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Tuesday, December 04, 2007

E*TRADE Financial Corporation (ETFC) Shares Fall on Downgrade

Shares of E-Trade Financial Corp. fell Tuesday morning after an analyst downgraded the company, saying that despite a recent cash infusion from Citadel Investment Group, the online lender still has considerable exposure to the mortgage market.
Shares fell 17 cents, or 4.1 percent, to $3.94 after the opening bell.
Garp Research & Securities analyst Seth Dadds downgraded the stock to "Neutral" from "Buy," saying in a client note that Citadel's $2.55 billion cash infusion doesn't "eliminate E-Trade's $12.4 billion second lien (HELOC) mortgage exposure, which we think will continue to pressure the shares."

Labels: E*TRADE Financial Corporation, ETFC

Saturday, December 01, 2007

Jim Cramer's Mad Money Lightning Round Nov. 30th

Abbott Labs (ABT): Cramer likes this stock because it has great drugs and diagnostics. He also recommended Baxter (BAX), Bard (BCR), and Becton Dickinson (BDX).
Infinera (INFN): Cramer doesn't want to be in this stock because he doesn't like the optical sector.
Southern Copper (PCU): Cramer is bullish on this stock, but he thinks Freeport McMoran (FCX) is better since it's cheap and he thinks it will be taken over soon.
Nordstroms (JWN): Cramer thinks this stock should go up to $36, so he would buy the stock here.
E*Trade (ETFC): Cramer thinks you will get hurt if you try to invest in this stock. He is bearish.
Anthracite Capital (AHR): This is a residential REIT, so Cramer is bearish. He recommended the caller buy Annaly Capital (NLY) instead.
Anadarko Petroleum (APC): Cramer thinks this stock is terrific, along with Apache (APA), Devon (DVN), and XTO (XTO).
Trane (TT): Cramer said he has been looking at this stock and was actually going to recommend it later tonight, but he has second thoughts about it because of its residential construction exposure. He still thinks it is a well run company.
Northern Trust (NTRS): Cramer thinks this and State Street (STT) are the best run financial institutions in the country, so he wants to recommend both of them.

Labels: ABT, AHR, APA, APC, BAX, DVN, ETFC, FCX, INFN, Jim Cramer, JWN, Lightning Round, Mad Money, NLY, PCU, STT, TT NTRS, XTO

Friday, November 30, 2007

Hot Stocks to Watch Friday

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

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

Thursday, November 29, 2007

Stock Market Wrapup Nov. 29th

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

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

By the BullMarket.com Staff

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

Monday, November 26, 2007

E-Trade Financial Corp. (ETFC) Shares Continue to Fall

Shares of E-Trade Financial Corp. fell Monday after news that prospective buyers of the online brokerage are debating the value of its deteriorating mortgage portfolio.
The Wall Street Journal reported over the weekend that TD Ameritrade Holding Corp. and Charles Schwab Corp. are worrying that some parts of E-Trade's business have not been marked down enough to reflect the current subprime mortgage trouble. Shares have fallen 82 percent since their peak this year on June 6, when they closed at $25.60.
A Charles Schwab representative declined early Monday afternoon to discuss any potential deal with E-Trade.
"We don't comment on speculation or rumors," said spokesman Greg Gable.
A spokeswoman for Omaha, Neb.-based TD Ameritrade also declined to discuss reports of a deal.

Labels: E-Trade Financial Corp., ETFC

Wednesday, November 14, 2007

Hot Stock Options to Watch Wednesday

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.
Morgan Stanley Jan 65 Calls (NYSE:MS - News). MS's PowerRating (for Traders) is 3.
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.
Wal-Mart Stores Dec 45 Puts (NYSE:WMT - News). WMT's PowerRating (for Traders) is 4.
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.
E*TRADE Financial Jan 5 Calls (NYSE:ETFC - News). ETFC'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.
Goldman Sachs Dec 185 Puts (NYSE:GS - News). GS'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.
Nabors Industries (NYSE:NBR - News). NBR'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.
Nexen (NYSE:NXY - News). NXY'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 5.
Published By TradingMarkets.com

