Jim Cramer Blog

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

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

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

Fall into the Gap (GPS)
Although Cramer admits he has disliked retail lately, the sector will be a hot area when the Fed continues to cut interest rates. What was once the worst of the worst, Gap, is now best-of-breed, with a better balance sheet, new CEO Glenn Murphy, $2.7 billion in cash and investments and a revenue of $151.9 billion. In addition, this "great turnaround story" is buying back stock aggressively and is polishing its Banana Republic Brand. Cramer would wait about 5 days before buying.
Old King Kohl's: Limited Brands (LTD), Tween Brands (TWB) and Kohl's(KSS)
Unlike LTD and TWB, retailers Cramer thinks deserve to be doing badly, it is a mystery that people seem not to like Kohl's, which has "dropped like a rock;" a full 28% since April. Cramer likes the fact no one is paying attention to Kohl's which sells at 13x forward earnings and has a growth rate of 18%. He also noted the store is focusing on high-end designer brands, such Vera Wang's label. Cramer concluded KSS has the best risk-reward if the Fed keeps cutting and "deserves to be bought."
Fly Like an Eagle: American Eagle Outfitters (AEO)
Cramer suggests looking for retail stocks with vigorous insider buying and low evaluations; these factors characterize AEO, which is "worth buying." AEO's sales increased 17% year over year and is currently selling at 12 times next year's earnings. Craner would wait until the stock dips to between $22 and $25 before buying.
Mad Mail: Crocs (CROX), American Eagle Outfitters (AEO) Although Cramer still believes CROX has further to climb, he admits concern over the company's insider selling; "I will temper my enthusiasm a tad," he said. Cramer added AEO is a good stock for a 7th grader, and is an investment that can be held onto for a few years.

Published by SeekingAlpha

Labels: AEO, CROX, GPS, Hot Stocks, Jim Cramer, KSS, LTD, Mad Money, TWB

Bullish calls:
Raytheon (NYSE: RTN - News): 'Raytheon's probably the cheapest.'General Dynamics (GDNorthrop Grumman (NYSE: NOC - News)Lockheed Martin (NYSE: LMT - News)Frontline (NYSE: FRO - News):'Yours is a winner. Frontline is a buy. I see the stock went down today, but, you know, a lot of stocks went down today. That's a good one.'UnitedHealth (NYSE: UNH - News): 'Understand, I've owned this stock for a couple of years for my charitable trust. This is precisely the kind of stock that does well on a slowdown. ... I want to buy the stock.'Norfolk Southern (NYSE: NSC - News): 'Every railroad stock has been killed. ... All of them are owned by very big hedge funds. ... People say to themselves, 'I guess all the hedge funds are getting killed.' That is not true. ... I still like the stock.'Trinity Industries (NYSE: TRN - News): 'When this mortgage mess clears up, I think Trinity comes back. I think that's the kind of stock you buy. ... I'm not backing away."'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'I would prefer, if you want to speculate, that you speculate with Nastech Pharmaceutical.'American Standard (NYSE: ASD - News): 'I frankly don't know why the market hates it so much. ... I'm stickin' by. It's painful, but I'm stickin' by it.'LKQ (NasdaqGS: LKQX - News): 'I like your company. I would stick with it.'Yamana Gold (NYSE: AUY - News): 'I'll stick with Yamana.'
Bearish calls:
Boston Scientific (NYSE: BSX - News): 'They canceled an IPO. I don't like the balance sheet. This is not my favorite company in the group. Even at $13, I'm going to reiterate that I can't get behind the medical company Boston Scientific.'Spartan Motors (NasdaqGS: SPAR - News)Jones Soda (NasdaqCM: JSDA): 'They missed the quarter. You cannot miss the quarter and be a high-multiple stock. Not only did they miss the quarter -- they missed the last quarter. ... I cannot pull the trigger. ... Jones is in the penalty box.'Limited Brands (NYSE: LTD - News): 'Here's a company that's doing absolutely everything right, but no one cares. My take is this: The Limited is too cheap, but I can't think of a catalyst to turn this stock around.'St. Joe (NYSE: JOE - News): 'I cannot be in the stock. It's just not the place to be.'WCI Communities (NYSE: WCI - News)SuperGen (NasdaqGM: SUPG - News)Coeur d'Alene Mines (NYSE: CDE - News): 'I have never been a fan of Coeur d'Alene. They always issue a lot of stock. They never seem to go anywhere.'
Published By SeekingAlpha

