The financial markets will undoubtedly have another volatile week ahead of them after some of the wildest trading days in years last week. Last week was packed full of news, with our story stock from earlier this week Countrywide Financial Corporation (NYSE: CFC) dipping into an 11.5 billion dollar line of credit, then the Federal Reserve cutting the discount rate Friday morning. 
The week ahead has some important economic numbers and some companies of note reporting earnings. Thursday brings the leading indicators and durable orders economic reports, and Friday the new home sales figure for July will be announced. Particularly the housing number will be watched, with many traders and investors wanting to know just how bad things are in the housing markets.
On Monday, Lowe's Companies, Inc. (NYSE: LOW) will report their most recent quarter earnings, which will certainly be watched closely after The Home Depot Inc (NYSE: HD) had a lackluster report recently. On Tuesday Target Corporation (NYSE: TGT) will release its earnings and many analysts will want to see if it is having problems similar to Wal-Mart Stores Inc (NYSE: WMT) or not.
Now is a great time to pay close attention to the corporate profit picture and the earnings results coming out of some major companies. Many wall street bulls, including myself, predicate their bullish argument on strong corporate profits and if these profit begin to deteriorate in any significant way it certainly will have a large effect on the market. Corporate earnings eventually always drive a stock's price, so if many companies continue to crank out great growth and a strong balance sheet, it is likely the markets will do just fine in the intermediate term (6 months to 2 years), but if things turn in the profit picture this may be more than a correction.
Keep an eye on those corporate profits this week as well as the economic numbers coming out. Stay ahead of the market, and let's grow our funds!
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