All three major stock market indexes suffered losses on Friday and showed losses for the week. Third quarter earnings reports from 81 percent of the nearly 200 companies already reporting have outperformed analyst forecasts, but investors seem to be looking for additional proof that the economic recovery continues to strengthen.

Apprehension over 2010 outlooks and the quality of earnings may stall the advance of the indexes, and the possibility of consolidation, or even a pullback, seems to grow more likely.

Quarterly earnings reports for the coming week will be dominated by energy, consumer goods and insurance companies. Exxon Mobil (XOM), Chevron (CVX) and Conoco-Phillips (COP) will all show a drop in profits in excess of 60 percent. Proctor and Gamble (PG) and Colgate-Palmolive (CL), whose second-quarter earnings suffered as American consumers turned away from name-brand goods, are now expected to emphasize success in markets outside the U.S. Life insurers Lincoln National (LNC) and MetLife (MET) will provide investors with good news because rising equity markets have grown their market-linked annuities. But health insurers such as Aetna (AET) and WellPoint (WLP) are struggling with falling enrollments as companies lay off workers and reduce benefits.

Economic data for the week includes Tuesday’s Case/Shiller home index report, and Wednesday’s reports on new home sales and for U.S.-made durable goods. All are forecast to be positive. But negative news awaits in the personal income report for September and the consumer index for October.

The single most anticipated report for the week is third-quarter GDP. Investors expect to see growth of 3.3 percent, a welcome turnaround after three consecutive quarters of contraction.

4 Stocks to Watch

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

Intuitive Surgical, Inc. (ISRG)
Salesforce.com, inc. (CRM)
Thermo Fisher Scientific Inc. (TMO)
V.F. Corporation (VFC)

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