Labels: CFC, ETFC, GS, MS, NBR, NXY, stock options, WMT

Tuesday, November 13, 2007

CNBC's Fast Money Recap Nov. 12th

Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on the dollar, which he predicted last Friday was due for a bounce. The dollar had its biggest one day reversal in a year on Monday. He also noted that in the last 4 days the U.S. dollar had the biggest rally versus the Canadian dollar that he has seen in his life. He also wouldn't be surprised to see gold fall another $40. Also, Gartman is looking for oil to fall $10-$15 before Thanksgiving.
Merrill Lynch economist David Rosenberg said on Monday that the last time he's seen a drop in consumer confidence to this degree during the Holiday season; the economy was in a recession. Macke thinks the Tuesday earnings reports from Home Depot (HD) and Wal-Mart (WMT) will be horrific. The only retailer he expects a good earnings report from is Kohl's (KSS) and his wild card is Macy's (M). He would get long Costco (COST) and Target (TGT). Adami thinks a trade is setting up for Coldwater Creek (CWTR), which he mentions has a very high short interest.
E*Trade (ETFC) lost 60% of its value Monday on concerns over the companies loan portfolio. Finerman thinks the most clear trade is to be long TD Ameritrade Holding (AMTD). Finerman sees opportunity for TD Ameritrade to steal E*Trade clients with all the problems they're having. She also likes Charles Schwab (SCHW).
IBM (IBM) bought Cognos (COGN) for $5 billion and Fortune Brands (FO) sold its wine business to Constellation Brands (STZ) for $885 million. Adami declares United States Steel (X) will be the next company to be taken over.
Word on the Street
Technology stocks continued to slide Monday with leaders like Google (GOOG) dropping 5%, Apple (AAPL) dropping 7% and Research In Motion (RIMM) dropping 9%. Adami likes Hewlett Packard (HPQ) ahead of next Monday's earnings report.
Rio Tinto (RTP) hits a record high after BHP Billiton (BHP) laid out the details for its $140 billion all-share offer.
Adami says the big pharmaceutical story is not fiction and Merck (MRK) is for real. He also loves defense play Johnson & Johnson (JNJ). Macke agrees with Adami and that right now is a good time to be long Merck, Procter & Gamble (PG), Pfizer (PFE) and Church & Dwight (CHD) for a defensive portfolio. Najarian wants to keep an eye on Eli Lilly (LLY).
Pops & Drops
Pops - Cisco Systems (CSCO) traded up 2% on Monday as the market declined.
Mattel (MAT) traded up 4% off a JPMorgan upgrade.
Starwood (HOT) traded up 2%
Washington Mutual (WM) traded up 1% as the financial stocks mounted a rally on Monday.
American Airlines (AMR), US Airways (LCC) and Delta (DAL) all traded up more than 5% as oil prices declined.
Starbucks (SBUX) traded up 3%.
Drops - Freeport McMoRan (FCX) fell 10% as commodity stocks were hit off the dollar rally.
Tyson Foods (TSN) fell 3% after cutting its 2008 forecast.
Sotheby's (BID) fell 2%.
Mosaic (MOS) fell 14% off the dollar rally.
Final Trade
Macke likes defensive play Procter & Gamble (PG).
Adami recommends Cisco Systems (CSCO).
Finerman and Najarian both picked TD Ameritrade Holding (AMTD).

Labels: AMTD, CNBC, CNBC's Fast Money, COST, CWTR, dennis gartman, ETFC, Fast Money, Fast Money Recap, HD, KSS, TGT, WMT

