Jim Cramer Blog

Stocks plunged after the Federal Reserve cut a key interest rate by -25 basis points, leaving many on Wall Street wanting more. The Dow closed off -294 points on the day to end at 13,433. Meanwhile, the Nasdaq was down -67 points to close at 2,652, and the S&P was off -38 points to end the day at 1,478. Light, sweet crude prices traded higher with oil settling at $89.80 per barrel. Treasury prices climbed higher, while gold also gained to end at $817.10 an ounce. The dollar fell sharply versus the yen, but rose against the euro.
In economic news, the Federal Reserve voted to cut the Fed funds rate by -25 basis points to 4.25%. It is the third time the central bank has cut interest rate since September in an effort to protect the economy from a possible recession. The Fed also reduced its discount rate by -25 basis points to 4.75%.
On the earnings front, shares of FuelCell Energy (Nasdaq: FCEL - News) were up 16.2% in trading after it posted a narrowed fourth-quarter loss that beat Wall Street estimates. For the quarter, the company reported a loss of -$16.8 million, or -25 cents per share, versus a loss of -$25.1 million, or -47 cents per share, last year. Revenue for the quarter rose to $16.5 million, up 81% from $9.1 million in 2006. On average, analysts were predicting a loss of -27 cents per share on $13.1 million in revenue.
In a preliminary earnings report, H&R Block (NYSE: HRB - News) said it expects to post a huge second-quarter loss, with sizeable losses stemming from its beleaguered mortgage branch. For the period, the company said it expects to post a net loss of -$502.3 million, or -$1.55 per share, versus a loss of -$156.5 million, or -49 cents per share, in the prior year. The nation's largest tax preparer said it expects to post a loss from continuing operations of -$136.1 million, or -42 cents per share. Quarterly revenue rose to $434.6 million, up 10% from $396.1 million. Analysts were looking for a loss from continuing operations of -35 cents per share. The company is scheduled to post earnings late Monday. H&R Block's stock was off -3.3% in trading.
In corporate news, shares of Washington Mutual (NYSE: WM - News) tumbled -12.4% after the bank said it would slash its dividend and lay off more than 3,000 employees, as mortgage and credit concerns loom. The nation's largest savings and loan also said it is setting aside up to $1.6 billion for loan losses in the fourth quarter and would look to raise capital through a $2.5 billion convertible preferred stock offering.
Also today, Freddie Mac's (NYSE: FRE - News) Chief Executive Officer Richard Syron said the mortgage finance company expects to lose an additional -$5.5 to -$7.5 billion over the next few years, as the housing market continues to struggle. The company has already posted about -$4.5 billion in estimated losses through the first nine months of 2007. Shares of Freddie Mac were down -10.6% for the session.
Elsewhere, General Electric (NYSE: GE - News) reaffirmed its earnings-per-share guidance for the fourth quarter and fiscal year 2007. The company said it expects Q4 earnings per share to grow between 14-18% to 67-69 cents per share. For the full year, GE said it expects earnings growth of 18-19% to $2.19-$2.21 a share. GE also announced it would raise its quarterly dividend by 11% to 31 cents per share, up from 28 cents per share. GE's stock was off -1.0% at the bell.
By the BullMarket.com Staff

Labels: FCEL, FRE, Freddie Mac, GE, HRB, WM

Here are 7 stocks for traders for Monday from TradingMarkets.com:
On Friday, Cascade (NYSE:CAE - News) fell 17% after announcing it may revise safety information for its biggest product, anemia drug Aransep. CAE's PowerRating (for Traders) is 4.
Imperial Sugar (NasdaqGM:IPSU - News) should report $0.34 EPS on Monday before the market opens. IPSU's PowerRating (for Traders) is 3.
Traders are watching for Vail Resorts (NYSE:MTN - News) to report -$0.79 EPS before the stock market opens on Monday. MTN's PowerRating (for Traders) is 4.
FuelCell Energy (NasdaqGM:FCEL - News) announces quarterly results on Monday afternoon, with analysts watching for -$0.27 EPS. FCEL's PowerRating (for Traders) is 4.
When H&R Block (NYSE:HRB - News) releases quarterly numbers on Monday after the bell, be looking for -$0.35 EPS. HRB's PowerRating (for Traders) is 4.
NCI Building Systems (NYSE:NCS - News) is looking to report $1.59 EPS on Monday after the market closes. NCS's PowerRating (for Traders) is 3.
Watch for SAIC (NYSE:SAI - News) to report $0.23 EPS on Monday afternoon. SAI's PowerRating (for Traders) is 5.

