Jim Cramer Blog

Stocks were mixed in trading on the final day of a volatile week, with the Dow and S&P each posting gains. Meanwhile, the Nasdaq closed lower on the day as earnings from Dell (Nasdaq: DELL - News) fell short of expectations. The Dow added 60 points to close at 13,372, with the S&P added 11 points to end at 1,481 for the day. The Nasdaq closed down -7 points to close at 2,661 for the week. Light, sweet crude dipped on the day to settle at $88.71 for January delivery. Treasury and gold prices both fell, while the dollar gained against the euro and the yen.
In economic news, Fed Chairman Ben Bernanke fueled speculation of a December rate cut during a speech last night when he said the central bank will have to be "exceptionally alert and flexible" as consumers are likely to face headwinds in the coming months due to the credit environment, housing market, and high energy costs. Adding to rate-cut predictions is a report from the Commerce Department that showed individual income and spending slowed in October. According to the report, income earned by individuals rose 0.2%, which was below the 0.4% economists had predicted. Spending by consumers was also weaker than expected gaining just 0.2% in October, compared to the 0.3% rise economists had forecasted.
On the earnings front, shares of Tiffany (NYSE: TIF - News) were off -4.8% in trading despite reporting third-quarter earnings that more than tripled. For the quarter, the company posted net income of $98.9 million, or 71 cents per share, up from $29.1 million, or 21 cents per share, a year earlier. Excluding a gain of 48 cents a share resulting from the sale-leaseback of its Tokyo store, the company would have earned 23 cents per share. Sales for the quarter jumped to $627.3 million, up 18% from $531.8 million, in 2006. Analysts, on average, were looking for a profit of 25 cents per share on revenue of $616.2 million.
After yesterday's close, J. Crew (NYSE: JCG - News) posted third-quarter profits that beat Wall Street expectations. The apparel maker recorded net income of $26.8 million, or 42 cents per share, up from $26.0 million, or 40 cents per share, last year. Revenue for the quarter climbed to $332.7 million, up 21% from $275.6 million, a year ago. Analysts had expected earnings of 36 cents per share on $312.3 million in revenue. Shares of J. Crew soared in trading and were up 19.2% at the bell.
After the bell yesterday, Dell reported third-quarter earnings of $766 million, or 34 cents per share, up 27% from $601 million, or 27 cents per share, last year. Excluding a series of one-time charges and gains, Dell would have reported a profit of 35 cents per share. Revenue in the quarter rose 9% to $15.64 billion. On average, analysts were looking for Dell to post profits of 35 cents per share on $15.34 billion in revenue. Shares of Dell tumbled -12.8% on the day, as the company also warned that future earnings may be affected by market shifts, although no specific guidance was given.
In other corporate news, Morgan Stanley (NYSE: MS - News) announced Thursday that its co-presidents Zoe Cruz and Robert Scully will be stepping down. The move is the latest in a series of restructuring announcements following mortgage-related losses that have plagued the financial sector. According to the announcement, Cruz, who was once considered a potential CEO candidate, will be retiring, and Scully will move to a newly created position. Shares of Morgan Stanley were up 0.7% at the bell.
Elsewhere, shares of Motorola (NYSE: MOT - News) traded 2.0% higher today after the company announced that its CEO, Ed Zander, will be stepping down at the end of the year. Taking his place will be the company's current president and COO, Greg Brown.
By the BullMarket.com Staff

Labels: DELL, Dell Inc., Morgan Stanley, MOT, Motorola Inc., Robert Scully, Zoe Cruz

The ouster of Zoe Cruz, one of Wall Street's most powerful female executives, as Morgan Stanley's (NYSE:MS - News) co-president after a $3.7 billion mortgage loss has raised questions about how big the ultimate write-down will be - and how much investors will notice.
Cruz's unexpected departure on Thursday, after a quarter century at Morgan Stanley, eliminated perhaps the leading candidate to succeed John Mack as chief executive.
The 52-year-old Cruz joined a conga line of banking executives to lose their jobs after more than $50 billion of mortgage losses industry wide. These include the chief executives of Merrill Lynch & Co (NYSE:MER - News) and Citigroup Inc (NYSE:C - News), Stanley O'Neal and Charles Prince.
Cruz oversaw a business that in September and October generated the $3.7 billion pretax loss, reducing overall net income by $2.5 billion. Many analysts have said losses may have grown in November.