Labels: ASD, AUY, BSX, CDE, FRO, Jim Cramer, JOE, Lightning Round, LKQX, LMT, LTD, Mad Money, NOC, NSC, NSTK, RTN, SPAR, SUPG, TRN, UNH

Limited Brands (NYSE: LTD - News): Cramer predicts Les Wexner is going to spin off more businesses, and while The Street is whispering rumors about Victoria's Secret, Cramer thinks LTD's Bath and Bodyworks has great value.
Monsanto (NYSE: MON - News) and Bunge (NYSE: BG - News): Cramer applauds Morgan Stanley's upgrade of MON and BG, because he believes these and other agricultural companies are "new renewable-oil service companies" and biotech plays. He predicts MON will climb from $60 to $75.
Published by SeekingAlpha

Labels: BG, Jim Cramer, LTD, MON, Stop Trading

The stock market largely retreated from its early enthusiasm over tame inflation numbers reported by the Labor Department, though the Dow Jones Industrial Average closed higher to set another record. The Nasdaq and S&P 500 indexes closed in the red. In other markets, the 10-year Treasury note lost ground, while crude oil prices pushed back over $63 a barrel.

Stocks got off to a strong start after the Labor Department reported that the core consumer price index increased by a modest 0.2%, in line with Wall Street's expectations. Overall CPI, including food and energy costs, rose 0.4%. Those tame numbers buoyed the hopes of investors yearning for a rate cut later this year by the Federal Reserve.
Investors also had to digest disappointing earnings from two retail bellwethers: Wal-Mart (NYSE: WMT) and Home Depot (NYSE: HD), both of which reported before the market's open. Wal-Mart posted an 8% profit increase, but said it was due to cost cutting more than revenue growth. The company also said it would probably miss its Q2 targets. Home Depot reported a steeper-than-expected profit decline of -29.5%, which it attributed to wild winter weather and the weak housing market. Wal-Mart's shares lost -0.5% of their value today, while Home Depot closed -1.8% lower. Bull Market Report subscribers can read our analysis of the CPI report, the retail outlook, and prospects for a Federal Reserve rate cut in today's edition.
The Dow index was pumped up by a solid move from General Motors (NYSE: GM), which is still basking in the afterglow of Chrysler's acquisition by Cerebus Capital Management. Investors hope the deal will lead to significant changes in the U.S. auto industry that will make GM and Ford Motor (NYSE: F) more competitive. Other Blue Chips with a strong global presence like Alcoa (NYSE: AA) and 3M (NYSE: MMM) also helped the Dow today.
Regional grocery operator Winn Dixie (Nasdaq: WINN) gained 37.2% today after reporting improved financial performance and continued progress on its turnaround plan. The company reported a profit for the quarter ended April 5th of $17.8 million against a loss in the year-ago period of -$29.0 million.
In other retailing news, Limited Brands (NYSE: LTD) announced it would sell a 67% stake in its Express brand to Golden Gate Capital for $548 million in cash while also exploring options for its Limited stores. The company's announcement confirmed expectations that it would concentrate on its rapidly expanding Bed, Bath & Bodyworks and Victoria's Secret brands. Limited shares closed -4.5% lower.
Elsewhere in M&A, financial information provider Reuters (Nasdaq: RTRSY) announced that it had agreed to be acquired by Canada's Thompson (NYSE: TOC) for roughly $17.24 billion.