Labels: CAE, FCEL, Hot Stocks, HRB, IPSU, MTN, NCS, SAI

Bullish:

Tata Motors (NYSE: TTM): ' This one's going back to its high. India has been the swing factor.'Ciena (NasdaqGS: CIEN)Corning (NYSE: GLW)Stryker (NYSE: SYK): 'Stryker is fabulous! Orthopedic implants'Zimmer (NYSE: ZMH)'Let's not forget though... As good as SYK is, you know what's even better? Zimmer! What a quarter from the Zim machine!... As of yesterday, up $3. That's okay.'Goldman Sachs (NYSE: GS): 'If you want to own an investment firm, I'm going to send you to the one that sells at 10x earnings, which has been a continual theme on this show that I have been dead right on... I am talking about Goldman Sachs and I think GS is going to $325.'FuelCell Energy (NasdaqGM: FCEL): 'Okay, this is what I call an 'optionality play'... If oil spikes this weekend - up $5, or spikes... - your $7 stock will go up 3-4 points. I am not going to bless this stock as an investment. I will bless it as a speculative play - buy, buy, buy!'Yamana Gold (NYSE: AUY): 'AUY grows and grows and grows! And we want growth from a gold stock. We are not getting off the AUY horse!'Kinross Gold (NYSE: KGC)
Bearish calls:
JDS Uniphase (NasdaqGS: JDSU): 'I remain skeptical, because I have been burned so many times by this company, but I have to be honest, it does act well. I'm keeping it in the 'don't buy' but I can't blame anyone who wants to speculate...'DreamWorks (NYSE: DWA): 'I missed it! I missed it! It bottomed and I missed it, and I am angry at myself for missing it, but I can't recommend it up here. It's had too big a move. Don't buy, don't buy.'U.S. Global Investors (NasdaqCM: GROW): 'No. This is an investment advisory firm. C'mon man. Don't buy, don't buy. 'Quiksilver (NYSE: ZQK): 'Everyone tells me that they're bottomed... I went out the other day and said I was negative on it. I didn't like the acquisition they made. People have been telling me that I'm dead wrong about that... That stock is a house of pain, and I'm staying away from it!'Micron Technology (NYSE: MU): 'Let me tell you something, that's a loser! ' (buzzer sounds)

Published By SeekingAlpha

Labels: AUY, CIEN, DWA, FCEL, GLW, GS, JDSU, Jim Cramer, KGC, Lightning Round, Mad Money, MU, SYK, TTM, ZMH, ZQK

Symbol
Name
Last Trade
Change
Volume
Related Info
NUVO
NUVELO INC NEW
3.8896 11:17AM ET
0.7996 (25.88%)
15,401,227
Chart, Profile, More
CIMT
CIMATRON ORD SHS
3.242 11:16AM ET
0.622 (23.74%)
406,095
Chart, Profile, More
ARUN
ARUBA NETWORKS, INC.
11.00 Dec 31
0.00 (0.00%)
0
Chart, , More
CVTX
CV THERAPEUTICS I
8.1055 11:17AM ET
1.3555 (20.08%)
5,769,784
Chart, Profile, More
PLX
PROTALIX BIOTHERAPEU
29.50 11:02AM ET
4.02 (15.78%)
4,700
Chart, , More
DMC
DOCUMENT SECURTY SYS
9.4001 11:12AM ET
0.8001 (9.30%)
71,300
Chart, Profile, More
VHI
VALHI INC
13.71 11:12AM ET
1.90 (16.09%)
196,800
Chart, Profile, More
FCEL
FUELCELL ENERGY IN
8.35 11:17AM ET
1.15 (15.97%)
8,366,958
Chart, Profile, More
BDR
BLONDER TONGUE
2.08 11:09AM ET
0.24 (13.04%)
55,200
Chart, Profile, More
IOT
INCOME OP RL INV INC
6.25 9:39AM ET
0.62 (11.01%)
500
Chart, Profile, More
GME
GAMESTOP CORP
31.23 11:12AM ET
3.26 (11.66%)
5,070,323
Chart, Profile, More
REGN
REGENERON PHARMACE
21.17 11:17AM ET
2.02 (10.55%)
1,589,788
Chart, Profile, More
CSLR
CONSULIER ENGR INC
5.15 11:07AM ET
0.43 (9.11%)
4,777
Chart, Profile, More
ROHI
ROTECH HEALTHCARE
1.96 11:15AM ET
0.22 (12.64%)
239,871
Chart, Profile, More
COHT
COHESANT TECH INC
7.481 10:44AM ET
0.581 (8.42%)
7,482
Chart, Profile, More
AKRX
AKORN INC
6.45 11:13AM ET
0.48 (8.04%)
486,340
Chart, , More
LMLP
LML PAYMENT SYST
3.5299 11:16AM ET
0.26 (7.95%)
23,490
Chart, Profile, More
SLI
S L INDUSTRIES INC
14.1399 10:29AM ET
1.1899 (9.19%)
7,700
Chart, Profile, More
BTRX
BARRIER THERAPEUTICS
6.47 11:15AM ET
0.30 (4.86%)
190,307
Chart, Profile, More
CHRK
CHEROKEE INTL CP
5.84 11:16AM ET
0.41 (7.55%)
52,700
Chart, Profile, More

