Jim Cramer Blog

A Deutsche Bank AG analysis of options trading activity in both Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) - among others - suggests that traders are pricing in significant dividend cuts across the board in the financial services industry. The Short Term PowerRating for GS is 5 and the Short Term PowerRating for C is 6.
Nvidia (NasdaqGS:NVDA), one of the biggest makers of computer graphics chips, was downgraded today from "neutral" to "sell" by FTN Midwest, citing growing inventories and competition. The Short Term PowerRating for NVDA is 5.
The death watch for Lehman Brothers (NYSE:LEH) continues, with Wachovia Corp and Credit Suisse downgrading the stock due to Lehman's larger than expected losses. The Short Term PowerRating for LEH is 6.
National City Corp (NYSE:NCC), the largest bank in Ohio, admitted to having a "Memorandum of Understanding" with the Federal Reserve Bank of Cleveland with regard to questions over asset quality, liquidity and risk management. The Short Term PowerRating for NCC is 8.
The less than optimistic forecast provided by Texas Instruments (NYSE:TXN) during its mid-quarter outlook led traders to sell the stock on Tuesday. The Short Term PowerRating for TXN is 5.
Anticipated revenue growth from operations overseas led Deutsche Bank AG to upgrade Coca Cola (NYSE:KO) from "hold" to "buy." The Short Term PowerRating for KO is 4.

Labels: C, GS, Hot Stocks, KO, LEH, NCC, NVDA, TXN

News that the Centro smartphone was taking customers away from the iPhone boosted shares of Palm (NasdaqGS:PALM) which manufactures the Internet-capable device. The Short Term PowerRating for PALM is 3.
An upgrade from Deutsche Bank AG helped oil refiners such as Tesoro (NYSE:TSO) move higher on Monday. The Short Term PowerRating for TSO is 3.
Lehman Brothers (NYSE:LEH) was among a number of Wall Street investment banks that saw its debt rating downgraded by Standard and Poor's on Monday. The Short Term PowerRating for LEH is 6.
Acorda Therapeutics (NasdaqGM:ACOR) was a standout stock on Monday as investors bid shares higher in the wake of positive clinical trial results for the biotech company's multiple sclerosis drug.
Toll Brothers (NYSE:TOL) is scheduled to announce quarterly earnings tomorrow morning before the bell. Analysts are expecting a loss of 0.87 EPS. The Short Term PowerRating for TOL is 5.
The board of directors of Wachovia (NYSE:WB) finally removed CEO Ken Thompson, while Washington Mutual (NYSE:WM) announced that Kerry Killinger would be replaced as chairman - though Killinger will stay on as CEO. The Short Term PowerRating for WM is 6.

Labels: ACOR, Hot Stocks, LEH, PALM, TOL, TSO, WB, WM

Dow Chemical (NYSE:DOW) announced its decision to raise prices on all products by as much as 20% by the first of June to deal with rising commodity costs. The Short Term PowerRating for DOW is 7.
Hedge fund manager David Einhorn claimed that the $6 billion raised by Lehman Brothers (NYSE:LEH) will not be enough to cover the company's credit-related losses. The Short Term PowerRating for LEH is 5.
Reporting earnings before the bell on Thursday, Costco (NasdaqGS:COST) is expected to announce earnings per share of $0.65. The Short Term PowerRating for COST is 5.
Shares of Dryships (NasdaqGS:DRYS) were up more than 9% on Wednesday as the business of transporting commodities across international waters continues to benefit shippers. The Short Term PowerRating for DRYS is 7.
Fears of sluggish advertising sales growth led investors and traders to sell shares of Viacom (NYSE:VIA) on Wednesday. The stock was down by more than 4% on the day. The Short Term PowerRating for VIA is 5.
Dell (NasdaqGS:DELL) is scheduled to report earnings on Thursday after the close. Analysts are expecting EPS of $0.33. The Short Term PowerRating for DELL is 5.
Expedia (NasdaqGS:EXPE) moved higher by more than 4% on Wednesday as speculation grew that Barry Diller, chairman of the company, would seek to take the company private. The Short Term PowerRating for EXPE is 4.

