Jim Cramer Blog

U.S. stocks experienced a roller coaster ride on Monday, after a global sell off was triggered by the collapse of Bear Stearns. The Federal Reserve took emergency action, cutting the discount rate by 25bp and offering to lend to securities dealers at the same rates as banks.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Here are 7 stocks to watch...
Bear Stearns (NYSE:BSC) agreed to be sold to JPMorgan Chase for $2 per share, or $236 million. BSC shares closed at $30 on Friday, valuing the 85-year old investment bank at $3.5 billion. BSC's Short Term PowerRating is 8.
Many analysts felt the price JPMorgan Chase (NYSE:JPM) is paying significantly undervalues Bear Stearns, even allowing for litigation, de-leveraging and integration costs. Especially since the Fed is providing up to $30 billion in financing for BSC's illiquid assets. The decision means the Fed, not JPMorgan Chase, is carrying substantial risk. JPM's Short Term PowerRating is 3.
MF Global (NYSE:MF) shares fell as much as 80%, despite reassurances from the company that it was not experiencing liquidity problems.
Shares of Lehman Brothers (NYSE:LEH) plunged more than 20%, also on liquidity concerns. LEH is due to report earnings of $0.72 before the market open on Tuesday. LEH's Short Term PowerRating is 6.
Also before the market open, Goldman Sachs (NYSE:GS) is expected to report earnings of $2.58. GS's Short Term PowerRating is 5.
In deal news, CME Group (NYSE:CME) agreed to acquire Nymex Holdings (NYSE:NMX) for $9.3 billion. CME's Short Term PowerRating is 5. NMX's Short Term PowerRating is also 5.
And, International Paper (NYSE:IP) agreed to acquire the packaging and recycling businesses of Weyerhaeuser (NYSE:WY) for $6 billion. IP's Short Term PowerRating is 5. WY's Short Term PowerRating is 4.
Do you think International Paper will close up or down on Wednesday? Go to TradingMarkets.com to play our Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.

Labels: BSC, CME, CME Group Inc., Goldman Sachs Group Inc., GS, Hot Stocks, IP, JPM, LEH, Lehman Brothers Holdings Inc., MF, NMX, WY

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NasdaqGS:INTC - News) missed earnings estimates on Tuesday, reporting $0.38 EPS versus an estimated $0.40 EPS. INTC's PowerRating (for Traders) is 4.
JP Morgan Chase (NYSE:JPM - News) reports earnings on Wednesday before the market opens, with traders watching for $0.93 EPS. JPM's PowerRating (for Traders) is 5.
Knight Trading (NasdaqGS:NITE - News) announces quarterly results before the bell on Wednesday; look for $0.26 EPS. NITE's PowerRating (for Traders) is 5.
Progressive (NYSE:PGR - News) should report $0.33 EPS on Wednesday morning before the market opens. PGR's PowerRating (for Traders) is 4.
Northern Trust (NasdaqGS:NTRS - News) reports earnings on Wednesday morning, with traders watching for $0.93 EPS. NTRS's PowerRating (for Traders) is 6.
Analysts will be watching for Wells Fargo (NYSE:WFC - News) to report $0.41 EPS on Wednesday before the bell. WFC's PowerRating (for Traders) is 3.
Analysts are watching for Logitech (NasdaqGS:LOGI - News) to report $0.6

