Jim Cramer Blog

A Goldman Sachs downgrade from "buy" to "neutral" sent shares of Cheesecake Factory Inc. (NYSE:CAKE) lower on Friday by more than 6%.
Good news in the semiconductor industry extends to suppliers and parts maker as well, as Verigy Ltd. (NYSE:VRGY) announced on Friday that its third quarter earnings were above analyst expectations.
Foot Locker (NYSE:FL) announced significant first quarter losses, but soothed investors by reaffirming their guidance for the full year. The stock was higher by more than 12% on Friday.
Reporting earnings on Friday, Goodyear Tire & Rubber (NYSE:GTannounced that the company had exceeded analyst expectations.
A less than optimistic outlook from Royal Caribbean Cruises (NYSE:RCL) sent shares sharply lower on Friday.
CA, Inc. NYSE:CA announced a better than expected revenue forecast for 2009, surprising investors and sending the stock up nearly 4% on Friday.
A report that InBev NV of the Netherlands was considering buying Anheuser-Busch Company (NYSE:BUD) sent shares of the American beer distributor soaring by more than 7% on Friday.

Labels: BUD, CAKE, FL, GT, Hot Stocks, RCL, VRGY

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Avon Products (NYSE:AVP - News) reports earnings results on Tuesday before the market opens, with traders looking for $0.36 EPS. AVP's Short Term PowerRating is 3.

CME Group (NYSE:CME - News) is looking to report $3.62 EPS before the market opens on Tuesday. CME's Short Term PowerRating is 5.
Analysts will be watching for Duke Energy (NYSE:DUK - News) to announce $0.24 EPS on Tuesday morning. DUK's Short Term PowerRating is 4.
When Tyco (NYSE:TYC - News) announces quarterly results tomorrow morning, watch for $0.56 EPS. TYC's Short Term PowerRating is 3.
Bankrate (NasdaqGS:RATE - News) is poised to announce $0.39 EPS tomorrow after the stock market closes. RATE's Short Term PowerRating is 2.
Cheesecake Factory (NasdaqGS:CAKE - News) is expected to report $0.26 EPS tomorrow after the market closes. CAKE's Short Term PowerRating is 4.
JDS Uniphase (NasdaqGS:JDSU - News) should announce $0.12 EPS tomorrow afternoon when the market is closed. JDSU's Short Term PowerRating is 4.

Labels: AVP, CAKE, CME, DUK, Hot Stocks, JDSU, RATE, TYC

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.
Sandisk (NasdaqGS:SNDK - News). SNDK's PowerRating (for Traders) is 6.
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.
Pride International (NYSE:PDE - News). PDE'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.
Stora Enso Oyj (NYSE:SEO - News). SEO's PowerRating (for Traders) is 7.
Bearish
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.
Cheesecake Factory (NasdaqGS:CAKE - News). CAKE'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.
US Bancorp (NYSE:USB - News). USB's PowerRating (for Traders) is 4.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Circuit City (NYSE:CC - News). CC's PowerRating (for Traders) is 2.
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.
Aeropostale (NYSE:ARO - News). ARO's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: ARO, CAKE, CC, Hot Stocks, PDE, SEO, SNDK, USB

Sun Microsystems (JAVA): Cramer thinks it's finally turned the corner, but it's still too cheap.
Potash (POT): Cramer says that rankings in the agriculture sector are Agrium (AG), Mosaic (MOS), Sociedad Quimica (SQM), and then Potash since it moved too much.
Nuance (NUAN): "Don't buy. Don't buy."
Cheesecake Factory (CAKE): Thinks it's too cheap. Not giving up on it yet.
Rite-Aid (RAD): Giving CEO one more quarter. He thinks that CVS (CVS) and Walgreens (WAG) are doing much better.
China Mobile (CHL): This is a China stock that he still likes, along with Baidu.com (BIDU).
VF Corp. (VFC): Cramer thinks it's one of the better names in the apparel sector.
Western Refining (WNR): If you want to buy a refining stock, buy Valero
(VLO), or Sunoco (SUN) instead of WNR.
Energy Conversion Devices (ENER): Lose it and go with First Solar (FSLR)
Lockheed Martin (LMT): Start buying. Cramer thinks the stock is going even higher.
Starbucks (SBUX): "Don't buy, Don't buy."
Marvell (MRVL): Cramer thinks it's toxic.
First Horizon National (FHN): It's a cheap bank stock, and Cramer likes that.
Coeur d'Alene Mines (CDE): Cramer thinks this is one of the worst mining companies around, and that Barrick Gold (ABX) is the best play, and you can go with Pan American Silver (PAAS) if you want a silver stock.
DivX (DIVX): "There is nothing there to buy."
GameStop (GME): Wants the stock lower. Cramer thinks you should take some profits now, and buy more if the stock drops below $55.
Exxon Mobil (XOM): Cramer's price target for this stock is now $100.
Haynes (HAYN): It's played out for now.