Labels: COST, DELL, DOW, DRYS, EXPE, Hot Stocks, LEH, VIA

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

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 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Lehman Brothers Jan 72.5 Calls (NYSE:LEH - News). LEH's PowerRating (for Traders) is 4.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Cognos Dec 76 Puts (NasdaqGS:COGN - News). COGN's PowerRating (for Traders) is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Potash Corp. of Saskatchewan Jan 140 Calls (NYSE:POT - News). POT's PowerRating (for Traders) is 8.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Bunge Dec 90 Puts (NYSE:BG - News). BG's PowerRating (for Traders) 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.
McDonald's (NYSE:MCD - News). MCD's PowerRating (for Traders) 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.
Knight Capital (NYSE:NITE - News). NITE's PowerRating (for Traders) 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.
Bare Escentuals (NasdaqGS:BARE - News). BARE's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: BARE, BG, COGN, LEH, MCD, NITE, POT, stock options

Financials: Washington Mutual (WM) fell 16% on Wednesday after reporting that credit losses for the year could be as much as $2.9 billion. Adami concedes Goldman Sachs (GS) could trade down to $205 and that is where investors should look to buy it. Finerman likes Goldman and is currently long the company and short Lehman Brothers Holdings (LEH) and Merrill Lynch (MER). Najarian recommends State Street (STT). Morgan Stanley (MS) took a $3.7 billion write-down for the fourth-quarter.
Crude oil hit another record high on Wednesday trading up to $98.62. Addison Armstrong, Director of Market Research at Tradition Energy joined the show and said the long term trend is still bullish for oil. He sees that oil demand is strong and supply is very tight and the oil markets have zero margin for error right now. Najarian mentions the largest oil trader on the New York Mercantile Exchange told him that oil is the new currency and it's going to $150.
Consumer Trade
Same-store sales are set to be released for some of the biggest retailers on Thursday. Finerman likes that expectations are low and she still owns Wal-Mart (WMT) Adami declares the only way to play the retailers is with MasterCard (MA).
Word on the Street
American International Group (AIG) falls 3% after hours on a 27% drop in third quarter profits. Cisco Systems (CSCO) falls 9% after hours despite a 37% rise in first quarter profits. Research In Motion (RIMM) and Amazon (AMZN) bucked the market weakness to close higher on Wednesday. Adami mentions that Citigroup upgraded Allstate (ALL) and he would own it here for a trade, and stop out at $50. First Solar (FSLR) explodes up 22% after hours on a blowout quarter.
Pops & Drops
Pops - Potash (POT) traded up 2%.
Onyx Pharmaceuticals (ONXX) exploded up 18% after the drug company posted a third quarter profit.
DirectTV (DTV) traded up 3% after subscribers grew by 400,000.
TurboChef Technologies (OVEN) traded up 9% after the oven maker reported a smaller loss.
Drops - Fannie Mae (FNM) fell 10%
Ford Motor (F) fell 5% in front of earnings set for Thursday.
Yahoo (YHOO) fell 8% after Alibaba.com fell 17%.
Capital One (COF) fell 16% after warning on credit losses.
Fluor (FLR) fell 6% after missing Wall Street estimates.
Final Trade
Seymour thinks its payday with Gold Fields (GFI).
Adami's play is Short Dow30 Proshares (DOG).
Finerman still recommends being long Goldman Sachs (GS) and short Lehman Brothers (LEH).
Najarian likes green play Evergreen Solar (ESLR).

