For those that do not own Google, the market turned in a weak performance last week, led by a new 2004 low for the Dow Industrial Index. The Dow lost 175 points last week, or 1.8%, and is now down 6.7% for the year, thanks to weakness in insurance and financial stocks. The S&P 500 fell 12 points, or 1.1% and is down 1.5% this year. The Russell 2000 declined by almost 2 points, but is up 2% for the year. The NASDAQ continued its recent outperformance, gaining 3 points, but is still down 4.4% year-to-date.

While the market has been generally been bearish for the past six months, many are becoming more confident that there could be trading opportunities for long investors beginning next week. Seasonal factors have been negative for the market for the past six months, but with October coming to a close, mutual fund managers could try to boost performance by driving stocks higher before they "close the books" for the year at the end of the month. This would suggest that traders seek to identify large-cap opportunities with a high concentration of mutual fund ownership. November also tends to begin a period where stocks have historically outperformed. Another favorable factor is that by the end of this week, most of the companies in the S&P 500 will have reported results, eliminating much of the "headline" risk surrounding earnings.

There are two factors that are more difficult to predict, the election results and the price of oil. Investors however could argue that both of those could help the market. Many analysts suspect that six months from now, energy prices are more likely to be lower than higher, and with the market seemingly trading like one big energy stock, a decline in the price of oil could serve as a catalyst. The market also seems be fearing that a close election could lead to a repeat of 2000, where the country was paralyzed by a "hanging chad". A repeat is unlikely and that a definitive outcome from the vote could also serve as a reason to bring buying into the market.

Earnings Season is in full force, and last week nearly half of the companies in the S&P 500 announced results. What can we learn from earnings about the strength of the economy? Of those companies that have already reported, 26% have missed on revenue guidance, while nearly 47% have exceeded Wall Street expectations on earnings per share, according to data from Reuters Estimates. As a result of weak top-line growth, the market has turned in lackluster performance to date. What should investors look for this week? Monday morning, Hilton Hotels (HLT) and Kellogg (K) report results. During trading hours, American Express (AXP) posts profits. After the close, EDS (EDS) and Flextronics (FLEX) announce results. Tuesday morning, BellSouth (BLS), DuPont (DD), Halliburton (HAL), L-3 Communications (LLL) and Lockheed Martin (LMT) report results. Wednesday morning, Boeing (BA) and Northrop Grumman (NOC) release quarterly results. Thursday morning, Verizon (VZ) and Imclone (IMCL) release results. Oracle Corporation (ORCL) holds a Shareholder's Meeting on Friday.

On the conference calendar, Rodman and Renshaw holds a three-day conference for small biotech companies beginning Tuesday in New York. Prudential's Equity Group hosts a two-day Technology Conference in New York beginning Wednesday in New York. C.E. Unterberg holds a two-day Specialty Pharmaceutical Conference starting Wednesday in New York. On the economic front, September Existing Home Sales will be reported on Monday. October Consumer Confidence, which could be a leading indicator for the Presidential Election, is released on Tuesday. Wednesday, September Durable Goods Orders and New Home Sales will be reported. That afternoon, the Fed's Beige Book has the potential to influence trading. Thursday will bring weekly jobless claims. Friday's data has the potential to move the market the most, as Q3 GDP will be reported for the first time, along with the October Chicago PMI and the revised October Michigan Sentiment Index.

Stay Tuned!