Labels: CAKE, CHL, CVS, JAVA, Jim Cramer, Lightning Round, Mad Money Lightning Round, NUAN, POT, RAD, SQM, VFC, WAG, WNR

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
Gaps Down 5% or More: These are stocks that gap 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 gap 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.
Alliance Techsystems (NYSE:ATK - News). ATK's PowerRating is 5.
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.
J2 Global Communications (NasdaqGS:JCOM - News). JCOM's PowerRating is 4.
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. Historically, these stocks have provided traders with a significant edge.
China Telecom (NYSE:CHA - News). CHA's PowerRating is 7.
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.
Zoran Corporation (NasdaqGS:ZRAN - News). ZRAN's PowerRating is 7.
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.
Terra Nitrogen (NYSE:TNH - News). TNH's PowerRating is 9.
Bearish
5+ Consecutive Up Days: 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.
Cheesecake Factory (NasdaqGS:CAKE - News). CAKE's PowerRating is 4.
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 is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ATK, CAKE, CHA, DAKT, Hot Stocks, JCOM, TNH, ZRAN

Bullish calls:
Caterpillar (NYSE: CAT - News): 'I wish I hadn't talked about it, so I could have bought more... I urge you to buy that. I see an upside surprise.'Level 3 Communications (NasdaqGS: LVLT - News): 'We caught it at $3. It went to $6. It's pulled back. I don't know when the (bandwidth) shortage is going to flash, 'Shortage! Shortage! Shortage!,' but when it does, you can't wait and then buy it! You have to keep it now.'Allscripts Healthcare Solutions (NasdaqGS: MDRX - News): 'Hey, anything that does healthcare cost containment like Medco Health is just fantastic in this market. It's a triple buy!'Cheesecake Factory (NasdaqGS: CAKE - News): ' ... they have to put up more stores. I think it's a decent buy right here. It's come down a lot. Let's pull the trigger on some CAKE... even though the bears would say that no one is ever going to have cheesecake, because they can't afford it anymore...'Johnson Controls (NYSE: JCI - News): ' ... the lead just killed them! I think the lead price is coming down... I think JCI is going back up. I like the stock. This is a classic example of what you should be buying right now...'Amylin Pharmaceuticals (NasdaqGS: AMLN - News): 'I think biotech is precisely right going into the fall. AMLN is good ... new position. I have not liked that stock... 'Amgen (NasdaqGS: AMGN - News): 'Amgen is good...'Ladish (NasdaqGM: LDSH - News): 'I think that LDSH is a great buy, but the one thing I'd caution... How many stocks can say this?... 52-week high... but again, jet engines. That's a keeper.'Woodward Governor (NasdaqGS: WGOV - News)Sun Microsystems (NasdaqGS: SUNW - News): 'Unbelievable quarter ... This is a company I have hated for a decade! I got bullish on it about a quarter ago ... Don't run from SUNW. Run to it! Buy, buy, buy!'Ryerson (NYSE: RYI - News)Reliance Steel (NYSE: RS - News): ' ... as good as RYI is, Reliance Steel is even better!'Google (NasdaqGS: GOOG - News): ' GOOG's done going down. The bears are going to be trapped ... I think GOOG's going back to its high ... No one thinks that except for me... Buy, buy, buy!'Continental Resources (NYSE: CLR - News): 'I think you can stick with CLR.'XTO Energy (NYSE: XTO - News): 'I am sticking with, and buying for my charitable trust, XTO Energy, which is now the cheapest oil and gas company in the world!'
Bearish calls:
Whirlpool (NYSE: WHR - News): 'That was a bad quarter ... It wasn't saved by Brazil. I've got to give you a don't buy.'
Published By SeekingAlpha

Labels: AMGN, AMLN, CAKE, CAT, CLR, GOOG, JCI, Jim Cramer, LDSH, Lightning Round, LVLT, Mad Money, MDRX, RS, RYI, SUNW, WGOV, WHR, XTO

Texas Utilities (NYSE: TXU - News), Exelon Corp. (NYSE: EXC - News), Edison International (NYSE: EIX - News), Dominion (NYSE: D - News): Since the Texas Utilities buyout "changed the equation," Cramer says he is "scared to death to bet against this group," and adds that EXC, EIX and D are all undervalued.
Total System (NYSE: TSS - News), Synovus (NYSE: SNV - News), Aon (NYSE: AOC - News), Marsh McLennan (NYSE: MMC - News), Ross Stores (NasdaqGS: ROST - News), Cheesecake Factory (NasdaqGS: CAKE - News): Cramer lists companies that could get snapped up it the private-equity buyout frenzy: TSS and parent company SNV, Aon and "headless horseman" MMC (whose CEO Michael Cherkasky may soon end up on Cramer's CEO Wall of Shame), ROST, and CAKE.
Published by SeekingAlpha

Labels: AOC, CAKE, D, EIX, EXC, Jim Cramer, MMC, ROST, SNV, Stop Trading, TSS, TXU

New CEO's Add Fizz to Coke (NYSE: KO - News) and Pepsi (NYSE: PEP - News)
Cramer comments it's a rare CEO who can fundamentally change a company, especially one with instant name recognition. This has happened not in one, but in two cases with KO's Neville Isdell and PEP's Indra Nooyi who have "changed the whole cultures," and Cramer would bless buying either company. Isdell demanded new brands, innovative marketing and improved international sales for KO and brought the stock from $38 to $51. Cramer predicts the stock will go to $60, since it reported 11% growth in Europe, 7% in Latin America, a turnaround in Japan and strong numbers in China. He believes the $3 billion Glaceau deal will go through and will diversify the company. Cramer praises PEP's Indra Nooyi for redeeming FritoLay which had been "stigmatized" for its fatty snacks and introducing healther products which increased growth to 7% from 5%. He comments PEP is moving away from carbonation, is expanding globally, and is "embracing youth" by using ads produced by kids as well as for kids. He sees PEP climbing from $67.34 to $75.

