Jim Cramer Blog

Get into General Motors (GM), Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
The auto giant is a "heavily unionized company, and it's going to be non-unionized," Cramer said. "This is a non-union company very soon. I salute GM." He recommended preferred shares for more conservative investors.
Cramer weighed in on Kynikos Associates' Jim Chanos' short position in bond insurers MBIA (MBI) and Ambac (ABK). The move makes "a huge amount of sense," Cramer said. "The Buffett thing is really bad" for these companies.
"I admit Chanos is a rigorous thinker. I have watched his thinking for 20 years," Cramer added, recalling the investor's excellent call on Boston Chicken, which filed for bankruptcy in the late 1990s.
Cramer also discussed Pershing Square Capital founder Bill Ackman's call on Sears (SHLD). Cramer agrees with Ackman's long position in the retailer. "In Eddie Lampert I trust," he proclaimed, referring to Sears' chairman. "I'm not going back on my view."
Cramer continued, "It's very clear that this is a housing recession and [Sears is] housing." He said he thinks critics have been too hard on Lampert and Sears.
Published By TheStreet.com

Labels: ABK, CNBC's Stop Trading, GM, Jim Cramer, MBI, SHLD, Stop Trading

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
99 Cents Only (NYSE:NDN - News) beat earnings expectations on Monday afternoon, reporting $0.14 EPS over an estimated $0.11 EPS. NDN's Short Term PowerRating is 3.
Brooks Automation (NasdaqGS:BRKS - News) missed earnings by a long shot on Monday, reporting -$0.01 EPS versus a consensus of $0.09 EPS. BRKS's Short Term PowerRating is 6.
Ecolab (NYSE:ECL - News) reports quarterly earnings on Tuesday morning before the bell, with traders looking for $0.40 EPS. ECL's Short Term PowerRating is 6.
General Motors (NYSE:GM - News) is expected to report -$0.55 EPS on Tuesday morning before the market opens. GM's Short Term PowerRating is 4.
Analysts are watching for Molson Coors Brewing (NYSE:TAP - News) to report $0.65 EPS on Tuesday morning pre-market. TAP's Short Term PowerRating is 4.
Schering-Plough (NYSE:SGP - News) is expected to report $0.24 EPS on Tuesday before the bell. SGP's Short Term PowerRating is 7.
Wynn Resorts (NasdaqGS:WYNN - News) announces results on Tuesday after the market closes; watch for $0.68 EPS. WYNN's Short Term PowerRating is 5.

Labels: BRKS, ECL, GM, Hot Stocks, NDN, SGP, TAP, WYNN

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
99 Cents Only (NYSE:NDN - News) beat earnings expectations on Monday afternoon, reporting $0.14 EPS over an estimated $0.11 EPS. NDN's Short Term PowerRating is 3.
Brooks Automation (NasdaqGS:BRKS - News) missed earnings by a long shot on Monday, reporting -$0.01 EPS versus a consensus of $0.09 EPS. BRKS's Short Term PowerRating is 6.
Ecolab (NYSE:ECL - News) reports quarterly earnings on Tuesday morning before the bell, with traders looking for $0.40 EPS. ECL's Short Term PowerRating is 6.
General Motors (NYSE:GM - News) is expected to report -$0.55 EPS on Tuesday morning before the market opens. GM's Short Term PowerRating is 4.
Analysts are watching for Molson Coors Brewing (NYSE:TAP - News) to report $0.65 EPS on Tuesday morning pre-market. TAP's Short Term PowerRating is 4.
Schering-Plough (NYSE:SGP - News) is expected to report $0.24 EPS on Tuesday before the bell. SGP's Short Term PowerRating is 7.
Wynn Resorts (NasdaqGS:WYNN - News) announces results on Tuesday after the market closes; watch for $0.68 EPS. WYNN's Short Term PowerRating is 5.