Labels: AA, F, GM, HD, LTD, MMM, RTRSY, TOC, WINN, WMT

24/7 Real Media Inc. (NasdaqGM:TFSM - News) reported a fourth-quarter net loss of $227,000, or breakeven per share, compared with net earnings of $1.4 million, or 3 cents a share, in the year-ago period. Revenue rose to $60 million from $41.7 million.
Amgen Inc. (NasdaqGS:AMGN - News) disclosed it's received an informal inquiry from the Securities and Exchange Commission seeking more information about a Danish study of the company's Aranesp anemia drug.
Avocent Corp. (NasdaqGS:AVCT - News) revised its previously-announced fourth-quarter earnings down by $0.7 million and its revenue by $2.8 million after becoming aware that several previously recorded transactions did not meet revenue recognition criteria. The firm also said certain royalties earned by its LANDesk unit should have been recorded prior to the closing of its acquisition. Avocent said it now doesn't expect to pay the previously accrued contingent consideration of $27 million related to the acquisition. Taking account of the revision, Avocent said fourth-quarter revenue rose 55% to $166.1 million and operating income per share was 59 cents in the quarter, compared to 49 cents a year ago.
Ciena (NasdaqGS:CIEN - News) said it swung to a first-quarter profit of $11.1 million, or 12 cents a share, after revenue jumped 37% to $165 million. Excluding amortization of intangible assets, stock-based compensation and other items, it would've earned 22 cents a share. Analysts polled by Thomson Financial had expected earnings of 23 cents a share on revenue of $164 million. "As bandwidth demands escalate across multiple traffic types, service provider and enterprise customers alike are increasingly looking for solutions that allow them to transition their networks toward powerful converged network architectures capable of delivering any service at any time," said Gary Smith, CEO, in a statement.
Circuit City Stores (NYSE:CC - News) was downgraded to market perform from outperform at Piper Jaffray.
Comfort Systems USA Inc. (NYSE:FIX - News) reported fourth-quarter net earnings of $7.5 million, or 18 cents a share. During the year-ago period, the company posted a net loss of $17.6 million, or 44 cents a share. Revenue at the Houston-based provider of commercial, industrial and institutional heating, ventilation and air conditioning services rose to $268.1 million from $233.7 million.
Constellation Brands (NYSE:STZ - News) said it expects earnings of $1.21 to $1.31 a share for fiscal 2008. On a comparable basis, excluding items, the Fairport, N.Y., alcohol producer and marketer forecast earnings of $1.30 to $1.40 a share. It sees a net sales decrease of 12% to 14% for the year, citing the impact of using the equity method to report the results of its Crown Imports joint venture. The company expects free cash flow of between $140 million and $160 million for fiscal 2008. Constellation also said its board has approved the buyback of up to $500 million worth of its common stock. The average estimate of analysts polled by Thomson Financial is for a profit of $1.83 a share in fiscal 2008. As for fiscal 2007, the company expects earnings of $1.34 to $1.39 a share. On a comparable basis, it sees a profit of $1.65 to $1.70 a share for the fiscal year ended Feb. 28. Wall Street's current consensus estimate is for earnings of $1.67 a share for the year. It sees net sales growth in the low double digit to low teens for fiscal 2007. The company also said it expects its Svedka vodka acquisition to close in mid-March.
Corrections Corp. of America (NYSE:CXW - News) said its chief financial officer, Irving Lingo, will retire. The Nashville, Tenn. correctional facility operator said it has selected Todd Mullenger, currently the company's Treasurer, as the new CFO, effective March 16.
Douglas Emmett Inc. (NYSE:DEI - News) reported a fourth-quarter net loss of $20.6 million, or 18 cents a share. The Santa Monica, Calif.-based real estate investment trust posted total revenue of $87 million for quarter, which ended Dec. 31.
Energy Partners Ltd. (NYSE:EPL - News) posted a loss of $52.5 million, or $1.35 a share, for the fourth quarter, down from a year-ago profit of $28.1 million, or 69 cents a share. The New Orleans-based oil and natural gas exploration company attributed the majority of its loss in the latest period to $77.9 million in pre-tax non-cash costs related to property impairments. On an adjusted basis, the company said its earnings would have been $4.9 million, or 13 cents per basic share, in the latest quarter.
Focus Media Holding Ltd. (NasdaqGM:FMCN - News) agreed to acquire Allyes Information Technology Co., a China-based Internet, for $70 million in cash and $155 million of stock.
Goodman Global (NYSE:GGL - News) reported fourth-quarter earnings of $11.2 million, or 16 cents a share, up from a year-ago loss of $803,000, or 2 cents a share. Excluding items, the Houston-based maker of heating, ventilation and air conditioning products posted an adjusted profit of $13 million in the year-ago period. Looking ahead, the company forecast earnings of $1.30 to $1.40 a share for 2007. Wall Street's current consensus estimate is for a profit of $1.30 a share for the year.
Hertz Global Holdings Inc. (NYSE:HTZ - News) said it will eliminate 1,350 jobs in a new restructuring initiative intended to save $125 million in yearly compensation.
IndyMac Bancorp (NYSE:NDE - News) said it sees tough conditions ahead for loan originations and credit, and warned earnings in 2007 will be lower than 2006. In a letter to shareholders, the company forecast a return on equity (ROE) of 10%-15% for the year. "Our ROEs for the early quarters of the year will be at the low end of the range above; however, during the second half of the year, if we execute on our plans as we expect, and with a little luck, our ROEs could be at or even somewhat above the high end of the range," the company said.
Input/Output Inc. (NYSE:IO - News) shares tumbled after the Houston-based provider of seismic acquisition equipment and software reported fourth-quarter net earnings of $13.7 million, or 15 cents a share, vs. $16.1 million, or 17 cents a share, in the year-ago period. Revenue rose to $166.2 million from $131 million. Analysts polled by Thomson Financial were expecting a per-share profit of 15 cents. Input/Output forecast 2007 earnings of 45 cents to 60 cents a share on revenue of $610 million to $670 million.
Intevac (NasdaqGM:IVAC - News) was downgraded to market weight from overweight at Thomas Weisel Partners.
Laboratory Corp. of America (NYSE:LH - News) said it expects 2007 earnings will be reduced by 4-12 cents a share after Aetna Inc. (NYSE:AET - News) cancelled its contract with the company, effective July 1. "We are disappointed with Aetna's decision but we are confident in our strategy for profitable growth," CEO David King said in a release.
Limited Brands Inc. (NYSE:LTD - News) said its profit fell in the latest quarter compared with the same period a year earlier, which was lifted by favorable onetime gains.
Medicis Inc. (NYSE:MRX - News) reported fourth-quarter net income of $17.9 million, or 27 cents a share, compared with $37.3 million, or 56 cents a share, for the same quarter last year. Revenue rose to $99.1 million, from $80.7 million last year. Medicis also said it expects to post earnings of 12 cents a share and revenue of $95 million for the first quarter 2007. For 2007, the company sees earnings of $1.12 a share, on revenue of $455 million.
Published By MarketWatch

