Jim Cramer Blog

U.S. stocks experienced a roller coaster ride on Monday, after a global sell off was triggered by the collapse of Bear Stearns. The Federal Reserve took emergency action, cutting the discount rate by 25bp and offering to lend to securities dealers at the same rates as banks.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Here are 7 stocks to watch...
Bear Stearns (NYSE:BSC) agreed to be sold to JPMorgan Chase for $2 per share, or $236 million. BSC shares closed at $30 on Friday, valuing the 85-year old investment bank at $3.5 billion. BSC's Short Term PowerRating is 8.
Many analysts felt the price JPMorgan Chase (NYSE:JPM) is paying significantly undervalues Bear Stearns, even allowing for litigation, de-leveraging and integration costs. Especially since the Fed is providing up to $30 billion in financing for BSC's illiquid assets. The decision means the Fed, not JPMorgan Chase, is carrying substantial risk. JPM's Short Term PowerRating is 3.
MF Global (NYSE:MF) shares fell as much as 80%, despite reassurances from the company that it was not experiencing liquidity problems.
Shares of Lehman Brothers (NYSE:LEH) plunged more than 20%, also on liquidity concerns. LEH is due to report earnings of $0.72 before the market open on Tuesday. LEH's Short Term PowerRating is 6.
Also before the market open, Goldman Sachs (NYSE:GS) is expected to report earnings of $2.58. GS's Short Term PowerRating is 5.
In deal news, CME Group (NYSE:CME) agreed to acquire Nymex Holdings (NYSE:NMX) for $9.3 billion. CME's Short Term PowerRating is 5. NMX's Short Term PowerRating is also 5.
And, International Paper (NYSE:IP) agreed to acquire the packaging and recycling businesses of Weyerhaeuser (NYSE:WY) for $6 billion. IP's Short Term PowerRating is 5. WY's Short Term PowerRating is 4.
Do you think International Paper will close up or down on Wednesday? Go to TradingMarkets.com to play our Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.

Labels: BSC, CME, CME Group Inc., Goldman Sachs Group Inc., GS, Hot Stocks, IP, JPM, LEH, Lehman Brothers Holdings Inc., MF, NMX, WY

Falling markets in Europe and Asia led to an early selloff in the U.S., with disappointing retail sales data and credit worries setting the tone. However, an afternoon rally erased the losses and stocks closed higher.
The Dow rose +35.50, the Nasdaq Composite +19.74, and the S&P 500 +6.71.
Here are 7 stocks to watch...
The Wall Street Journal reported Bear Stearns (NYSE:BSC) is "facing increasingly tough trading conditions." BSC was the biggest decliner in the S&P 500, falling nearly 8%. BSC's Short Term PowerRating is 7.
Aspect Medical Systems (NasdaqGS:ASPM) plunged more than 45% after a report in the New England Journal of Medicine said the company devices were ineffective.
Humana (NYSE:HUM) gained more than 10%, after losing nearly 14% yesterday. HUM's Short Term PowerRating is 8.
After the close, Aeropostale (NYSE:ARO) beat earnings estimates by $0.05. ARO's Short Term PowerRating is 5.
Before the market open, AnnTaylor Stores (NYSE:ANN) is expected to reports earnings of $0.20. ANN's Short Term PowerRating is 4.
Electronic Arts went hostile in its takeover bid for Take Two Interactive Software (NasdaqGS:TTWO ), offering shareholders $26 per share. TTWO's Short Term PowerRating is 8.
Do you think Electronic Arts (NasdaqGS:ERTS) will close up or down on Friday? ERTS' Short Term PowerRating is 4. Go to TradingMarkets.com to play our Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.