Labels: BRKS, ECL, GM, Hot Stocks, NDN, SGP, TAP, WYNN

The Federal Reserve finally got it right by cutting its target rate 50 basis points, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"There's no interpretation, this was just positive," Cramer said. "We have money flush from the sidelines." He believes that the financials will mount a recovery based on the Fed's move. "Bank of America (BAC) will want to buy Countrywide (CFC)."
"Fifty basis points is good," Cramer continued. He anticipates a market recovery thanks to the rate cut.
Cramer observed that some positive results are already visible. "People bought the WaMu (WM)preferred. That's good. ... This is a huge positive, and the market should react. ... It's huge. ... GM's (GM) breaking out. The GM preferred ... is a fantastic piece of paper."
Investors should get in now, although "perhaps they'll give you something that is negative to give you another chance," Cramer said.
In Cramer's view, the export economy is "red hot." He said he was "raising numbers on all financials."
"All is forgiven," Cramer said of his previous animosity toward the Federal Reserve. "Financials should be bought."
Cramer added that playing the agriculture boom is still a smart move. "Oil's going to $100. ... I think you can still own Bunge (BG) upgraded. ... Archer Daniels (ADM) is good."
On the overall economy, Cramer declared, "I am bullish. ... I'm not going to change my mind ... [the Fed] did it right."

Labels: ADM, BAC, BG, CFC, GM, Jim Cramer, Stop Trading, WM

All three major indices closed lower on the day, as investors continue to show concern over the housing and financial sectors. The Dow lost -57 points on the day to close at 13,315. Meanwhile, the Nasdaq and S&P each closed down to end at 2,637 and 1,472, respectfully. Light, sweet crude edged higher to settle at $89.31 per barrel. Treasury and gold prices each posted gains, while the dollar slid against the euro and the yen.
On the economic front, the Institute for Supply Management reported that a reading of its manufacturing index for November showed a drop to 50.8. Analysts had forecasted a slightly larger dip to 50.5. Any reading above 50 represents economic growth.
In corporate news, shares of VeriFone (NYSE: PAY - News) tumbled -45.8% on the day after announcing that accounting errors had caused it to overstate pretax earnings for the first nine months of the year by nearly $30 million, or 80%. As a result, the company said it expects to reduce its pretax income by -$8.9 million in the first quarter, -$7.0 million in the second quarter, and -$13.8 million in the third quarter. VeriFone said it will delay releasing its fourth-quarter results until a thorough assessment has been completed. Subscribers can read our take on VeriFone in today's edition.
Elsewhere, one of the nation's largest homebuilders, Lennar (NYSE: LEN - News), announced today that it has sold 11,000 lots at -40% of their value, as part of a joint venture it has formed with Morgan Stanley's (NYSE: MS - News) real estate unit. The homebuilder said it will record a fourth-quarter loss of about -$3.09 per share as a result of the sale that saw it unload the properties valued at $1.3 billion for a total of $525 million. Shares of Lennar were up 5.7% in trading, while shares of Morgan Stanley were off -0.8% at the bell.
Shares of General Motors (NYSE: GM - News) dipped -4.1% in trading after the company reported that sales for the month of November fell -11% compared to last year. Analysts had been predicting a rise in November sales. Meanwhile, Ford Motors (NYSE: F - News) said November auto sales had increased by 0.4%. Analysts had predicted a drop in Ford sales. Ford was off -3.5% on the day.
In M&A news, French conglomerate Vivendi SA announced Sunday that it will acquire a majority stake in Activision (Nasdaq: ATVI - News) and combine it with Vivendi Games, making the combined company the world's largest video game maker by market cap. According to the terms of the deal, Vivendi is set to purchase 62.9 million new shares of Activision stock for $1.7 billion, and exchange Vivendi Games for 295.3 new shares valued at $8.1 billion. The per-share price for both segments of the transaction amounts to $27.50. Activision's stock soared 12.7% in trading.

