Jim Cramer Blog

JP Morgan Chase (NYSE:JPM) reported first quarter earnings of $0.68, beating estimates by $0.04. JPM's Short term PowerRating is 5.
Intel (NasdaqGS:INTC) also beat estimates by $0.04 and issued Q2 guidance in-line. INTC's Short term PowerRating is 5.
comScore reported the number of people clicking Google's paid search ads fell for the third straight month. Google (NasdaqGS:GOOG) is scheduled to report earnings after the close on Thursday. GOOG's Short term PowerRating is 5.
After the market close, eBay (NasdaqGS:EBAY) reported earning of $0.42, beating estimates by $0.03. EBAY's Short term PowerRating is 4.
And, International Business Machines (NYSE:IBM) beat estimates by $0.20 and issued an upbeat forecast. IBM's Short term PowerRating is 5.
Before the market open, Merrill Lynch (NYSE:MER) is scheduled to report, with analysts looking for a loss of -$1.99 per share. MER's Short term PowerRating is 5.
Pfizer (NYSE:PFE) is also due to report and expectations are pegged at $0.66. PFE's Short term PowerRating is 4.

Labels: Ebay, GOOG, IBM, MER, pfe, Stocks to Watch

The Dow fell -293.00 , the Nasdaq Composite -58.30, and the S&P 500 -32.32.
Here are 7 stocks to watch...
Morgan Stanley (NYSE:MS) reported a 42% decline in first quarter profit, but beat estimates by $0.42. MS' Short Term PowerRating is 3.
Shares of Adobe Systems (NasdaqGS:ADBE) jumped 9% after reporting earnings of $0.48, beating estimates by $0.03. ADBE's Short Term PowerRating is 4.
On its market debut, shares of Visa (NYSE:V) surged 28.4% on the NYSE. Visa's IPO was the largest in U.S. history.
Merrill Lynch (NYSE:MER) filed a lawsuit against XL Capital Assurance in an attempt to force the bond insurer to honor $3.1 billion of guarantees on CDOs. MER's Short Term PowerRating is 5.
After the close, Nike (NYSE:NKE) reported third quarter earnings of $0.92, beating estimates by $0.11. NKE's Short Term PowerRating is 5.
Before the market open, Carnival (NYSE:CCL) is expected to report earnings of $0.29 per share. CCL's Short Term PowerRating is 4.
Also before the open, FedEx (NYSE:FDX) is scheduled to report, with analysts looking for $1.22. FDX's Short Term PowerRating is 4.
Do you think FedEx will close up or down on Friday? 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: ADBE, CCL, FDX, Hot Stocks, MER, MS, NKE, V

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Kinder Morgan Partners (NYSE:KMP - News) beat earnings on Wednesday afternoon, reporting $0.50 EPS over an expected $0.45 EPS. KMP's PowerRating (for Traders) is 5.
Blockbuster (NYSE:BBI - News) rallied 22%, after JP Morgan said that Apple competition worries could be overblown. BBI's PowerRating (for Traders) is 6.
BB&T Corporation (NYSE:BBT - News) reports earnings on Thursday before the market opens, with traders looking for $0.78 EPS. BBT's PowerRating (for Traders) is 2.
Continental Airlines (NYSE:CAL - News) announces quarterly results on Thursday morning; watch for $0.03 EPS. CAL's PowerRating (for Traders) is 2.
International Game Technology (NYSE:IGT - News) is expected to post $0.36 EPS on Tuesday morning before the bell. IGT's PowerRating (for Traders) is 5.
Analysts will be watching for Merrill Lynch (NYSE:MER - News) to report -$4.57 EPS before the market opens tomorrow. MER's PowerRating (for Traders) is 3.
Novartis (NYSE:NVS - News) should report $0.73 EPS tomorrow morning. NVS's PowerRating (for Traders) is 6.

Labels: BBI, BBT, CAL, Hot Stocks, IGT, KMP, MER, NVS

New York state prosecutors have sent subpoenas to Wall Street firms seeking information related to the packaging and selling of debt tied to high-risk mortgages, a person familiar with the matter said on Wednesday.
The subpoenas, sent by the office of New York Attorney General Andrew Cuomo, requested information from a number of Wall Street firms.
The Wall Street Journal on Wednesday reported that Merrill Lynch & Co (NYSE:MER - News), Bear Stearns Cos (NYSE:BSC - News) and Deutsche Bank AG (XETRA:DBKGN.DE - News) received subpoenas, citing unnamed sources.

