the 2nd quarter employment cost index on Tuesday. With crude oil approaching new highs, watch the inventory report Wednesday and the ISM Manufacturing Survey. June factory orders are out on Thursday and the July jobs report on Friday.

Stocks to Watch: Earnings from companies in significant industries will be closely watched this week. They include reports Monday from telecommunications giant Verizon (VZ), and the financial service firm of HSBC Holdings (HBC). Tuesday brings quarterly results from auto giant General Motors (GM) and the mass media company of CBS Corporation (CBS). Wednesday's slate includes Time Warner (TWX), Disney (DIS), and Starbucks (SBUX). Thursday watch earnings from NYSE Euronext (NYX), Viacom (VIA), and (AIG). Finally, Friday a report from the consumer brands company of Procter and Gamble (PG).

Special Note: It would appear that economists may have underestimated the housing problems associated with sub-prime lending practices as this may only be the tip of the iceberg in terms of over leverage in all markets. Tighter lending standards will impact most industries and therefore the economy as a whole negatively. If the DOW breaks the 13150 level, this would be the first signal that the spiraling parabolic rise on the monthly chart has ended, and the much anticipated 10%+ correction has begun. Caution is advised. Use rallies to raise cash.


Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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