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

Monday: Earnings After: HRB ; Economic News: Pending Home Sales ; Other News: TXN Mid-Q Update

Tuesday: Earnings Before: KR ; Economic News: FED DECISION*** ; Other News: HPQ ANALYST MEETING, AT&T ANALYST MEETING, GENERAL ELECTRIC OUTLOOK

Wednesday: Earnings After: CKE ; Economic News: Budget, Import Prices

Thursday: Earnings Before: COST, LEH, JOSB ; Economic News: Retail Sales, PPI ; Other News: AMD Analyst day, HON Outlook

Friday: Economic News: CPI

Labels: COST, CPI, GE, HPQ, HRB, Import Prices, JOSB, KR, LEH, Pending Home Sales, PPI, TXN

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Ruby Tuesday (NYSE:RT - News) fell 14% on Thursday, after announcing that future revenues (2008) will miss projections by a long shot. RT's PowerRating (for Traders) is 6.
During market hours on Thursday, SLM Corporation (NYSE:SLM - News) missed earnings, announcing $0.70 EPS over an expected $0.73 EPS. Despite missing numbers, SLM fell only fractionally. SLM's PowerRating (for Traders) is 4.
Wal-Mart (NYSE:WMT - News) rose about 3.4% on Thursday, after guiding higher for Q3 profit. WMT's PowerRating (for Traders) is 4.
General Electric (NYSE:GE - News) reports earnings on Friday before the market opens, with traders looking for $0.50 EPS. GE's PowerRating (for Traders) is 6.
JP Morgan cut its Q3 revenue forecasts for Baidu.com mid-day, resulting in an industry-wide selloff; Baidu.com (NasdaqGS:BIDU - News) fell -10% on the negative news. BIDU's PowerRating (for Traders) is 5.
J.C. Penney (NYSE:JCP - News) fell about 7% after missing estimates for September sales, while Nordstrom (NYSE:JWN - News) fell just over 7% on similar bad news. JCP's PowerRating (for Traders) is 5, and JWN's PowerRating (for Traders) is 5.

Labels: BIDU, GE, Hot Stocks, JCP, JWN, RT, SLM, WMT

On Wednesday the Dow closed up 76 points as the strength from the Fed rate cut continued to spill. Najarian: investors should look at the volatility in the S&P 500, which is moving back to normal. Reported unusual options activity on Cree (CREE). Could be being bought by General Electric (GE).
Macke: market bears are instant messaging him with more short ideas than any other time in his most recent memory.
Adami: Friday could be a funky day with options expiration on tap. He took a trip to the UPS Center in New York City to find out what is going on at the packaging giant. Adami likes United Parcel (UPS) for three reasons: international growth, energy hedging and union contracts. He also predicted that Fedex (FDX) will rally on Thursday and investors should sell into the strength.
Emerging Markets Trade: The iShares MSCI Emerging Markets (EEM) hit a record high on Wednesday. Their stocks around the globe shot up after the Fed cut. Tim Seymour, of Red Star Asset Management suggests investors buy Tenaris (TS). Seymour recommended Vimpel-Communications (VIP), Mobile Telesystems (MBT) and Mechel OAO (MTL) as liquidity plays.
Shoe Companies: Collective Brands (PSS) and Brown Shoe Company (BWS) have taken double digit hits. CEO of Payless and the company blamed the decline on weather and the increased demand for products out of competitor Crocs (CROX). Finerman hates when companies use weather as an excuse, but she thinks investors can buy PSS, BWS and Limited Brands (LTD).
Goldman Sachs (GS): Dick Bove, an analyst for Punk Ziegel, is the only analyst on Wall Street who is telling investors to sell GS. GS holds are overvalued with $700 billion in securities. He thinks hedge fund trading business is declining.
Word on the Street: TD Ameritrade (AMTD) and Najirian's pick: NASDAQ (NDAQ). Najarian sees no options activity in Oracle (ORCL) ahead of the quarter.
Gartman: time to get out of Suncor (SU) and all his Canadian Tar Sands plays. Instead he would get into U.S. multi-nationals like ConocoPhillips (COP).
Macke says you can buy Kellogg's (K), Kraft (KFT) and Safeway (SWY) off the strong General Mills (GIS) quarter.
Pops & Drops:
Pops: Countrywide Financial (CFC), Blackstone (BX), Fortress Investment Group, The Warnaco Group (WRNC)
Drops- Carmax (KMX), Comcast (CMSCA), Sirius Satellite Radio (SIRI) and XM Radio (XMSR)
Final Trade
Macke-Oracle (ORCL)
Adami- Goldman Sachs (GS)
Najarian- Titanium Metals (TIE)
Finerman- Play Victoria Secret with Limited Brands (LTD)