Labels: INTC, JPM, LOGI, NITE, NTRS, PGR, Stocks to Watch, WFC

Erin Burnett started the show today asking if CITI Group's decision to sell almost 5% of their company to the Arabs was such a good one. Also that crude oil is down about 3%. Steve Leisman says that focus is being taken off the weak dollar and on to the weak economy. Future plans are in effect for the improvement of consumers concern with the state of the economy and risk of recession. Abu Dhabi has paid over $7 B (The biggest purchase of an American Company buy a foreign) to make part of CITI. Arabs are looking for financials, homebuilders and hotels. Anything from actual buildings to stock equity sharing on the financial sector side are up for grabs. Sen. Chuck Schumer of New York shows concern for a continuing opportunity for American investments. As a democrat, free trade is not a top priority for him, and he wants to avoid building walls in between Americans and business buy giving power to foreign investors. The Arabs say they have no interest in board or managerial roles, only to play as a passivist support group who believes in the potential of American companies. David Weber says MasterCard (MA) and Research in Motion (RIMM) are his picks for the day. Next, there was the real estate market. David Blitzer of Standard and Poor's says that prices are driving foreclosures, resulting in a 524,000 fewer jobs and $6.6 billion lost in taxes. Also that a mass amount of foreclosures are driving the prices of surrounding homes down. The worst hit is New York at a loss of over $10 B. You can keep updated by visiting; realtycheck.cnbc.com. Next, Russia will be electing a parliament on Sunday, Dec 2nd. Julian Mayo of U.S Global Investors Eastern Europe Fund says that increased certainty is acknowledged for the outcome, being in supporters of Vladmir Putin's favor. The Russian market is leading the world. Utilities and Telecomm are the top performers in Russia. An update for CITI Group says that the company has not closed off opportunities for foreign purchase and investment. Rick Santelli of CNBC says that apparently CITI is looking for more than $7.5 B. and a loss of ownership by more than 5%. David Faber of CNBC says that raising capital will be the main concern for financial institutions as a result of CITI's decisions. More write-downs to come for consumers, and more capital to be raised will likely come from Arab investors and foreign petroleum dollars. Jim Cramer with Stop Trading was next. American International Group (AIG), and JP Morgan (JPM) are among his choices for likely candidates for middle eastern investors. He says that more capital for the corporations should be a positive thing for consumers. Jim Goldman of CNBC says that Verizon (VZ) announced that they will promote unrestricted access. This makes Verizon a much stronger competitor in the future. With 64M wireless customers in the U.S, Verizon will cause even more problems for companies such as Sprint and Nextel.

Labels: Abu Dhabi, AIG, Citigroup Inc., CNBC, CNBC's Stop Trading, Erin Burnett, Jim Cramer, Jim Cramer's Stop Trading, JPM, MA, RIMM, Sprint Nextel, Street Signs, street signs recap, VZ

Trish Regan hosted Tuesday's show. Weak dollar and its positive impact on the housing market was presented first. Foreign investors are purchasing second homes and vacation condos here in America. Real Estate brokers say that Europeans are experiencing low prices for there vacation home purchases in locations such as Miami, FL. Mark Vitner of Wachovia says that foreign investors will, in a way, pave the way for an improvement in the weak currency. Dow up 170 pts. and S&P up 20 pts. Wal-Mart, IBM, J.P Morgan and American Express are today's DOW leaders. November is still on track to be worst month ever for stocks in five years. Wal-Mart, Home Depot, Tahlbots, and Aeropostale are among top retailers. Margaret Brennan of CNBC says Wal-Mart's improvement can be accredited to slow traffic within the stores, and correction with inventory consideration. Jeffrey Schwartz, Prologis Chairman and CEO; says under good management, there is always a way to appeal to the interests of the consumer, not just their budgets. Sirius Satellite Radio shareholders vote to approve merger with XM Satellite. Sharp Pullback for Oil; Rebecca Jarvis of CNBC says that Crude Oil is down 2%. Next, Kozlowski, former TYCO CEO gives prison tell all to CNBC. After taking millions upon millions from TYCO, Dennis Kozlowski will sit behind bars for the remainder of his life. Dow has biggest one day gain since October. Next, in the Tech Sector: Micrsoft Zune vs. Apple IPOD. Jim Goldman of CNBC says The Microsoft Zune will never compete with anything Apple can release. Apple has sold over 100 million IPODS since 2002. Lance Ulanoff, editor-in-chief of PC magazine says they gave the Zune the product of the year award because of unique features including a FM radio Tuner. Jim Goldman adds that despite Microsoft’s low prices, people have shown through the years that the price on Apple products does not reflect a decrease in consumption. They love the iPOD! Next, Wendy Bounds of WSJ says Forum is a type of professional group therapy. In forum sessions, advice is not given, but similar stories are shared. With more than 60,000 members worldwide, Forum sessions are ever popular with entrepreneurs of the average age of 39.

