Alcoa Inc (AA) kicks off earnings season on Wednesday. Other big names reporting next week include PepsiCo (PEP), Yum Brands Inc (YUM), Costco Wholesale Corp (COST) and Monsanto Co (MON). The U.S. stock market could see trouble next week if the start of the third-quarter earnings season shows little evidence of an economic recovery. With second-quarter earnings boosted by cost-cutting, investors want to see revenue growth this quarter to show that consumers and businesses are spending.

Weak economic reports in past week have given investors a reason to second guess an economic recovery. On Friday, Non-farm Payrolls showed U.S. workers losing more jobs in September than expected.

More takeover deals could help drive next week's market action. Deals this past week included Xerox Corp's (XRX) planned purchase of Affiliated Computer Services Inc (ACS). On Thursday, Mexican brewer and bottler FEMSA (FMX) said it is in talks with several companies about a possible deal involving its beer business.

Next week's economic calendar is light, but Monday will see the release of the Institute for Supply Management's September index. The ISM non-manufacturing index is forecast to rebound to 50.0, the dividing line between contraction and growth, after hitting 48.4 in August. On Thursday, investors also will watch monthly sales reports from major retailers.

Federal Reserve Chairman Ben Bernanke is scheduled to give a speech on the U.S. central bank's balance sheet before a Fed conference in Washington on Thursday. Then on Friday, Fed Vice Chairman Donald Kohn will speak on monetary policy and the financial crisis at the same conference.
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7 Stocks to Watch

We're watching seven stocks this week for potential breakouts. Our seven stocks on the watch list are the following:

The Allstate Corporation (ALL)
Apple Inc. (AAPL)
Colgate-Palmolive Company (CL)
General Mills, Inc. (GIS)
Invesco Ltd. (IVZ)
Schering-Plough Corporation (SGP)
The Coca-Cola Company (KO)

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.