Labels: CNBC, CREE, EEM, Fast Money, FDX, GE, GS, LTD, MBT, MTL, TS, UPS, VIP

The major stock market averages continued to tack on gains following yesterday's large run-up in equity prices. The Dow Jones set another all-time trading high finishing the day up 45.5 points. The S&P rose 4.8 points, also setting a new trading high for the benchmark average. Stocks continued to advance on positive earnings, as negative retail data did not spoil the bull's mood. Oil hit an 11-month high on reports that a pipeline shutdown in the North Sea will affect oil production. Crude ended the session up $1.43 to $73.93.
The Commerce Department reported today that retail sales dropped -0.9% in June; the decrease was the biggest in nearly two years. The government agency also reported a revision of a 1.5% increase in May. The report cited that one of the worst housing slumps in more than 16 years contributed to shoppers curbing their spending. Not all economic news was bad, as a report showed consumer confidence rose more than expected this month.
In earnings related news, General Electric (NYSE: GE - News) shares notched a 5-year high on news that the industrial and media conglomerate reported earnings of $5.4 billion, or 53 cents a share, a penny ahead of analyst estimates. Revenue rose 12% to $42.3 billion, led by its infrastructure division. The Dow component also upped its share repurchase program to $14 billion, of which $12 billion would be purchased in the second half of the year. Shares finished the session up 1.3%.
Oil services giant Baker Hughes (NYSE: BHI - News) fell -5.8% after it warned that its second-quarter earnings would be below forecasts due to a significant deterioration of activity in Canada. The company now expects to earn $1.07-1.09 a share, including 5 cents related to higher taxes and costs associated with repair and maintenance. Analysts expected the company to earn $1.18 a share.
In company news, Amgen (Nasdaq: AMGN - News), the world's largest biotech company, announced that its board has authorized an additional $5 billion stock buyback program. It is the company's second multi-billion dollar share repurchase program in the past two months. Back in May, the company said it would purchase $3 billion in stock; the company as $1.5 billion remaining on that repurchase plan. Shares of struggling homebuilder Hovnanian Enterprises (NYSE: HOV - News) got a big boost after rumors surfaced that value investor and billionaire Warren Buffet was buying the shares. The news also lifted other homebuilders on the session. Shares of Hovnanian rose 12.0% on the day.
In merger news, Energizer Holdings (NYSE: ENR - News) agreed to purchase Playtex Products (NYSE: PYX - News) for $1.9 billion including debt. Playtex, the maker of sunscreen and wet wipes, received a premium of 18% over where it ended the session on Thursday.
By the BullMarket.com Staff

Labels: AMGN, BHI, ENR, GE, HOV, PYX

General Electric Co., the industrial, finance and media conglomerate, reported Friday its second-quarter profit rose 9.6 percent and said it was getting out of the U.S. mortgage business.
Its shares rose more than 2 percent, briefly reaching a new 52-week high.
The parent of the NBC TV network earned $5.42 billion, or 53 cents a share, in the three months ended June 30, up from $4.95 billion, or 48 cents a share, a year ago. The rise was led by its oil and gas, aviation, energy and commercial finance businesses.
Analysts surveyed by Thomson Financial has been expecting earnings per share of 52 cents. The estimates typically exclude one-time items.

Labels: GE, General Electric Co.