Labels: AIG, CNBC, CNBC's Fast Money, CSCO, Fast Money, FSLR, GS, LEH, MER, RIMM, STT, WM

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Bear Stearns Jan 130 Calls (NYSE:BSC - News). BSC's PowerRating (for Traders) is 6.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Indymac Bancorp Nov 12.5 Puts (NYSE:IMB - News). IMB's PowerRating (for Traders) is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Blue Nile Nov 80 Calls (NasdaqGS:NILE - News). NILE's PowerRating (for Traders) is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Lehman Brothers Dec 50 Puts (NYSE:LEH - News). LEH's PowerRating (for Traders) 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.
Cablevision Systems (NYSE:CVC - News). CVC's PowerRating (for Traders) 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.
The New York Times Company (NYSE:NYT - News). NYT's PowerRating (for Traders) 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.
Affiliated Computer Services (NYSE:ACS - News). ACS's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: ACS, BSC, CVC, IMB, LEH, NILE, NYT, stock options

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
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.
Beckman Coulter (NYSE:BEC - News) & Oil States (NYSE:OIS - News). BEC's PowerRating (for Traders) is 6, and OIS's PowerRating (for Traders) is 6.
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.
Ampco-Pittsburgh (NYSE:AP - News). AP's PowerRating (for Traders) is 7.
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.
Palm (NasdaqGS:PALM - News). PALM's PowerRating (for Traders) is 6.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
US Bancorp (NYSE:USB - News). USB's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Aeropostale (NYSE:ARO - News). ARO's PowerRating (for Traders) is 3.
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.
Lehman Brothers (NYSE:LEH - News). LEH's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: AP, ARO, BEC, Hot Stocks, LEH, OIS, PALM, USB

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

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:
Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.
Macke: Can't be short financials now.
Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)
All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.
OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.
Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)
Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.
Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.
Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)
Face 2 Face:
Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.
Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.
Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)
Pops & Drops:
Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)
Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)
Final Trade:
Macke- Macy's (M)
Finerman- Altria (MO)
Adami- Nucor (NUE)
Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

Stocks opened the session on a strong note after key economic data sent bulls buying. In the late afternoon hours, stocks surged after the Fed cut both the discount and Fed funds rate by -50 basis points. At the close, the Dow ended with a gain of 336 points, while the tech-heavy Nasdaq gained 70 points. The S&P 500 was the largest gainer of the big three indices, rising 2.9%. Oil, meanwhile, added 94 cents to finish the session at $81.51 a barrel.
In economic news, the Labor Department said that producer prices fell more than expected in August. The PPI fell -1.4% for the month, following a 0.6% rise in July. Core prices, which exclude food and fuel costs, rose 0.2%. In housing-related news, the National Association of Home Builders said that confidence among homebuilders tied a record low in September. Its index in collaboration with Wells Fargo declined to 20. A reading below 50 signals that conditions are poor. Additionally, according to RealtyTrac, foreclosures more than doubled from year-ago levels, as the rate at which homes were foreclosed increased by 115% in the month compared to a year ago, and 36% from July levels.
On the earnings front, troubled investment firm Lehman Brothers (NYSE: LEH - News) reported third-quarter earnings that came in ahead of what analysts were forecasting. For the quarter, the company reported earnings of $1.54 a share, a full 7 cents higher than estimates. Profit dropped -3% to $887 million from the year-ago period and -29% from the second quarter. Total revenues rose 2% to $4.3 billion, but were down -22% sequentially. The company noted that during the quarter it recorded substantial reductions, mostly on leverage loan commitments and residential-mortgage related positions. Net reduction in revenues totaled about $700 million in the quarter. Due to the recent credit market turmoil, the company saw revenue in its capital market business drop by -14% and -47% in its fixed income business. Shares rallied on the news, up 10.0% on the session.
Electronics retailer Best Buy (NYSE: BBY - News) easily topped Wall Street expectations for its second quarter, as strong international sales and robust sales of computers boosted results. For the quarter, the company earned $250 million, or 55 cents a share, up from $230 million, or 47 cents a share, last year. Sales totaled $8.75 billion compared to $7.6 billion last year, a 15% rise. Same-store sales rose 3.6%. The company noted that it expects full-year earnings to be at the top half of its range of $3.00-3.15 a share, higher than its previous outlook of $2.95-3.15 a share. Shares gained 6.6%
Continuing with retailing earnings, auto parts company Autozone (NYSE: AZO - News) said profits rose to $217.2 million, or $3.23 a share, up from $213.5 million, or $2.92 a share, last year. Revenue rose 3% to $2 billion from $1.94 billion last year. The company cited gross margin improvement as well as supply chain efficiencies. Same-store sales in its domestic business fell -0.2%. Even though the company missed analyst earnings expectations of $3.25 a share and revenue estimates of $2.03 billion, shares rose 4.1%
Shares of online brokerage E*Trade Financial (Nasdaq: ETFC - News) were off by -1.5% after the company announced after the bell on Monday that it will be exiting the wholesale-mortgage business. The company said it will set aside $245 million, resulting in charge-offs of $95 million. Because it is exiting the business, E*Trade cut its 2007 EPS forecast to a range of $1.05-1.15, down from $1.53-1.67.
By the BullMarket.com Staff

