Jim Cramer Blog

Stocks ended the week on a high note, rising on upbeat earnings news. At the close, the Dow Jones ended with a gain of 53 points, while the Nasdaq gained 17. The broader S&P 500 added 7 points on the day. The price of crude eased -16 cents to finish the session at $81.62 a barrel. For the trading week, all the major market indices picked up substantial gains in the face of the Fed's decision to cut both the Fed's funds rate and the discount rate by -50 basis points.
On the banking front, European banking powerhouse HSBC Holdings (NYSE: HBC - News) notified investors that it will be closing its Decision One subprime mortgage unit in the U.S. The company's HSBC Finance arm will take an $880 million charge, as well as incur a $65 million charge for restructuring costs. Elsewhere, billionaire Wilbur Ross offered to buy American Home Mortgage's services unit for $435 million. In order to complete the purchase, he will have to win a court-sanctioned auction for the unit next month.
A couple of notable earnings were released late Thursday, including from software giant Oracle (Nasdaq: ORCL - News), which reported fiscal first-quarter net income of $840 million, or 16 cents a share. Excluding items, EPS would have been 22 cents, a penny ahead of analyst estimates. Revenue for the period totaled $4.53 billion, up 26% from year-ago levels. New license revenue for applications surged 65%, while service revenue rose 25%. Looking ahead, the software company run by founder Larry Ellison is forecasting second-quarter earnings of 26-27 cents a share (excluding items). Shares rose 4.4%, setting a new yearly high.
Sneaker and apparel company Nike (NYSE: NKE - News) said fiscal first-quarter profit hit $569.7 million, or $1.12 a share, up from $377.2 million, or 74 cents a share, in the year-ago period. Excluding a 20-cent a share gain from a tax benefit, earnings would have been 92 cents, 5 cents ahead of analyst predictions. Sales rose 11% to $4.66 billion. Nike cited strong international growth, especially in Europe and Asia, for the strong quarter.
In other corporate news, semiconductor maker Texas Instruments (NYSE: TXN - News) saw its shares rise 2.4% after it announced a further addition of $5 billion to its stock repurchases. The additional amount to its share repurchase programs brings its total to $8.8 billion. In addition, the company also lifted its dividend 25%, which would now equate to 10 cents a share.
Billionaire investor Carl Icahn has upped his stake in software maker BEA Systems (Nasdaq: BEAS - News) to 9.9%. Icahn has been pressuring the company to put itself up for sale for quite some time. This is now the second time he has upped his stake in as many weeks.
Shares of audio company Harman International (NYSE: HAR - News) plunged -20.9% after The Wall Street Journal reported that its private equity buyers are having second thoughts about taking the company private. The firm later confirmed right before the bell that the deal was a no go.
In other tech news, shares of Internet high-flyer Google (Nasdaq: GOOG - News) reached an all-time, rising 1.3% on the day. Coincidently, three of its executives once again appeared on Forbes' 400 Richest Americans list.
By Mike Conte, BullMarket.com

Labels: BEAS, GOOG, HAR, HBC, NKE, ORCL, TXN

Symbol
Name
Last Trade
Change
Volume
Related Info
ALGN
ALIGN TECHNOLOGY I
22.88 12:04PM ET
5.19 (29.34%)
6,045,704

CVNS
COVANSYS CP
33.31 12:04PM ET
6.51 (24.29%)
2,504,680

INOD
INNODATA ISOGEN
3.50 11:55AM ET
0.61 (21.11%)
VDSI
VASCO DATA SECURITY
21.68 12:04PM ET
4.02 (22.76%)
2,577,758

SWKS
SKYWORKS SOLUTIONS
7.37 12:04PM ET
1.21 (19.64%)
7,917,343

AEIS
ADVANCED ENERGY
25.67 12:04PM ET
4.17 (19.40%)
1,257,050
FFIV
F5 NETWORKS INC
78.71 12:04PM ET
12.64 (19.13%)
4,459,850

CNS
COHN & STEERS
54.22 11:59AM ET
9.26 (20.60%)
793,150

HAR
HARMAN INTL INDS
122.49 11:59AM ET
19.93 (19.43%)
4,620,300
GEL
GENESIS ENERGY LP
26.12 11:57AM ET
3.88 (17.45%)
342,600