Labels: AME, CNBC, IBM, JPM, The Call, trish regan, Wal-Mart

JPMorgan Chase & Co. (NYSE: JPM - News) today reported 2007 third-quarter net income of $3.4 billion, up from $3.3 billion in the third quarter of 2006. Earnings per share of $0.97 were up 5%, compared with $0.92 per share in the third quarter of 2006.

Commenting on the quarter, Jamie Dimon, Chairman and Chief Executive Officer, said, "Our firm performed well overall in the third quarter, despite challenging credit and market conditions. Asset Management and Treasury & Securities Services delivered record earnings, Card Services and Commercial Banking produced double-digit earnings growth, and Private Equity posted another quarter of strong gains. Investment banking is a volatile business, and while we would typically expect lower earnings in the Investment Bank during a difficult market environment, such as this one, we still believe that our performance could have been a bit better. Finally, Retail Financial Services had good revenue growth while further strengthening its reserves for home equity loan losses."
Remarking further, Dimon said, "It is gratifying that even in this challenging environment, the firm generated record revenue, net income and earnings per share for a third-quarter and year-to-date, while maintaining a fortress balance sheet and improving the infrastructure of the firm. During the quarter, we did not lose focus on becoming more efficient, as we successfully completed the in-sourcing of our credit card processing platform and our conversion of the wholesale deposit system. The wholesale conversion -- the largest in the firm's history and the last significant merger integration event -- affected approximately $180 billion in customer balances."

Labels: JPM, JPMorgan Chase and Co.

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NasdaqGS:INTC - News) beat earnings expectations on Tuesday afternoon, announcing $0.31 EPS over an expected $0.30 EPS. INTC's PowerRating (for Traders) is 6.
AMB Property (NYSE:AMB - News) beat earnings on Tuesday after the close, announcing $0.99 EPS over an expected $0.82 EPS. AMB's PowerRating (for Traders) is 7.
Altria (NYSE:MO - News) reports earnings on Wednesday morning before the bell, with analysts looking for $1.14 EPS. MO's PowerRating (for Traders) is 5.
Coca-Cola (NYSE:KO - News) should report $0.68 EPS before the market opens on Wednesday morning. KO's PowerRating (for Traders) is 5.
JP Morgan Chase (NYSE:JPM - News) is looking to announce $0.91 EPS on Wednesday morning before the market opens. JPM's PowerRating (for Traders) is 5.
Analysts will be watching for Piper Jaffray (NYSE:PJC - News) to report $0.56 EPS on Wednesday morning. PJC's PowerRating (for Traders) 7.
United Tech (NYSE:UTX - News) should announce $1.16 EPS on Wednesday morning. UTX's PowerRating (for Traders) is 6.

Labels: AMB, Hot Stocks, INTC, JPM, KO, MO, PJC, UTX

Buy Nokia (NOK), Jim Cramer said Thursday on CNBC's Stop Trading! segment.
Cramer likes the handset maker's buy of map company Navteq (NVT) and says Nokia is worlds ahead of rivals like Motorola (MOT). He said the stock's decline on the Navteq deal is a "buyable pullback."
Cramer also likes Capital One (COF), saying data from hard-hit California markets indicates that credit card defaults aren't likely to go through the roof. Cramer said he believes the stock is "done going down."
Cramer also likes Cisco (CSCO), saying it's better than Ciena (CIEN), which has just run up 10 points. Cramer would sell Ciena and buy Cisco right now.
Cramer says Bank of America (BAC) is cheap and going to $60 from $52, while talk of J.P. Morgan (JPM) CEO Jamie Dimon's excellence is "overblown."
Published By TheStreet.com

Labels: CIEN, COF, CSCO, Jim Cramer, JPM, MOT, NOK, NVT, Stop Trading

Cramer began Friday's show by sharing his CEO Hall of Shame. These are stocks that he thinks would be better off if the CEO quit or was forced out.
Alcatel-Lucent (ALU): Cramer thinks the CEO was given an ultimatum to deliver results now.
Marsh McLennan (MMC): The company should be broken up, and that splitting the company up is the only way shares will increase unless the CEO leaves.