Labels: ANN, ARO, ASPM, BSC, ERTS, Hot Stocks, HUM, TTWO

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Nike (NYSE:NKE - News) beat earnings on Wednesday afternoon, reporting $0.71 EPS over an expected $0.66 EPS. NKE's PowerRating (for Traders) is 6.
Paychex (NasdaqGS:PAYX - News) also beat earnings on Wednesday, with $0.40 EPS over $0.39 EPS. PAYX's PowerRating (for Traders) is 5.
Bear Stearns (NYSE:BSC - News) reports quarterly earnings on Thursday morning before the bell, with traders looking for -$1.79 EPS. BCS's PowerRating (for Traders) is 5.
When Carnival (NYSE:CCL - News) announces quarterly results on Thursday before the bell, look for $0.43 EPS. CCL's PowerRating (for Traders) is 4.
FedEx (NYSE:FDX - News) is looking to report $1.50 EPS on Thursday morning. FDX's PowerRating (for Traders) is 4.
Anaylsts will be watching for Rite Aid (NYSE:RAD - News) to report -$0.07 EPS on Thursday morning before the market opens. RAD's PowerRating (for Traders) is 5.
Pier 1 Imports (NYSE:PIR - News) expects to announce -$0.24 EPS tomorrow morning. PIR's PowerRating (for Traders) is 4.

Labels: BSC, CCL, FDX, Hot Stocks, NKE, PAYX, PIR, RAD

New York state prosecutors have sent subpoenas to Wall Street firms seeking information related to the packaging and selling of debt tied to high-risk mortgages, a person familiar with the matter said on Wednesday.
The subpoenas, sent by the office of New York Attorney General Andrew Cuomo, requested information from a number of Wall Street firms.
The Wall Street Journal on Wednesday reported that Merrill Lynch & Co (NYSE:MER - News), Bear Stearns Cos (NYSE:BSC - News) and Deutsche Bank AG (XETRA:DBKGN.DE - News) received subpoenas, citing unnamed sources.

Labels: Bear Stearns Companies Inc., BSC, Deutsche Bank AG, MER, Merrill Lynch and Co. Inc., Wall Street Subpoenas

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

Bear Stearns Cos., the nation's fifth-largest investment bank, on Wednesday said it will cut 4 percent of its staff in further fallout from the summer's mortgage turmoil.
The company will cut 650 jobs in all departments from its staff of about 15,500. This marks the third wave of layoffs at the battered investment bank, which as of last month had cut about 900 positions throughout the firm.
Bear Stearns has been among the hardest hit on Wall Street as investment banks reel from deterioration in the subprime mortgage and leveraged loan markets. The biggest global investment houses and major banks collectively wrote down some $80 billion worth of assets because of the market crisis this summer.
Earlier this month, Bear Stearns said that in the fourth quarter it would write down another $1.2 billion linked to losses from its mortgage-backed securities business. The reduction will result in a quarterly loss for the company.

Labels: BSC, The Bear Stearns Companies Inc.

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Goldman Sachs Jan 290 Calls (NYSE:GS - News). GS's PowerRating (for Traders) is 6.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Cognos Jan 57.5 Puts (NasdaqGS:COGN - News). COGN's PowerRating (for Traders) is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
IntercontinentalExchange Dec 220 Calls (NYSE:ICE - News). ICE's PowerRating (for Traders) is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Bear Stearns Dec 80 Puts (NYSE:BSC - News). BSC's PowerRating (for Traders) is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Energy Transfer Equity (NYSE:ETE - News). ETE's PowerRating (for Traders) is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Credit Suisse (NYSE:CS - News). CS's PowerRating (for Traders) is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Moody's (NYSE:MCO - News). MCO's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: BSC, COGN, CS, ETE, GS, ICE, MCO, stock options

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Merrill Lynch Jan 70 Calls (NYSE:MER - News). MER's PowerRating (for Traders) is 7.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Cephalon Jan 75 Puts (NasdaqGS:CEPH - News). CEPH's PowerRating (for Traders) is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Apple Jan 220 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating (for Traders) is 8.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Bear Stearns Dec 80 Puts (NYSE:BSC - News). BSC's PowerRating (for Traders) is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Watts Water Technologies (NYSE:WTS - News). WTS' PowerRating (for Traders) is 3.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Fairchild Semiconductor (NYSE:FCS - News). FCS' PowerRating (for Traders) is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Leap Wireless (NasdaqGS:LEAP - News). LEAP's PowerRating (for Traders) is 8.