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Marriott (NYSE:MAR - News) announced beating earnings during trading hours today, with $0.57 EPS over an expected $0.53 EPS. MAR's PowerRating is 5.
Commerce Bancshares (NasdaqGS:CBSH - News) also beat earnings during the day, with $0.79 EPS over a consensus of $0.77 EPS. CBSH's PowerRating is 4.
General Electric (NYSE:GE - News) announces earnings on Friday morning, with analysts expecting $0.52 EPS. GE's PowerRating is 5.
Rio Tinto (NYSE:RTP - News) announced on Thursday it has reached an agreement to buy aluminum producer Alcan (NYSE:AL - News) for $38.1 billion. RTP's bid bested rival Alcoa's (NYSE:AA - News) offer of $28 billion. RTP's PowerRating is 6, and AL's PowerRating is 3 and AA's PowerRating is 5.
Motorola (NYSE:MOT - News) warned that the company's Q2 results would be lower than expected, on slow sales in Europe and Asia. MOT's PowerRating is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AA, AL, CBSH, GE, Hot Stocks, MAR, MOT, RTP

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

Boeing (NYSE: BA - News), General Electric (NYSE: GE - News), Honeywell (NYSE: HON - News), BE Aerospace (NasdaqGS: BEAV - News)
Investors are looking to the headlines for new ideas, observed Cramer, who would play the Paris Air Show by investing in Boeing. While some may want to invest in airline-component companies such as GE, HON and BEAV, Cramer prefers buying BA because the stock is cheap and is levered to defense which is in a multi-year cycle; "There are two ways to win with Boeing," he said. The Paris Air Show demonstrates the intensity of the global demand for aircraft, and is an eye opener to those who consider the sluggish peformance of Delta and US Airways as a barometer for the entire sector;"It looks like there are a lot more airplane companies than we realize ... and the carriers are all growing, whether they're in Brazil, Russia or China, and they are underplaned," said Cramer.

Labels: BA, BEAV, GE, HON, Jim Cramer, Wall Street Confidential

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

Good economic news and continued strength in the M&A sector pushed all the major averages higher throughout the day. The Dow Jones Industrials Average set a new record close and the S&P 500 is only five points away from setting a new all-time record. A flurry of deals helped spark the rally in the overall market. Consumer confidence also helped fuel the gains on the street today. Over in the bond market, treasury prices declined, sending yields higher. The benchmark 10-year note now yields 4.81%. Over in the energy pits, crude settled up 8 cents to $64.94 a barrel, while gasoline and natural gas prices declined.
On the economic front, the U.S. Consumer Confidence Index (CCI) showed an unexpected gain in May for the first time in nearly four months. Sentiment rose to 88.7 from 87.1 in April. The average estimate on the street had expected the number to come in at 86.2 for the month. The rise was attributed to a strong stock market as well as a strong, healthy labor market. Once again, the main drag on the downside was rising gasoline prices, which continue to put a drag on consumer spending.
On the international front, China made headlines when it reported that it will begin to let its currency trade in a wider range band against the dollar (USD). The People's Republic also plans on hiking interest rates as well as raising bank reserve requirements in order to cool down the booming stock market and economy.
M&A mania continues on Wall Street, as tech titan Microsoft (Nasdaq: MSFT) agreed to acquire aQuantive (Nasdaq: AQNT) for roughly $6 billion, a premium of 85% over the closing price on Thursday. The digital marketing services and technology company fits into the software giant's strategic initiatives as it continues to compete with Google (Nasdaq: GOOG ) in the online ad space, in which Google has a dominant market share. Last month, Google made a $3.1 billion offer for DoubleClick.
Shares of hotel and casino operator Trump Entertainment Resorts (Nasdaq: TRMP) surged more than 20% on news that it has suitors for its business operations. Suitors have been rumored to be interested in the company before, but management confirmed more detailed interest in the buying of the entire business. Elsewhere in M&A, General Electric (NYSE: GE) is close to selling its Plastics division to Saudi Sabic Industries Corp for $11 billion. GE has been looking to sell its Plastics division due to the volatility of crude prices in recent years. The news sent GE shares up more than 1.2% in today's trading.
On the earnings front, shares of personal finance software maker Intuit (Nasdaq: INTU) soared 13.9% after the company reported better-than-expected earnings. Sales cracked the $1 billion mark for the fist time, as its TurboTax line of products did exceptionally well in the period just ended. Elsewhere in the equity arena, investment banks were in the upgrading mood today as several banks raised targets on a number of big-cap names. Merrill Lynch upped shares of chipmaker Intel (Nasdaq: INTC) to "buy" from "neutral," citing continued EPS growth ahead. Intel shares gained 2% on the day. JP Morgan upped shares of NYSE Euronext(NYSE: NYX) to "neutral" from "underweight," citing prospects of declining compensation expenses. Shares of telco giant Verizon Communications(NYSE: VZ) gained ground after Citigroup analyst Michael Rollins upped the shares to a "buy" from a "sell." Shares of Verizon gained 1.1% on the trading day.
We all have had fantasies about lost ships and the visions of striking it rich with treasure. Well today some lived that dream. Investors in deep sea shipwreck exploration company Odyssey Marine Exploration (NYSE: OMR) are lining their pockets with loot to the tune of 80.9% in stock appreciation. The company announced today that over 500,000 silver coins and hundreds of gold coins were collected from an old ship-wreck code-named "Black Swan." For all you technical traders out there, this one stock has finally broken out of its long-term trading range!
By the BullMarket.com Staff

