Companies featured in this edition of the newsletter: CHIP, ENZ, GERS, IWEB, OMCM, ONEZ, XSNX

Markets hit fresh highs for ‘09 yet again last week, as the first round of earnings helped to assuage investor concerns that operating results would underpin robust gains in equities this year. All told, the Dow gained 130 points to end the week at 9995 after briefly cracking the 10,000 mark, gaining 1.3% on the week and extending its gains to 13.9% on the year. The Nasdaq gained 0.8% on the week to close at 2156, up 36.8% on the year, while the S&P 500 and Russell 2000 gained 1.5% and 0.2% respectively, bringing their YTD totals to 20.4% and 23.4%.

Earnings stole the spotlight last week as things got off to a strong start early with JP Morgan handily beating expectations calling for $0.51 per share, reporting earnings of $0.82 per share. Citigroup

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Oil broke out of the $65-75 holding pattern of the last five months on strength of a declining dollar, speculation about rising consumer confidence, and potential growth next year in the global economy. Above $79 a barrel this morning before declining slightly, oil set a record high for this year of $79.05 and has been hovering just under that mark since.

As the market looks to 3Q profitability data from major retailers this week, including McDonald’s, Apple, Hasbro and Whirlpool, there is a strong desire to see overall consumption start to increase, which would further justify rising energy and commodity prices.

The dollar continues its decline, driving oil prices upwards, with the recent flap about China and Russia seeking to denominate oil in some other currency, calling its status as the reserve currency into question. This readily observable phenomena of the declining dollar is taken by many as a good

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Get Paid To Trade With Dividends

by Ryan Cole, Investment U Research

According to Wharton finance professor Jeremy Seigel, one of the more respected minds in economics, 97% of stock market gains come from one thing and one thing only.

Most people immediately assume one of three answers, but don’t fall to the same misconceptions that the masses do. Contrary to what you may think, the vast majority of stock market gains do not come from:

Capital Appreciation – The occasional home run aside, stock prices tend to even out over time, at only a little better rate than inflation. M&A activity – Most investors won’t see takeovers or mergers make any real difference in their overall portfolio. IPOs – Though IPOs do represent some of the largest single-day moves, the underlying stocks usually settle down into normal trading patterns fairly quickly.

Instead, 97% of all the gains the

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Forget Charles Dickens and A Tale Of Two Cities, I’m talking about right now. After all, when was the last time the U.S. government was willing to give you as much as $4,500 to help you buy a new car . . . and a car company was willing to match it? Also, when was the last time you remember house prices falling 30%?

The story goes that the word “depression” was chosen by President Hoover as a way of describing the economic crisis of the 1930s, because the previously used word “panic” sounded too alarming. Well, with unemployment approaching double digits, and home foreclosures at the highest rate in memory, most Americans are a little depressed right now. But the flip side of the coin is that companies are scrambling to stay in business, and providing consumers (at least the ones who have some loose change left to spend)

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DreamWorks Animation SKG, Inc. (Nasdaq: DWA): Stock of the Day

Judith Martin, The Investment U Research Team

For less than the cost of just one mango margarita – I won’t get into the cost of the popcorn – you could be in an air-conditioned theater with friends or family for the matinee showing of a summer blockbuster.

Like many looking to get away from it all, I’ve been spending most of my summer Sundays at the movies. Too often, as I stroll in late, I find the theater is already packed.

It’s not surprising. Entertainment often does well in economic downturns, leading many to call it “recession proof.” More correct, would be to call it “recession resistant.”

The fact is, there are a number of movies and movie companies that are raking in the dough right now. And there’s no company profiting

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