Jim Cramer Blog

Stocks took a breather following a two-day rally, as Wall Street demonstrated caution ahead of next week's Fed meeting. The Dow posted a 6-point gain to close at 13,626 for the week. Meanwhile, the Nasdaq and S&P were just off at the bell to end at 2,706 and 1,505, respectfully. Light, sweet crude traded lower on the day to settle at $88.28 for January delivery. Treasury prices dropped, while gold prices fell to close at $800.20 for February delivery. The dollar traded higher against the yen, but eased versus the euro.
In economic news, a Labor Department report showed that 94,000 jobs were added to payrolls in the month of November. Analysts had estimated 70,000 new jobs would be added. The report also showed that the unemployment rate remained unchanged in October at 4.7%. Economists had predicted a rise to 4.8%. In a separate report, the University of Michigan said its consumer confidence index fell to 74.5 in early December, down from 76.1 in November. Economists had predicted a drop to 75.0.
On the earnings front, shares of Synopsys (Nasdaq: SNPS - News) surged 9.3% on the day after the maker of semiconductor design automation software said profits jumped on higher license revenues. For the quarter, the company posted earnings of $41 million, or 27 cents per share, up from $10.1 million, or 7 cents per share, last year. Excluding one-time items, Synopsys earned $60 million, or 40 cents per share, versus $30.7 million, or 22 cents per share, a year ago. Quarterly revenue rose to $315.2 million, up 11.2% from $283.4 million in last year's period. On average, analysts were looking for earnings of 36 cents per share.
In corporate news, billionaire Rubert Murdoch named new leaders at Dow Jones (NYSE: DJ - News), the publisher of The Wall Street Journal, one week before his media empire, News Corp (NYSE: NWS - News), is set to close its acquisition of the company. Les Hinton will become the new CEO at Dow Jones following a shareholder vote. Murdoch also appointed his son, James, as News Corp's chairman and chief executive for Europe and Asia. The move has fueled speculation that James will eventually succeed his father as CEO of News Corp. Shares of Dow Jones were off slightly in trading, while News Corp's stock posted a small gain.
After the bell yesterday, Palm (Nasdaq: PALM - News) warned that it would swing to a loss in the second quarter and lowered its sales guidance citing a product launch delay. The smart-phone maker said it now expects to post a loss of -22 to -24 cents per share, off from previous estimates of a loss of -1 to -3 cents per share. Excluding one-time items, Palm expects to report a loss between -8 to -10 cents per share. The company said it now expects sales to be between $345-$350 million, down from previous guidance of $370-$380 million. On average, analysts were calling for a profit of 4 cents per share on sales of $376 million. Shares of Palm plunged in trading and were off -12.9% at the bell.
In M&A news, Macrovision (Nasdaq: MVSN - News) has agreed to acquire Gemstar-TV Guide (Nasdaq: GMST - News) in a cash and stock deal worth $2.8 billion. According to terms, Gemstar-TV Guide shareholders will receive $6.35 in cash or 0.2548 of a share in a new holding company that owns both Macrovision and Gemstar-TV Guide. Meanwhile, Macrovision stockholders will own one share of the new holding company for each share held when the deal closes. Under the terms of the deal, the cash exchange will not exceed $1.55 billion. Upon completion of the takeover, Macrovision shareholders will own a 53% stake in the newly formed company, with former shareholders of Gemstar-TV Guide holding a 47% stake. The deal is expected to close in the second quarter of next year. Shares of Macrovision plummeted -21.4% on the day, while Gemstar-TV Guide's stock tumbled to close off -16.6% at the bell.
By the BullMarket.com Staff