Labels: AKRX, ARUN, BDR, BTRX, CHRK, CIMT, COHT, CSLR, CVTX, DMC, FCEL, GME, IOT, LMLP, NUVO, PLX, REGN, ROHI, SLI, VHI

Stocks fell Wednesday after consumer prices showed a larger-than-expected increase in January, touching off concerns that inflation might not dissipate as Wall Street has hoped.
Only last week Wall Street cheered and logged sharp advances after Federal Reserve Chairman Ben Bernanke offered his assessment during Capitol Hill testimony that inflation appeared to be moderating as the economy was showing sustainable growth. Investors hope to gain insight into the central bank's recent thinking when minutes from the Fed's last meeting are released Wednesday afternoon.
The Labor Department report that the consumer price index rose 0.2 percent in January came as a surprise to Wall Street, which had expected an 0.1 percent increase. Declines in energy prices couldn't fully offset a rise in costs of medical care, food and airline tickets. The core figure, which excludes often volatile food and energy prices, rose a greater-than-expected 0.3 percent. The inflation news followed a profit report from Hewlett-Packard Co. that damped sentiment on Wall Street.
"We find it hard to see how the economy can continue to do well as it has without interest rates being under some upward pressure and if interest rates do stay where they are or in fact go down it's probably because the economy will slow down," said Denis Amato, chief investment officer at Ancora Advisors.
In late morning trading, the Dow Jones industrial average fell 62.89, or 0.49 percent, to 12,723.75.
Broader stock indicators were lower. The Standard & Poor's 500 index was down 4.78, or 0.33 percent, at 1,454.90, and the Nasdaq composite index fell 4.09, or 0.16 percent, to 2,508.95.
Bonds fell following the inflation data; the yield on the benchmark 10-year Treasury note rose to 4.70 percent from 4.68 percent late Tuesday. The dollar was mostly lower against other major currencies, though it rose against the yen after the Bank of Japan increased interest rates. Gold prices rose.
Light, sweet crude rose 51 cents to $59.36 per barrel on the New York Mercantile Exchange.
"The market has been in this Goldilocks phase where everything is perceived as positive," Amato said. "We have a hard time seeing how you could have steady-to-lower rates along with a good economy and better earnings."
In corporate news, Hewlett-Packard fell $1.83, or 4.2 percent, to $41.30 after the printer and computer maker saw inventories increase during its fiscal first quarter. Sales and profits topped Wall Street's forecasts for the quarter.
Pharmacyclics Inc. plunged $2.04, or 40.5 percent, to $3 after the pharmaceutical company said the Food and Drug Administration refused to review clinical studies of Xcytrin, an injection for treating lung cancer that has spread to the brain. The agency cited an improperly filed application, the company said.
Novastar Financial Inc. fell $6.90, or 39.3 percent, to $10.66 after the mortgage lender swung to a fourth-quarter loss from a profit as it booked charges for loans it expects borrowers with bad credit won't be able to repay. The company also said it might have to revoke its status as a real-estate investment trust, a vehicle that pays most of its taxable income to shareholders via a dividend.
FuelCell Energy Inc. jumped 23 cents, or 3.1 percent, to $7.76 after the maker of fuel cell power equipment expanded a manufacturing agreement with Posco Power, the largest privately controlled power producer in South Korea.
Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where volume came to 478 million shares.
The Russell 2000 index of smaller companies was down 1.04, or 0.13 percent, at 825.07.
Overseas, Japan's Nikkei stock average closed down 0.14 percent. In afternoon trading, Britain's FTSE 100 was down 0.84 percent, Germany's DAX index was down 0.55 percent, and France's CAC-40 was down 0.41 percent.
Published by Tim Paradis, AP Business Writer