Labels: C, Citigroup Inc., MER, Merrill Lynch and Co. Inc., Morgan Stanley, MS, Stanley O'Neal, Zoe Cruz

Eddie Lampert and Sears (SHLD), Citigroup (C): Cramer defended Sears CEO Eddie Lampert, in spite of the retailer's bad quarter. Lampert also has a significant stake in Citigroup, which also performed poorly. "I am not a schadenfreude guy," Cramer said adding that he support Lampert and Sears through this tough patch. Sears' "performance has hit several bumps in the road. ... I'm not abandoning [Sears] , the guy is too darn good," remarked Cramer. He points to Lampert's gigantic gain in K-Mart after having purchased the company for nothing. Sears should be viewed as an 18 month stock, although its performance the last six months has been terrible. Concerning Citigroup, Cramer commented, "I bet Eddie Lampert thought the same way I did.
Published By SeekingAlpha

Labels: C, Jim Cramer, SHLD, Stop Trading

Shares of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. rose Friday morning after an analyst said he expects the Department of Justice to announce it will not block a deal to unite the two.
Shares of XM gained 90 cents, or 6.7 percent, to $14.64, and shares of Sirius rose 12 cents, or 3.4 percent, to $3.65 after the opening bell.
Bear Stearns analyst Robert Peck said that while he believes junior staffers at the Justice Department moved to block the deal, senior staffers probably disagreed and probably will rule in favor of the deal, which would allow Sirius to buy out the much-larger XM.
If the deal is approved, XM shareholders will receive 4.6 shares of Sirius' stock for every XM share they own.

Labels: SIRI, Sirius Satellite Radio Inc., XM Satellite Radio Holdings Inc., XMSR

Stocks rose unevenly Friday, largely extending the week's rally after Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way.
The Dow Jones industrial average rose more than 60 points after earlier rising about 120 points. But the tech-heavy Nasdaq composite index didn't join in the rally after weak quarterly results from Dell Inc.
In a speech late Thursday, Bernanke said persistently tight credit conditions, the housing slump and high energy prices will probably create some "headwinds for the consumer in the months ahead," and the central bank will have to be "exceptionally alert and flexible."
The Fed meets again Dec. 11, and a rate cut could help reinvigorate the slowing economy. Evidence of a more reticent consumer came Thursday in a Commerce Department report that showed consumer spending rising a modest 0.2 percent in October, the slowest pace in four months.
Once the Fed meets and after the cut has happened, expect this stock to shoot right back up to $20 a share. Currently, all the boutique mortgage lenders are going out of business because of the current credit crisis. The stocks to watch are the ones that will be able to push through this tough time. Countrywide Financial will be one of those issues. Today is the start of a 10 point rally for this stock.

Labels: CFC, Countrywide Financial Corp.

Shares of mortgage lenders soared Friday after Federal Reserve Chairman Ben Bernanke signaled his willingness to slash interest rates again to prop up wobbly financial markets.
Bernanke, in a speech late Thursday, said the Fed will be "exceptionally alert and flexible" to find posThis echoes comments from other central bank officers in the past few days suggesting a cut in interest rates next month.
The Federal Reserve's task is to balance growth against inflation by setting an interest rate target that ensures the economy grows neither too quickly nor too sluggishly.
The Fed cut its target rate in September to 4.75 percent from 5.25 percent, and cut the rate further at the end of October to 4.5 percent. Paul J. Nolte, director of investments at Hinsdale Associates, said based on the rally in stocks this week people appear to expect the Fed will cut rates again.
Lower interest rates make it cheaper for mortgage lenders to raise cash and more enticing for people to buy homes. Presumably, they may also lure buyers back into the market for risky mortgage debt, although Nolte said he does not think interest rates will necessarily accomplish this.sible remedies for the housing slump and decaying mortgage credit quality.