Jim Cramer's Mad Money Stock Recap Nov. 12th

On Monday's show, Cramer started with his reasons that the market has not hit a bottom yet. He does not think that the Fed will continue to cut rates, and that mortgages and weak consumers will hurt stocks. Cramer thinks this is a time to preserve capital, not go on the offensive in this market.
Cramer then went to the phone lines. The first caller asked whether options expiration will cause the market to fall further, and Cramer said that he thinks tomorrow is the time to pick up some of the good stocks that have been hit the hardest over the past few days. Second caller asked Cramer how a weak dollar helps the economy, and what companies are in the best position to take advantage of it? Cramer said that he thinks the dollar is about to bottom, so he doesn't want anyone to try and profit off of a weak dollar now. The next caller asked if now is the time to buy a stock like Sandridge (SD), and Cramer said that he wants you to buy high quality oil stocks that pay high dividends before looking at a stock like that one.
Cramer then gave his pick for a stock that could give a cautious portfolio a boost when the market turns around and that stock was Apache (APA). Cramer has been pushing this stock since July, and he is still behind it because it can maintain its earning multiple. The CEO of the company was on the show to talk about the company's plans for the future, and his opinion on the price of oil.
Cramer came back fromt he lightning round and reviewed a duel between two analysts over Wyeth (WYE). One analyst upgraded the stock, and another analyst downgraded it at the same time. Cramer agrees with the analyst who upgraded the stock since he is bullish at this time. Cramer likes WYE because it is a defensive stock, people will want to own it if a recession hits, and they are buying back stock.
Mad Mail: The first email asked about E*Trade (ETFC), and Cramer said he wants people to stay away from it. The next email asked about Foster Wheeler (FWLT), and Cramer said that although it is a great company, the stock is losing momentum in this market. The next email asked about Cramer's Dow prediction, and he said that his prediction was based on the Fed cutting rates further, which they seem unwilling to do. The next email asked about NRG's (NRG) storage of spent fuel rods, and Cramer said that he should have asked the CEO that question when he was on the show. The last emailer asked about ways to profit from the reduction of the crack spread as oil prices decline, and Cramer said he thinks the best play on that idea is Marathon (MRO).
Sudden Death. In sudden death Cramer was bullish on Sirius (SIRI), Nordstrom (JWN), and Aecom (ACM). Cramer was bearish on Acadia Pharmaceuticals (ACAD).

Labels: APA, ETFC, FWLT, Jim Cramer, Mad Money, Mad MOney Recap, NRG, WYE

Tuesday, October 16, 2007

CNBC's Fast Money Recap Oct. 15th

Citigroup (C) brought back fears of credit problems. Citigroup reported a 57% decline in profits. Finerman: not surprised at the report. Macke: no reason to be long Citigroup. Adami: $45 is still the exit on the stop out for the Citigroup trade. Najarian pointed out E*Trade (ETFC) and Knight Capital (NITE), which are reporting earnings on Wednesday.
Louise Yamada, who has been ranked the #1 technical analyst on Wall Street, joined the show to discuss the stock market. She likes Broadcom (BRCM). The charts tell her that technology is the best place to be right now. Najarian thinks Broadcom looks great because it was tearing higher in a negative tape on Monday. He also thinks that the market is starting to digest the fact that oil at $85 is probably not a great thing. He highlighted the strength in Exxon Mobil (XOM) and Oil Service HOLDRs (OIH). He also advised investors to keep an eye on coal stocks like Peabody Energy (BTU) and Massey Energy (MEE).
Technology: IBM (IBM), Yahoo! (YHOO) and Intel (INTC) are set to report earnings after the bell Tuesday. Macke: IBM will be the least surprising. Najarian: IBM options are pricing in a big move. Najarian favors Intel and deems them in the sweet spot. Macke: look at Yahoo! and any signs of the company breaking up will send the stock 10% higher.
Coca-Cola (KO) and Altria (MO) are set to report earnings on Wednesday. Finerman currently owns Altria. Adami: likes the dividend and agrees with Finerman on the valuation on Altria. Macke: Coca-Cola will benefit from a weak dollar and global growth. Najarian proposes Coca-Cola as a play on the growth in energy drinks.
Word on the Street
Chinese stocks continued to go higher Monday with the Hang Seng hitting record highs. PetroChina (PTR) passed up General Electric (GE) as the world's 2nd-largest company. Genentech (DNA) beat earnings estimates, but revenues fell short of Wall Street estimates. The former CEO of Children's Place (PLCE) has hired Bear Stearns to look at alternative options for the company. Macke would rather play Build-A-Bear Workshop (BBW) for a takeover play. SiRF Technology (SIRF) saw unusual options activity on Monday. Najarian participated by buying some SIRF call options Monday and feels the stock could move higher.
Pops & Drops
Pops- U.S. Steel (X) traded up 2.5%
Saks (SKS) traded up 4%. Macke advises investors to get out of Saks.
Drops- Level 3 (LVLT) dropped 11%. They're looking for a new CFO.
Medtronic (MDT) fell 11%. Najarian counsels viewers to stay away.
Sallie Mae (SLM) dropped 4% on news that buyout firms are getting cold feet
Eaton (ETN) fell 4% after cutting its 4th quarter outlook. Adami considers keeping an eye on Honeywell (HON) to see if the sector is in trouble.
Regional Bank ETF (KRE) dropped 3%. Adami feels positive about U.S. Bancorp (USB) into earnings, but the KRE drop has him concerned.
Mattel (MAT) fell 1% on poor earnings due to the Chinese toy recalls. Macke prefers Hasbro (HAS), which he is long.
Final Trade
Macke would buy NRG Energy (NRG)
Adami prefers Short Dow30 PROSHARES (DOG) for a short the Dow play.
Finerman is sticking with Flowserve (FLS).
Najarian recommends Cypress (CY).