Labels: AAPL, BSC, CEPH, FCS, LEAP, MER, stock options, WTS

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Bear Stearns Jan 130 Calls (NYSE:BSC - News). BSC's PowerRating (for Traders) is 6.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Indymac Bancorp Nov 12.5 Puts (NYSE:IMB - News). IMB's PowerRating (for Traders) is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Blue Nile Nov 80 Calls (NasdaqGS:NILE - News). NILE's PowerRating (for Traders) is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Lehman Brothers Dec 50 Puts (NYSE:LEH - News). LEH's PowerRating (for Traders) is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Cablevision Systems (NYSE:CVC - News). CVC's PowerRating (for Traders) is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
The New York Times Company (NYSE:NYT - News). NYT's PowerRating (for Traders) is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Affiliated Computer Services (NYSE:ACS - News). ACS's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: ACS, BSC, CVC, IMB, LEH, NILE, NYT, stock options

The Dow dropped 362 points and the Nasdaq fell 64 points Thursday, crushing the stock market. The Chairman & CEO of Merriman Curhan Ford & Co, Jonathan Merriman, joined the show to discuss stocks he feels have potential in the selloff. Merriman likes Smith & Wesson (SWHC) here and thinks it's a huge opportunity to buy the stock while it's low. Macke still likes video game stocks like Electronic Arts (ERTS) and Activision (ATVI). Adami recommends buying Aministaff (ASF). Finerman likes NYMEX (NMX) and Crocs (CROX). Merriman thinks she is very early to be buying CROX here. Najarian favors Manitowoc (MTW).
The founder and president of Seabreeze partner, Doug Kass, joined the show to give his take on the mortgage insurers. Kass thinks names like Ambac (ABK), PMI Group
(PMI) and MBIA (MBI) don't have enough capital to keep running. Kass also says his sources are telling him that Citigroup (C) will get rid of CEO Chuck Prince this weekend. Charlie Gasparino joined the show to discuss his take on the CEO turmoil at Citigroup and agrees with Kass and expects that Citigroup CEO, Chuck Prince, is about to get the axe.
Najarian feels that Bear Stearns (BSC) and Merrill Lynch (MER) would benefit the most from a management change. Finerman is long Goldman Sachs (GS) and short Merrill.
Word on the Street
Crude oil traded over $96 before selling off to close at $93. Adami was surprised that Exxon Mobil (XOM) didn't go lower on Thursday. He sees the valuation on Chevron (CVX) as compelling and there could be a buying opportunity in the stock. Tesoro (TSO) is another name to look at here.
Microsoft (MSFT) bucked the trend on Thursday and finished the day up. Macke still likes Hewlett-Packard (HPQ).
Las Vegas Sands (LVS) plunged 17% after hours on a bearish earnings report.
Pops & Drops
Pops- Investment Technology Group (ITG) traded up 2%.
United Therapeutics (UTHR) popped 38% higher after study results showed its inhaled-high blood drug.
Drops- Sprint Nextel (S) fell 3% after profits fell 73% in the third quarter.
Manitowoc (MTW) fell 11% off of concerns for the crane maker's backlog.
Garmin (GRMN) fell 7% on concerns over a bidding war with TomTom for Tele Atlas.
Target (TGT) fell 5%.
Face2Face
Cathy asked if Google, Apple (AAPL) and Research In Motion (RIMM) trying to beat each other for the highest share price? Macke says Apple and Research In Motion have split. He advised Cathy not to believe the hype on stock splits just buy less shares.
Scot from Virginia asked if Adami liked Fluor (FLR). Adami still likes Fluor and he feels the story is still intact.
Another writer asked what Finerman is going to do with BEA Systems (BEAS) with the Oracle (ORCL) deal off. Finerman thinks by the end of the day we will see a deal with Oracle and BEA Systems.
John said he owns some Dicks Sporting Goods (DKS) and knows Najarian likes them as well based partially on their sales of names like Under Armour (UA), Nike (NKE) and Crocs. He asked if the recent sell-off based on Croc's numbers and does this change your bullish sentiment on the company? Najarian tells John that even though there are some concerns for Dicks Sporting Goods, right now he still likes the company.
Final Trade
Macke would buy Electronic Arts (ERTS) on a dip.
Adami favors Intel (INTC).
Finerman prefers Flowserve (FLS).
Najarian recommends buying Cypress Semiconductor (CY) for a solar play.

Labels: ABK, ASF, BSC, CNBC, CROX, Fast Money, Fast Money Recap, MBI, MTW, PMI, SWHC

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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.