Labels: Ben Bernanke, CFC, DFC, IMB, IMH, NFI, TMA, WFC, WM

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
Laps Down 5% or More: These are stocks that lap down by 5% or more and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that lap down by more than 5% have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Overstock.com (NasdaqGM:OSTK - News). OSTK's PowerRating (for Traders) is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
China Finance Online (NasdaqGM:JRJC - News). JRJC's PowerRating (for Traders) is 6.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
E*Trade Financial (NasdaqGS:ETFC - News). ETFC's PowerRating (for Traders) is 4.
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Children's Place (NasdaqGS:PLCE - News) & Interoil Corporation (NYSE:IOC - News). PLCE's PowerRating (for Traders) is 3, and IOC's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Boeing (NYSE:BA - News). BA's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Daktronics (NasdaqGS:DAKT - News). DAKT's PowerRating (for Traders) is 2.
Published By TradingMarkets.com

Labels: BA, DAKT, ETFC, Hot Stocks, IOC, JRJC, OSTK, PLCE

Oil prices fell Friday on expectations that OPEC will increase output next week and on fading concerns of a supply disruption from a U.S. pipeline fire.
Light, sweet crude for January delivery fell $1.55 to $89.46 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. On Thursday, the crude contract gained 39 cents to settle at $91.01 a barrel in choppy trade.
In London, January Brent crude dropped $1.78 to $88.44 a barrel on the ICE Futures exchange.
Oil prices have tumbled this week amid speculation that supplies are rising and a slowdown in U.S. growth will undercut energy demand.
The fire along the oil conduit from Canada to the Midwest caused a spike above $95 a barrel Thursday - and renewed speculation that oil was as back on its way to $100. But by the end of New York floor trading it was clear most of the network was quickly returned to service and that the fire-damaged section was expected to be back up in days.

Labels: Brent Crude, Oil Prices, OPEC, pipeline fire

One of the most powerful women in the financial world became the latest victim of the management purge on Wall Street.
Morgan Stanley said that Zoe Cruz, a 25-year veteran at the firm, was ousted as co-president Thursday in a sweeping management shake-up aimed at turning around the investment bank amid turmoil in the credit markets.
Cruz joins a growing list of Wall Street's top names who have been fired since the summer, including Merrill Lynch & Co.'s Stan O'Neal and Citigroup Inc.'s Charles Prince, for presiding over their firms as they became mired in the subprime mortgage tar-pit.

Labels: Morgan Stanley, MS, Zoe Cruz

Federal Reserve Chairman Ben Bernanke on Thursday hinted that another interest rate cut may be needed to bolster the economy. The worsening credit crunch, a deepening housing slump and rising energy prices probably will create some "headwinds for the consumer in the months ahead," he said.
Bernanke said he expects consumer spending will continue to grow and suggested the country can withstand the current problems without falling into a recession. But he indicated that consumers could turn more cautious as they try to cope with all the stresses.
The odds have grown that the country could enter a recession. A sharp cutback in consumer spending could send the economy into a tailspin. Against this backdrop, Fed policymakers will need to be "exceptionally alert and flexible," Bernanke said.
Should he drop the rate 100 basis points? I think he should. We need a situation of shock and awe to start to cure this current credit crisis.

Labels: Ben Bernanke, Credit Crunch, Federal Reserve

The major market indices seesawed back and forth between positive and negative territory throughout the trading day before edging slightly higher following a two-day rally, as Wall Street weighed economic data and weak home sales prior to a speech by Fed Chairman Ben Bernanke tonight. The Dow posted a modest gain to close at 13,312. Meanwhile, the Nasdaq and S&P each closed fractionally higher to end at 2,668 and 1,470, respectively. Light, sweet crude rose 39 cents on the day to close at $91.01 for January delivery. Treasury prices closed higher, while gold tumbled to close at $802.30 an ounce. The dollar gained against the euro, and declined versus the yen.