Labels: BRCM, BTU, Citigroup Inc., CNBC, ETFC, Fast Money, Fast Money Recap, IBM, INTC, MEE, NITE, OIH, YHOO

Thursday, October 11, 2007

Jim Cramer's Mad Money Lighting Round Oct. 10th

Bullish:
China Mobile (CHL) instead of KONG
Enterprise Product Parners (EPD)
Schering-Plough (SGP),
Celgene (CELG),
Sanofi-Aventis (SNY): likes Novartis (NVS) and Schering-Plough (SGP) better
Manulife (MFC), Prudential (PRU), Metlife (MET): Likes all three
E-Trade Financial (ETFC): It's a buy.
Furmanite (FRM): Cramer prefers ITT.
ITT (ITT),
Transocean (RIG),
Schlumberger (SLB)
Hudson City (HCBK): Better than NYB.
Bearish:
KongZhong (KONG): Cramer recommended China Mobile (CHL) instead.
Pioneer Drill (PDC); Cramer wants you to sell this driller
NightHawk (NIHK): Don't buy
New York Community Bank (NYB): Cramer thinks Hudson City (HCBK) is a better bank.
MDU (MDU): Don't buy.

Labels: CELG, CHL, EPD, ETFC, FRM, ITT, Jim Cramer, Lightning Round, Mad Money, MET, MFC, NVS, PRU, RIG, SGP, SNY

Wednesday, September 19, 2007

Fast Money Recap Sept. 18th

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:
Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.
Macke: Can't be short financials now.
Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)
All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.
OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.
Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)
Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.
Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.
Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)
Face 2 Face:
Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.
Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)
Pops & Drops:
Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)
Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)
Final Trade:
Macke- Macy's (M)
Finerman- Altria (MO)
Adami- Nucor (NUE)
Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Tuesday, September 18, 2007