Labels: AQNT, GE, GOOG, INTC, INTU, MSFT, NYX, OMR, TRMP, VZ

General Electric (NYSE: GE), Honeywell (NYSE: HON), Schlumberger (NYSE: SLB), Caterpillar (NYSE: CAT)
The recent surge in the market is caused by a supply problem, since management with their stock buybacks seem to be the only ones who are bullish, according to Cramer; "There's just not enough supply, so when we do have an expiration that's biased to the upside, coupled with some very good earnings during this April season, you get this kind of monumental move where stocks really do break out to new levels." He added when retail pulls in, "only until then will we be putting in a top." With the exception of GE, there were many stocks which were supposed to settle but which broke out because of great earnings, while HON and SLB are contained right now. Cramer commented these "breakouts" are not repealed in the following weeks. When purchasing "lottery ticket" stocks, Cramer says there are alot of "rip-ups" but the gains from stocks like Caterpillar which go up 7 times or SLB at 3 times will make up for losses; "I always look at it, not as you have to be 70% or 80% right, but that you have to be 30% right, and that 30% right will easily make you a lot more money than you've ever lost." He says the best lottery tickets are "coinciding with the options expirations that also have to do with earnings season."
Published By SeekingAlpha

Labels: CAT, GE, HON, Jim Cramer, SLB, Wall Street Confidential

Coke (NYSE: KO), PepsiCo (NYSE: PEP), General Electric (NYSE: GE), IBM (NYSE: IBM)
Cramer declared the beginning of the 17% run in the Dow which he predicted earlier in the year, and noted the abundance of stocks selling at 12 to 14 times earnings, which are generating a lot of cash and are soundly beating their numbers. "We came into this earnings season with very low expectations," he said. Because of its dramatic growth and earnings acceleration, KO will finally break out to $60 after its long-term limbo between $45 and $50, according to Cramer who also predicts MRK will reach $60. Although investors liked the news from KO and MRK, many are waiting ot see what PEP will say next week and want to hear from the rest of the drug sector. "Historically, what has happened is that you get an initial burst when you have a big upside surprise," Cramer explained. "Then you mark time, and as soon as earnings season is over, you see a gallop." However, there were disappointments, including IBM's and GE's lackluster quarters. Cramer discussed the growing trend of buying back shares; "The buybacks have been bountiful but haven't meant anything," Cramer said. "Suddenly they are really starting to mean something." He added that while IPOs have been slowing down, the deals have sped up.
Published By SeekingAlpha

Labels: GE, IBM, Jim Cramer, KO, PEP, Wall Street Confidential

General Electric Co., helped by sales of big-ticket items such as jet engines and train locomotives, posted first-quarter earnings of $4.5 billion Friday, up 2 percent from the same period in 2006.

The diversified manufacturing, media and financial services conglomerate also said the results were dogged by the sagging subprime mortgage industry and weak performances in its industrial and NBC units.

Per-share earnings of 44 cents were in line with estimates by analysts polled by Thomson Financial.
Revenue of $40.2 billion for the quarter was up by 6 percent from the same period last year.

Labels: GE, General Electric Co.