Taking (over) the Cake: Cheesecake Factory (NasdaqGS: CAKE)
Continuing his series of potential private equity takeover targets, Cramer discussed CAKE, which is up huge after a big quarter, but is poised for a "big, breakout run." While profitable yet flawed companies are usually takeover targets, CAKE's cardinal sin is overcautiousness; Cramer comments CAKE has enough demand to raise prices, which are too low, and could undertake more aggressive expansion and marketing if taken private. He cautions a takeover could be tricky because the owners may be reluctant to sell, and would buy the stock for its good fundamentals and because it is "too cheap."

Mad Mail: Kansas City Southern (NYSE: KSU), Denny's (NasdaqCM: DENN), Wal-Mart (NYSE: WMT)
Cramer agreed with a viewer that KSU belongs in his "pantheon of rails." When asked if DENN like Darden Restaurants, could be a takeover target, Cramer reminded the viewer that DENN had already been private and went bankrupt and predicted its number will not be good. He would not buy DENN on a takeover basis. When asked about his change of direction concerning WMT, Cramer said it was because Alan Questrom, who "turned around J.C. Penney" and "may be the single greatest retailer in America" joined WMT's board.
Published By SeekingAlpha

Labels: CAKE, Jim Cramer, KO, KSU, Mad Money, PEP, WMT

America's Car-Mart Inc. (NasdaqGS:CRMT - News) shares jumped Wednesday after the Bentonville, Ark., automotive retailer swung to a loss for the third quarter but said it still expects to be profitable in the fourth quarter. The company lost $50,000 for the three months ended Jan. 31 on revenue of $59.3 million. It added that it's seen a dramatic reduction in its accounts over 30 days due and that it's encouraged by the continuation of this trend into February.