Labels: ATVI, F, GM, LEN, Morgan Stanley, MS, PAY

The Dow closed down 211 points and the Nasdaq finishing down 34. The S&P 500 has now given up all of its gains on the year. Najarian continues to like the four horseman names like Apple (AAPL), Google (GOOG) and Research In Motion (RIMM) which showed strength on Wednesday. Adami recommended getting long General Motors (GM) right here with a specific stop price in mind. Finerman found it strange that Fannie Mae (FNM) went up Wednesday. Crude oil came close to $100 on Wednesday, but fell just short and finished the day at $97.19. Gartman feels the stock market is behaving horribly and he is short names like Harley-Davidson (HOG), Tiffany (TIF) and Coach (COH) and long Microsoft (MSFT)and Apple (AAPL). Gartman's favorite position right now is short Cummins (CMI).
CNBC Pharmaceuticals Reporter Mike Huckman joined the show to discuss his take on big pharma stocks. Huckman explained that Pfizer (PFE) is having issues with safety concerns on a stop smoking drug, falling Lipitor sales and generic competition. Huckman also mentioned that Merck (MRK), Eli Lilly (LLY) and Bristol Myers (BMY) were all down on Wednesday. Finerman likes Johnson & Johnson (JNJ).
Investors tend to sell their biggest losers towards the end of the year to reduce the tax hit they take from their winners. Some of the names at 52-week lows are Citigroup (C), Pfizer (PFE), Merck (MRK), J.C. Penny (JCP), Capital One Financial (COF), Advanced Micro Devices (AMD) and AIG (AIG).
Word on the Street
Macke recommended buying The Gap (GPS) on dips. Finerman likes Limited (LTD) on valuation. Adami suggested buying Citi Trends (CTRN) ahead of earnings for Monday. Najarian likes Target (TGT) for its valuation in retail.
Deere & Company (DE) traded up 5% after profits rose 52%.
Najarian suggests looking at Agco (AG)
Najarian noted strong call options trading activity on Tibco Software (TIBX).
Pops & Drops
Pops - Google (GOOG) traded up 2%
U.S. Steel (X) traded up 5% also bucking the down trend in the market.
Drops - Tesoro (TSO) fell 3%
American International Group (AIG) fell 6%.
Circuit City (CC) fell 6% after a JPMorgan analyst downgraded the stock.
Jamba Juice (JMBA) plunged 30%
Final Trade
Macke says don't buy stocks if you don't have to and Adami and Finerman just gave thanks in the holiday spirit.
Najarian likes Apple (AAPL) and he thinks the stock will explode into January.

Labels: AAPL, BMY, CMI, CNBC, CNBC's Fast Money, COF, COH, Fast Money Recap, FNM, GM, GOOG, HOG, LLY, LTD, MRK, MSFT, pfe, RIMM, TGT, TIF

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

Trish Regan started the show by stating that Dow and S&P at biggest single day gain since September 18th. Nasdaq coming off best one day percentage gain since October 2006. Steve Liesman of CNBC economics says inflation can affect stocks in a positive way, but it does not necessarily mean that companies sold more. He says that inflation is very tame compared to what some expected it to be. Next, General Motors targets fuel efficiency in a hybrid truck. Two electric motors make a V8 truck get 20 miles or more to the gallon. Lutz; Vic Chairman of GM says that capabilities of a normal vehicle will not be lost. Environmental Issues and a higher focus on stricter fuel-effiency standards have driven this change to happen for General Motors. Lutz says that a gradual raise in fuel prices, say 25-30 per gallon per year, will make the transition for consumers much easier. Next, Bear Sterns (BSC) eases credit fears. They are up for a $3.2 m write-off, and will take over 3 years to earn back. Warren Buffet of Berkshire Hathaway says to do not kill estate tax. William Beach of the Heritage Foundation says rich people will always find a way to deal with taxes and they always have. But estate tax is counterproductive to invest and save, which is very much tied to the modern American Dream. It is said that estate taxes affect a very small percentage of Americans. Michael Farr of CNBC says if the estate tax is brought back after 2011, the limits should be raised or changed all together. You can get the full story at buffetwatch.cnbc.com. The NYSE is apparently holding an unscheduled meeting right now, and speculators are wondering why. James Cordier of Energy Analytics says $100 oil is a dead chance for 2007. He says the demand is simply not there for oil to reach $100/per barrel. Jane Wells of CNBC says that the Writers Guild of America on strike will affect much of the Hollywood production as well as the economic viewpoint for writers in America. Economic slow-down and sector rotation headlines the next report presented by Michael Farr. He says with a weak backdrop in almost every department of the the U.S, he is rallying for a much higher year to come in 2008.