Labels: FCEL, HPQ, inflation, NFI, PCYC

Applied Signal Technology Inc. (NASDAQ:APSG - News) shares fell 15% Tuesday after the company late Monday reported fourth-quarter net income fell to 5 cents a share from 26 cents in the year-earlier period.
Shares in drug giant AstraZeneca (NYSE:AZN - News) slid 3.5% on news that a key patent protecting its top-selling antacid drug Nexium had been shot down by European regulators.
Shares in Circuit City Stores Inc. (NYSE:CC - News) fell 17% after the company reported a surprise third-quarter loss, hurt by price cuts on flat-panel televisions and other consumer electronics that eroded margins.
Delta Air Lines (Other OTC:DALRQ.PK - News) shares dropped 6.1% after the company filed a reorganization plan that valued its business at $9.4 billion to $12 billion, richer than the $8.4 billion merger offer from U.S. Airways Group (NYSE:LCC - News), which it formally rejected.
Fuelcell Energy Inc. (NASDAQ:FCEL - News) shares fell 5% after the company said its fourth-quarter net loss available to shareholders widened to $25.1 million, or 47 cents a share, compared with a net loss of $19.5 million, or 40 cents a share, in the same period last year, mainly due to higher product sales and costs. The Danbury, Conn.-based manufacturer of electric power generation plants said revenue rose 14.7% to $9.13 million from $7.96 million. Analysts polled by Thomson First Call had expected a per-share loss of 35 cents, on revenue of $9 million.
Luby's Inc. (NYSE:LUB - News) shares dropped 4.6% after the Houston-based restaurant operator reported fiscal first-quarter net income of $1.92 million, or 7 cents a share, down from $2.22 million, or 12 cents a share, in the year-ago period. Revenue in the quarter ended Nov. 22 rose slightly, to $73.7 million from $72.6 million, while same-store sales increased 1.7%. Analysts polled by Thomson First Call had forecast a per-share profit of 8 cents.
Nasdaq Stock Market Inc. (NASDAQ:NDAQ - News) shares fell 5.5% after the London Stock Exchange on Tuesday again rebuffed its takeover bid.
Ness Technologies Inc. (NASDAQ:NSTC - News) shares fell 5.6% after the Hackensack, N.J.-based IT services provider said it has agreed to acquire Selesta Espana S.A.U. for 6.25 million euros ($8.2 million). Selesta Espana is a privately held IT software distribution and systems integration company based in Spain. Ness said the deal includes an additional 3.75 million euros to be paid over the next two years based on the achievement of certain performance goals.
Oracle (NASDAQ:ORCL - News) shares sank 4.5% after the company reported fiscal second-quarter sales of new software licenses were less than expected, stoking concerns over the pace of future revenue growth.
Physicians Formula Holdings Inc. (NASDAQ:FACE - News) shares fell 5.2% after the company reported third-quarter net income fell to $223,000 from $589,000 in the year-earlier period.
PSS World Medical Inc. (NASDAQ:PSSI - News) shares dropped 5.8% after the company said it has authorized the repurchase of up to 5% of its outstanding common stock, or roughly 3.4 million shares. As of Sept. 29, the company had around 67.7 million outstanding shares. Jacksonville, Fla.-based PSS World Medical is a distributor of medical products to physicians and elder care providers. The company's shares fell 3.9% to $19.82 in Tuesday morning trade.
Tuesday Morning Corp. (NASDAQ:TUES - News) shares fell 11% after the Dallas-based home accessories retailer revised its 2006 forecast. The company now expects earnings of 78 cents to 84 cents a share on revenue of $905 to $915 million. Same-store sales are expected to fall 7.7% to 8.7% in 2006.
-Marketwatch