On the economic front, a report from the Commerce Department showed that gross domestic product grew at an annual rate of 4.9% for the three-month period ending September 30th, its strongest growth in four years. The number was above the initial estimate of a growth rate of 3.9%. Despite the showing, the White House lowered its economic forecast for the coming year and now expects gross domestic product to grow by 2.7%. The administration's previous prediction was for a 3.1% increase. Elsewhere, a separate report from the Labor Department showed a spike in unemployment claims last week rising by 23,000 to 352,000, the highest level since February.
In earnings news, athletic clothing retailer Lululemon Athletica (Nasdaq: LULU - News) said its third-quarter profit more than tripled on earnings of $7.6 million, or 11 cents per share, versus $1.7 million, or 2 cents per share, a year earlier. Quarterly revenue jumped to $66.2 million, up from $36 million in 2006. Analysts, on average, had forecasted earnings of 8 cents per share on revenue of $63.2 million. Lululemon's stock was up 2.6% during the session.
Shares of Sears Holdings (Nasdaq: SHLD - News) were off -10.5% on the day after the company posted a sharp drop in third-quarter profit. For the period, Sears reported net income of $2 million, or 1 cent per share, down from $196 million, or $1.27 per share, a year ago. Revenue for the quarter was $11.5 billion, down -3% from $11.9 billion in 2006. On average, analysts were expecting a profit of 50 cents per share on $11.61 billion in sales. Subscribers can read our take on Sears Holdings in today's edition.
H.J. Heinz (NYSE: HNZ - News) announced a second-quarter profit of $227 million, or 71 cents per share, up 19% from $191.6 million, or 57 cents per share, last year. Quarterly revenue rose to $2.52 billion, up 13% from $2.23 billion a year earlier. Results were above analyst expectations looking for EPS of 67 cents on revenue of $2.4 billion. Shares of Heinz were up 0.7% at the bell. Subscribers can read our take on Heinz in today's edition.
In other corporate news, shares of E*Trade Financial (Nasdaq: ETFC - News) fell -8.7% in trading as the company announced it is getting a $2.5 billion cash infusion from a group lead by Citadel Investment Group. The embattled discount brokerage firm also announced that its CEO, Mitchell H. Caplan, has stepped down. E*Trade President and COO R. Jarrett Lilien will serve as interim chief until a new head is found.

By the BullMarket.com Staff

Labels: Ben Bernanke, ETFC, HNZ, LULU, Sears Holdings Corp., SHLD

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Brocade (NasdaqGS:BRCD - News) beat earnings on Thursday after the bell, announcing $0.17 EPS over an expected $0.13 EPS. BRCD's PowerRating (for Traders) is 4.
Dell (NasdaqGS:DELL - News) matched earnings on Thursday with $0.35 EPS. DELL's PowerRating (for Traders) is 4.
OmniVision (NasdaqGS:OVTI - News) beat earnings expectations on Thursday afternoon with $0.51 EPS over $0.43 EPS. OVTI's PowerRating (for Traders) is 7.
J. Crew (NYSE:JCG - News) beat earnings on Thursday with $0.42 EPS over $0.36 EPS. JCG's PowerRating (for Traders) is 3.
Big Lots (NYSE:BIG - News) reports earnings on Friday before the bell, with analysts looking for $0.12 EPS. BIG's PowerRating (for Traders) is 4.
Tiffany & Co. (NYSE:TIF - News) announces earnings on Friday morning before the market opens; analysts expect 0.25 EPS. TIF's PowerRating (for Traders) is 4.
Knightsbridge Tankers (NasdaqGS:VLCCF - News) expects to report $0.44 EPS on Friday after the close. VLCCF's PowerRating (for Traders) is 3.

Labels: BIG, BRCD, DELL, Hot Stocks, JCG, OVTI, TIF, VLCCF

Dell Inc. said earnings grew 27 percent in the third quarter, buoyed by growth in overseas markets like Brazil and by prices falling for memory chips and other components.
The results fell just shy of analyst expectations.
Dell, which posted results after markets closed Thursday, earned $766 million, or 34 cents per share, in the three months ended Nov. 2. That was up from $601 million, or 27 cents per share, in revised figures from the same quarter a year ago. Revenue grew 9 percent to $15.64 billion.
Analysts surveyed by Thomson Financial were expecting the Round Rock company to post profits of 35 cents per share on revenue of $15.34 billion.

Labels: DELL, Dell Inc.