Next, Cramer took some phone calls about other stocks with bad CEOs, like Pall (PLL). He also told people that he can't recommend buying Sirius (SIRI) now because it's too expensive, and that he thinks you should stay away from Palm (PALM).
Next, Cramer did a "Speculation Friday" segment, where he recommends high risk stocks. BioMarin (BMRN), a small biotech firm. It has developed a drug for pheylketonuria that will be the only drug on the market, protecting it from generic competition until 2015 in the US and 2018 in Europe. Cramer thinks the drug will be approved by the end of the year, but if it doesn't, it will be a risky investment.
Other calls: La-z-boy (LZB): Cramer doesn't like, and Sangamo BioSci (SGMO):He thinks is very risky.

After the lightning round, Cramer discussed what stocks he think will take the Dow to his year end target of 14,548. They are American Express (AXP), AIG (AIG), JPMorgan Chase (JPM), Citigroup (C), DuPont (DD), Altria (MO), Boeing (BA), and Caterpillar (CAT).

In the last segment, Cramer answered some emails. He changed his mind on GigaMedia (GIGM), making it a buy now, and told viewers to wait for a pullback on (AMZN) since it's "marked up heavily."

Labels: ALU, AMZN, AXP, BA, BMRN, CAT, DD, Jim Cramer, JPM, Mad Money, Mad MOney Recap, MMC, PALM, Pll, SIRI

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

Shares of exchange operator NYSE Euronext rose Monday after JPMorgan Chase & Co. raised earnings estimates for the third quarter and full-year 2007 and 2008.
Shares of NYSE Euronext rose $3.76, or 4.9 percent, to $79.80.
JPMorgan Chase analyst Kenneth Worthington increased his earnings estimate for the third quarter to 75 cents per share, from 58 cents per share, because of "higher than expected cash equity volumes at NYSE and booming interest rate derivatives volumes at Liffe," the company's European commodities and derivatives exchange.
As markets add electronic trading capability, "algorithmic and other blackbox trades could send volumes materially higher," Worthington wrote in a note. Because of the potential for significant volume growth, JPMorgan Chase's estimates could be too low in 2007, Worthington said.

Labels: JP Morgan Chase and Co., JPM, NYSE Euronext Inc., NYX

Buy Texas Instruments (TXN), Jim Cramer said Friday on CNBC's "Stop Trading!" segment.
Cramer said the chip giant has "nothing to do with its cash" but buy back stock, which is why the stock should go to $45 from a recent $36.83.
Cramer also likes the bank stocks, from Citi (C) and JPMorgan (JPM) to Wells Fargo (WFC) and Bank of America (BAC), despite some brokerage downgrades tied to possible loan losses. Cramer said to "downgrade now is wrong" on these stocks, because they had performed so poorly headed into this week's Fed rate cut.

Labels: BAC, Bank of America Corp., C, Citigroup Inc., Jim Cramer, Jim Cramer's Stop Trading, JP Morgan Chase and Co., JPM, Texas Instruments Inc., TXN, Wells Fargo and Co., WFC

Here are 7 options to watch for Monday.
Most Underpriced 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.

CME Group Sep 600 Calls (NYSE:CME - News)
Most Underpriced 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.
Google Sep 500 Puts (NYSE:GOOG - News)
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.
China Petroleum & Chemical Oct 125 Calls (NYSE:SNP - News)
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.
Bear Stearns Sep 100 Puts (NYSE:BSC - News)
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.
None today
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.
JPMorgan Chase (NYSE:JPM - News)