Shares of American Axle Manufacturing (NYSE:AXL - News) surged after J.P. Morgan lifted its rating on the stock to overweight from neutral, citing the potential for the company's 2008 labor contract to include an agreement for "substantial, eventual UAW wage/benefit reductions." The firm said it believes the United Auto Workers union is likely to be sympathetic to American Axle this time around because the company will be the only UAW supplier with high cost OEM(original equipment manufacturer)-level compensation following restructurings at Delphi and Visteon. J.P. Morgan also said the company's management has leverage over the union with regard to future sourcing locations. It estimates a minimum of $1.10 per share in cost savings being secured by the company in the 2008 contract.
Avalon Pharmaceuticals (NasdaqGM:AVRX - News) shares surged after the company formed a drug discovery, development and commercialization collaboration with Merck (NYSE:MRK - News) to identify and develop inhibitors for an undisclosed target that is important in the development of cancer. The deal's terms provide for Avalon to potentially receive payments of more than $200 million as well as royalties on potential future products.
BJ's Wholesale Club Inc. (NYSE:BJ - News) said fourth-quarter earnings fell 77% to $11.9 million, or 18 cents a share, from $51.6 million, or 76 cents, a year earlier, hurt by items. The company said the latest quarter's results included charges of 44 cents a share related to its ProFoods closing expense, asset impairment, pharmacy closing expense, severance payments and a credit-card claim reserve. Excluding one-time items and stock-based compensation expense, the company said non-GAAP earnings fell to 59 cents a share from 77 cents, a year earlier. The Natick, Mass., warehouse-club operator said net sales rose 13% to $2.38 billion from $2.1 billion in the year-ago period.
British Airways Plc (NYSE:BAB - News), Europe's third-largest airline, said it expects fiscal 2008 revenue to increase 5% to 6% on traffic up 2.4% and average fares up 3.4%. The company said it sees fuel costs up by 100 million pounds from a year earlier and total costs excluding fuel up by 50 million pounds. The company said it's on track to reach its target of a 10% operating margin in 2008.
Canadian Natural Resources Ltd. (NYSE:CNQ - News) said its fourth-quarter net profit fell 72% to C$313 million ($265 million), or C$0.58 a share, from C$1.1B, or C$2.06 a share. Revenue before royalties for the quarter fell 9.1% to C$2.83 billion. The company said it booked an after-tax expense of C$99 million related to the effects of risk management activities. In the fourth quarter of 2005 it booked an after-tax gain of C$503 million. The company added that, for the full year, higher commodity prices were accompanied by significant cost inflation. North American natural gas production rose 14% to a record high and crude oil production rose 1% from a year earlier.
The Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said it'll buy back 10 million shares of stock worth about $266 million based on its closing price Tuesday of $26.63 a share. The Calabasas Hills, Calif. will ink an agreement to repurchase $200 million of its shares of common stock through a broker-dealer in an accelerated share repurchase transaction. The company plans to secure a revolving credit facility in the amount of $200 million to replace a temporary credit facility.
Chico's FAS (NYSE:CHS - News) reported fourth-quarter net earnings of $18.2 million, or 10 cents a share, down from $44.5 million, or 24 cents a share, during the year-ago period. The latest results include pretax impairment expenses of about $8.6 million, or 3 cents a share, related to the planned closure of the Fitigues brand operations in the first quarter of fiscal 2007. The Fort Myers, Fla.-based retailer posted net revenue of $446.3 million, up 19% from $375.7 million. Chico's said it will no longer provide specific quarterly or annual sales and earnings outlooks. The company said it believes that if it achieves a low-single-digit same-store sales increase for fiscal 2007, the current consensus analyst estimates for the period "appear reasonable." Chico's said February sales at company-owned stores open at least one year fell 4.3%. Total sales for the four weeks ended March 3 rose 15% to $113.6 million from $98.7 million, Chico's said.
Deere & Co. (NYSE:DE - News) was upgraded to overweight from equal weight at Lehman Bros., which cited increased confidence about the durability of higher agricultural prices and the company's ability to leverage high end market demand. Analyst Joel Tiss also raised his stock price target to $135 from $95 and his 2008 earnings estimate to $8.20 a share from $7.25. Shares of the agricultural and construction equipment maker closed Tuesday up $2.84 at $107.04. They have lost 8.1% since reaching an all-time high of $116.50 on Feb. 22, but are still up 13% since the end of 2006.
First American (NYSE:FAF - News) was upgraded to overweight from equal-weight at Lehman Bros.
Friendly Ice Cream (AMEX:FRN - News) has hired Goldman Sachs as financial advisor, and Weil, Gotshal & Manges as legal advisor, to assist the board in exploring strategic options, including a possible sale of the company. The Wilbraham, Mass.-based company said that while it will review a wide range of options in consultation with its advisors, there can be no assurance of any particular outcome. Friendly, which operates restaurants and manufactures ice cream, said it does not expect to disclose further developments regarding the process until the review of strategic alternatives has been completed.
Joy Global (NasdaqGS:JOYG - News) was upgraded to overweight from equal-weight at Lehman Bros.
Shares of Movie Gallery (NasdaqGM:MOVI - News) rose after the company said it's acquired MovieBeam Inc., a private on-demand movie service. Financial terms of the transaction weren't disclosed but the company expects total incremental expenses related to MovieBeam, including the initial acquisition cost and any ongoing development expenses, to be less than $10 million in 2007. Dothan, Ala.-based Movie Gallery added that the deal includes substantially all of MovieBeam's assets, technology, network operations and customers. The company said MovieBeam content delivery network is available in 31 major metropolitan areas in the U.S.
Office Depot (NYSE:ODP - News) was upgraded to buy from hold at Deutsche Bank.
Panera Bread Co. (NasdaqGS:PNRA - News) said its total system-wide comparable bakery-cafe sales slipped 0.6% in February. For company-owned locations, same-store sales fell 1.3% for the five weeks ended Feb. 27. Panera said this performance reflects severe weather in the Midwest, where it has a high concentration of its bakery-cafes.
Payless ShoeSource Inc. (NYSE:PSS - News) said it plans to acquire privately held Collective International LP in a deal valued at roughly $91 million. Topeka, Kan.-based Payless sees the deal closing in the first half of fiscal 2007. The company expects the deal to be neutral to fiscal 2007 net earnings and to be accretive to fiscal 2008 net earnings. Payless also reported fourth-quarter net earnings of $24.6 million, or 37 cents a share. In the same quarter last year, the company posted a net loss of $5.6 million, or 8 cents a share. The Topeka, Kan.-based retailer said fourth quarter 2006 earnings benefited by the release of $14.3 million, or 22 cents a share, of income tax reserves related primarily to the closing of income tax audits in various jurisdictions. Revenue rose 13% to $692.7 million from $611 million, while comparable store sales in the quarter rose 6.8%.
Saks Inc. (NYSE:SKS - News) swung to a fourth-quarter profit, boosted by an additional week in the quarter and higher same-store sales. The Birmingham, Ala., retailer reported fourth-quarter earnings of $21.5 million, or 14 cents a share, compared with a loss of $2.24 million, or 2 cents a share, a year earlier. Saks said revenue for the quarter ended Feb. 3 rose 17% to $955 million from $817.8 million a year ago. Analysts surveyed by Thomson Financial expected, on average, earnings of 22 cents a share on revenue of $921 million. Analyst earnings forecasts typically exclude unusual items.
Take-Two Interactive (NasdaqGS:TTWO - News) shares jumped after Oppenheimer Funds and SAC Capital, a hedge fund, disclosed plans to nominate six new candidates to the company's board.
Talbots Inc.'s (NYSE:TLB - News) fiscal fourth-quarter profit fell 99% to $17,000, with earnings of less than 1 cent a share, from $19.8 million, or 37 cents a share, a year earlier, hampered by higher costs and expenses and deeper post-Christmas discounts. The most recent quarter included 14 weeks while the year-earlier quarter had only 13. Excluding items such as acquisition costs and stock-option expense, the Hingham, Mass., women's clothing retailer said Wednesday that it would have earned 19 cents a share in the quarter ended Feb. 3. Net sales rose 31% to $638 million from $486.2 million.

