Stocks to Watch for Wednesday July 21

Earnings season is in full swing, and several high-profile companies are reporting their second quarter earnings tomorrow.  Among the list, including Coca-Cola (NYSE:KO) and Morgan Stanley (NYSE:MS), is Starbucks (NASDAQ:SBUX).  Analysts expect earnings of $0.28 per share, which would signal a successful path of recovery for a company that had overexpanded, brought back its founder as CEO, and turned more towards community and service from corporatism.  In addition to this good sentiment, UBS maintains a buy rating on the stock, and it has a target price of $31.00, which would represent a gain of more than 20% from Tuesday's closing price.  For this reason, I would advise the intelligent investor of the short or long term to add this stock to his portfolio.  It will likely prove prudent at tomorrow's close, and in the months to come.

Volatile Times

It has been several weeks since my last post due to personal business, yet the market is at about the same point as it was when I last posted.  The DJIA seems magnetically attracted to a number between ten and twelve thousand, so the seasoned (and lucky) day trader can make large sums of money on the intra-day volatility as well as the periodic swings the market has experienced.  As I mentioned in my first posts, Harvest Natural Resources (NASDAQ:HNR) regularly swings between around $8.00 and $9.00, usually within about week's period.  Adding this stock to your portfolio around $8.00 is prudent for nearly any investing strategy, but I would not advise short-selling this stock any time soon.  Other analysts have given this stock a price target of $12 which would mean a 48% gain from today's close.

I also recommended watching DVN several weeks ago.  It has lost over 7% from that date with little change in circumstances and so is looking more attractive than ever.  However, it is risky to buy this security now, as it could easily fall further for scant reasons.

With Obama planning to sign the financial overhaul bill later this week, the markets should remain volatile for the foreseeable future.  I will cover the long-term implications of this bill's passage later this week.