A Citi Investment Research analyst said late Wednesday a new virtualization software program from VMware Inc. should help the company enhance its market position.
"We believe this is a significant step towards enhancing VMware's already dominant position in the virtualization industry, and is a pre-emptive strike against future Microsoft and Citrix/Xen releases in the battle for control of the x86 server virtualization market," Brent Thill said in a client note. He kept his "Buy" rating and $134 price target.
VMware's "virtualization" software lets a single computer function like multiple machines, allowing companies to spend less on equipment and energy in their data centers.
At least six computer makers will include the ESX Server 3i software on new servers, helping VMware to continue its 90 percent domination of the market, and also to expand the market to new customers, Thill said.

Labels: VMW, VMware Inc.

Erin Burnett started the show discussing the Fed's new U.S economy survey with Diana Olick and Steve Liesman, both of CNBC. Diana says that the standards are tighter on consumer loans as well as residential. Stave adds that barriers have been created by the tighter credit and lending institutions. Mortgage delinquencies have drastically increased in the past quarter. The pace of homebuilding is low and is not expected to pick back up until, at best, well in to 2008. The DOW, Nasdaq and S&P have all shown improvements today. Bonds and Oil are down, stocks are at a high for the day; says Bob Pisani. Freddie Mac (FRE) and CITI Group are today's leaders in the financial sector. Exxon Mobil, Sunoco and Valero Energy are among the top five stocks in the energy sector. Next, Steve Burton of ING Global Real Estate Fund says we like companies with a conservative business model. Also mall stocks in Europe, Asia and the U.S. are considered good investments. Simon Property (SPG) is his top pick of the day. The next topic was Saudi Arabian oil reserves. Countless terror attack attempts have been foiled; by over 200 arrests being made on terror plot suspects. The attempt to infiltrate the infrastructure of Saudi reserves could be quite an issue, being that Saudi Arabia operates over one quarter of the reserves in the world. Next topic was the Chinese economy. Zachary Karabell of Fred Alger Management says there is no greater sign of investor panic in China, adding that their economy is an engine for growth. Shanghai Composite is seeing increases in the triple digits today. Very strong earnings growth is expected for any Chinese investments. Erin than talked about how private equity markets such as the Middle East are looking east for investments. They said they are trying to align themselves with interest allocaters to make some of these investments work. Colony Capital is currently one of the largest private equity investors. They currently have $26B in assets. They own office, hospitality, gaming, residential, and retail properties globally. Colony closed its largest acquisition this month by taking over Station Casinos for $8.8 B. Stop Trading with Jim Cramer was next. He says that he will be buying rather than selling within the financial sector.

Labels: Citigroup Inc., CNBC, Erin Burnett, EXXON MOBIL, FRE, ING, Jim Cramer, Jim Cramer's Stop Trading, SPG, Street Signs, street signs recap

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Synovis Life Technologies (NasdaqGM:SYNO - News). SYNO's PowerRating (for Traders) is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Seabridge Gold (NYSE:SA - News). SA's PowerRating (for Traders) is 7.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Acuity Brands (NYSE:AYI - News). AYI's PowerRating (for Traders) is 2.
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Bob Evans (NasdaqGS:BOBE - News) & Campbell Soup (NYSE:CPB - News). BOBE's PowerRating (for Traders) is 2, and CPB's PowerRating (for Traders) is 4.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Vail Resorts (NYSE:MTN - News). MTN's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Published By TradingMarkets.com

Labels: AYI, BOBE, CPB, MTN, SA, SYNO, Trading Ideas

Sears Holdings Corp. reported a 99 percent drop in third-quarter profit Thursday on weak sales at its Sears and Kmart department stores and continuing investment losses under hedge-fund manager Chairman Eddie Lampert. Its stock plummeted in premarket trading.
It was the worst quarter since Lampert formed the company by combining Sears and Kmart in March 2005, heightening questions among investors about Lampert's strategy for reviving two faded chains. The company signaled little hope for improvement in the near future.
Sears shares tumbled $11.34, or 9.75 percent, to $105 in premarket trading - far off its all-time high of $195.18 in April.