ImClone Systems (NasdaqGS:IMCL - News). IMCL's PowerRating (for Traders) is 8.
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.
Verigy (NasdaqGS:VRGY - News). VRGY's PowerRating (for Traders) is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
InterOil (NYSE:IOC - News). IOC's PowerRating (for Traders) is 8.
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.
Kellwood (NYSE:KWD - News). KWD's PowerRating (for Traders) is 3.
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.
Marvel Entertainment (NYSE:MVL - News). MVL'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.
Starwood Hotels & Resorts (NYSE:HOT - News). HOT'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.
Bear Stearns (NYSE:BSC - News). BSC's PowerRating (for Traders) is 3.

Published By TradingMarkets.com

Labels: BSC, HOT, Hot Stocks, IMCL, IOC, KWD, MVL, VRGY

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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.
ImClone Systems (NasdaqGS:IMCL - News). IMCL's PowerRating (for Traders) is 8.
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.
Verigy (NasdaqGS:VRGY - News). VRGY's PowerRating (for Traders) is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
InterOil (NYSE:IOC - News). IOC's PowerRating (for Traders) is 8.
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.
Kellwood (NYSE:KWD - News). KWD's PowerRating (for Traders) is 3.
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.
Marvel Entertainment (NYSE:MVL - News). MVL'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.
Starwood Hotels & Resorts (NYSE:HOT - News). HOT'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.
Bear Stearns (NYSE:BSC - News). BSC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: BSC, HOT, Hot Stocks, IMCL, Imclone Systems Inc., IOC, KWD, Marvell Technology Group Ltd., MVL, Verigy Ltd., VRGY

Charlie Gasparino joined the "Fast Money" crew to discuss his take on the Bear Stearns (BSC) and rumos that Warren Buffett is part of a group of investors considering a 20% stake in BSC. He believes that Bear Stearns is going to be taken private. Guy Adami suggests that it makes no sense at all for Buffett to acquire Bear. According to Adami, Buffet's expertise is in value plays and Bear isn't a value play. Najarian declares that all brokers are back in play and recommends buying Lehman (LEH). Finerman agrees.
An American Icahn
Carl Icahn: Wants to see BEA Systems (BEAS) sold. Motorola (MOT): Bullish on their risk rewards.
GM On The Road Again
General Motors (GM) ended its two-day strike after making a health care agreement with the United Auto Workers. This changes the tune for General Motors, according to Jeff Macke. He advises buying auto parts suppliers like Lear (LEA), Visteon (VC) and BorgWarner (BWA). Adami suggests looking at Ford (F). Najarian prefers Goodyear Tires (GT).
No Deal
Sallie Mae (SLM) made news on Wednesday as a private-equity group pulled out of a deal to buy it for $25.3 billion. Macke: "stick a fork in it." Najarian disagrees and believes the deals are just being re-shifted down. Finerman isn't surprised the deal fell through. One potential deal that has her interest is Genesco (GCO).
Tech Rally
Technology stock leaders are still shining Google (GOOG), Amazon (AMZN), Hewlett Packard (HP), Cisco (CSCO) and Apple (AAPL) with 52 week highs.
Word on the Street
Bed Bath & Beyond (BBBY): Macke advises selling.
Monsanto (MON): Selling at twice its growth rate.
Newmont Mining (NEM): Dropped 6%.
Pops & Drops
Pops: Deere (DE) traded up 3%. Pier One Imports (PIR) popped 11%. China BAK Battery (CBAK) exploded by 46%. Affiliated Managers Group (AMG) traded up 4%.
Drops: Under Armour (UA) fell 6%. Timberland (TBL) dropped 8%.

Final Trade
Macke: recommends selling Bear Stearns (BSC).
Finerman: is positive that BEA Systems (BEAS) is going higher.
Najarian: top pick is Isis Pharmaceuticals (ISIS).
Adami: prefers NYSE Euronext (NYX)

Labels: AAPL, AMZN, BEAS, BSC, BWA, CNBC, CSCO, F, Fast Money, GCO, GM, GOOG, GT, HP, LEA, LEH, MOT, SLM

On today's show, Cramer started off by talking about the good news that General Motors (GM) received with the completion of their labor talks that he thinks will move the stock to $45, and the rumors that Warren Buffet is buying a stake in Bear Stearns (BSC) that will move it higher, along with other financial stocks Citigroup (C), AIG (AIG), J.P. Morgan (JPM), and American Express (AXP).