Stock Market Wrapup Sept. 18th

Stocks opened the session on a strong note after key economic data sent bulls buying. In the late afternoon hours, stocks surged after the Fed cut both the discount and Fed funds rate by -50 basis points. At the close, the Dow ended with a gain of 336 points, while the tech-heavy Nasdaq gained 70 points. The S&P 500 was the largest gainer of the big three indices, rising 2.9%. Oil, meanwhile, added 94 cents to finish the session at $81.51 a barrel.
In economic news, the Labor Department said that producer prices fell more than expected in August. The PPI fell -1.4% for the month, following a 0.6% rise in July. Core prices, which exclude food and fuel costs, rose 0.2%. In housing-related news, the National Association of Home Builders said that confidence among homebuilders tied a record low in September. Its index in collaboration with Wells Fargo declined to 20. A reading below 50 signals that conditions are poor. Additionally, according to RealtyTrac, foreclosures more than doubled from year-ago levels, as the rate at which homes were foreclosed increased by 115% in the month compared to a year ago, and 36% from July levels.
On the earnings front, troubled investment firm Lehman Brothers (NYSE: LEH - News) reported third-quarter earnings that came in ahead of what analysts were forecasting. For the quarter, the company reported earnings of $1.54 a share, a full 7 cents higher than estimates. Profit dropped -3% to $887 million from the year-ago period and -29% from the second quarter. Total revenues rose 2% to $4.3 billion, but were down -22% sequentially. The company noted that during the quarter it recorded substantial reductions, mostly on leverage loan commitments and residential-mortgage related positions. Net reduction in revenues totaled about $700 million in the quarter. Due to the recent credit market turmoil, the company saw revenue in its capital market business drop by -14% and -47% in its fixed income business. Shares rallied on the news, up 10.0% on the session.
Electronics retailer Best Buy (NYSE: BBY - News) easily topped Wall Street expectations for its second quarter, as strong international sales and robust sales of computers boosted results. For the quarter, the company earned $250 million, or 55 cents a share, up from $230 million, or 47 cents a share, last year. Sales totaled $8.75 billion compared to $7.6 billion last year, a 15% rise. Same-store sales rose 3.6%. The company noted that it expects full-year earnings to be at the top half of its range of $3.00-3.15 a share, higher than its previous outlook of $2.95-3.15 a share. Shares gained 6.6%
Continuing with retailing earnings, auto parts company Autozone (NYSE: AZO - News) said profits rose to $217.2 million, or $3.23 a share, up from $213.5 million, or $2.92 a share, last year. Revenue rose 3% to $2 billion from $1.94 billion last year. The company cited gross margin improvement as well as supply chain efficiencies. Same-store sales in its domestic business fell -0.2%. Even though the company missed analyst earnings expectations of $3.25 a share and revenue estimates of $2.03 billion, shares rose 4.1%
Shares of online brokerage E*Trade Financial (Nasdaq: ETFC - News) were off by -1.5% after the company announced after the bell on Monday that it will be exiting the wholesale-mortgage business. The company said it will set aside $245 million, resulting in charge-offs of $95 million. Because it is exiting the business, E*Trade cut its 2007 EPS forecast to a range of $1.05-1.15, down from $1.53-1.67.
By the BullMarket.com Staff

Labels: AZO, BBY, ETFC, LEH

Wednesday, August 22, 2007

Stock Market Wrapup Aug. 22nd

Bulls were in a buying mood today after investors picked up stocks in anticipation of more deals coming to Wall Street. At the end of trading, all three major averages gained more than 1%. Leading the advance was the tech-laden Nasdaq, which gained 1.3%. Over in the energy sector, oil continued to sell off, ending the session at $69.26, down -31 cents.
The nation's four largest money center banks, Citigroup (NYSE: C - News), JP Morgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News), and Wachovia (NYSE: WB - News) all reported today that they borrowed $500 million each from the Federal Reserve's discount window on behalf of clients. The move was aimed at showing confidence amid a spreading credit crunch. The borrowing event comes after the Fed cut the discount rate by 50 basis points last Friday.
Staying on the topic of the recent credit crunch, shares of tax services company H&R Block (NYSE: HRB - News) fell -1.8% after it had to draw down bank credit lines when its Block Financial Unit was locked out of the commercial paper market. The company said it took down a net of $650 million in working capital lines.
On the news front, pharmaceutical giant Pfizer (NYSE: PFE - News) said it hired Frank D'Amelio to serve as its chief financial officer (CFO) replacing Alan Levin, who announced his resignation in May. D'Amelio recently served as SVP and chief administrative officer of Paris-based Alcatel-Lucent (NYSE: ALU - News).
Shares of energy exchange NYMEX Holdings (NYSE: NMX - News) rose 6.1% after the company officially announced that it is in talks with potential parties regarding a business combination. It also said it could cut 150 jobs and sell its Manhattan headquarters, which it thinks could fetch north of $500 million. Meanwhile, rumors swirled that Ameritade (Nasdaq: AMTD - News) and E*Trade (Nasdaq: ETFC - News) could merge following a report in The Wall Street Journal that the two sides were in talks.
Lastly, on the earnings front, medical device maker Medtronic (NYSE: MDT - News) said net income rose 13% to $675 million, or 59 cents a share, up from $599 million, or 51 cents a share, last year. Sales increased 8% to $3.13 billion. Excluding one-time items, it reported earnings of $711 million, or 62 cents a share, in line with what analysts had expected. Shares fell -0.4%.
By the BullMarket.com Staff

Labels: ALU, AMTD, BAC, C, ETFC, HRB, JPM, MDT, NMX, pfe, WB

TD AMERITRADE Holding Corporation (AMTD) and E-Trade Financial (ETFC) Among those in Merger Talks