Published By MarketWatch

Labels: AVRX, AXL, BAB, BJ, CAKE, CHS, CNQ, CRMT, DE, FAF, FRN, JOYG, MOVI, MRK, ODP, PNRA, PSS

Stocks rose Wednesday, lifting the Dow Jones industrials past 12,700 for the first time after Wall Street welcomed a robust sales forecast from Cisco Systems Inc. and a stronger-than-expected productivity reading.
The Cisco forecast gave a boost to technology stocks, while the Labor Department's productivity figures were stronger than expected for the fourth quarter. Productivity grew at a 3 percent annual rate, nearly double what Wall Street expected and the agency also reported that wage pressures eased somewhat in the last three months of the year.
"This economy just keeps moving along. Stocks overall are still reasonably priced and obviously there's a lot of money on the sidelines that wants to come in," said Al Goldman, chief market strategist with A.G. Edwards & Sons.
In early afternoon trading, the Dow rose 29.72, or 0.23 percent, to 12,696.03. The Dow rose as high as 12,700.28, passing a previous trading record of 12,683.93 set Friday.
Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 4.74, or 0.33 percent, at 1,452.74, and the tech-focused Nasdaq composite index, responding to Cisco's news, rose 23.16, or 0.94 percent, to 2,494.65.
Bonds rose following the economic data, with the yield on the benchmark 10-year Treasury note falling to 4.74 percent from 4.77 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude rose 26 cents to $59.14 per barrel on the New York Mercantile Exchange, lifted slightly after the Energy Department's weekly domestic inventory data showed a small decrease in crude stockpiles.
"I think that people are slowly but surely becoming aware of the fact that if we had any kind of a landing it was a soft landing. I'm not even sure we can call it a landing," Goldman said of the economy. "I think people who have been disbelievers in this market for years are starting to believe."
Investors found encouragement in the productivity data because it suggested employers could extract more work from employees and stave off the need to add workers in a tight labor market. Employers forced to compete for workers would likely have to raise pay and other benefits. Such a prospect would draw concern on Wall Street as the Fed remains watchful of an increase in wage inflation.
Last week, the Fed left rates unchanged for the fifth straight time, interrupting a string of 17 straight increases than began in 2004. In comments accompanying the decision, the Fed said inflationary pressures appeared to be in check though still a concern. After an initial burst higher following the comments on inflation, stocks have shown little movement as bullish investors try to build resolve to move higher.
The productivity data seemed to overshadow comments from Philadelphia Fed President Charles Plosser that an improving economy might force the central bank to raise short-term interest rates. Plosser said the productivity gains were helping consumers but that it was too soon to declare the threat of inflation neutralized.
In corporate news, Cisco rose $1.16, or 4.2 percent, to $28.44 after the networking equipment maker predicted its third-quarter revenue would rise 19 to 20 percent.
News Corp. added 60 cents, or 2.5 percent, to $24.75 after the media conglomerate's fiscal second-quarter earnings fell from those of a year ago, which benefited from a gain on an asset sale. The company's box office earnings rose on several hits including the "Borat" movie. Earnings were stronger than expected and the stock set a new 52-week high of $25.35, topping an earlier high of $24.52.
Multi-Fineline Electronix Inc., which makes circuit boards, rose $3.26, or 18.5 percent to $20.84 although its fiscal first-quarter profit came in below Wall Street's expectation. Some analysts suggested the company's revenue had hit a low point.
Appliance maker Whirlpool Corp. saw its fourth-quarter earnings fall 14 percent as it recorded a loss from discontinued operations. The stock fell $2.85, or 3 percent, to $92.05. DirecTV Group Inc. rose $1.63, or 6.8 percent, to $25.60 after the satellite television operator's fourth-quarter profit more than doubled after its subscriber base grew and it changed its accounting for set-top boxes.
Cheesecake Factory Inc. fell 79 cents, or 2.9 percent, to $26.97 after the restaurant chain's fourth-quarter profit fell 9 percent amid compensation charges and increased operating costs.
Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 753.59 million shares.
The Russell 2000 index of smaller companies was up 4.78, or 0.59 percent, at 815.19.
Overseas, Japan's Nikkei stock average closed down 0.66 percent. Britain's FTSE 100 closed up 0.37 percent, Germany's DAX index was up 0.58 percent, and France's CAC-40 finished up 0.46 percent.
Published by Tim Paradis, AP Business Writer