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Krispy Kreme (NYSE:KKD - News) missed earnings on Thursday afternoon, announcing -$0.39 EPS when analysts were looking for $0.01 EPS. KKD's PowerRating is 5.
General Electric (NYSE:GE - News) announces earnings before the open on Friday; look for $0.44 EPS. GE's PowerRating is 5.
Infosys (NasdaqGS:INFY - News) reports earnings before the market opens on Friday, with analysts looking for $0.40 EPS. INFY's PowerRating is 5.
Advanced Magnetics (NasdaqGM:AMAG - News) announced positive test results for a new iron-replacement drug. AMAG's PowerRating is 3.
Retailers Abercrombie & Fitch (NYSE:ANF - News) and Dillards (NYSE:DDS - News) both announced positive same-store sales results for March. ANF's PowerRating is 5, and DDS's PowerRating is 5.
MedImmune (NasdaqGS:MEDI - News) announced that the board has granted management authority to explore the sale of the company. MEDI's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AMAG, ANF, DDS, GE, Hot Stocks, INFY, KKD, MEDI

Stocks slid today amid concerns raised by the release of the minutes from the most-recent Federal Reserve Board meeting, which made clear fighting inflation remained the board's top priority. The major stock averages all closed lower as a negative bias firmly took hold, with declining stocks leading advancers by a 2-to-1 margin on both the NYSE and Nasdaq exchanges. Crude oil futures edged higher, while the 10-year Treasury note slipped.

The notes released by the Fed made clear that its governors were unanimous in their belief that fighting inflation should remain their No. 1 priority and that rate increases might be needed, even as the board's members acknowledged pressures from a slowing economy leads to a clamor for rate cuts. A change in the language of the Fed's interest rate announcement following its March meeting initially started a rally on the belief that near-term rate cuts were possible. Now, most private economists expect the central bank to leave the benchmark Federal Funds rate at 5.25% when it meets next in May.
In other downbeat economic news, the National Association of Realtors said Wednesday it expects the median price of homes to fall this year for the first time since it began tracking sales nearly 40 years ago. In its most recent forecast, the industry trade group said it expects median prices to fall -0.7% in 2007. Previously, it had forecasted a modest increase of 1.2%.
Earnings season got under way yesterday evening when aluminum producer Alcoa (NYSE: AA - News) reported strong Q1 profits driven higher by growth in the global building, construction, and aerospace markets, which offset weakness from the U.S. automotive sector. Alcoa's shares rose on the news, but it did not translate into gains elsewhere as investors wait to see a fuller picture of corporate profits. The only other big company set to report this week is General Electric (NYSE: GE - News). The season will begin in earnest next week.
In corporate news, Citigroup (NYSE: C - News), as expected, announced job cuts of 17,000 and other cost-reduction measures such as moving some jobs to lower-cost overseas venues, but the plan appeared to disappoint some investors looking for deeper cuts. The stock closed down -1.2%, though it did bounce back somewhat from its lowest point of the day. The bank said its efforts will save the company over $2 billion this year and more in years to come. Subscribers can read detailed analysis of Citigroup's plan in today's issue.
On the telecom/cable front, Comcast (Nasdaq: CMCSA - News) moved higher as CEO Brian Roberts told Bloomberg that the business was "on fire" and that he was confident the company's spending was needed to maintain its growth. One of Comcast's chief competitors, Verizon Communications (NYSE: VZ - News) closed lower. Blackberry maker Research In Motion (Nasdaq: RIMM - News), meanwhile, fell -1.5% in advance of its earnings report, and was trading weakly after reporting earnings that met estimates.
Shares of video game retailer GameStop (NYSE: GME - News) continued the advance that began when the company reported a more than 50% increase in quarterly earnings on March 27th. The shares have added nearly 22% from the stock's March 26th closing price. Janco Partner also reaffirmed its "buy" rating on the stock today and increased its target price.