Labels: CNBC, CNBC's The Call, General Motors, GM, The Call, trish regan

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.
Medivation (NasdaqGM:MDVN - News) & Icici Bank (NYSE:IBN - News). MDVN's PowerRating (for Traders) is 6, and IBN's PowerRating (for Traders) is 7.
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Jinpan International (NYSE:JST - News). JST's PowerRating (for Traders) is 8.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Taser International (NasdaqGS:TASR - News). TASR's PowerRating (for Traders) is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Gigamedia (NasdaqGS:GIGM - News). GIGM's PowerRating (for Traders) is 10.
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.
General Motors (NYSE:GM - News). GM's PowerRating (for Traders) is 7.
Bearish
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.
Tenet Healthcare (NYSE:THC - News). THC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: GIGM, GM, Hot Stocks, IBN, JST, MDVN, TASR, THC

Crude oil closed at another record high at $97.10 and finally finished Tuesday at $96.70. Adami tells viewers they can play Valero (VLO) on valuation or go with Tesoro (TSO).
Finerman offers EnergySolutions (ES) as an idea since it is scheduled to IPO next week. She would also consider Cameco (CCJ) but only with options. Najarian continues to favor Cypress Semiconductor (CY).
Auto Stocks
General Motors (GM) is set to report earnings Wednesday morning before the bell and Ford Motor (F) is set to report earnings on Friday before the bell. Adami likes Ford Motor. General Motors traded down 3% after hours on news that the company will take a $39 billion non-cash charge on financial assets in the mortgage arm. Macke says that Toyota Motor (TM), Honda Motor (HMC) and Hertz Global Holdings (HTZ) all lose from the continued improvements at Ford and General Motors.
Financials: Macke says we saw a counter trend rally on Tuesday and everything worked accept Citigroup (C) and the retailers. Goldman Sachs (GS) denies write-down speculation for the fourth time on Tuesday.
Google (GOOG) continues to surprise investors with news like the recent entry into the mobile handset market. Najarian thinks the trade is Focus Media Holding (FMCN), which is a China play that sells advertising space on mobile handsets. Google, Apple (AAPL), Intel (INTC), Cisco (CSCO) and Research In Motion (RIMM) all hit 52-week highs Tuesday. Yahoo (YHOO) shares took a hit Tuesday. Cisco Systems (CSCO) is set to report earnings Wednesday.
Adami thinks if the Fed is done cutting rates then Public Service Enterprise Group (PEG) will go lower and you can buy it in the low $80’s.
Pops & Drops
Pops- Archer Daniels Midland (ADM) traded up 7% on a strong profits report.
Jacobs Engineering Group (JEC) traded up 5% after profits rose 43%.
XM Satellite Radio (XMSR) traded up 12% on speculation that the merger with Sirius could get done by year end.
IndyMac Bancorp (IMB) traded up 10% after the CEO said the company would survive the mortgage blowup.
Church & Dwight (CHD) traded up 9% after posting a 34% jump in profits.
MasterCard (MA) traded up 7% after Deutsche Bank upgraded the stock and slapped a $250 price target on the credit card name.
Beazer Homes USA (BZH) trades up 10% after shareholders demand the CEO be fired.
Tenet Healthcare (THC) popped 22% as revenues per patient rose 8%.
Drops- NBTY (NTY) fell 5%.
Cooper Tire & Rubber (CTB) fell 14% as sales and profits missed estimates.
Molson Coors Brewing (TAP) fell 2% after third quarter profits fell amid charges.
Final Trade
Najarian recommends shorting MBIA (MBI).
Macke grabs buy tickets for Intel (INTC).
Adami picked Ford Motor (F).
Finerman advises shorting Lehman Brothers Holdings (LEH)

Labels: CCJ, CNBC's Fast Money, CSCO, CY, F, Fast Money AAPL, Fast Money Recap, FMCN, GM, GOOG, GS, HMC, HTZ, INTC, PEG, RIMM, TM, TSO, VLO, YHOO