Labels: CAKE, CSCO, Dow Jones, DTV, Hot Stocks, MFLX, NWS, WHR

Adams Respiratory Therapeutics (NasdaqGS:ARXT - News) said its fiscal second-quarter net profit rose 16.8% to $12.5 million, or 34 cents a share, from $10.7 million, or 29 cents a share. Revenue for the quarter jumped 75% to $110.6 million due to accelerating sales of Mucinex, the acquisition of Delsym and the launch of its children's Mucinex products. The company said it continues to anticipate the gross margin for its guaifenesin product to be around 80% of net sales in fiscal 2007.
American Commercial Lines (NasdaqGS:ACLI - News) said its fourth-quarter net income rose sharply to $35 million, or 56 cents a share, from $8.6 million, or 14 cents a share, a year earlier. Results were boosted by a gain of $4.8 million, or 8 cents a share, on the sale of its Venezuelan operations. The Jeffersonville, Ind., integrated marine transportation and service provider's revenue rose 18% to $265.9 million from $225.6 million a year earlier. Analysts polled by Thomson Financial expected, on average, revenue of $296.9 million. The company said it approved a two-for-one stock split, to be distributed as a stock dividend Feb. 20 to shareholders of record Wednesday. Fourth-quarter results reflect the stock split.
Aquila (NYSE:ILA - News) shares slid after the company agreed to sell certain gas utility operations in Colorado, Kansas, Iowa and Nebraska to Black Hills Corp. (NYSE:BKH - News) for $940 million. Kansas City, Mo.-based Aquila also said it's agreed to be acquired by Great Plains Energy (NYSE:GXP - News) in a cash and stock deal valued at $1.7 billion. The Black Hills' asset purchase will be completely just after the closure of the Aquila/Great Plains deal. The Great Plains' proposal calls for the acquisition of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of Great Plains' stock for each Aquila share, a value of $4.54 based on Tuesday's close. Great Plains is also set to assume about $1 billion in Aquila debt. Following the closing of the deal, Aquila shareholders will own about 27% of Great Plains' common stock.
Aspect Medical Systems (NasdaqGM:ASPM - News) said it expects non-GAAP earnings of 6 to 8 cents a share on revenue of $22.6 million to $23.6 million for the first quarter. Wall Street's current consensus estimate is for a profit of 16 cents a share in the March period.
Atwood Oceanics Inc. (NYSE:ATW - News) reported first-quarter net earnings of $21.1 million, or 67 cents a share, up from $14.5 million, or 47 cents a share, during the year-ago period. The Houston-based drilling contractor posted revenue of $88.8 million vs. $55.4 million.
CB Richard Ellis Group Inc. (NYSE:CBG - News) said fourth-quarter net income rose, buoyed by "strong" leasing activity, to $125.1 million, or 53 cents a share, from $95.4 million, or 41 cents a share, during the same period in the prior year.
Centene Corp. (NYSE:CNC - News) shares declined after the managed care provider was downgraded to sell from neutral at Merrill Lynch on valuation. The move comes after Centene posted a fourth-quarter profit that was flat compared with the same quarter last year. "Centene is up nearly 90% since sharply disappointing last summer and we think shares have gotten ahead of themselves," analyst Doug Simpson wrote in a research note. Simpson cut his 2007 per-share profit forecast to $1.45 from $1.59 and set a 2008 outlook of $1.63. "[W]e believe the other Medicaid managed care names we cover have better visibility on operating earnings than Centene," he wrote.
Cheesecake Factory (NasdaqGS:CAKE - News) said its fourth-quarter income was off from the prior year's levels, but the casual dining restaurateur's sales climbed 18%, thanks to increased traffic at its Grand Lux outlets.
Corporate Executive Board Co. (NasdaqGS:EXBD - News) said its fourth-quarter net income rose 8.9% to $23.2 million, or 58 cents a share, from $21.3 million, or 52 cents a share, a year earlier. The company, which provides business research and gives executive seminars, said excluding share-based compensation, adjusted income for the quarter was 68 cents a share, up from 52 cents a share a year earlier. Sales rose 26% to $125.5 million from $99.8 million.
Dean Foods (NYSE:DF - News) said its fourth-quarter earnings rose to $73 million, or 53 cents a share, from $66.2 million, or 45 cents a share, a year earlier. Excluding discontinued operations, facility closings and the effect of an accounting change, Dallas-based Dean said it earned 61 cents a share in the quarter. Dean Foods said Wednesday that net sales fell to $2.59 billion from $2.62 billion a year earlier. Analysts polled by Thomson Financial, on average, expected earnings of 61 cents a share on revenue of $2.59 billion. For 2007, Dean Foods forecasts adjusted per-share earnings of $2.33 to $2.38. Wall Street, on average, is looking for full-year earnings $2.38 a share.
EGL Inc. (NasdaqGS:EAGL - News) shares tumbled after the Houston-based logistics company said it has been notified by General Atlantic LLC that it has withdrawn as an equity sponsor from the offer made by James Crane, the company's chief executive and largest shareholder, to acquire EGL for $36 a share in cash. General Atlantic indicated that it is pulling out of the offer because of an expected shortfall in EGL's fourth quarter results, EGL said. The company said its results will be negatively impacted by an 8% decline in revenue per shipment at the company's domestic freight forwarding division compared to last year. The company's results are also expected to be hit by higher-than-expected operating expenses. Crane plans to present a revised acquisition offer with a new equity commitment, EGL said.
Encore Wire (NasdaqGS:WIRE - News) shares dropped after the McKinney, Texas-based maker of copper electrical wire reported fourth-quarter net earnings of $6.18 million, or 26 cents a share, down from $35.4 million, or $1.50 a share, last year. Revenue in the three months ended Dec. 31 was $262.3 million, down from $244.2 million in the year-ago period.
Equity Residential Properties Trust reported fourth-quarter net earnings of $465.1 million vs. $225.9 million during the year-ago period. Net income available to common shareholders was $457.6 million, or $1.54 a share, compared with $215.2 million, or 74 cents a share, a year ago. The company was also downgraded to hold at Citigroup.
FMC Corp. (NYSE:FMC - News) said fourth-quarter net income fell, as restructuring charges rose, to $12.9 million, or 33 cents a share, from $25.3 million, or 64 cents a share, during the same period in the prior year.
Forest Laboratories (NYSE:FRX - News) was downgraded to sell at Citigroup.
Genomic Health (NasdaqGM:GHDX - News) shares fell after the Redwood City, Calif.-based company posted a fourth-quarter net loss of $9 million, or 37 cents a share, compared with $8.22 million, or 34 cents a share, last year. Revenue increased to $8.62 million from $1.93 million. Genomic Health forecast a 2007 net loss of $27 million to $30 million on revenue of $57 million to $63 million.
Gerdau Ameristeel Corp. (NYSE:GNA - News) reported fourth-quarter earnings of $69.4 million, or 23 cents a share, down from a year-ago profit of $80.4 million, or 26 cents a share. Sales rose in the latest three months to $1.04 billion from $934.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 29 cents a share in the December period. The company also said its board has approved a special dividend of 27 cents per common share, payable on March 9 to shareholders of record on Feb. 22. Gerdau also said it's budgeted $250 million in capital investments for 2007.
MedImmune (NasdaqGS:MEDI - News) shares fell after the company reported a fourth-quarter profit of $120.7 million, or 50 cents a share, from a loss of $22.4 million, or 9 cents, a year earlier on 7.5% sales growth. Excluding share-based compensation and other items, the Gaithersburg, Md., company's adjusted earnings climbed to 64 cents a share from 8 cents a year ago. MedImmune said Wednesday fourth-quarter revenue increased to $528.7 million from $492 million, with sales of respiratory drug Synagis up 6% and sales of the FluMist flu vaccine more than doubling from a year ago. Analysts surveyed by Thomson Financial, on average, expected the drug maker to earn 54 cents a share and generate revenue of $555.5 million for the latest fourth quarter. For 2007, MedImmune expects to earn 90 to 95 cents a share on revenue of about $1.5 billion.
By Michael Baron