Labels: Bear Stearns Companies Inc., BSC, Deutsche Bank AG, MER, Merrill Lynch and Co. Inc., Wall Street Subpoenas

The ouster of Zoe Cruz, one of Wall Street's most powerful female executives, as Morgan Stanley's (NYSE:MS - News) co-president after a $3.7 billion mortgage loss has raised questions about how big the ultimate write-down will be - and how much investors will notice.
Cruz's unexpected departure on Thursday, after a quarter century at Morgan Stanley, eliminated perhaps the leading candidate to succeed John Mack as chief executive.
The 52-year-old Cruz joined a conga line of banking executives to lose their jobs after more than $50 billion of mortgage losses industry wide. These include the chief executives of Merrill Lynch & Co (NYSE:MER - News) and Citigroup Inc (NYSE:C - News), Stanley O'Neal and Charles Prince.
Cruz oversaw a business that in September and October generated the $3.7 billion pretax loss, reducing overall net income by $2.5 billion. Many analysts have said losses may have grown in November.

Labels: C, Citigroup Inc., MER, Merrill Lynch and Co. Inc., Morgan Stanley, MS, Stanley O'Neal, Zoe Cruz

Trish Regan started the show by stating that financials are up today, leading stocks to trade higher. The DOW is down about 5.3% for November. Nasdaq down 7.4% for November. Stocks are on pace for first 2 day winning streak this month. Next, the economy was discussed with Steve Liesman. He says the FED needs to take into account the market, despite dips in the credit institutions; flexible policymaking is required when dealing with volatility within the financial sector. AIG, American Express and IBM are the leaders in the financial sector today. Crude Oil reaches a two week low with a drop of almost 3%; at under $92/barrel. Freddie Mac and CITI Group are among the leaders for finances. The U.S currency index is up almost a point. Next, shareholders vs. the sec; Dan Pedrotty says that the sec is not following through to protect investors. Among these proxy proposals is the stipulation that shareholders, owning 5% or more of the company, can elect new company directors. The objective is to provide opportunities for involvement among the shareholders. Merrill Lynch is expected to have a good day. Next was the real estate market. Steve Liesman of CNBC says mortgage and interest rates are very tight. The mortgage lenders are demanding high equity loans, and those consumers who are aggressive can find the money they need, in the upcoming months. Next, David Fondrie of Heartland Investors says that Cimarex Energy (XEC) and Conocophillips (COP) would be good choices for buying today. Allan Hubbard resigns from his position as economic advisor to the Bush Administration. Keith Hennessey will be replacing him. Hubbard says he is leaving so he can spend more time with his children.

Labels: AIG, Citigroup Inc., CNBC, CNBC's The Call, COP, FED, IBM, MER, The Call, trish regan, XEC

Erin Burnett began Wednesday's show discussing NYSE CEO John Thain going to Merrill. Charlie Gasparino of CNBC says, for John, it will be a huge undertaking and may have to lay some people off in the beginning. Merrill Lynch is refusing to confirm or report on the new CEO. Dennis Kneale of CNBC says NYSE president Duncan Niederauer will also become NYSE CEO. Niederauer says that electronic stock trading without human intervention is still questionable as the best model for trade. He will be working for a model of 21st century trading in months to come. Next, Tracy Krohn of W&T Offshore (WTI) says that he and his company are focusing on the Gulf of Mexico. W&T Offshore has interests in over 2 billion acres of natural resources. 65% of W&T's reserves are developed and 55% of them are natural gas reserves. They also have 200 exploration fields in federal and state waters, and say if there is a change in the eastern seaboard drilling restrictions W&T will be prepared. Next was the weak dollar. Robert Kessler of Kessler Companies says U.S treasuries often profit when other asset classes loose value. Investors in treasuries don't have to worry about a recession. Rick Santelli of CNBC says United Airlines and Delta Airlines are discussing a possible merge. Steve Liesman of CNBC says the Federal Reserve Board will be opening up with forecasts and predictions for the upcoming year. These reports will be covering inflation, and the potential of the current economy. Robert McTeer of the National Center of Analysis says the fed hopes to improve accountability and understanding of monetary policy in televised forecasts in the future. He says the fed will make these forecasts more frequent and more transparent. The Federal Government will compile and release projections four times a year rather than two. Stop Trading with Jim Cramer was next. Jim Cramer said Duncan Niederauer will do a great job as CEO of NYSE Euronext (NYX), adding that Niederauer has learned a tremendous amount since joining the exchange several months ago. Niederauer had previously been a trader at Goldman Sachs (GS).