Labels: BSC, CME, GOOG, JPM, SNP, stock options

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

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

Stocks dropped hard from the onset of the trading session as global equity markets fell after credit woes hit foreign indexes. Losses were extended towards the closing bell, with the Dow Jones Industrials falling -387 points at the close, while the Nasdaq lost -56 points and the S&P retraced -44 points on the session. Treasuries rose sharply on the news, with the yield on the 10-year note ending at 4.79%. Over in the energy complex, natural gas was the only gainer, rising 36 cents to $6.58.
Company news from foreign markets hit home today, as France's largest bank, BNP Paribas SA, halted withdrawals from three investment funds because it could not fairly value its holdings after the U.S. subprime mortgage market roiled credit markets. As of August 7th, the company said those funds had assets of $2.2 billion, but those values declined -20% in the past two weeks. The news prompted the European Central Bank (ECB) to infuse 95 billion euros into the overnight lending market. On the home front, a $1.8 billion quantitative hedge fund managed by Highbridge Capital Management, a unit of JP Morgan Chase (NYSE: JPM - News), has lost -5.3% so far this month as credit markets continue to feel the heat.
On the earnings front, one of the world's largest insurers American International Group (NYSE: AIG - News) reported net income of $4.28 billion, or $1.64 a share, up from $3.19 billion, or $1.21 last year. Excluding hedging activities and other investment gains and losses, it said it earned $4.63 billion, or $1.77 a share, easily topping estimates of $1.61 a share. Revenues climbed 16% to $31.15 billion. The insurer cited strong performance in its general insurance business as well as life and retirement services. Strong results could do little for shareholders on this day, as shares fell -3.3%. Subscribers can read our analysis of American International Group's earnings in today's issue.
Elsewhere, media giant News Corp (NYSE: NWS - News), fresh off its acquisition of Dow Jones (NYSE: DJ - News), reported a 4% rise in fiscal fourth-quarter earnings. For the quarter just ended, the company earned $890 million compared to last year's $852 million. Excluding discontinued operations in the year-ago period, profits rose 22% on a per share basis to 28 cents per share, up from 23 cents in the same period a year ago. Revenues rose 9% to $7.37 billion. The company cited higher cable networks results for the increased profits.
In other news, home improvement retailer Home Depot (NYSE: HD - News) shares fell -5.3% after the company said it may have to reduce its price tag and restructure its planned $10.3 billion sale of its contractor supply business to a group of private equity companies. It also said it is scaling back its planned stock repurchase program due to the possible reduction in price for the unit.
Food giant Campbell Soup (NYSE: CPB - News), meanwhile, has hired Centerview Partners to help it explore strategic alternatives for its Godiva Choclatier business. Shares fell -4.6% on the session.
By the BullMarket.com Staff

Labels: AIG, CPB, DJ, HD, JPM, NWS

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.

CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."

Published By SeekingAlpha

Labels: AIG, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, VZ

Lehman (NYSE: LEH - News), JP Morgan (NYSE: JPM - News) and Bear Stearns (NYSE: BSC - News): After Thursday's carnage, Cramer has put financials on probation, and outlined necessary factors that would allow these stocks to perform again. First, Wall Street should cut its estimates, second, there should be layoffs in mortgage and corporate bonds departments. Third, the companies have to keep better track of what they have been losing to sub-prime debt and hung bridge loans. Cramer would stay away from JPM because of its connection with corporate debt and would not touch any housing stocks.
Pepsi (NYSE: PEP - News), Kellog (NYSE: K - News), Bunge (NYSE: BG - News), Celgene (NasdaqGS: CELG - News), Schlumberger (NYSE: SLB - News): Cramer would go "bottom fishing" in soft goods, such as Pepsi, which is down and Kellogg, whose quarter was "thing of beauty." He also likes agriculture and healthcare, especially BG and Celgene. Since Exxon is not drilling enough oil, Cramer predicts SLB will be called upon to come to the rescue. He also reiterated his praise for the tech sector which is "hot" in late summer.