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Stocks rose Wednesday after Wall Street digested a robust sales forecast from Cisco Systems Inc. and a stronger-than-expected productivity reading gave investors fresh signs that the economy is holding up and keeping inflation largely in check.
The Cisco forecast gave a boost to technology stocks, while the productivity figures were stronger than expected for the fourth quarter but showed a slowdown for the year. If productivity falls and wages increase too quickly, the Federal Reserve could be forced to raise interest rates.
The data seemed to overshadow comments from Philadelphia Fed President Charles Plosser that an improving economy might force the central bank to raise short-term interest rates. Last week, the Fed left rates unchanged for the fifth straight time, interrupting a string of 17 straight increases than began in 2004. Plosser said the productivity gains were helping consumers but that it was too soon to declare the threat of inflation neutralized.
Figures Wednesday showed productivity grew at a 3 percent annual rate in the fourth quarter, nearly double what Wall Street had been expecting. For all of 2006, however, productivity rose at the slowest rate in nine years while labor costs climbed at the fastest rate in six years.
In midmorning trading, the Dow Jones industrial average rose 11.22, or 0.09 percent, to 12,677.53.
Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 2.12, or 0.15 percent, at 1,450.12, and the Nasdaq composite index rose 10.40, or 0.42 percent, to 2,481.89.
Bonds rose following the productivity data, with the yield on the benchmark 10-year Treasury note falling to 4.76 percent from 4.77 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude rose 54 cents to $59.42 per barrel on the New York Mercantile Exchange.
In corporate news, Cisco rose $1.11, or 4.1 percent, to $28.39 after the networking equipment maker predicted its third-quarter revenue would rise 19 to 20 percent.
Multi-Fineline Electronix Inc., which makes circuit boards, rose $2.72, or 15.5 percent to $20.30 although its fiscal first-quarter profit came in below Wall Street's expectation. Some analysts suggested the company's revenue had hit a low point.
Appliance maker Whirlpool Corp. saw its fourth-quarter earnings fall 14 percent as it recorded a loss from discontinued operations. The stock fell $2.30, or 2.4 percent, to $92.60.
Cheesecake Factory Inc. fell 81 cents, or 2.9 percent, to $26.95 after the restaurant chain's fourth-quarter profit fell 9 percent amid compensation charges and increased operating costs.
Advancing issues outnumbered decliners by about 4 to 3 on the New York Stock Exchange, where volume came to 246 million shares.
The Russell 2000 index of smaller companies was up 1.05, or 0.13 percent, at 811.46.
Overseas, Japan's Nikkei stock average closed down 0.66 percent. In afternoon trading, Britain's FTSE 100 was up 0.19 percent, Germany's DAX index was up 0.49 percent, and France's CAC-40 was up 0.24 percent.
Published by Tim Paradis, AP Business Writer