Labels: AZO, BBY, ETFC, LEH

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Lehman Brothers (NYSE:LEH - News) outperformed the other brokers after announcing better than expected earnings, and receiving an additional boost from the rate cut. LEH's PowerRating (for Traders) is 3.
CarMax (NYSE:KMX - News) reports earnings on Wednesday morning, with traders looking for $0.29 EPS. KMX's PowerRating (for Traders) is 4.
Dress Barn (NasdaqGS:DBRN - News) should report $0.42 EPS before the market opens on Wednesday. DBRN's PowerRating (for Traders) is 4.
When General Mills (NYSE:GIS - News) reports quarterly earnings on Wednesday morning, be looking for $0.79 EPS. GIS's PowerRating (for Traders) is 5.
Analysts will be watching for Morgan Stanley (NYSE:MS - News) to announce $1.53 EPS tomorrow morning. MS's PowerRating (for Traders) is 5.
Apogee Enterprises (NasdaqGS:APOG - News) and CKE Restaurants (NYSE:CKR - News) both report earnings tomorrow afternoon, so watch for heightened price action and volatility ahead of the bell. APOG's PowerRating (for Traders) is 3, and CKR's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: APOG, CKR, DBRN, GIS, Hot Stocks, KMX, LEH, MS

Lehman Brothers Holdings Inc., the No. 4 investment bank, on Tuesday said third-quarter profits fell less than expected, as strength in stock trading and investment banking offset losses from the struggling mortgage market.
The report provided investors a crucial first glimpse at how Wall Street fared in the fallout from the mortgage crisis, which started when borrowers with poor credit began defaulting at a sharply higher rate earlier this year. Optimism about the financial sector pushed shares of investment banks higher, with Lehman up $1.27 to $59.89 at the market open.
Lehman Brothers -- the first of four to report results this week -- said quarterly profit fell 3.2 percent to $887 million, or $1.54 per share, from $916 million, or $1.57 per share, a year earlier.

Labels: LEH, Lehman Brothers Holdings Inc.

Here are 7 options to watch for Today.
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.
Bear Stearns Oct 145 Calls (NYSE:BSC - News). BSC's PowerRating (for Traders) is 4.
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.
Ciena Oct 40 Puts (NasdaqGS:CIEN - News). CIEN's PowerRating (for Traders) 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.
Lehman Brothers Oct 65 Calls (NYSE:LEH - News). LEH's PowerRating (for Traders) is 4.
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.
Baidu.com Oct 210 Puts (NasdaqGS:BIDU - News). BIDU's PowerRating (for Traders) is 3.
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.
Novell (NasdaqGS:NOVL - News). NOVL's PowerRating (for Traders) 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 suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Bed Bath & Beyond (NYSE:BBBY - News). BBBY's PowerRating (for Traders) is 4.
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.
Humana (NYSE:HUM - News). HUM's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: BBBY, BIDU, BSC, CIEN, LEH, NOVL, stock options