Labels: BG, BSC, CELG, Jim Cramer, Jim Cramer's Stop Trading, JPM, K, LEH, PEP, SLB

The major market averages all slipped on the session as rising fears about subprime loans hit the street. However, stocks were able to pare much of their losses late in the day. Oil continued to strengthen climbing above $75 a barrel, finishing the day up $1.03.
The consumer price index, which excludes food and energy, rose 0.2% this month, the Labor Department said. The rise was in line with what Wall St. had expected. Also in economic news, the Commerce Department reported that building permits dropped to an annual pace of 1.406 million last month, the lowest level in a decade.
The earnings parade was in full force today, with a number of big-cap players reporting results. Banking behemoth JP Morgan Chase (NYSE: JPM - News) reported Q2 earnings of $4.23 billion, or $1.20 a share, up from $3.54 billion, or 99 cents a share, a year earlier. On the top line, JP Morgan reported revenue of $18.91 billion, representing year-over-year growth of 25%, and coming in well ahead of analyst estimates for revenue of $17.62 billion. JP Morgan's EPS for the quarter easily surpassed the consensus estimate of $1.09. Despite the strong quarter the shares fell -2.4% due to a -10% profit slide in its Financial Services unit, which was dragged down by troubles in home equity loans.
Altria Group (NYSE: MO - News) posted earnings of $2.22 billion, or $1.05 a share, as revenues rose 9.7% to $18.8 billion fueled by strong results at its international tobacco business. The stock fell -1.0%, however, after it lowered fiscal 2007 earnings estimates. It now expects to post EPS, including charges, of $4.05-4.10 compared to the $4.20-4.25 previously thought. Subscribers can read our analysis of Altria Group in today's issue.
Another Dow component, United Technologies (NYSE: UTX - News), reported robust earnings of $1.15 billion, or $1.16 a share. Sales rose to $13.9 billion from $12.26 billion a year earlier on strength in its commercial aerospace business. Chip and technology giant Intel (Nasdaq: INTC - News), meanwhile, reported a mixed quarter when it said net income in the second quarter rose 44% from year-ago levels to $1.28 billion, or 22 cents a share. Revenue came in at $8.68 billion, a rise of 8%. However, a decline in gross margins to 46.9% sent shares down -4.8%.
Pharmaceutical powerhouse Pfizer (NYSE: PFE - News) said net income plunged -48% due to a -13% fall in sales of cholesterol drug Lipitor. Net income was $1.27 billion, or 18 cents a share, below a profit of 33 cents a year earlier. Revenue dropped -5.6% to $11.1 billion, lower than a forecast of $11.5 billion. Excluding restructuring and acquisition costs, EPS would have been 42 cents a share, below analyst estimates of a profit of 50 cents a share. Shares slipped -3.2%. Subscribers can read our analysis of Pfizer in today's issue.
Internet giant Yahoo (Nasdaq: YHOO - News) said profit came in at $160.6 million, or 11 cents a share, which matched analyst estimates, but was down -2% from year-ago levels. Total revenue for the second quarter modestly rose to $1.7 billion from $1.58 billion in the year-ago period. Subscribers can read our analysis of Yahoo in today's issue. Shares of Macy's (NYSE: M - News) surged 7.6% on an otherwise sour session on a report that Kohlberg Kravis & Roberts was mulling a bid for the retailer valued at around $24 billion.
By Bullmarket.com Staff

Labels: INTC, JPM, M, MO, pfe, UTX, YHOO

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Altria (NYSE:MO - News) reports earnings on Wednesday before the market opens; watch for $1.13 EPS. MO's PowerRating is 6.
CIT Group (NYSE:CIT - News) is expected to report $1.35 EPS before the bell on Wednesday. CIT's PowerRating is 6.
JP Morgan Chase (NYSE:JPM - News) should report $1.08 EPS on Wednesday before the bell. JPM's PowerRating is 5.
Lufkin Industries (NasdaqGS:LUFK - News) is looking to announce $1.19 EPS tomorrow morning. LUFK's PowerRating is 6.
When Pfizer (NYSE:PFE - News) announces earnings before the market opens on Wednesday, look for $0.50 EPS. PFE's PowerRating is 4.
Southwest Air (NYSE:LUV - News) should announce $0.22 EPS on Wednesday morning. LUV's PowerRating is 5.
United Tech (NYSE:UTX - News) is expected to announce $1.15 EPS on Wednesday morning before the action begins. UTX's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CIT, Hot Stocks, JPM, LUFK, LUV, MO, pfe, UTX