Stock futures bounded higher Wednesday on speculation that the Federal Reserve will move to mitigate a growing credit crunch by cutting interest rates.
Wall Street ended mixed Tuesday, with the Dow Jones industrials giving up some 30 points while both the Nasdaq composite and Standard & Poor's 500 finished slightly higher. Investors weighed statements from government officials and policymakers over if and when the Fed will move to cut interest rates.
Online brokerages TD Ameritrade Holding Corp. and E-Trade Financial Corp. are said to have been in discussions about a possible deal for weeks, according to The Wall Street Journal. However, the report said they are not close to a deal.
Meanwhile, Nymex Holdings Inc. Chairman Richard Schaeffer said Tuesday the commodities exchange owner has held preliminary discussions about a potential combination, but there is no guarantee of a deal. We believe this other party to be NYSE Group. NYX needs a futures exchange exposure and Nymex is their best fit.

Labels: Ameritrade, AMTD, E-Trade Financial Corp., ETFC, NMX, Nymex Holdings Inc., NYSE Euronext Inc., NYX

Jim Cramer's Mad Money Lightning Round Aug. 21st

Bullish Calls:
Aecom Technology (NYSE: ACM - News): 'This may be the cheapest of the infrastructure plays.'Jacobs Engineering Group (NYSE: JEC - News): ' ... at $61, should have been bought today... buy, buy, buy! Infrastructure rocks, as does agriculture!'Wachovia (NYSE: WB - News): 'They just raised the dividend, and they said that the bad loans are under control.'Schlumberger (NYSE: SLB - News): 'SLB, to me, is the cheapest. It went down today, along with the whole group. I feel like you can trade up to quality... you can trade up to SLB.'Transocean (NYSE: RIG - News)Tata Motors (NYSE: TTM - News): 'I think, at $15, TTM makes a huge amount of sense.'E*Trade Financial (NasdaqGS: ETFC - News): 'I would buy some here, and let it come down a bit ... There are many companies that have really bad exposure to this mortgage stuff. ETFC is not one of them.'American Capital Strategies (NasdaqGS: ACAS - News): 'I think that this company is a survivor... a lot of people have tried to call it out a lot of times. They're not going to be successful.'Hudson City Bancorp (NasdaqGS: HCBK - News): 'I think we're in dangerous territory with FSLR. Don't buy, don't buy.'Level 3 Communications (NasdaqGS: LVLT - News): 'I like LVLT for one reason... because I believe there's going to be a bandwidth shortage ... I am picking this as a long-term speculation and, when we run out of bandwidth, I'm not backing away.'Tessera Technologies (NasdaqGS: TSRA - News): 'I thought the quarter was going to be good. I got the quarter wrong. I like the story longer term. now, in the low $30s, I would definitely buy it.'Principal Financial Group (NYSE: PFG - News): 'A very cheap stock ... I really like this stock. I was going to buy it for my charitable trust... I didn't get a chance.'LCA-Vision (NasdaqGS: LCAV - News): 'Upgraded today by Raymond James... a big buyback coming... just finished a buyback. I like it.'IBM (NYSE: IBM - News)
Neutral calls:
Dean Foods (NYSE: DF - News): 'This has become a very problematic story and I've got to tell you something... don't buy, don't buy... I don't think it's over, and the company doesn't think the pain's over too.'Banco Popular (NasdaqGS: BPOP - News)Parker Drilling (NYSE: PKD - News)Foster Wheeler (NasdaqGS: FWLT - News): 'On a day like today, up $7, sell, sell, sell... on the conference call, they made it very clear that contracts were lumpy...every time the stock runs a little, I think it's going to run into selling pressure.'First Solar (FSLS)
Published By SeekingAlpha

Labels: ACAS, ACM, BPOP, DF, ETFC, FWLT, HCBK, IBM, JEC, Jim Cramer, LCAV, Lightning Round, LVLT, Mad Money, PFG, PKD, SLB, TSRA, TTM, WB

Wednesday, February 14, 2007

Biggest Stock Gainers Wednesday

ACS, ALU, ANR, ACAS, AMAT, SAT, BSC, CIEN, CORI, CKFR, CCI, DCX, DE, DTG, ESPD, ETFC, FVRL, FSLR, FOXH, GRMN

Affiliated Computer Services Inc. (NYSE:ACS - News)reported second-quarter earnings of 72 cents a share, compared with 81 cents a share, in the year-earlier period. This year's quarter included 9 cents a share in legal and other expenses related to the company's stock- option inquiry. Shares outstanding fell to 100.2 million from126.9 million. The Dallas provider of outsourcing and information technology services reported revenue rose 5.9% to $1.43 billion.