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Adobe Systems (NasdaqGS:ADBE - News) beat earnings on Tuesday afternoon, announcing $0.45 EPS over an expected $0.41 EPS. ADBE's PowerRating (for Traders) is 6.
The European Union announced it had denied Microsoft's (NasdaqGS:MSFT - News) appeal to a negative anti-trust suit, forcing MSFT to pay a $497 million euro fine. MSFT's PowerRating (for Traders) is 4.
AutoZone (NYSE:AZO - News) reports earnings on Tuesday morning, with analysts looking for $3.25 EPS. AZO's PowerRating (for Traders) is 4.
Best Buy (NYSE:BBY - News) should announce $0.44 EPS when the company reports earnings on Tuesday before the bell. BBY's PowerRating (for Traders) is 4.
Kroger (NYSE:KR - News) is looking to report $0.34 EPS on Tuesday morning. KR's PowerRating (for Traders) is 5.
Analysts are watching for Lehman Brothers (NYSE:LEH - News) to announce $1.52 EPS Tuesday before the market opens. LEH's PowerRating (for Traders) is 3.
Watch for Darden Restaurants (NYSE:DRI - News) to report $0.70 EPS on Tuesday morning. DRI's PowerRating (for Traders) is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADBE, Adobe Systems Inc., AZO, BBY, DRI, Hot Stocks, KR, LEH, MSFT

Stocks opened the session sharply lower, but quickly rallied as upbeat economic data sent bears to the sidelines. At the close, all major indexes closed with small gains. Oil prices finally sold off, as crude eased -99 cents to finish the week at $79.10 a barrel.
On the economic front, the Commerce Department reported that retail sales rose less than forecast for the month of August. Sales rose 0.3% in August, following a revised 0.5% increase in July. Purchases excluding autos unexpectedly fell -0.4%. Industrial output, meanwhile, rose 0.2%, with factory output declining for the first time since February. Elsewhere, a report from the University of Michigan said that consumer confidence increased.
The subprime mess is being felt overseas, as Europe's 3rd largest mortgage lender Northern Rock sought emergency funding from the European Central Bank (ECB). The bailout is the nation's biggest in more than 30 years. Rising credit costs left the lender unable to make new loans. News sent customers scrambling to its branches to get their money out. Northern Rock currently has 1.4 million depositors and approximately 800,000 mortgage customers.
In Wall Street news, Merrill Lynch (NYSE: MER - News) told investors that credit market conditions have continued to remain challenging. The company said it made "fair value adjustments" for potential losses to date on holdings and finance commitments as it prepares to conclude its current quarter. Shares declined -0.7% on the day.
Next week officially kicks off the earnings parade for investment banks, including Goldman Sachs (NYSE: GS - News), Lehman Brothers (NYSE: LEH - News), Morgan Stanley (NYSE: MS - News) and Bear Sterns (NYSE: BSC - News). Subscribers can read our thoughts on the upcoming investment bank earnings reports in today's issue. Meanwhile, Merrill downgraded shares of American Express (NYSE: AXP - News) to "neutral" from "buy" citing consumer spending concerns and disruptions in the financial markets.
In the technology arena, Internet giant Yahoo (Nasdaq: YHOO - News) saw shares rise by 4.3% after a Bernstein analyst said the stock could fetch $45 if the company were to outsource search advertising, cut jobs, and restructure its display advertising business. Yahoo also noted that it purchased news aggregation site BuzzTracker. Financial terms of the deal were not disclosed.
Intel (Nasdaq: INTC - News) shares fell -1.7% after a Merrill Lynch analyst downgraded the stock to "neutral" from "buy," citing valuation concerns. Also seeing analyst action was mobile handset maker Palm (Nasdaq: PALM - News) as Morgan Keegan upgraded the stock to "outperform" from "market perform" noting that Palm's strategic focus is improving and that new product launches should offset recent weaknesses in other areas. Shares advanced 4%.

Labels: AXP, BSC, GS, INTC, LEH, MER, MS, PALM, YHOO

Here are 7 options to watch for Today.
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.
Google Sep 540 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 6.
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.
Research in Motion Sep 80 Puts (NasdaqGS:RIMM - News). RIMM's PowerRating (for Traders) 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.
Lehman Brothers Sep 55 Calls (NYSE:LEH - News). LEH's PowerRating (for Traders) 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.
MasterCard Oct 110 Puts (NYSE:MA - News). MA's PowerRating (for Traders) is 8.
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.
Cephalon (NasdaqGS:CEPH - News). CEPH's PowerRating (for Traders) 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 suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
iMCSI Emerging Markets Index Fund (NYSE:EEM -