Stock Market Update

So are you feeling any richer today than, say, last Sunday?

You should be, at least if you have an IRA, 401k, 529 college savings account or any other investments in the stock market.

The market did suprisingly well last week, with the Dow closing above 9000. Led by strong earnings reports, the new question is "can the market keep chugging?"

There is a lot on the agenda this week, so investors need to take note.

First up, a deluge of earnings is scheduled to continue with Dow, Exxon, Chevron, Disney and Verizon leading the charge. If reports are good look for a strong finish to July.

However, August has been a traditionally slow period, as investors and bankers take vacations for the month. It might create opportunities for short-sellers looking to capitalize upon a very dicey economic recovery in both the United States and abroad. Combined with a White House that is fiercely arguing its points on healthcare reform, traders are apprehensive to call this a recovery - at least not yet.

There are far too many questions left unaswered at this point, and if anything, the economy will continue to weigh down a true recovery for the next 60-90 days. Unemployment will likely go above 10% when the government reports next and experts aren't sure where it will top out. Housing starts are not showing tremendous signs of recovery and consumer confidence barely exists. Throw in Microsoft and Amazon missing estimated earnings and it's clear not much has changed.

However, several conversations with purchasing managers this past week indicate a small uptick in orders occurred in metals and fluids, indicating that there is something going on out there. Perhaps it is stimulus dollars making their way into the economy or commitments that finally developed over many months ago. Regardless, it seems to me that next year at this time the economy will be heading back into full gear.

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