Labels: CAKE, CSCO, Dow Jones, Hot Stocks, MFLX, Nasdaq, WHR

Actions Semiconductor Co. (NasdaqGM:ACTS - News) said fourth-quarter net income rose, with unit shipments at an all-time high, to $21.3 million, or 25 cents per American Depositary Share, from $19.9 million, or 24 cents per ADS, during the same period in the prior year.
Atmos Energy Corp. (NYSE:ATO - News) reported first-quarter net earnings of $81.3 million, or 97 cents a share, compared with $71 million, or 88 cents a share, in the same period last year, as the cost of purchased gas dropped.
Atwood Oceanics Inc. (NYSE:ATW - News) reported first-quarter net earnings of $21.1 million, or 67 cents a share, up from $14.5 million, or 47 cents a share, during the year-ago period. The Houston-based drilling contractor posted revenue of $88.8 million vs. $55.4 million.
Blackboard Inc. (NasdaqGS:BBBB - News) reported fourth-quarter net earnings of $201,000, or a penny a share, down from $23.1 million, or 79 cents a share, during the year-ago period.
Brightpoint Inc. (NasdaqGS:CELL - News) said fourth-quarter net income rose, as wireless devices handled gained, to $9.74 million, or 19 cents a share, from $8.85 million, or 18 cents a share, during the same period in the prior year.
CB Richard Ellis Group Inc. (NYSE:CBG - News) said fourth-quarter net income rose, buoyed by "strong" leasing activity, to $125.1 million, or 53 cents a share, from $95.4 million, or 41 cents a share, during the same period in the prior year.
Cheesecake Factory (NasdaqGS:CAKE - News) said its fourth-quarter income was off from the prior year's levels, but the casual dining restaurateur's sales climbed 18%, thanks to increased traffic at its Grand Lux outlets.
Computer Sciences Corp. (NYSE:CSC - News) said that net income for its fiscal third-quarter fell 78%, and the company is delaying filing a full earnings report with regulators until it has completed an ongoing internal review of stock options grant practices.
CPI International Inc. (NasdaqGM:CPII - News) reported first-quarter net earnings of $5.84 million, or 33 cents a share, up from $2.22 million, or 15 cents a share, during the year-ago period.
Equity Residential Properties Trust (NYSE:EQR - News) reported fourth-quarter net earnings of $465.1 million vs. $225.9 million during the year-ago period. Net income available to common shareholders was $457.6 million, or $1.54 a share, compared with $215.2 million, or 74 cents a share, a year ago.
FEI Co. (NasdaqGM:FEIC - News) said it swung to net income in the fourth-quarter, as bookings remained solid and operating expenses declined, of $14.7 million, or 36 cents a share. During the same period in the prior year, the net loss was $30.7 million, or 92 cents a share.

Fidelity National Information Services Inc. said fourth-quarter net income rose, as revenue gained, to $75.1 million, or 39 cents a share, from $45.5 million, or 35 cents a share, during the same period in the prior year.
FMC Corp. (NYSE:FMC - News) said fourth-quarter net income fell, as restructuring charges rose, to $12.9 million, or 33 cents a share, from $25.3 million, or 64 cents a share, during the same period in the prior year.
Kforce Inc. (NasdaqGS:KFRC - News) said fourth-quarter net income rose, as revenue per billing day gained, to $9.26 million, or 22 cents a share, from $6.86 million, or 17 cents a share, during the same period in the prior year.
Nabors Industries Ltd. (NYSE:NBR - News) posted a big jump in its fourth-quarter earnings as lofty energy prices and strong international demand put a premium on the company's drill rigs and oilfield services.
Nalco Holding Co. (NYSE:NLC - News) reported fourth-quarter net earnings of $37.9 million, or 26 cents a share, up 50% from $25.2 million, or 17 cents a share, during the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization were $193 million vs. $163 million a year ago.
Pioneer Natural Resources Co. (NYSE:PXD - News) reported fourth-quarter net earnings of $27.7 million, or 22 cents a share, compared with $140.8 million, or $1.08 a share, in the same period last year, as oil and gas revenue dropped.
Polo Ralph Lauren Corp. (NYSE:RL - News) said it has named John Alchin, Comcast Corp.'s (NYSE:CCT - News) co-chief financial officer, to its board.
RenaissanceRe Holdings (NYSE:RNR - News) reported a huge quarterly profit, but the reinsurer cut its 2007 premium forecast citing softening prices and the impact of a new Florida insurance law.

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Alaska Communications (NasdaqGM:ALSK - News) was downgraded to underweight from equal weight at Lehman Bros.
Allied Capital Corp. (NYSE:ALD - News) agreed to sell its portfolio company, Palm Coast Data Holdco Inc., to Kable Media Services Inc., a unit of Amrep Corp. (NYSE:AXR - News). The value of the transaction was $92 million.
Blackbaud Inc. (NasdaqGS:BLKB - News) acquired privately owned sister companies Target Software Inc. and Target Analysis Group Inc. for $60 million, plus up to an additional $2.4 million under a 1-year earn-out arrangement. Blackbaud sees the acquisition cutting earnings per share, before items, in 2007 by 3 to 6 cents.
Cheesecake Factory Inc. (NasdaqGS:CAKE - News) said Peter D'Amelio, president and chief operating officer of the restaurant division, is leaving for personal reasons, effective Feb. 2. The company is searching for a replacement.
Cosi (NasdaqGM:COSI - News) was downgraded to buy from strong buy at Wedbush Morgan.
Fortunet Inc. (NasdaqGM:FNET - News) was initiated with a hold rating at W.R. Hambrecht & Co.
Fulton Financial (NasdaqGS:FULT - News) said fou