Labels: APSG, AZN, CC, FACE, FCEL, LCC, LUB, NDAQ, NSTC, ORCL, PSSI, TUES

Among the companies whose shares are expected to see active trade in Monday's session are Harrah's Entertainment Inc., FuelCell Energy Inc., Dell Inc. and Andersons Inc.
Applied Signal Technology (APSG) is expected to report earnings per share for the fourth quarter of 22 cents, according to analysts polled by Thomson First Call.
FuelCell (FCEL) is expected to post a per-share loss of 35 cents for the fourth quarter.
Harrah's Entertainment (HET) is on the verge of being sold to two private- equity firms, Apollo Management and Texas Pacific Group, for at least $90 a share, the online edition of The Wall Street Journal reported Sunday.
Joy Global Inc. (JOYG) is expected to report per-share income for the fourth quarter of 66 cents.
Oracle Corp. (ORCL) is expected to post second-quarter per-share income of 22 cents.
Piedmont Natural Gas Co. (PNY) is expected to report first-quarter per-share income of 97 cents.
Steelcase Inc. (SCS) is expected to report earnings of 19 cents per share for the third quarter.
After Friday's closing bell, Dell (DELL) said it received a Nasdaq letter on Dec. 15 indicating that the company is not in compliance with continued listing requirements. The computer giant said the letter relates to the company's delayed third-quarter filing.
Also, three top executives at Time Warner Inc.'s (TWX) AOL unit plan to quit as part of a reorganization expected to be made public this week, according to several media reports. The execs include: Jim Bankoff, AOL's executive vice president of programming, Joe Redling, chief marketing officer, and John Buckley, a chief public-relations officer.
Watch list
Andersons (ANDE) said it has raised the quarterly cash dividend 5.6% to 4.75 cents per share. The dividend is payable Jan. 22 to shareholders as of Jan. 2.
Boston Scientific Corp. (BSX) said it is voluntarily recalling certain lots of the Mach 1 guide catheter in the United States. The medical devices maker said some units of the catheter may contain excess resin that could obstruct a blood vessel if detached during a procedure.
Comverse Technology Inc. (CMVT) Chairman Ron Hiram has resigned from the board. Hiram's resignation was tendered in view of the recent appointment of an additional five new independent directors. Also, the company has received an additional Nasdaq delisting notice over the company's delayed Form 10-Q filing for the quarter ended Oct. 31.
Guitar Center Inc. (GTRC) said its Nov. 22 agreement to buy the assets of Dennis Bamber Inc. has been terminated upon bankruptcy court approval of an alternative bidder for the business.
Imax Corp. (IMAX) said it has determined that a sale or merger of the company will not enhance shareholder value. The Toronto-based entertainment company said it will instead focus on the growth of its network and on strategic business initiatives.
King Pharmaceuticals Inc. (KG) said an arbitration panel has decided in favor of Elan Corp. (ELN) in a dispute related to King's Sonata insomnia drug. The panel ordered King to pay Elan about $49.8 million, plus interest, in milestone payments and other research and development expenses.
Nasdaq Stock Market Inc. (NDAQ) said it has approved a new employment contract for President and Chief Executive Robert Greifeld, extending his deal through Dec. 31, 2010.
PetSmart Inc. (PETM) said it has amended its bylaws to adopt a majority voting standard for the election of directors in uncontested elections. The Phoenix- based retailer of pet products and services said that under the new standard a director in an uncontested election must receive more than 50% of the votes cast.
Power Integrations Inc. (POWI) said it has informed the Nasdaq that it will not meet the Listing and Hearing Review Council's Dec. 18 deadline to become current in its filings. The company expects its shares to be delisted from the Nasdaq Global Market as of the start of trading on Dec. 19.
Refco Inc. (RFX) , the derivatives broker that collapsed in scandal last year, said its Chapter 11 plan was confirmed by a New York bankruptcy court, clearing the way for its businesses to be finally shut down and creditors repaid a portion of what they were owed.
Private-equity firms Clayton Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co. are in talks to acquire Royal Ahold NVU.S. foodservice unit in a leveraged buyout, according to a media report.
Standard & Poor's said it's changing the makeup of the S&P 500 and SmallCap 600 indexes after the close of trading Tuesday. Terex Corp. (TEX) will replace Navistar International Corp. (NAV) in the S&P 500. Mannatech Inc. (MTEX) will replace American Italian Pasta Co. (PLB) in the S&P SmallCap 600.
By Dow Jones

Labels: ANDE, APSG, BSX, CMVT, DELL, FCEL, GTRC, HET, IMAX, JOYG, KG, MTEX, NDAQ, ORCL, PETM, POWI, RFX, SCS, TEX, TWX