Labels: AET, AMGN, AVCT, CC, CIEN, CXW, DEI, EPL, FIX, FMCN, GGL, HTZ, IO, IVAC, LH, LTD, MRX, NDE, STZ, TFSM

Watch the Profits: Nabors (NYSE: NBR - News), Limited Brands (NYSE: LTD - News), Motorola (NYSE: MOT - News), Circuit City (NYSE: CC - News), TJX (NYSE: TJX - News), Ross Stores (NASDAQ: ROST - News), Nokia (NYSE: NOK - News), Texas Instruments (NYSE: TXN - News)
Concerning the stronger-than-expected employment figure, Cramer told host Aaron Task that he likes a situation when half of the analysts think that the Fed should raise rates and the other half want the Fed to lower rates, since an environment is created in which profts cause less disappointment. He added that recently the market is "killing" companies with less than spectacular results, and Task noted that this trend has been noticeable with Nabors, Limited Brands and Motorola. Cramer mentioned that he wanted to recommend LTD because of its jump to $32 after the Victoria's Secret fashion show, but then it fell to $29, and Cramer said that he now prefers TJX and ROST. Task discussed BBY's better-than-expected sales and Cramer said he would double up on the retailer even though it has gone up. "Best Buy has a history of doing two things: disappointing or telling people it's going to disappoint in November and then giving an upside surprise in January," he said. "The fact that anyone is not wise to this is irritating," said Cramer, who urged viewers to buy the stock "hand over fist." Although Circuit City has been moving up with BBY, Cramer says it doesn't have the inventory controls, the good merchandising or a sales staff which pushes the more expensive products. He commented that he doesn't like the cell phone business, especially Nokia, and with Motorola struggling, he would avoid buying component players such as Texas Instruments, although he wouldn't necessarily sell it. Finally, Cramer recommended taking a "hard look" and Apple and picking it up.
Published by SeekingAlpha

