Despite a surprisingly high loss of jobs reported on Friday, both the Dow, at 10,618 points, and the S&P 500, at 1144 points, registered 15-month closing highs. The Nasdaq gained 17 points and closed at 2317. For the week, the Dow was up 1.8 percent, the S&P 500 was up 2.7 percent, and the Nasdaq was up 2 percent.

The unemployment rate continues to disappoint, with last Friday’s non-farm payrolls report revealing a loss of 85,000 jobs. Creating jobs is crucial to ongoing economic recovery once stimulus dollars are no longer available. But with the unemployment rate remaining at ten percent, the Federal Reserve is unlikely to raise interest rates from their current near-zero level.

On Monday, Alcoa Aluminum (AA) will report its fourth quarter earnings. Analysts expect a five cent per share profit, compared to 2009’s twenty-eight cent loss. Alcoa will be the first of three Dow components to report next week, with Intel (INTL) reporting on Thursday and expected to show 40 cents per share earnings, and JP Morgan (JPM) reporting on Friday.

On Thursday, retail sales figures for December will be released. They are anticipated to show an increase of 0.5 percent, compared to November’s 1.3 percent increase. Thursday will also bring the weekly initial unemployment claims report.

On Friday, data for consumer prices will be released and is expected to show a rise of 0.2 percent, an indication that inflation is being held at bay. Industrial output figures are expected to rise by 0.6 percent, a rate slower than that of November. Credit card charge-off data, earlier having shown signs that it had leveled off, is now expected to show on Friday that it is on the rise again.

Six Stocks to Watch

Citrix Systems, Inc. (CTXS)
Limited Brands, Inc. (LTD)
Molex Incorporated (MOLX)
Tyco Electronics Ltd. (TEL)
Union Pacific Corporation (UNP)
Varian Medical Systems, Inc. (VAR)

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