After the Dow hit an all-time high yesterday, stocks were mixed on the session today. Wall Street cooled off some, with only the Nasdaq holding on to a modest gain among the three major indices. The dollar rebounded against the euro and gained versus the yen, which helped send commodity prices lower including a dip in oil and gold prices. Investors moved cautiously as they weighed the latest reading from the housing sector and sales from the nation's automakers.
In economic news, The National Association of Realtors' pending home sales index fell to a record low of 85.5 from an upwardly revised 91.4 reading in July. The drop was worse than expected by economists, who had predicted a -2% dip from the previous reading. The steep decline breaks the previous low of 89.8, which was set in September 2001, following the terrorist attacks that knocked consumer confidence. The trade group started the index in 2001.
Overall U.S. auto sales were soft in September on mixed reports from General Motors (NYSE: GM - News), which saw its overall sales of cars and light trucks edge up 0.3% in September, and Ford (NYSE: F - News), which saw sales plummet more than -20% for the same month.
On the earnings front, investors are growing increasingly impatient with smartphone pioneer Palm (Nasdaq: PALM - News) following the company's lackluster earnings release delivered after the market close yesterday. Palm announced that it had lost -$841,000, or -1 cent per share, in the first quarter on revenue that increased to $360.8 million. Palm's outlook didn't do much to raise investor confidence as the company is expecting a current quarter loss of -1 cent to -3 cents per share on revenue between $370 million and $380 million. On an adjusted basis, it expects a profit of 6-8 cents per share versus analyst estimates of 11 cents per share on sales of $413.5 million. Shares slumped -3.4%.
Shares of Pepsi Bottling Group (NYSE: PBG - News) reached an all-time high today after the largest bottler for PepsiCo (NYSE: PEP - News) reported a better-than-expected quarterly profit on Tuesday. The company said net income for the third quarter, which ended September 8th, rose 26% to $260 million, or $1.12 per share, from $207 million, or 86 cents per share, a year ago. The company also raised its full-year outlook. The stock rose 2.1%.
The M&A world saw Canada's TD Bank Financial Group (NYSE: TD - News) double its U.S. presence today when it acquired Mid-Atlantic regional bank Commerce Bancorp (NYSE: CBH - News) for $8.5 billion in cash and stock. As a result of the takeover, TD Bank will add nearly 460 branches along the East Coast when the deal closes in the spring of 2008, pending regulatory approval. Terms call for a 75% stock and 25% cash transaction that values Commerce at $42 per share, a 6% premium over the stock's closing price of $39.61 on Monday. Details have Commerce shareholders receiving 0.4142 shares of TD Bank common stock and $10.50 in cash for each share of Commerce owned.
Citigroup (NYSE: C - News) continued to reach into the world's second-largest economy by announcing earlier today that it would complete its acquisition of Japanese brokerage firm Nikko by paying $4.6 billion to buy out the remaining minority shareholders.
By the BullMarket.com Staff

Labels: C, CBH, F, Ford Motor co., General Motors Corp., GM, PALM, Palm Inc., PBG, PEP, Pepsico Inc., TD

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
RPM (NYSE:RPM - News) reports earnings on Wednesday before the bell, with analysts looking for $0.55 EPS. RPM's PowerRating (for Traders) is 5.
Wolverine (NYSE:WWW - News) should announce $0.53 EPS before the stock market opens on Wednesday morning. WWW's PowerRating (for Traders) is 4.
Immucor (NasdaqGS:BLUD - News) is looking to report $0.22 EPS on Wednesday after the bell. BLUD's PowerRating (for Traders) is 5.
Morgan Stanley (NYSE:MS - News) announced plans to cut 600 jobs related to its home loan division; MS rallied over 3% on the news. MS's PowerRating (for Traders) is 4.
Ford (NYSE:F - News) announced that U.S. sales of light vehicles fell more than 20% in September; F rallied nearly 4% despite the news. Rival General Motors (NYSE:GM - News) managed to record a slight jump in sales, while Toyota (NYSE:TM - News) also posted a decline. F's PowerRating (for Traders) is 6, TM's PowerRating (for Traders) is 4, and GM's PowerRating (for Traders) is 4.