Labels: DJ, GMST, MVSN, NWS, PALM, SNPS

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
eBay (NasdaqGS:EBAY - News) smashed earnings expectations on Wednesday, announcing $0.41 EPS over an expected $0.33 EPS. EBAY's PowerRating (for Traders) is 5.
Alliance Data (NYSE:ADS - News) also beat earnings Wednesday, with $1.01 EPS over a consensus of $0.93 EPS. ADS's PowerRating (for Traders) is 5.
Bank of America (NYSE:BAC - News) reports earnings on Thursday before the bell, with analysts looking for $1.06 EPS. BAC's PowerRating (for Traders) is 5.
Commerce Bancorp (NYSE:CBH - News) is looking to report $0.41 EPS before the market opens on Thursday morning. CBH's PowerRating (for Traders) is 7.
Dow Jones (NYSE:DJ - News) should report $0.22 EPS on Thursday morning before the bell. DJ's PowerRating (for Traders) is 5.
Analysts are watching for Continental Airlines (NYSE:CAL - News) to report $2.19 EPS on Thursday before the market opens. CAL's PowerRating (for Traders) is 5.
Pfizer (NYSE:PFE - News) should announce $0.52 EPS tomorrow morning. PFE's PowerRating (for Traders) is 5.

Labels: ADS, BAC, CAL, CBH, DJ, Ebay, Hot Stocks, pfe

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.
Amazon.com Oct 100 Calls (NasdaqGS:AMZN - News). AMZN'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.
priceline.com Oct 85 Puts (NasdaqGS:PCLN - News). PCLN's PowerRating (for Traders) is 6.
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.
Google Oct 640 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 4.
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.
Las Vegas Sands Oct 540 Puts (NYSE:LVS - News). LVS's PowerRating (for Traders) is 4.
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.
Dow Jones (NYSE:DJ - News). DJ's PowerRating (for Traders) is 5.
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.
Pediatrix Medical Group (NYSE:PDX - News). PDX's PowerRating (for Traders) is 6.
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.
Countrywide Financial (NYSE:CFC - News). CFC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: AMZN, CFC, DJ, GOOG, LVS, PCLN, PDX, stock options

Stocks dropped hard from the onset of the trading session as global equity markets fell after credit woes hit foreign indexes. Losses were extended towards the closing bell, with the Dow Jones Industrials falling -387 points at the close, while the Nasdaq lost -56 points and the S&P retraced -44 points on the session. Treasuries rose sharply on the news, with the yield on the 10-year note ending at 4.79%. Over in the energy complex, natural gas was the only gainer, rising 36 cents to $6.58.
Company news from foreign markets hit home today, as France's largest bank, BNP Paribas SA, halted withdrawals from three investment funds because it could not fairly value its holdings after the U.S. subprime mortgage market roiled credit markets. As of August 7th, the company said those funds had assets of $2.2 billion, but those values declined -20% in the past two weeks. The news prompted the European Central Bank (ECB) to infuse 95 billion euros into the overnight lending market. On the home front, a $1.8 billion quantitative hedge fund managed by Highbridge Capital Management, a unit of JP Morgan Chase (NYSE: JPM - News), has lost -5.3% so far this month as credit markets continue to feel the heat.
On the earnings front, one of the world's largest insurers American International Group (NYSE: AIG - News) reported net income of $4.28 billion, or $1.64 a share, up from $3.19 billion, or $1.21 last year. Excluding hedging activities and other investment gains and losses, it said it earned $4.63 billion, or $1.77 a share, easily topping estimates of $1.61 a share. Revenues climbed 16% to $31.15 billion. The insurer cited strong performance in its general insurance business as well as life and retirement services. Strong results could do little for shareholders on this day, as shares fell -3.3%. Subscribers can read our analysis of American International Group's earnings in today's issue.
Elsewhere, media giant News Corp (NYSE: NWS - News), fresh off its acquisition of Dow Jones (NYSE: DJ - News), reported a 4% rise in fiscal fourth-quarter earnings. For the quarter just ended, the company earned $890 million compared to last year's $852 million. Excluding discontinued operations in the year-ago period, profits rose 22% on a per share basis to 28 cents per share, up from 23 cents in the same period a year ago. Revenues rose 9% to $7.37 billion. The company cited higher cable networks results for the increased profits.
In other news, home improvement retailer Home Depot (NYSE: HD - News) shares fell -5.3% after the company said it may have to reduce its price tag and restructure its planned $10.3 billion sale of its contractor supply business to a group of private equity companies. It also said it is scaling back its planned stock repurchase program due to the possible reduction in price for the unit.
Food giant Campbell Soup (NYSE: CPB - News), meanwhile, has hired Centerview Partners to help it explore strategic alternatives for its Godiva Choclatier business. Shares fell -4.6% on the session.
By the BullMarket.com Staff