Cramer then started talking about buying inexpensive oil stocks when there is a pullback in oil prices. His stock choice is Gardner Denver (GDI) that will profit from higher oil prices and a weaker dollar. Compared with similar stocks such as Baker Hughes (BHI), National Oilwell Varco (NOV) and Schlumberger (SLB), Gardner Denver's multiple is too low.

Energy Stocks:
Transcanada (TRP): Enterprise Products Partners (EPD) is better.
Valero (VLO): Refining margins are killing the stock.
Transocean (RIG): He thinks the stock will go up when the GlobalSantaFe (GSF) merger is complete. Cramer also mentioned some Canadian Energy Trusts that he likes. The stocks are Canetic Resources (CNE), Pengrowth (PGH), Baytex (BTE), International PBX Ventures (PBX), Penn West Energy (PWE), and Advantage Energy (AAV).

Are You Diversified?:
Cramer recommended Caterpillar (CAT) to his first callers portfolio. He told his second caller to get rid of NYSE Euronext (NYX). Cramer told his third caller to hget rid of Pfizer (PFE).

Cramer spoke to the CEO of Genesis Lease (GLS) which Cramer recommended at $26. He said he was wrong to call the stock a buy then, but you should "back up the truck" now that it's at $22.

Finally, Cramer took three call in Sudden Death. He is unsure about Layne Christensen (LAYN), he likes Life Partners Holdings (LPHI) but is concerned about the large short interest, and thinks Danaher (DHR) is one of the best performing stocks in the S&P.

Labels: AIG, AXP, BHI, BSC, GDI, GM, Jim Cramer, JPM, Mad Money, Mad MOney Recap, NOV, SLB, TRP

Equities rose on the day, with all three major market averages solidly in the green. The Dow closed up 100 points, helped by the end of a strike at General Motors (NYSE: GM - News). The Nasdaq, meanwhile, finished up 16 points, while the S&P tacked on 8 points. Oil initially fell after weekly inventories levels unexpectedly rose, but rallied to close up 77 cents to $80.30 a barrel. The price of gold slipped on the day.

In economic news, the Commerce Department reported that demand for durable goods nose-dived in August, with weakness across most categories. Orders fell -4.9% for the month, worse than the -3.5% drop economists were expecting. It was the biggest decline since January, and comes on the heels of a large 6.1% gain in July. Crude oil inventories, meanwhile, unexpectedly rose last week by 1.8 million barrels to 320.6 million barrels. Analysts were expecting inventories to drop by -2 billion barrels.
Topping the headlines today, the United Auto Workers (UAW) and General Motors agreed to a tentative contract early this morning, ending a 2-day strike. As part of the contract, the two sides confirmed that GM would fund a newly created trust that the UAW will run to administer retiree healthcare benefits. For its part, GM will continue to offer some job guarantees. The UAW hopes to strike similar deals with Ford (NYSE: F - News) and Chrysler. Shares of GM spiked 9.4%.
Shares of defense contractors, including Lockheed Martin (NYSE: LM - News), General Dynamics (NYSE: GD - News), and Raytheon (NYSE: RTN - News), hit or flirted with all-times Wednesday. Defense Secretary Robert Gates was meeting with Congress today to request an additional $45 billion to cover military costs in Iraq and Afghanistan. If approved, Gates' request will raise initial 2008 budget-year war projections by nearly a third to $190 billion.
Shares of Vonage (NYSE: VG - News) fell below a $1 after a jury found that it infringed on six patents held by Sprint Nextel (NYSE: S - News). The VoIP company was ordered to pay Sprint $69.5 million in damages. Vonage said it will seek to try to have the Sprint judgment overturned. Earlier this year, Vonage lost a patent infringement case to Verizon (NYSE: VZ - News) for $58 million plus royalties. Today, a court upheld two of the three patent infringement charges in a separate verdict.
In M&A news, Nasdaq (Nasdaq: NDAQ - News) and Borse Dubai raised their bid for Swedish exchange OMX to $4.9 billion, a 15% increase over their previous offer. The exchanges also made agreements with several large shareholders that combined control nearly 19% of OMX to now secure half of OMX's shares. The moves were made in response to The Qatar Investment Authority increasing its stake in OMX, which could indicate it may try to block the deal. Elsewhere, Bear Stearns (NYSE: BSC - News) shares rose 7.7% on rumors that the investment bank is close to selling a minority stake in itself. Among the potential suitors named include a Chinese bank, HSBC Holdings, and Warren Buffett, among others.