Labels: CC, LTD, MOT, NBR, NOK, ROST, TJX, TXN

Watch the Profits: Nabors (NYSE: NBR - News), Limited Brands (NYSE: LTD - News), Motorola (NYSE: MOT - News), Circuit City (NYSE: CC - News), TJX (NYSE: TJX - News), Ross Stores (NASDAQ: ROST - News), Nokia (NYSE: NOK - News), Texas Instruments (NYSE: TXN - News)
Concerning the stronger-than-expected employment figure, Cramer told host Aaron Task that he likes a situation when half of the analysts think that the Fed should raise rates and the other half want the Fed to lower rates, since an environment is created in which profts cause less disappointment. He added that recently the market is "killing" companies with less than spectacular results, and Task noted that this trend has been noticeable with Nabors, Limited Brands and Motorola. Cramer mentioned that he wanted to recommend LTD because of its jump to $32 after the Victoria's Secret fashion show, but then it fell to $29, and Cramer said that he now prefers TJX and ROST. Task discussed BBY's better-than-expected sales and Cramer said he would double up on the retailer even though it has gone up. "Best Buy has a history of doing two things: disappointing or telling people it's going to disappoint in November and then giving an upside surprise in January," he said. "The fact that anyone is not wise to this is irritating," said Cramer, who urged viewers to buy the stock "hand over fist." Although Circuit City has been moving up with BBY, Cramer says it doesn't have the inventory controls, the good merchandising or a sales staff which pushes the more expensive products. He commented that he doesn't like the cell phone business, especially Nokia, and with Motorola struggling, he would avoid buying component players such as Texas Instruments, although he wouldn't necessarily sell it. Finally, Cramer recommended taking a "hard look" and Apple and picking it up.

Labels: CC, Jim Cramer, LTD, MOT, NBR, NOK, ROST, TJX, TXN, Wall Street Confidential

Stocks continued to trade mixed Thursday following another batch of economic news. Retailers are in focus today following the release of same-store sales data for December. Data on the services sector was below estimates and pending home sales fell. Oil prices continue to decline Thursday, making their way below $57 a barrel. This has occurred today despite the fact oil reserves fell by 1.3 million barrels last week. Overall, there has been some profit taking yesterday and today, but the losses have been rather mild. However, Friday’s employment report could have a larger impact on stocks. Oil prices have been on the decline this past month, most notably this past week. Forecasts for warmer weather across much of the U.S. have trimmed demand expectations. This drop has occurred despite concerns about an embargo on Iran and a likely production cut by OPEC. The past two weeks have also seen large drops in oil reserves, yet crude continues to decline. After hitting a high near 150 on Dec. 15, the Oil Services HOLDRs (OIH) have fallen near 130. Hopefully the pumps will show a drop in price as well. The ISM Non-Mfg. Index fell slightly in December to a level of 57.1. This was down from 58.9 in November and below estimates for a reading near 58.0. However, the services sector of the economy remains strong and the employment component actually saw a mild gain to 53.3. One disappointing aspect of the report was the unexpected rise in the prices paid component to 59.1 from 55.6 in the prior month. The S&P Retail Index ($RLX) is flat on the session despite some concerns about same-store sales growth in December. Analysts state that warm weather tempered purchases of seasonal gear and the sharp rise in gift card sales also hurt results in December. Card sales are not counted in sales figures until they are redeemed. The ICSC reported that same-store sales rose 3.1 percent in December, which is solid, but not robust. Within the retailing sector, Wal-Mart (WMT), Costco (COST) and American Eagle (AEOS) posted strong results and are seeing their respective stocks rise. However, shares of Pacific Sun (PSUN), Bebe Inc (BEBE) and Limited Brands (LTD) are all falling on disappointing results. It wouldn’t be much of a surprise to see the bulls step in as the session moves forward. However, overall gains could be tempered by the fact Friday will see the release of the always important jobs data. Current expectations are for 100,000 jobs to have been added in December. On Wednesday, the ADP report showed a 40,000 job loss during the month, but the Challenger report this morning stated that just 55K job cuts were announced in December, half as many as cut in December 2005.
By Jody Osborne

Labels: AEOS, BEBE, COST, LTD, OIH, PSUN, WMT

Limited Brands Inc. on Wednesday posted a profit in the third quarter, driven by strong sales at its Victoria's Secret and Bath & Body Works stores that have been opened at least a year.
Limited Brands also said it was buying La Senza Corp., an intimate apparel retailer based in Canada, for $628 million.
Limited Brands reported a profit of $23.5 million, or 6 cents per share, for the quarter ended Oct. 28 compared to a loss of $683,000, or 0 cents per share, last year. Sales rose 12 percent to $2.1 billion from $1.9 billion a year ago.
Analysts surveyed by Thomson Financial expected earnings of 7 cents a share on revenue of $2.1 billion.

Labels: Limited Brands Inc., LTD