Labels: BLUD, F, Ford Motor co., General Motors Corp., GM, Hot Stocks, Morgan Stanley, MS, RPM, TM, Toyota Motor Corp., WWW

Charlie Gasparino joined the "Fast Money" crew to discuss his take on the Bear Stearns (BSC) and rumos that Warren Buffett is part of a group of investors considering a 20% stake in BSC. He believes that Bear Stearns is going to be taken private. Guy Adami suggests that it makes no sense at all for Buffett to acquire Bear. According to Adami, Buffet's expertise is in value plays and Bear isn't a value play. Najarian declares that all brokers are back in play and recommends buying Lehman (LEH). Finerman agrees.
An American Icahn
Carl Icahn: Wants to see BEA Systems (BEAS) sold. Motorola (MOT): Bullish on their risk rewards.
GM On The Road Again
General Motors (GM) ended its two-day strike after making a health care agreement with the United Auto Workers. This changes the tune for General Motors, according to Jeff Macke. He advises buying auto parts suppliers like Lear (LEA), Visteon (VC) and BorgWarner (BWA). Adami suggests looking at Ford (F). Najarian prefers Goodyear Tires (GT).
No Deal
Sallie Mae (SLM) made news on Wednesday as a private-equity group pulled out of a deal to buy it for $25.3 billion. Macke: "stick a fork in it." Najarian disagrees and believes the deals are just being re-shifted down. Finerman isn't surprised the deal fell through. One potential deal that has her interest is Genesco (GCO).
Tech Rally
Technology stock leaders are still shining Google (GOOG), Amazon (AMZN), Hewlett Packard (HP), Cisco (CSCO) and Apple (AAPL) with 52 week highs.
Word on the Street
Bed Bath & Beyond (BBBY): Macke advises selling.
Monsanto (MON): Selling at twice its growth rate.
Newmont Mining (NEM): Dropped 6%.
Pops & Drops
Pops: Deere (DE) traded up 3%. Pier One Imports (PIR) popped 11%. China BAK Battery (CBAK) exploded by 46%. Affiliated Managers Group (AMG) traded up 4%.
Drops: Under Armour (UA) fell 6%. Timberland (TBL) dropped 8%.

Final Trade
Macke: recommends selling Bear Stearns (BSC).
Finerman: is positive that BEA Systems (BEAS) is going higher.
Najarian: top pick is Isis Pharmaceuticals (ISIS).
Adami: prefers NYSE Euronext (NYX)

Labels: AAPL, AMZN, BEAS, BSC, BWA, CNBC, CSCO, F, Fast Money, GCO, GM, GOOG, GT, HP, LEA, LEH, MOT, SLM

On today's show, Cramer started off by talking about the good news that General Motors (GM) received with the completion of their labor talks that he thinks will move the stock to $45, and the rumors that Warren Buffet is buying a stake in Bear Stearns (BSC) that will move it higher, along with other financial stocks Citigroup (C), AIG (AIG), J.P. Morgan (JPM), and American Express (AXP).

Cramer then started talking about buying inexpensive oil stocks when there is a pullback in oil prices. His stock choice is Gardner Denver (GDI) that will profit from higher oil prices and a weaker dollar. Compared with similar stocks such as Baker Hughes (BHI), National Oilwell Varco (NOV) and Schlumberger (SLB), Gardner Denver's multiple is too low.

Energy Stocks:
Transcanada (TRP): Enterprise Products Partners (EPD) is better.
Valero (VLO): Refining margins are killing the stock.
Transocean (RIG): He thinks the stock will go up when the GlobalSantaFe (GSF) merger is complete. Cramer also mentioned some Canadian Energy Trusts that he likes. The stocks are Canetic Resources (CNE), Pengrowth (PGH), Baytex (BTE), International PBX Ventures (PBX), Penn West Energy (PWE), and Advantage Energy (AAV).