By the BullMarket.com Staff

Labels: BSC, F, GD, GM, LM, NDAQ, RTN, S, VG, VZ

Bear Stearns Cos. shares rose 3 percent on Wednesday, amid a new round of speculation the nation's fifth-largest investment bank might be in talks to sell a minority stake to another financial institution.
The stock rose $4.10, or 3.6 percent, to $118.34 in midday trading. Bear's stock fell about 30 percent during the summer because of hedge fund losses, but began to recover after it reported third-quarter results last week.
There has been speculation that talks might involve a European or Asian bank. In the past, Wall Street analysts have suggested Britain's HSBC PLC or Deutsche Bank AG could be interested in acquiring a stake in the investment house.

Labels: Bear Stearns Companies Inc., BSC

Stocks traded lower on the day following mixed earnings reports, ending the overall market's potent two-day Fed-induced rally. At the close, the Dow dropped -49 points, while the Nasdaq lost -12 points and the S&P slumped -10 points. Crude oil continued its northward movement, ending the day at yet another record, jumping $1.39 to finish at $83.32 a barrel. The price of Gold also continues to impress, adding $10.40 to end the session at $739.90 a troy ounce.
Two Wall Street investment banks reported their earnings today. Goldman Sachs (NYSE: GS - News) reported a blowout third quarter, recording net income of $2.85 billion, or $6.13 a share, up considerably from $1.59 billion, or $3.26 a share, in the same period a year ago. Revenues rose an astonishing 63% to $12.3 billion. Goldman said the strong earnings were a result of betting correctly on falling mortgages, in addition to a $900 million gain related to the disposition of Horizon Wind Energy. The street was looking for a profit of $4.35 a share on revenue of $9.57 billion. Shares have been on a tear in recent weeks, but finished the day lower by -1.0%. Subscribers can read our analysis of Goldman Sachs in today's issue.
Fellow rival Bear Stearns (NYSE: BSC - News), meanwhile, reported a -61% decline in third-quarter net income on a drop in fixed-income trading and $200 million in hedge fund losses. For the quarter, net income totaled $171.3 million, or $1.16 a share, down sharply from $437.6 million, or $3.02 a share, last year. Total revenue fell -37% to $1.64 billion. During the quarter, the company took a $700 million writedown related to the diminishing value of its mortgage and leveraged loan portfolios.
Transportation and logistical giant FedEx (NYSE: FDX - News) reported mixed news on the day. The company posted net income of $494 million, or $1.58 a share, up 4% from 2006 levels due to strong international growth. Revenues came in 8% higher to $9.2 billion, and were above analyst estimates of $9.07 billion. The overall positive quarter was dampened when the company forecasted that its current quarter will only see earnings of $1.60-$1.75 a share and that full-year earnings would be $6.70-7.10 a share, down from its previous guidance of $7.00-$7.40 a share. The company cited "uncertain economic clarity" for the lower earnings. Investors sent the shares down -2.9% on the news. Subscribers can read our analysis of FedEx in today's issue.
Electronics retailer Circuit City (NYSE: CC - News) saw its shares get clobbered -18.2% after the retailing chain posted a wider-than-expected loss for its most-recent quarter. For the second quarter, the company lost -$62.8 million, or -38 cents a share, compared to a profit of $10 million, or 6 cents a share, in the year-ago period. Sales fell to $2.6 billion from $2.8 billion last year. Same-store sales in the period fell -7.9%. The company cited a decrease in sales in addition to lower margins on TVs for its loss. The company additionally warned of further losses ahead.
In M&A news, Nasdaq Stock Market (Nasdaq: NDAQ - News) reached a deal with the Borse Dubai wherein Nasdaq will get control of Nordic markets operator OMX while giving the Dubai exchange a 20% stake in the Nasdaq. Under the terms of the proposed deal, Nasdaq will sell its 20% stake in the London Stock Exchange to Borse Dubai as well. Already, government officials announced that the deal will be heavily scrutinized. Nasdaq shares gained 1.4% on the news.
By the BullMarket.com Staff

Labels: BSC, CC, FDX, GS, NDAQ