Labels: AIG, CPB, DJ, HD, JPM, NWS

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.
Expedia (NasdaqGS:EXPE - News). EXPE's PowerRating is 8.
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.
Western Refining (NYSE:WNR - News). WNR's PowerRating is 6.
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.
Boyd Gaming (NYSE:BYD - News). BYD's PowerRating 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.
Chicago Mercantile Exchange (NYSE:CME - News). CME'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.
Home Depot (NYSE:HD - News) & Dow Jones (NYSE:DJ - News). HD's PowerRating is 6, and DJ's PowerRating is 8.
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.
ZOLL Medical (NasdaqGS:ZOLL - News). ZOLL's PowerRating is 1.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BYD, CME, DJ, EXPE, HD, Hot Stocks, WNR, ZOLL

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Bank of America (NYSE:BAC - News) reports quarterly earnings on Thursday before the market opens; look for $1.20 EPS. BAC's PowerRating is 4.

Continental Air (NYSE:CAL - News) should report $1.79 EPS on Thursday morning before the bell. CAL's PowerRating is 4.
When Dow Jones (NYSE:DJ - News) releases earnings on Thursday morning, look for $0.45 EPS. DJ's PowerRating is 7.
Analysts are watching for International Game Technology (NYSE:IGT - News) to report $0.39 EPS on Thursday morning. IGT's PowerRating is 5.
Motorola (NYSE:MOT - News) looks set to announce flat earnings ($0.00) tomorrow morning. MOT's PowerRating is 4.
Nucor (NYSE:NUE - News) announces earnings on Thursday morning, with most analysts expecting $1.15 EPS. NUE's PowerRating is 6.
Reliance Steel (NYSE:RS - News) is hoping to report $1.57 EPS on Thursday morning. RS's PowerRating is 6.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BAC, CAL, DJ, Hot Stocks, IGT, MOT, NUE, RS

The Dow, Nasdaq, and S&P 500 seesawed but stayed up for most of the day before ending down slightly amidst concerns about tomorrow's Fed meeting. Consumer confidence numbers for June were released today, and the drop was more severe than analysts had expected. The Conference Board's index was down to 103.9, from a revised May number of 108.5. Analysts had expected an index number of 105. Sales of new homes also dropped -1.6% to an annual pace of 915,000 units.
Lennar Homes (NYSE: LEN) showed the effects of the drop in home sales as it announced a loss of -$244.5 million, or -$1.55 per share. Last year, the company had a profit of $327.4 million, or $2.00 per share. The company also announced a weak forecast for its third quarter and the rest of 2007. Quarterly revenues slipped -37% to $2.88 billion. Lennar was down -3.1% on the news.
Oracle (Nasdaq: ORCL) announced after the bell that fiscal fourth-quarter earnings were up 27% from a year ago to $1.6 billion, or 31 cents a share. Excluding items, EPS came in at 37 cents, beating analyst estimates by two cents. Revenues were up 20% to $5.8 billion with software revenues up 19% to $4.8 billion. Fiscal-year earnings were up 27% to $4.3 billion, or 81 cents per share, with total revenues of $18 billion, up 25%.
Nike (NYSE: NKE) also released its fiscal fourth-quarter earnings after the bell, reporting a profit of $437.9 million, or 86 cents per share. Revenues were up 9% for the quarter to $4.4 billion. For the fiscal year, Nike showed profits of $1.5 billion, or $2.93 per share, with revenues of $16.3 billion.
Grocery store chain Kroger (NYSE: KR) posted profits of $336.6 million, or 47 cents per share, for its fiscal first quarter. Profits were up 11.3% from the year-ago period, when Kroger announced profits of $302.4 million. Sales rose 6.7% to $20.73 billion, exceeding analyst estimates of $20.32 billion. The stock fell -6.7%.
Rupert Murdoch and the board of directors of Dow Jones (NYSE: DJ) have reportedly come to a preliminary agreement regarding editorial independence, thereby clearing the path for the purchase of the media company by News Corp. (NYSE: NWS). A source reportedly told AP that while there are still some points to iron out, most of the deal has been worked out. The Dow Jones board of directors includes four members of the Bancroft family -- the controlling shareholder group for the company.
Ventana Medical Systems (Nasdaq: VMSI) saw shares of its stock soar today on news that Roche Holding AG had made an offer for the company. Roche offered $3 billion, or $75 a share, in a hostile takeover bid Monday evening. Ventana closed up 47.7% on the day. Roche also closed another deal today, finalizing its purchase of Gaithersburg, MD-based BioVeris Corp. for $600 million.
Basell, a Dutch chemical company, has made a bid for Huntsman Corp. (NYSE: HUN). Under the deal, Basell would acquire all outstanding shares of Huntsman for $5.6 billion, or $25.25 per share. The total deal is worth $9.6 billion when assumption of debt is included. Huntsman has been shopping itself around for some time, but has had trouble finalizing a deal.