Labels: Sears Holdings Corporation, SHLD

Trish Regan started the show by stating that financials are up today, leading stocks to trade higher. The DOW is down about 5.3% for November. Nasdaq down 7.4% for November. Stocks are on pace for first 2 day winning streak this month. Next, the economy was discussed with Steve Liesman. He says the FED needs to take into account the market, despite dips in the credit institutions; flexible policymaking is required when dealing with volatility within the financial sector. AIG, American Express and IBM are the leaders in the financial sector today. Crude Oil reaches a two week low with a drop of almost 3%; at under $92/barrel. Freddie Mac and CITI Group are among the leaders for finances. The U.S currency index is up almost a point. Next, shareholders vs. the sec; Dan Pedrotty says that the sec is not following through to protect investors. Among these proxy proposals is the stipulation that shareholders, owning 5% or more of the company, can elect new company directors. The objective is to provide opportunities for involvement among the shareholders. Merrill Lynch is expected to have a good day. Next was the real estate market. Steve Liesman of CNBC says mortgage and interest rates are very tight. The mortgage lenders are demanding high equity loans, and those consumers who are aggressive can find the money they need, in the upcoming months. Next, David Fondrie of Heartland Investors says that Cimarex Energy (XEC) and Conocophillips (COP) would be good choices for buying today. Allan Hubbard resigns from his position as economic advisor to the Bush Administration. Keith Hennessey will be replacing him. Hubbard says he is leaving so he can spend more time with his children.

Labels: AIG, Citigroup Inc., CNBC, CNBC's The Call, COP, FED, IBM, MER, The Call, trish regan, XEC

All three major indices soared higher, as comments from a Fed official fueled speculation that the central bank would again slash a key interest rate. The Dow added 331 points on the day to close at 13,289. Meanwhile, the Nasdaq closed up 82 points to end the day at 2,663, and the S&P rose 2.9% for the day to end at 1,469. Light, sweet crude dropped sharply on an inventory report to settle at $90.62 a barrel. Treasury and gold prices both tumbled for the second-straight day, while the dollar gained against the euro but dipped versus the yen.
In economic news, the Commerce Department announced that orders for durable goods, like computers and refrigerators, fell -0.4% versus a revised drop of -1.4% in September. Analysts had expected durable good order to be unchanged. The drop has raised concerns about whether the dismal housing market is starting to creep into other areas of the economy. Elsewhere, Federal Reserve Vice Chairman Donald Kohn warned that continued market turmoil could halt economic growth, which Wall Street took as a sign that the Fed Reserve may once again look to cut interest rates in December.
On the earnings front, discount retailer Dollar Tree (Nasdaq: DLTR - News) posted an 11% increase in third-quarter profit helped by strong seasonal sales. For the quarter, the company reported net income of $35.9 million, or 38 cents per share, up from $32.5 million, or 32 cents per share, last year. Revenue in the quarter climbed to $997.8 million, up 10% from $910.4 million a year ago. On average, analysts were calling for earnings of 37 cents per share on $1.05 billion in revenue. Shares of Dollar Tree closed off -1.2% in trading.
Late yesterday, Pep Boys (NYSE: PBY - News) posted a wider third-quarter loss and announced that it cut 550 jobs and closed 31 of its stores as part of a restructuring plan. For the quarter, the company reported a loss of -$21.7 million, or -42 cents per share, versus a loss of -$10.7 million, or -20 cents per share, a year earlier. Quarterly revenue dropped to $534.4 million, down -3% from $550.8 million in 2006. Analysts were looking for revenue of $538.9 million. Pep Boy's stock was down -16.2% at the bell.
In other corporate news, shares of Freddie Mac (NYSE: FRE - News) soared 14.3% despite announcing that it will halve its dividend and that it plans to sell $6 billion in preferred stock. The government-backed lender said the steps were being taken in order to boost finances in anticipation of future losses.
Bear Stearns (NYSE: BSC - News), meanwhile, announced today that it would cut 650 jobs, as the company continues to battle the effects of mortgage-related losses. The head-count reduction marks the third round of layoffs by the nation's fifth-largest investment bank. Shares of Bear Stearns traded up 4.3% for the day.
After yesterday's close, Wells Fargo (NYSE: WFC - News) said that it would report a -$1.4 billion loss in the coming fourth quarter stemming from home equity loans. The bank said it expects the charge to "adequately cover all losses inherent in its portfolios." Wells Fargo also announced it would look to liquidate the riskiest of its $11.9 billion in home equity loans. The stock climbed 3.0% during the session.
By the BullMarket.com Staff