Labels: CNBC, Duncan Niederauer, John Thain, MER, NYSE, Street Signs, street signs recap, WTI

Merrill Lynch & Co. said Wednesday it has tapped New York Stock Exchange head John Thain to lead the world's largest brokerage through the unfolding credit market turmoil that threatens Wall Street's biggest investment houses.
Thain, 52, has been selected to become Merrill's next chairman and chief executive officer. His appointment comes just two weeks after the ouster of Stan O'Neal as Merrill reported a $2.24 billion loss during the third quarter, the largest in its 93-year history.
The New York Stock Exchange said Wednesday that it named Duncan Niederauer chief executive. Niederauer, 48, joined the NYSE in April after serving as co-head of equities trading at Goldman Sachs.
Thain's first day as Merrill's new chief is Dec. 1.
Thain was able to place a tourniquet on the Grasso scandal while at the same time succeeding in remaking the Big Board into a for-profit exchange. He took the company public last year, following a merger with Archipelago, and guided it through its merger with European exchange operator Euronext earlier this year.
Thain had said when he took the NYSE CEO position in 2004 that working at the Big Board would be a "three- to five-year job," but backpedaled on that timeframe after his three-year anniversary at the exchange came and went earlier this year. Thain said recently that there was still much to do at the exchange, such as expanding into Asia and further into the derivatives business.

Labels: Duncan Niederauer, John Thain, MER, Merrill Lynch and Co. Inc., NYSE Euronext Inc., NYSE Euronext Inc. NYX

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.
Merrill Lynch Jan 70 Calls (NYSE:MER - News). MER's PowerRating (for Traders) is 7.
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.
Cephalon Jan 75 Puts (NasdaqGS:CEPH - News). CEPH'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.
Apple Jan 220 Calls (NasdaqGS:AAPL - News). AAPL'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.
Bear Stearns Dec 80 Puts (NYSE:BSC - News). BSC'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.
Watts Water Technologies (NYSE:WTS - News). WTS' PowerRating (for Traders) is 3.
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.
Fairchild Semiconductor (NYSE:FCS - News). FCS' 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.
Leap Wireless (NasdaqGS:LEAP - News). LEAP's PowerRating (for Traders) is 8.

Labels: AAPL, BSC, CEPH, FCS, LEAP, MER, stock options, WTS

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.
Research in Motion Nov 145 Calls (NasdaqGS:RIMM - News). RIMM'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.
United Therapeutics Nov 95 Puts (NYSE:UTHR - News). UTHR's PowerRating (for Traders) is 2.
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.
Merrill Lynch Nov 60 Calls (NYSE:MER - News). MER'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.
Goldman Sachs Dec 200 Puts (NYSE:GS - News). GS'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.
Brocade Communications Systems (NasdaqGS:BRCD - News). BRCD'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.
H&R Block (NYSE:HRB - News). HRB'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.
Lennar (NYSE:LEN - News). LEN's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: BRCD, GS, HRB, LEN, MER, RIMM, stock options, UTHR