Labels: DJ, Dow Jones and Co. Inc., KR, LEN, Lennar Corp., News Corp, Nike Inc., NKE, NWS, Oracle Corp., ORCL

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Schlumberger Limited July 95 Calls (NYSE:SLB). SLB's PowerRating is 4.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Dow Jones & Co. July 60 Puts (NYSE:DJ). DJ's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 200 Calls (NYSE:MA). MA's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Goldman Sachs Aug 200 Puts (NYSE:GS). GS' PowerRating 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.
Microsoft (NasdaqGS:MSFT). MSFT's PowerRating 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.
None today
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.
Nike Inc. (NYSE:NKE). NKE's PowerRating is 6.
Hovnanian Enterprises (NYSE:HOV). HOV's PowerRating is 7.
PowerRatings are courtesy of TradingMarkets.com

Labels: DJ, GS, HOV, MA, MSFT, NKE, SLB, stock options

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Jabil Circuit (NYSE:JBL) beat earnings expectations on Thursday afternoon, announcing $0.23 EPS over an expected $0.20 EPS. JBL's PowerRating is 3.
Cognos (NasdaqGS:COGN) matched earnings expectations on Thursday with $0.32 EPS. COGN's PowerRating is 4.
General Electric (NYSE:GE) and Pearson (NYSE:PSO) each issued a separate statement, announcing intentions to drop their respective bids for Dow Jones (NYSE:DJ). GE's PowerRating is 5, PSO does not have a PowerRating due to volume constraints and DJ's PowerRating is 4.
Nvidia (NasdaqGS:NVDA) announced on Wednesday a new type of chip named "Tesla," designed for computation-intensive fields such as engineering and medicine. NVDA's PowerRating is 2.
H&R Block (NYSE:HRB) announced on Thursday that the company recorded a net loss of $85.6 billion last quarter, or 26 cents a share. Subprime mortgage worries continue to affect all areas of the financial services market. HRB's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: COGN, DJ, GE, Hot Stocks, HRB, JBL, NVDA, PSO