Labels: BSC, DLTR, FRE, PBY, WFC

Erin Burnett started the show today asking if CITI Group's decision to sell almost 5% of their company to the Arabs was such a good one. Also that crude oil is down about 3%. Steve Leisman says that focus is being taken off the weak dollar and on to the weak economy. Future plans are in effect for the improvement of consumers concern with the state of the economy and risk of recession. Abu Dhabi has paid over $7 B (The biggest purchase of an American Company buy a foreign) to make part of CITI. Arabs are looking for financials, homebuilders and hotels. Anything from actual buildings to stock equity sharing on the financial sector side are up for grabs. Sen. Chuck Schumer of New York shows concern for a continuing opportunity for American investments. As a democrat, free trade is not a top priority for him, and he wants to avoid building walls in between Americans and business buy giving power to foreign investors. The Arabs say they have no interest in board or managerial roles, only to play as a passivist support group who believes in the potential of American companies. David Weber says MasterCard (MA) and Research in Motion (RIMM) are his picks for the day. Next, there was the real estate market. David Blitzer of Standard and Poor's says that prices are driving foreclosures, resulting in a 524,000 fewer jobs and $6.6 billion lost in taxes. Also that a mass amount of foreclosures are driving the prices of surrounding homes down. The worst hit is New York at a loss of over $10 B. You can keep updated by visiting; realtycheck.cnbc.com. Next, Russia will be electing a parliament on Sunday, Dec 2nd. Julian Mayo of U.S Global Investors Eastern Europe Fund says that increased certainty is acknowledged for the outcome, being in supporters of Vladmir Putin's favor. The Russian market is leading the world. Utilities and Telecomm are the top performers in Russia. An update for CITI Group says that the company has not closed off opportunities for foreign purchase and investment. Rick Santelli of CNBC says that apparently CITI is looking for more than $7.5 B. and a loss of ownership by more than 5%. David Faber of CNBC says that raising capital will be the main concern for financial institutions as a result of CITI's decisions. More write-downs to come for consumers, and more capital to be raised will likely come from Arab investors and foreign petroleum dollars. Jim Cramer with Stop Trading was next. American International Group (AIG), and JP Morgan (JPM) are among his choices for likely candidates for middle eastern investors. He says that more capital for the corporations should be a positive thing for consumers. Jim Goldman of CNBC says that Verizon (VZ) announced that they will promote unrestricted access. This makes Verizon a much stronger competitor in the future. With 64M wireless customers in the U.S, Verizon will cause even more problems for companies such as Sprint and Nextel.

Labels: Abu Dhabi, AIG, Citigroup Inc., CNBC, CNBC's Stop Trading, Erin Burnett, Jim Cramer, Jim Cramer's Stop Trading, JPM, MA, RIMM, Sprint Nextel, Street Signs, street signs recap, VZ

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Sigma Designs (NasdaqGM:SIGM - News) beat earnings on Wednesday afternoon, reporting $0.79 EPS versus expectations of $0.55 EPS. SIGM's PowerRating (for Traders) is 4.
Aeropostale (NYSE:ARO - News) beat earnings expectations on Wednesday, with $0.48 EPS over $0.47 EPS. ARO's PowerRating (for Traders) is 4.
Beazer Homes (NYSE:BZH - News) reports earnings on Thursday morning, with analysts looking for -$3.20 EPS. BZH's PowerRating (for Traders) is 5.
When Del Monte (NYSE:DLM - News) announces quarterly results on Thursday before the bell, watch for $0.17 EPS. DLM's PowerRating (for Traders) is 5.
Genesco (NYSE:GCO - News) should announce $0.54 EPS tomorrow morning before the market opens. GCO's PowerRating (for Traders) is 7.
Anaylsts will be watching for HJ Heinz (NYSE:HNZ - News) to report $0.67 EPS on Thursday before the market opens. HNZ's PowerRating (for Traders) is 5.
Sears Holdings (NasdaqGS:SHLD - News) should report $0.50 EPS on Thursday morning. SHLD's PowerRating (for Traders) is 4.

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