On Friday the Fast Money crew speculated on the news about Citigroup (C). Macke thinks the banks are still a sell here unless you're the fastest of traders. Finerman went long Citigroup through options on Friday and she sees a bounce if CEO Chuck Prince leaves. Macke agrees that it does look like a near term reversal to the upside could be in store for Citigroup. Tim Seymour thinks the downside for the financials might be a bit over done and he bought Merrill Lynch (MER) on Friday.
Famous Legg Mason money manager, Bill Miller, likes financials and consumer names, proposing that the global plays might be over. He predicts that new leadership in the markets will come from US, large-cap, dollar-based stocks. Seymour disagrees and thinks that consumer names will do nothing over the next year. Macke thinks Miller's statement is reckless.
Cisco Systems (CSCO) is set to report earnings on Wednesday. Oppenheimer Chief Market technician Carter Worth joined the show to discuss Cisco Systems. In Worth's opinion, CSCO has relative strength and during market sell-offs investors haven't been selling the shares. Adami notes that fundamentally CSCO is doing well. Seymour contends CSCO is a bell-weather for technology and the company is finding ways to grow outside of the U.S. Macke thinks CSCO is just getting started and any pullback in the name is a chance to buy it. In the technology sector Macke wants a dip on Microsoft (MSFT) so he can get in. Adami favors Western Digital.
Retail Shopping
Most major retailers are set to report same-store sales for October on Wednesday Nov. 7th and Thursday Nov. 8th. Costco (COST) and Macy's (M) are Macke's favorite plays here. Finerman is positive on the retailers, but she is nervous about the consumer and she sold her Target (TGT).
Insurance: A shareholder group including Maurice Greenberg is requesting that American International Group (AIG) look at strategic alternatives. The stock is trading up 3% after hours on the news. Greenberg, who use to run AIG, is currently the largest shareholder and controls $3 billion in the stock. Charlie Gasparino's sources say that Greenberg wants to get rid of the current mangers and board of directors. Macke would be a buyer of AIG off this news.
OIL: Oil hits another record high to close at $95.93. Finerman favors Flowserve (FLS) for a global play. She also mentioned that FLS is her biggest position, although she did trim some on Friday. Adami tells investors Exxon Mobil (XOM) still has a rich valuation and if you want to play the oil space look at Chevron (CVX).
Seymour recommends investors look at emerging markets like Brazil, Russia and China. Brazilian banks Banco Itau Holding Financeira S.A. (ITU) and Banco Bradesco S.A. (BBD) are his plays. In Eastern Europe, he likes cellular plays Mobile TeleSystems (MBT) and Vimpel-Communications (VIP).
Pops & Drops
Pops - IAC Interactive Corp (IACI) traded up 9% after beating earnings.
USEC (USU) traded up 12% on a strong profits report.
Potash (POT) traded up 4% after Russian competitor Silvinit had a major flood causing tight world supplies to tighten further.
Baidu.com (BIDU) popped 16% after profits doubled. Macke declares BIDU is the Google of China.
Drops - Washington Mutual (WM) fell 17% after New York Attorney General Andrew Cuomo sued WM alleging it colluded with a real estate appraisal firm to inflate the value of homes to help ensure that loans went through.
Yahoo! (YHOO) fell 8% for the week.
Target (TGT) fell 6% following the downward trend in the market.
Titanium Metals (TIE) fell 11% after missing profit forecasts.
Quicker than the Ticker
Back on October 8th, Seymour suggested buying CTC Media (CTCM) and Central European Media Entertainment (CETV). Seymour got it right and shares of CTC Media went up 7% and CETV surged 20% since his recommendation.
On October 17th Adami told investors to buy MasterCard (MA). The stock has advanced 17% since he recommended it.
October 29th Finerman advised shorting GPS play Garmin (GRMN). GRMN declined 20% since her call.
It was October 31st when Macke recommended investors to short Citigroup (C). Macke was right and two days later Citigroup fell 9%.
Misfires
Earlier this week on Tuesday, Adami recommended buying Las Vegas Sands (LVS). He missed the trade and LVS plunged 19% since his call. For now he favors Boyd Gaming (BYD).
Last Friday Finerman recommended shorting oil. Since her call oil has climbed 6% higher. Finerman would get out of the short oil trade because it didn't work.
A week ago Macke told investors to buy Procter and Gamble (PG). Procter has fallen 3% since he picked it, but Macke says the earnings report wasn't that bad and maintains its going to work in the long-term.
On October 4th Seymour favored investment bank Merrill Lynch (MER) on valuation. Seymour was way off and Merrill fell 19%.
Final Trade
After a rollercoaster week, the team gives their best picks. Although, not necessarily for stocks.
Macke picks the Indianapolis Colts over the New England Patriots. Finerman went with the New England Patriots.
Adami places his bet on Intel (INTC).
Seymour chooses Immersion (IMMR).