Are You Diversified?:
Cramer recommended Caterpillar (CAT) to his first callers portfolio. He told his second caller to get rid of NYSE Euronext (NYX). Cramer told his third caller to hget rid of Pfizer (PFE).

Cramer spoke to the CEO of Genesis Lease (GLS) which Cramer recommended at $26. He said he was wrong to call the stock a buy then, but you should "back up the truck" now that it's at $22.

Finally, Cramer took three call in Sudden Death. He is unsure about Layne Christensen (LAYN), he likes Life Partners Holdings (LPHI) but is concerned about the large short interest, and thinks Danaher (DHR) is one of the best performing stocks in the S&P.

Labels: AIG, AXP, BHI, BSC, GDI, GM, Jim Cramer, JPM, Mad Money, Mad MOney Recap, NOV, SLB, TRP

General Motors Corp. won its struggle to unload $51 billion in retiree health costs and improve competitiveness in the latest round of contract talks with the United Auto Workers, but not without a short-lived strike that wrung promises out of GM to keep jobs at U.S. plants.
The two sides tentatively agreed Wednesday to a groundbreaking agreement that allows GM to move its unfunded retiree health care costs into an independent trust administered by the UAW. The union also agreed to lower wages for some workers. In exchange, the UAW won commitments from GM to invest in U.S. plants, bonuses and an agreement to hire thousands of temporary workers which will boost UAW membership, according to a person who was briefed on the contract. The person requested anonymity because the details haven't been publicly released.
Wall Street applauded news of the deal, sending GM shares up more than 9 percent.

Labels: General Motors Corp., GM

Equities rose on the day, with all three major market averages solidly in the green. The Dow closed up 100 points, helped by the end of a strike at General Motors (NYSE: GM - News). The Nasdaq, meanwhile, finished up 16 points, while the S&P tacked on 8 points. Oil initially fell after weekly inventories levels unexpectedly rose, but rallied to close up 77 cents to $80.30 a barrel. The price of gold slipped on the day.

In economic news, the Commerce Department reported that demand for durable goods nose-dived in August, with weakness across most categories. Orders fell -4.9% for the month, worse than the -3.5% drop economists were expecting. It was the biggest decline since January, and comes on the heels of a large 6.1% gain in July. Crude oil inventories, meanwhile, unexpectedly rose last week by 1.8 million barrels to 320.6 million barrels. Analysts were expecting inventories to drop by -2 billion barrels.
Topping the headlines today, the United Auto Workers (UAW) and General Motors agreed to a tentative contract early this morning, ending a 2-day strike. As part of the contract, the two sides confirmed that GM would fund a newly created trust that the UAW will run to administer retiree healthcare benefits. For its part, GM will continue to offer some job guarantees. The UAW hopes to strike similar deals with Ford (NYSE: F - News) and Chrysler. Shares of GM spiked 9.4%.
Shares of defense contractors, including Lockheed Martin (NYSE: LM - News), General Dynamics (NYSE: GD - News), and Raytheon (NYSE: RTN - News), hit or flirted with all-times Wednesday. Defense Secretary Robert Gates was meeting with Congress today to request an additional $45 billion to cover military costs in Iraq and Afghanistan. If approved, Gates' request will raise initial 2008 budget-year war projections by nearly a third to $190 billion.
Shares of Vonage (NYSE: VG - News) fell below a $1 after a jury found that it infringed on six patents held by Sprint Nextel (NYSE: S - News). The VoIP company was ordered to pay Sprint $69.5 million in damages. Vonage said it will seek to try to have the Sprint judgment overturned. Earlier this year, Vonage lost a patent infringement case to Verizon (NYSE: VZ - News) for $58 million plus royalties. Today, a court upheld two of the three patent infringement charges in a separate verdict.
In M&A news, Nasdaq (Nasdaq: NDAQ - News) and Borse Dubai raised their bid for Swedish exchange OMX to $4.9 billion, a 15% increase over their previous offer. The exchanges also made agreements with several large shareholders that combined control nearly 19% of OMX to now secure half of OMX's shares. The moves were made in response to The Qatar Investment Authority increasing its stake in OMX, which could indicate it may try to block the deal. Elsewhere, Bear Stearns (NYSE: BSC - News) shares rose 7.7% on rumors that the investment bank is close to selling a minority stake in itself. Among the potential suitors named include a Chinese bank, HSBC Holdings, and Warren Buffett, among others.