OI
OWENS ILLINOIS
31.19 11:59AM ET
4.89 (18.59%)
3,782,940
WST
WEST PHARMA SVCS INC
53.82 11:59AM ET
7.56 (16.34%)
747,550

KOG
KODIAK OIL
5.86 11:59AM ET
0.70 (13.57%)
2,471,400
OMTL
OMTOOL LTD
2.05 11:15AM ET
0.29 (16.48%)
10,472
SBCF
SEACOAST BKNG CP
23.57 12:04PM ET
3.14 (15.37%)
392,899

WEN
WENDYS INTL INC
38.11 11:59AM ET
5.43 (16.62%)
8,829,900

PSAI
PEDIATRIC SRVS
15.85 11:59AM ET
2.15 (15.71%)
220,127
RKT
ROCK-TENN CO CL A
40.44 11:59AM ET
4.60 (12.83%)
741,150

CBRX
COLUMBIA LABS INC
2.66 12:04PM ET
0.32 (13.67%)
5,799,659

MTH
MERITAGE HOMES CORP
37.70 11:59AM ET
5.14 (15.79%)
3,060,280

Labels: AEIS, ALGN, CBRX, CNS, CVNS, FFIV, GEL, HAR, INOD, KOG, MTH, OI, OMTL, PSAI, RKT, SBCF, SWKS, VDSI, WEN, WST

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Diamond Offshore Drilling Mar 85 Calls (NYSE:DO - News). DO's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Harman International Industries Mar 95 Puts (NYSE:HAR - News). HAR's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Rio Tinto Mar 210 Calls (NYSE:RTP - News). RTP's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Google Inc. Feb 440 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
NutriSystem (NasdaqGS:NTRI - News). NTRI's PowerRating is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
PharmaNet Development Group (NasdaqGS:PDGI - News). PDGI's PowerRating is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Technitrol (NYSE:TNL - News). TNL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: DO, GOOG, HAR, NTRI, PDGI, RTP, stock options, TNL

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Diamond Offshore Drilling Mar 80 Calls (NYSE:DO - News). DO's PowerRating is 4.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Vertex Pharmaceuticals Mar 35 Puts (NASDAQ:VRTX - News). VRTX's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Intuitive Surgical Feb 100 Calls (NASDAQ:ISRG - News). ISRG's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Harman International Industries Feb 95 Puts (NYSE:HAR - News). HAR's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
YM BioSciences (NYSE:YMI - News). PowerRating not available due to less than 200 day trading history.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Children's Place Retail Stores (NASDAQ:PLCE - News). PLCE's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: DO, HAR, ISRG, PLCE, VRTX, YMI

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
NYMEX Holdings Jan 135 Calls (NYSE:NMX - News) . PowerRating not available due to less than 200-day trading history.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Intuitive Surgical Jan 95 Puts (NASDAQ:ISRG - News). ISRG's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Sears Holdings Jan 175 Calls (NASDAQ:SHLD - News). SHLD's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Harman International Jan 100 Puts (NYSE:HAR - News). HAR's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Veritas (NYSE:VTS - News). VTS' PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
NeoPharm Inc. (NASDAQ:NEOL - News). NEOL's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Federated Department Stores (NYSE:FD - News). FD's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: FD, HAR, ISRG, NEOL, NMX, SHLD, stock options, VTS

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Intuitive Surgical Jan 100 Calls (NASDAQ:ISRG - News). ISRG's PowerRating is 6.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Harman International Industries Jan 100 Puts (NYSE:HAR - News). CME's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Google Inc. Feb 510 Calls (NASDAQ:GOOG - News). ACL's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Diamond Offshore Drilling Jan 75 Puts (NYSE:DO - News). GOOG's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Kimberly Clark Corporation (NYSE:KMB - News). GE's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggestsan extraordinarily negative earnings report, or other news which may negatively affect the stock.
Cablevision Systems (NYSE:CVC - News). NKE's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Lennar Corporation (NYSE:LEN - News). BZH's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: CVC, DO, GOOG, HAR, ISRG, KMB, LEN, stock options