By the BullMarket.com Staff

Labels: AA, C, CMCSA, GE, GME, RIMM, VZ

Symbol
Name
Last Trade
Change
Volume
Related Info
MU
MICRON TECHNOLOGY
11.67 10:48AM ET
0.40 (3.31%)
21,422,400
Chart, Profile, More
KFT
KRAFT FOODS INC
31.40 10:48AM ET
0.68 (2.21%)
12,196,134
Chart, Profile, More
WEBM
WEBMETHODS INC
9.20 10:53AM ET
1.92 (26.37%)
15,454,005
Chart, Profile, More
SUNW
SUN MICROSYS INC
5.92 10:53AM ET
0.06 (1.02%)
14,028,328
Chart, Profile, More
QQQQ
NASDAQ 100 TR SER I
44.35 10:53AM ET
0.01 (0.02%)
12,944,114
Chart, Profile, More
SPY
S&P DEP RECEIPTS
143.86 10:48AM ET
0.01 (0.01%)
12,146,325
Chart, Profile, More
INTC
INTEL CP
19.47 10:53AM ET
0.09 (0.46%)
10,973,209
Chart, Profile, More
TWX
TIME WARNER INC
20.90 10:48AM ET
0.29 (1.41%)
9,945,143
Chart, Profile, More
RACK
RACKABLE SYSTEMS INC
14.50 10:53AM ET
2.38 (14.10%)
8,881,409
Chart, Profile, More
CSCO
CISCO SYS INC
26.07 10:53AM ET
0.03 (0.11%)
8,101,357
Chart, Profile, More
F
FORD MOTOR CO
7.94 10:48AM ET
0.10 (1.24%)
8,087,393
Chart, Profile, More
AMGN
AMGEN
58.13 10:53AM ET
1.45 (2.56%)
7,682,781
Chart, Profile, More
MSFT
MICROSOFT CP
28.51 10:53AM ET
0.01 (0.04%)
7,705,976
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BTU
PEABODY ENERGY CORP
44.29 10:48AM ET
1.50 (3.51%)
6,091,800
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H
REALOGY CORP
29.78 10:48AM ET
0.10 (0.33%)
6,254,700
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GLW
CORNING INC
23.71 10:48AM ET
0.59 (2.55%)
5,854,528
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GE
GEN ELECTRIC CO
34.94 10:48AM ET
0.17 (0.48%)
5,778,200
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PFE
PFIZER INC
25.76 10:48AM ET
0.05 (0.19%)
5,862,100
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S
SPRINT NXTEL CP
19.34 10:48AM ET
0.30 (1.53%)
6,138,343
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IWM
ISHARE RUS 2000 INDX
80.57 10:48AM ET
0.00 (0.00%)
5,777,600
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Labels: AMGN, BTU, CSCO, F, GE, GLW, H, INTC, IWM, KFT, MSFT, MU, pfe, QQQQ, RACK, S, SPY, SUNW, TWX, WEBM

Symbol
Name
Last Trade
Change
Volume
Related Info
QQQQ
NASDAQ 100 TR SER I
44.21 3:11PM ET
0.62 (1.42%)
87,096,430
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SPY
S&P DEP RECEIPTS
143.64 3:06PM ET
1.48 (1.04%)
66,497,711
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SUNW
SUN MICROSYS INC
5.82 3:11PM ET
0.02 (0.34%)
58,209,951
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CEGE
CELL GENESYS INC
5.73 3:11PM ET
1.42 (32.95%)
52,018,001
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KFT
KRAFT FOODS INC
30.45 3:06PM ET
0.40 (1.30%)
43,140,045
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INTC
INTEL CP
19.34 3:11PM ET
0.21 (1.09%)
41,789,489
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FDC
FIRST DATA CP
32.41 3:06PM ET
0.04 (0.12%)
39,717,365
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SIRI
SIRIUS SATELLITE R
3.10 3:11PM ET
0.05 (1.59%)
39,074,062
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IWM
ISHARE RUS 2000 INDX
80.60 3:06PM ET
0.85 (1.07%)
37,546,779
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CSCO
CISCO SYS INC
25.89 3:11PM ET
0.49 (1.93%)
35,550,196
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F
FORD MOTOR CO
8.12 3:06PM ET
0.03 (0.37%)
35,531,708
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MSFT
MICROSOFT CP
27.87 3:11PM ET
0.13 (0.47%)
29,449,881
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HAL
HALLIBURTON CO
32.78 3:06PM ET
0.51 (1.59%)
28,344,753
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TWX
TIME WARNER INC
20.49 3:06PM ET
0.42 (2.09%)
26,045,349
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ORCL
ORACLE CORP
18.36 3:11PM ET
0.22 (1.21%)
25,580,423
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EMC
E M C CP
14.26 3:06PM ET
0.17 (1.21%)
25,380,860
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PFE
PFIZER INC
25.71 3:06PM ET
0.37 (1.46%)
23,159,529
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GE
GEN ELECTRIC CO
35.22 3:06PM ET
0.07 (0.20%)
21,969,676
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MOT
MOTOROLA INC
17.71 3:06PM ET
0.15 (0.85%)
21,814,619
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Labels: CEGE, CSCO, EMC, F