After a seesaw day, the Dow, S&P 500 and Nasdaq all closed down, but not by much. Oil prices rose again on threats of a labor strike by Nigerian workers. Futures ended the day up 1.6% to $69.09, above Friday's close of $68.00. The National Association of Home Builders (NAHB) released its builders' housing market index for June with a score of 28, the lowest since February 1991. The index, which tracks builders' outlooks for the housing market, is down from 42 one year ago. The chief economist for the NAHB said that the organization expects home prices to be a drag on the economy for the rest of 2007. This announcement comes a day ahead of the U.S. government releasing its new housing starts and building permits statistics for May.
Fast-food restaurant Wendy's (NYSE: WEN - News) is reportedly putting itself on the market after cutting its full-year earnings guidance. While there is no timetable for the sale, a special committee of the board of directors is overseeing the process after making the initial recommendation. The earnings forecast is now $295-$315 million, or $1.09-$1.32 per share. Analysts put the EPS at $1.27. While the company struggles with a shrinking market share, it announced same-store sales growth of 3.8% in the first quarter and 0.7% thus far in the second quarter through June 15th.
Australian-based mining company BHP Billiton (NYSE: BHP) is apparently in a buying mood. One source said the company is exploring options regarding a potential $40 billion takeover of Pittsburgh-based Alcoa (NYSE: AA), while Reuters said late in the day that it was looking to buy Alcan (NYSE: AL). Alcoa was recently in the news for its failed bid to take over Alcan. Alcoa was up 0.7% on the day, Alcan rose 0.9%, and BHP saw an increase of 1.3%.
General Electric (NYSE: GE) is reportedly working with Financial Times publisher Pearson Plc (NYSE: PSO) to structure a bid for Dow Jones (NYSE: DJ). The two companies plan to combine The Wall Street Journal with its current offerings of CNBC and The Financial Times. The Bancroft family, owners of the company, are currently developing a proposal to submit to original suitor News Corp. (NYSE: NWS) that would maintain the company's editorial independence.
Friendly Ice Cream (Amex: FRN) has agreed to be taken private by private equity firm Sun Capital Partners. Sun Capital Partners will acquire the ice cream parlor and casual restaurant chain for $15.50 per share, or $337.2 million. The stock has been criticized in recent months by shareholders, including a letter sent in March by activist investors. The day after the letter was sent, the company announced that it would seek to be acquired.
Finish Line Inc. (Nasdaq: FINL), a sports-clothing retailer, announced today that it would pay $1.5 billion in cash to acquire Genesco, Inc. (NYSE: GCO). Genesco recently rejected an offer from Foot Locker (NYSE: FL) to be acquired saying that the offer was too low. Finish Line Inc. says that the combined operations would have sales of about $2.8 billion from 2,870 stores in the United States, Canada, and Puerto Rico.
By the BullMarket.com Staff

Labels: AA, AL, BHP, DJ, FINL, FL, FRN, GCO, GE, PSO

After six days of climbing, the S&P 500 was down today, along with the Nasdaq and Dow. Stocks were affected by a scare that the Fed might be preparing to raise interest rates again for the first time since last June. Fed Chairman Ben Bernanke, speaking via satellite at an international money management conference in South Africa, suggested that the economy was set to rebound even though the housing slump might continue for some time. Coupling that with the news from the Institute for Supply Management (ISM) and there were concerns that rates might be on their way up.

The ISM released its May index of business activity in the non-manufacturing sector. The new reading of 59.7 beat both April's number and Wall Street expectations of 56. New orders were at 57.4 and employment was at 54.1, both up from April. Numbers higher than 50 indicate expansion, while numbers lower indicate contraction.
After yesterday's meeting with News Corp (NYSE: NWS) Chairman Rubert Murdoch, the Independent Association of Publisher's Employees, which is the union that represents Wall Street Journal employees, has reached out to other potential buyers. One surfaced as billionaire investor Ron Burkle has indicated that he might be interested in purchasing Dow Jones (NYSE: DJ). Union president Steve Yount indicated that Burkle was the first person to respond, but that overtures were made to a few potential buyers.
Avaya (NYSE: AV) has agreed to a buyout from TPG Capital and Silver Lake Partners. The total value of the sale is $8.2 billion, or $17.50 per share. This deal has been in talks for some time, and while it is no surprise that it has come to fruition, there was speculation about when the offer would be made.
Housewares retailer Bed Bath and Beyond (Nasdaq: BBBY) lowered its guidance for the quarter, saying that a consumer spending drop-off was responsible for the company failing to meet expectations for the first time since it went public in 1992. In today's announcement, Bed Bath and Beyond released earnings expectations of 36-38 cents per share, down from the 39 cents it said was "reasonable" on its previous conference call. While the company said that same-store sales would be up, the growth is now only expected to be 1.6% instead of the 3-5% previously suggested.
Amazon.com (Nasdaq: AMZN) shares rose 4.6% after the company said it would increase its investment in Chinese Internet company Joyo.com. Proctor & Gamble (NYSE: PG), meanwhile, rose 0.46% after it reiterated its previous guidance.