Alcatel-Lucent (NYSE:ALU - News) said it may cut up to 1,468 jobs in France by the end of 2008, or about 12% of its workforce in the country. The company had previously targeted cutting 12,500 jobs worldwide.
Alpha Natural Resources (NYSE:ANR - News) said fourth-quarter earnings rose to $63.3 million, or 98 cents a share, from $12.4 million, or 20 cents a share, a year earlier. The results for the quarter ending Dec. 31 include a 5 cents-a-share charge related to stock-based compensation, an 8 cents-a-share charge for the buyout of a supply contract and an 86 cents-a-share tax benefit. Revenue fell 8.4% to $458 million from last year's $499.7 million, amid a 5.7% decline coal revenue and a 23% drop in freight and handling revenue. The Abingdon, Va. coal producer said it may need to take additional steps to rationalize production if coal prices don't improve.
American Capital Strategies Ltd. (NasdaqGS:ACAS - News)said fourth-quarter net operating income rose to $113 million, or 76 cents a share, from $91 million, or 80 cents a share, during the same period in the prior year. The weighted average shares of common stock outstanding for the quarter rose to 148.4 million from 112.6 million in the prior year. Analysts polled by Thomson Financial had expected per-share income of 77 cents for the recent quarter. The asset manager said quarterly interest and dividend income rose to $202 million from $127 million in the prior year. Also, American Capital's board has declared a first-quarter dividend of 89 cents per share, up 11% from the dividend during the same period in the prior year. The dividend is payable April 2 to holders as of March 2.
Applied Materials (NasdaqGS:AMAT - News) reported its quarterly profit nearly tripled from a year earlier as it sold more machines that make chips used in consumer electronics.
Asia Satellite Telecommunications Holdings Ltd. (NYSE:SAT - News) said its majority shareholders proposed to acquire shares they don't already own for HK$2.22 billion. The company said in a statement that Modernday Ltd., jointly owned by CITIC Group and General Electric Capital Corp., plans to offer HK$18.30 a share in cash for 121.4 million Asia Satellite shares, equivalent to a 31.1% stake. The offer price represents a 30.7% premium over the stock's last traded price of HK$14.0 Friday morning, before its trading suspension.
Bear Stearns (NYSE:BSC - News) was upgraded to outperform from neutral at Credit Suisse. The firm also lifted its price target to $190 from $172. "Bear Stearns is a well run franchise. Returns may lag peers in the most favorable of markets but prove more resilient in a downturn. That, plus a less than 2 times book value valuation and a history of above-average book value growth... the risk/reward is right."
Ciena Corp. (NasdaqGS:CIEN - News) was upgraded to buy from hold at Citigroup.
Corillian Corp. (NasdaqGS:CORI - News) shares jumped after the company agreed to be acquired by CheckFree (NasdaqGS:CKFR - News) for $245 million. The deal values Corillian shares at $5.15 each, compared to their close on Tuesday at $3.45. CheckFree expects the transaction to close on or by June 1. It plans to finance the acquisition through a combination of existing cash balances and revolving debt. CheckFree anticipates the deal will be dilutive to GAAP earnings in the current fiscal year as well as fiscal 2008, and modestly dilutive to underlying earnings over the same period.
Crown Castle International Corp. (NYSE:CCI - News) was upgraded to buy from neutral at Banc of America Sec., which cited expectations that growth will accelerate heading into 2008. Analyst David Barden also raised his stock price target to $42 from $36. Barden thinks the expected growth will come from "ongoing quality service-based competition among large wireless carriers," as well as from new initiatives such as T-Mobile's 4G network build out and, and from expansion from emerging carriers.
DaimlerC