Labels: AIG, CNBC, COST, CSCO, Fast Money, Fast Money Recap, MER, MSFT, TGT

Erin Burnett started out discussing Citigroup's downgrade situation and the effect on the market in its entirety. Dow leaders today are Microsoft, Hewlett Packard and Intel. AIG, Citgroup, Exxonmobil are today's laggers. Doug Altabef from Matrix Assets recommends playing the tech market, and to remember that sell-offs are buying opportunities. Owens Corning CEO elect; Michael Thaman says that profits are suffering, earning .40 per share in 3rd quarter. He expects weakness to continue through the end of the year and into the next. Does not forecast a recession, but realizes that vulnerability in the housing market is here to stay, until other inequities in the market are rectified. Pawn Shops were the next topic. Daniel Feehan; CEO of Cash America, says the demand is high for the services they offer. With 4500 employees, and 40-50% of customers as working class homeowners, Cash America's profits raised $1.60 per share in 3rd quarter. The price of gold has helped their business as well. Citigroup is down 6.72%. Tangible capital ratios have been strained for 2 quarters, says Punk Zeagle. David Trone, of Fox -Pitt Kelton Analyitics, says Bear Stearns Hedgefunds are far too low and also that CEO; James Cayne and the marijuana speculation surrounding he and his company are not helping the situation. It has a direct effect on investors, as well as affiliates. Not a good time to buy. Oil prices retreat after rising exceeding $96/barrel. Oil prices have impacted the cruise business. Adam Goldstein of Royal Carribbean Cruise Lines, says with oil prices raising 50% in the past year, giving people the opportunity to travel across the world is the best vacation for the price. In lour of the crude prices of fuel, business is still booming and they are profiting. Stop Trading with Jim Cramer was next. He says Coca-Cola is the way to go. Says employment based information is inaccurate, because it does not reflect the condition of the economy. Hewlett-Packard is his tech pick of the day. David Faber says Time Warner (TWX) is preparing cable spin. Splitting off 85% of company by the end of the first quarter of next year, a stock split will be available between Time Warner and Time Warner Cable.

Labels: Citigroup Inc., CNBC, Crude Oil, Erin Burnett, MER, Street Signs, street signs recap

Buy Diana Shipping (DSX), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the stock, up 9% off Tuesday's 12% plunge, remains a buy because of enormous demand in China.
Cramer also likes Under Armour (UA), off 3% on worries of rising inventory. "Yes, I would buy it," Cramer said.
Cramer also said Merrill Lynch (MER) "was a comedy that became a farce" just ahead of yesterday's cashiering of CEO Stan O'Neal, whereas Citi (C) -- which still employs embattled chief Chuck Prince -- remains for now a mere comedy.
Published By TheStreet.com

Labels: C, CNBC's Stop Trading, DSX, Jim Cramer, MER, UA

Stocks open low this morning as a result of lack of consumer confidence in fed rates. Leaders today are Boeing, Gm, American Express, and Merk. Don Bennet from Bennet Group Financial says Stan O'Neil is out as Merrill Lynch CEO. Michael Mayo elaborates with expectations for Merrill to do well in 4th quarter. Merrill Lynch to evaluate CEO candidates, inside and outside of company. Stan O'Neil will walk away from Merrill with $160 million in restricted stock and options, given he never had an employment contract with the company. Laurence Fink of BlackRock Co. is recognized as the possible replacement CEO of Merrill. Oil back down from record high to 91.84. Concern is still present, however, that crude oil prices will reach $100/barrel. Daniel Yergin, a global energy analyst, says prices are driven more by speculative interest, as well as concerns with Iran and Iraq. Smith & Wesson shares plummet as slow hunting market hits FYQT. Michael Thompson from Thomson Financial says over 40% of Financials have missed expectations this quarter, and also that a struggle will ensue to finish flat in 4th quarter. Rick Santelli says the U.S dollar has met all time low today. Angel Mata of Capital Markets says to buy from the best names at the bottom of the market, such as homebuilding, to avoid the lows that the top stocks have been experiencing over the course of 2007. Customizing cars seems to be a big business, say numerous representatives from major car companies. Over 75% of vehicle consumers customize their car/truck. More at behindthewheel.cnbc.comWendy Bounds of Wall Street Journal says angel investors are doing very well. Food and beverage makers and retail stores are the top choices for these wealthy groups. Angel groups have been found backing causes and companies, as well as influencing market shifts to profit and benefit themselves. October consumer confidence drops to two-year low.