By the BullMarket.com Staff

Labels: AMZN, AV, BBBY, DJ, NWS, PG

By the BullMarket.com Staff
The Dow, Nasdaq, and S&P 500 all started the week up despite some concerns that China and the factory orders report would drive U.S. stocks down. New highs again marked the close of both the Dow and S&P 500, and all three indices are on track to post their best quarter in at least three years. Stocks in Shanghai took another tumble as the government continues to try and control the stock market. The Shanghai Composite Index dropped -8.3% overnight, but the effect seemed minimal as most other Asian markets closed up, including five record highs. Factory orders grew in April, but the gains were weaker than expected. New orders increased by only 0.3%, which was the smallest gain in three months. Analysts had expected gains of up to 0.8%. While the overall gains were weak, analysts were encouraged by the 2.1% growth for non-defense capital goods excluding aircraft. This sub-metric is considered a good read on business investment.

M&A news once again dominated the headlines. Palm Inc. (Nasdaq: PALM ) signed a deal with private equity firm Elevation Partners for the firm to buy 25% of the smartphone manufacturer. As part of the deal, two Palm executives will resign and shareholders will receive a special $9 per share distribution. Analysts have noted that Palm is facing more competition in the smartphone market lately and it will only get worse as Apple's (Nasdaq: AAPL) iPhone prepares to release at the end of the month. Palm is also adding former Apple hardware engineer Jon Rubenstein to its board as executive chairman. Mr. Rubenstein has settled with the SEC in an investigation surrounding his role in Apple's backdating issues. He paid a fine without admitting guilt. Mr. Rubenstein most notably ran the iPod division from 2004-2005.
Private equity fund Lone Star V LP has entered into an agreement to buy Accredited Home Lenders (Nasdaq: LEND) for $15.10 per share, or a total of approximately $400 million in cash. This is a 10% premium over the stock's Friday close of $13.76. Accredited offers loans to high-risk borrowers, more commonly known as subprime mortgages. This industry, of course, recently suffered a well-publicized collapse.
Telecommunications equipment company Avaya (NYSE: AV), meanwhile, is said to be near closing its deal with private equity firms TPG Capital LLP and Silver Lake Partners. While the deal is not finalized and Avaya could still fall to another suitor, the private equity group seems to be in the leading position.
News Corp (NYSE: NWS) Chairman Rupert Murdoch met with the Bancroft family, who own a controlling interest in Dow Jones (NYSE: DJ), publishers of the The Wall Street Journal. The Bancroft family has been reluctant to meet with Mr. Murdoch, who has made overtures of late trying to buy the company. While the family has been reluctant to sell its stake, this meeting may represent a warming towards the purchase.
According to reports, American Express (NYSE: AXP) is planning to sell its private banking unit within the next one to two weeks. The unit could be worth between $1 and $2 billion. While no suitors have been named publicly, analysts believe that a large international bank could be the purchaser.
Struggling Puerto Rican lender Doral (NYSE: DRL), who last month agreed to be bought out by a private equity fund run by Bear Stearns (NYSE: BSC), has received a rival bid. Privately held FBOP Corp. has made an offer of $1.41 per share in order to take an 80% stake in the lender. This is more than twice what Bear Stearns offered in May.

Labels: AAPL, AV, AXP, BSC, DJ, iPhone, LEND, NWS, PALM

Symbol
Name
Last Trade
Change
Volume
Related Info
CKXE
CKX INC
14.65 4:00PM ET
4.02 (37.82%)
10,069,614
SNT
SENESCO TECH
1.5100 3:59PM ET
0.3100 (25.83%)
143,300

FNLY
FINLAY ENTERPRISES
6.33 3:59PM ET
1.12 (21.50%)
78666
CTDC
CHINA TECH DEV GRP
3.29 4:00PM ET
0.57 (20.96%)
764,294
GROW
US GLOBAL INV INC
25.00 4:00PM ET
3.76 (17.70%)
3,139,163

ESEA
EUROSEAS LTD
15.48 4:00PM ET
2.13 (15.96%)
514,021

IDMI
IDM PHARMA INC
3.81 4:00PM ET
0.52 (15.81%)
1,858,062

ANTP
PHAZAR CORP
6.02 4:00PM ET
0.81 (15.55%)
1,053,439

LCCI
LCC INTL INC
4.32 3:59PM ET
0.57 (15.20%)
209,456

DJ
DOW JONES CO INC
61.20 4:02PM ET
7.89 (14.80%)
11,570,849
MCZ
MAD CATZ INTERACTIVE
1.34 4:01PM ET
0.17 (14.53%)
1,368,900

