On Friday, all three major stock market indexes posted gains for the day. For the week, the Dow and the S&P 500 both advanced 3.2 percent and the Nasdaq advanced 3.1 percent. This was despite unemployment and job loss numbers that came in higher than forecast for the week.

Eighty-eight percent of the S&P 500 companies have now reported their third-quarter earnings and most have exceeded estimates. Investors will now focus on the reports of major retailers in the upcoming week, and they will be especially interested in companies’ outlooks for the holiday season. Macy’s (M), Nordstrom (JWN) and JC Penney (JCP) all report during the week and are expected to show losses, while the two large discount retailers, Wal-Mart (WMT) and Kohl’s (KSS), are expected to show profits.

Major banks in Europe will release quarterly earnings statements during the week, and those reports will be of interest as an indicator of how sound the worldwide banking system is.

News from next week’s Reuter’s Health Summit is expected to provide evidence that major pharmaceutical companies are working to cut costs and to diversify, and that research is again turning productive. But many patent expirations are looming, and investors are anxious that the sector will continue to underperform the broader market.

On Friday, the U.S. international trade deficit for September will be released; it is forecast to come in at $31.6 billion, nearly one billion higher than the previous month. Also on Friday, the first consumer sentiment reading for November is expected to reveal a slight increase over October’s final reading.

6 Stocks to Watch

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

Akamai Technologies, Inc. (AKAM)
Chevron Corporation (CVX)
Johnson Controls, Inc. (JCI)
Newmont Mining Corporation (NEM)
Starbucks Corporation (SBUX)
The Travelers Companies, Inc. (TRV)

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