Labels: CNBC, Crude Oil, MER, Stanley O'Neal, The Call

Fed Cut: Najarian's big question is will the Fed cut 25 or 50 basis points. Finerman is surprised that the market is rallying on the Fed rate cut anticipation. Utilities Select Sector SPDR Fund (XLU) led the stock market higher on Monday. Adami likes Public Service (PEG) into earnings.
Crude oil rose to a record $93.80. Reuters saying that gas prices will now play catch up with crude. Najarian continues to like the oil service sector, with Adami suggesting Tesoro (TSO) as a buying opportunity.
Warren Buffett: Doesn't think China is a bubble; he just thinks the market has run up. Buffett sold his entire stake in PetroChina (PTR) because he made a handsome profit, not because he thinks it won't go higher. The real concern with China is what will happen after the Olympics.
Chartology: Carter Worth joined the show to review the charts of Liz Claiborne (LIZ) and Eastman Kodak (EK). Worth points out that stocks worldwide are rallying but nobody is buying Liz Claiborne. On the other hand, the Eastman Kodak chart displays bullish trends going into earnings.
Earnings Preview: Procter and Gamble (PG) is set to report earnings on Tuesday and Clorox (CLX) will report Wednesday. Najarian reminds investors about Colgate (COL), which he think has more upside then Procter. Exxon Mobil (XOM) is set to report earnings on Thursday before the open.
Stem Cell: Genentech (DNA), Gilead Sciences (GILD), Amgen (AMGN) all reside in Silicon Valley. Scientists are now excited about the potential of stem cell research and California is positioned the best to benefit from the controversial process. Najarian would keep an eye on Myriad Genetics (MYGN) and Cepheid (CPHD) for genetic plays.
Word on the Street
Merrill Lynch (MER) shares rose 2% on hopes that CEO Stan O'Neal is on his way out. Chip stocks rallied after a bullish industry report shows global sales rose 5.9%. Macke still loves Intel (INTC) and is long the stock. Adami mentioned that Goldman Sachs put a $35 price target on Dell (DELL). Kellogg (K) reported strong third quarter profits. Macke is long Safeway (SWY) for a play on the grocery store sector. Options action in Under Armour (UA) perked Najarian's interest on Monday. The options market is looking for a 10% move on Under Armour in either direction. Macke continues to like Nike (NKE). Oracle's (ORCL) $17 bid for BEA Systems (BEAS) expired on Sunday.
Pops & Drops
Pops - Garmin (GRMN) traded up 6%.
American Axle (AXL) traded up 12% on news the firm will extend product lines.
Lehman Brothers (LEH) traded up 4% on news that the investment bank is setting up a $3 billion fund to buy leveraged loans from struggling banks. Goldman Sachs (GS) is the preferred stock for Finerman.
Sohu.com (SOHU) popped up 7%.
Weyerhaeuser (WY) traded up 8%.
Drops- Tupperware Brands (TUP) dropped 4% off of disappointing profits. Najarian thinks this is an opportunity to buy it.
Office Depot (ODP) fell 14%.
Final Trade
Macke advised investors to trim positions in EMC Corp (EMC).
Adami likes Gilead Sciences (GILD) for the $300 million stock buyback they recently announced.
Finerman would buy Washington Group (WNG) for a takeover play.
Najarian believes Merrill Lynch (MER) is ready to go higher.

Labels: AMGN, CNBC, DNA, EK, Fast Money, Fast Money Recap, GILD, INTC, LIZ, MER, PEG, PTR, TSO, XLU

Mary Thomson began with a story regarding Stanley O'Neil at risk for losing is position as CEO of Merrill. Laurence Fink may be up next to replace him. Michael Mayo was next, saying that it was quite possible for Merrill to not see an improvement, solely by replacing the CEO. Stock price performance from beginning to present day, is regarded as high priority of judgment for next CEO. O'Neil's severance package is estimated at $159 million, says Michael Kelly of CT Partners. His package is dependant on rank, profit, and performance of stock price during the entirety of his tenure with Merrill beginning in Dec. 2002.
John Merrill from Tanglewood Corporate Management was next, saying energy commodities are making stocks soar higher. Foreign investments and tech are his picks for the day.
Global recession was the next topic with Tony Crescenzi. He says rising level of Baltic shipping index is a negative for treasuries, and positive for world economy.
Warren Buffet and Chinas booming market was next topic. He says top five performing IPO's are from China. Zachary Karaber from Fred Alger Management says Chinese investments in technological commodities are rising. He still is negative on prospects for U.S dollar. He says buying stocks at moderate prices is not a risk, it is a smart move. Visit buffetwatch.cnbc.com for more.
Rick Santelli with the Bond Report was next. Fed Funds at 3.5% will be needed to stabilize economic growth.
Dennis Kneale was next, reporting on his interview with Chrysler boss; Nardelli. Nardelli says he can sympathize with Stan O'Neil, about consumers identifying with poster boys for corporate overcompensation. Complete interview at cnbc.com.
Jim Cramer with stop trading was next. He says "Baltic trade index is the barometer of the world." And he loves Diana. He says food stocks are doing well. He says sell General Mills and Kellogg. Also, Cleveland Cliffs on Fire (CLF) Could be bought at a 50% premium. He disagrees with any compensation package given to Stan O'Neil.
John Harwood, an electoral news correspondent, says you can keep track 2008 election news at politcalcapital.cnbc.com

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