CHIP
VERICHIP CORPORATION
8.67 4:00PM ET
1.07 (14.08%)
252,185

DCAP
DCAP GROUP INC
2.70 12:56PM ET
0.33 (13.92%)
9,100
EVST
EVERLAST WORLDWIDE
26.36 3:59PM ET
3.21 (13.87%)
416,777
APY
ASPYRA INC
2.10 3:33PM ET
0.25 (13.51%)
18,200
FCSX
FCSTONE GROUP, INC.
47.96 4:00PM ET
5.67 (13.41%)
1,624,895
QRCP
QUEST RESOURCE CORP
9.93 4:00PM ET
1.16 (13.23%)
646,757

DYII
DYNACQ HLTHCR
2.01 3:16PM ET
0.23 (13.11%)
8,074

MTE
MAHANAGAR TEL ADS
8.14 4:02PM ET
0.94 (13.06%)
794,700

Labels: ANTP, APY, CHIP, CKXE, CTDC, DCAP, DJ, DYII, ESEA, EVST, FCSX, FNLY, GROW, IDMI, LCCI, MCZ, MTE, QRCP, SNT

Here are 7 options to watch for today. This list comes directly from the TM Options Indicators page and is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs July 260 Calls (NYSE:GS - News). GS's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Altria Jun 70 Puts (NYSE:MO - News). MO's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple July 120 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Dow Jones June 50 Puts (NYSE:DJ - News). DJ's PowerRating 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.
Sun Microsystems (NasdaqGS:SUNW - News). SUNW's PowerRating 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.
Network Appliance (NasdaqGS:NTAP - News). NTAP's PowerRating is 7.
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.
Genentech (NYSE:DNA - News). DNA's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com.

Labels: AAPL, DJ, DNA, GS, MO, NTAP, stock options, SUNW

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Intuit (NasdaqGS:INTU) beat earnings after the close on Thursday, announcing $1.13 EPS over an expected $1.07 EPS. INTU's PowerRating is 5.
Kohl's (NYSE:KSS) beat earnings on Thursday afternoon, with $0.64 EPS over an expected $0.62 EPS. KSS's PowerRating is 6.
Alliance Data Systems (NYSE:ADS ) agreed to be bought out by private equity firm Blackstone for $7.8 bln. ADS's PowerRating is 5.
WPP Group (NasdaqGS:WPPGY) announced on Thursday a deal to buy 24/7 Real Media (NasdaqGM:TFSM) for $649 million. WPPGY's PowerRating is 5.
A major takeover bid is still on the table for Dow Jones (NYSE:DJ Medial mogul Rupert Murdoch, who runs Newscorp (NYSE:NWS) reportedly offered to buy DJ for $60 a share. DJ's PowerRating is 5, and NWS's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: ADS, DJ, Hot Stocks, INTU, KSS, NWS, TFSM, WPPGY