By the BullMarket.com Staff

Labels: BSC, F, GD, GM, LM, NDAQ, RTN, S, VG, VZ

General Motors (GM): Hit with its first nationwide strike in 37 years, and the crew at Fast Money was focused on what it means to the market. Adami: has been consistently negative on GM and would rather own Ford (F). Macke agrees that GM is a sell, unless they take a huge hit on health care without giving job guarantees.
Online Ad Play: Microsoft (MSFT) made headlines today as rumors floated around Wall Street that the firm is planning on taking a 5% stake in Facebook.com. Kourosh Karimkhany, manager of wired digital at Conde Naste, sees Microsoft's play for Facebook as one for software development. Macke: time to get long MSFT. Najarian prefers ValueClick (VCLK) and Focus Media (FMCN). Tuesday will be a big day for Microsoft as they will release the hyped up Halo 3 game which is predicted to be the biggest selling game ever.Macke proposes investors play Halo 3 with trades in Gamestop (GME) and Activison (ATVI). He advises getting out of Sony (SNE).
Drug Trade: The UBS health care industry conference could help jump start some of the pharmaceutical and biotech stocks this week. Adami suggests Pfizer (PFE). Najarian: Myraid Genetics (MYGN) and Quest Diagnostics (DGX). Macke: Johnson & Johnson (JNJ).
Burning Down the House: The homebuilders sector was annihilated on Monday, as investors fear more bad news is on the way when the government reports existing home sales data Tuesday. Adami advises not to trade this sector unless you have to. Finerman: stay away from WCI Communities (WCI) and Hovnanian (HOV).
Chartology: Technical analysis expert Jeff DeGraaf was on the show. DeGraaf likes the technology sector right now and he thinks it will outperform in the coming months. He feels positive about tech because the sector was strong in the summer when it normally tends to trade down. DeGraaf looked at Fedex (FDX) and the chart isn't showing bullish trends. Adami: doesn't like FDX until it trades above $121 and DeGraaf agreed. DeGraaf: loves the pattern in gold and continues to be bullish longer term on the yellow metal. He would look to buy gold on pullbacks.
Word on the Street: Target (TGT) lowered same-store sales on Monday. SABMiller reported an 11% jump in beer volumes on Monday. Macke likes Molson Coors (TAP). Najarian likes BHP Billiton (BHP) and copper and gold producer Freeport McMoRan (FCX).
Alternative Energy: NRG Energy (NRG) submitted its first application for a new US nuclear reactor in 30 years. Najarian would play this news with (BHP) Billiton and Cameco (CCJ). Finerman: Flowserve (FLS) and Adami likes Fluor Corp (FLR). Macke would just play NRG Energy (NRG). Trina (TSL) traded higher 8% as solar stocks were active with a major solar conference started. Najarian likes TSL.
Pops & Drops
Pops- Crocs (CROX) traded up 9%. Adami thinks a big short was forced to cover on Monday. He would take profits on CROX.
NYSE Euronext (NYX) traded up 2% off a JP Morgan upgrade. Finerman continues to be long this stock and she feels it has more room to run higher.
Las Vegas Sands (LVS) traded up 7% off a Jeffries upgrade. Macke says time to get out.
PrimeWest Energy Trust (PWI) exploded 32% on news that Abu Dhabi National Energy Co. bought them out. Finerman hopes we keep seeing deals like this.
EMC Corporation (EMC) traded up 8% after Citigroup and Bear Stearns upgraded the name. Adami still likes it.
Drops- AMR Corp (AMR) fell 14% after revenue forecasts missed Wall Street expectations. This drop took down all the airline companies for the day.
Harman (HAR) dropped 6% after the company said profits would miss Wall Street expectations. Finerman wouldn't touch it.
Adtran (ADTN) plunged 14% after the telecom company warned on 3rd quarter earnings and revenue. Macke suggests avoiding these guys on the telec