Stocks traded gingerly preceding today's decision by the Federal Reserve to hold the line on interest rates, then the markets resumed the upward pace that has characterized trading in the past month. The advance by the major averages wasn't dramatic, but it was another move higher and established yet another closing record for the Dow Jones Industrial Average. In other markets, the 10-year Treasury note and crude oil futures closed lower.
The Fed's decision not to alter interest rates came as little surprise and there was little change in the wording of the central bank's announcement that would tip its hand about future rate cuts. The policy makers are maintaining their inflation-fighting bias, though this month around there was some acknowledgment that growth has slowed. Overall, it's steady as it goes for Fed policy.
In corporate news, shares of Cisco Systems (Nasdaq: CSCO) sank -6.5% after the network equipment maker offered a weak sales outlook as part of its profit report, which was released after last night's closing bell. The company suggested a modest slowing of sales growth in the 15-16% range for the current quarter, compared with the 19-20% it forecasted or delivered in the past few quarters. Chipmaker Texas Instruments (NYSE: TXN) moved higher after the company's CEO offered an upbeat assessment of gross margins in an address to analysts.
Media companies were also in the spotlight. Walt Disney (NYSE: DIS) said its fiscal Q2 profit rose 27%. Disney reported net income of $931 million, or 44 cents a share, compared with $733 million, or 37 cents a share, in the year-earlier quarter. Revenue rose to $8.07 billion, which missed the $8.13 billion target analysts expected. Disney cited strength in its cable channels as a growth driver.
News Corp. (NYSE: NWS), meanwhile, said its net income rose 6.2% on the strength of profits from the company's movie unit. Chairman Rupert Murdoch also addressed his surprise $5 billion bid for Dow Jones & Company (NYSE: DJ) in the company's conference call. He suggested the $60 a share bid that is on the table for The Wall Street Journal publisher won't rise, calling it "more than fair." Enough members of the Bancroft family, which controls the company's future through ownership of a super-voting class of stock, have indicated opposition to the deal to block it. Murdoch said he hoped they might be persuaded to change their minds and was seeking a private meeting. Dow Jones closed down -5.1%.
Elsewhere, Japanese carmaker Toyota Motor (NYSE: TM) posted a smaller-than-expected profit. The company's net income rose 8.9% to $3.7 billion, but its operating profit declined -2.8%. On the M&A front, The Wall Street Journal reported that at least three private equity groups are looking at wireless carrier Alltel (NYSE: AT). The company's low debt relative to its cash flow make the company attractive to leveraged buyout firms. Alltel stock closed up 2.1%.

Labels: AT, CSCO, DIS, DJ, NWS, TM, TXN

Stocks drifted through the morning session on mixed economic news, then gained strength in the afternoon on M&A activity. The Blue Chip Dow Jones Industrial Average made the boldest move, with tamer advances from the Nasdaq composite and S&P 500 indexes. The price of crude oil, as well as the 10-year Treasury note, both declined.
The private Institute for Supply Management's April manufacturing index came in at 54.7, which was stronger than last month and also above Wall Street forecasts. A reading above 50 shows the manufacturing sector is expanding. It also makes it less likely that the Federal Reserve will see the need to cut interest rates to stimulate the economy. On the downside, housing and autos remain weak. The National Association of Realtors said pending sales of existing homes fell by another -4.9% in March.
Meanwhile, U.S. carmakers reported another month of slow sales. Ford Motor (NYSE: F - News) said its domestic sales in April slid -12.9% from a year ago. Car sales at General Motors (NYSE: GM - News) fell -9.5%. Even Toyota Motor (NYSE: TM - News), which has had a seemingly endless string of increased monthly sales, reported a -4.4% sales decline. There were two less selling days in April 2007 than the previous year.
In a rare occurrence, Dow Jones & Co. (NYSE: DJ - News) was more newsworthy than the stock index that bears its name. Shares of the publisher of The Wall Street Journal rocketed up 54.7% after news of a $5 billion unsolicited takeover bid from Rupert Murdoch's News Corp. (NYSE: NWS - News). The $60-a-share offer, which was submitted to the company's board in mid-April, marks a substantial premium over where the stock has traded in the last year. Dow Jones is controlled by the Bancroft family through a two-tier stock system and cannot be sold without its consent. The family was said to be studying the offer.
Other newspaper publishing companies gained today as well, as investors eyed the sector for further consolidation. Moving higher today were shares of New York Times (NYSE: NYT - News), McClatchy (NYSE: MNI - News), Gannett (NYSE: GCI - News), and the Washington Post (NYSE: WPO - News). News Corp., however, traded lower.
On the earnings front, Procter & Gamble (NYSE: PG - News) reported a 14% increase in its fiscal Q3 net, but those results disappointed investors who had become accustomed in recent quarters to results from the consumer products company that came in above forecast. With its Q3 figures only matching Wall Street's expectations, the shares declined -2.2%. Subscribers can read our take on P&G's earnings in today's issue.
Electronics retailer Circuit City (NYSE: CC - News) shed -5.3% after it withdrew its guidance for the first half of the year after announcing that April sales were "substantially" lower than what the company expected. Circuit City is facing intense competition from the larger Best Buy (NYSE: BBY - News) and is in the midst of a restructuring effort.
By the BullMarket.com Staff

Labels: BBY, CC, DJ, F, GCI, GM,