Jim Cramer Blog

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 Wednesday from TradingMarkets.com:
Palm (NasdaqGS:PALM - News) beat earnings expectations on Tuesday afternoon, with -$0.07 EPS versus expectations of -$0.08 EPS. PALM's PowerRating (for Traders) is 4.
Take-Two Interactive (NasdaqGS:TTWO - News) also beat earnings, reporting -$0.10 EPS versus -$0.23 EPS. TTWO's PowerRating (for Traders) is 4.
Actuant (NYSE:ATU - News) reports earnings on Wednesday before the bell, with traders looking for $0.48 EPS. ATU's PowerRating (for Traders) is 7.
CarMax (NYSE:KMX - News) announces quarterly results on Wednesday morning; look for $0.17 EPS. KMX's PowerRating (for Traders) is 5.
When General Mills (NYSE:GIS - News) reports results on Wednesday before the market opens, traders will be watching for $1.13 EPS. GIS's PowerRating (for Traders) is 6.
Joy Global (NasdaqGS:JOYG - News) is set to announce $0.75 EPS on Wednesday morning before the bell. JOYG's PowerRating (for Traders) is 7.
When Morgan Stanley (NYSE:MS - News) announces quarterly results tomorrow morning, watch for -$0.39 EPS. MS's PowerRating (for Traders) is 5.

Labels: ATU, GIS, Hot Stocks, JOYG, KMX, MS, PALM, TTWO

All three major indices closed lower on the day, as investors continue to show concern over the housing and financial sectors. The Dow lost -57 points on the day to close at 13,315. Meanwhile, the Nasdaq and S&P each closed down to end at 2,637 and 1,472, respectfully. Light, sweet crude edged higher to settle at $89.31 per barrel. Treasury and gold prices each posted gains, while the dollar slid against the euro and the yen.
On the economic front, the Institute for Supply Management reported that a reading of its manufacturing index for November showed a drop to 50.8. Analysts had forecasted a slightly larger dip to 50.5. Any reading above 50 represents economic growth.
In corporate news, shares of VeriFone (NYSE: PAY - News) tumbled -45.8% on the day after announcing that accounting errors had caused it to overstate pretax earnings for the first nine months of the year by nearly $30 million, or 80%. As a result, the company said it expects to reduce its pretax income by -$8.9 million in the first quarter, -$7.0 million in the second quarter, and -$13.8 million in the third quarter. VeriFone said it will delay releasing its fourth-quarter results until a thorough assessment has been completed. Subscribers can read our take on VeriFone in today's edition.
Elsewhere, one of the nation's largest homebuilders, Lennar (NYSE: LEN - News), announced today that it has sold 11,000 lots at -40% of their value, as part of a joint venture it has formed with Morgan Stanley's (NYSE: MS - News) real estate unit. The homebuilder said it will record a fourth-quarter loss of about -$3.09 per share as a result of the sale that saw it unload the properties valued at $1.3 billion for a total of $525 million. Shares of Lennar were up 5.7% in trading, while shares of Morgan Stanley were off -0.8% at the bell.
Shares of General Motors (NYSE: GM - News) dipped -4.1% in trading after the company reported that sales for the month of November fell -11% compared to last year. Analysts had been predicting a rise in November sales. Meanwhile, Ford Motors (NYSE: F - News) said November auto sales had increased by 0.4%. Analysts had predicted a drop in Ford sales. Ford was off -3.5% on the day.
In M&A news, French conglomerate Vivendi SA announced Sunday that it will acquire a majority stake in Activision (Nasdaq: ATVI - News) and combine it with Vivendi Games, making the combined company the world's largest video game maker by market cap. According to the terms of the deal, Vivendi is set to purchase 62.9 million new shares of Activision stock for $1.7 billion, and exchange Vivendi Games for 295.3 new shares valued at $8.1 billion. The per-share price for both segments of the transaction amounts to $27.50. Activision's stock soared 12.7% in trading.

Labels: ATVI, F, GM, LEN, Morgan Stanley, MS, PAY

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

One of the most powerful women in the financial world became the latest victim of the management purge on Wall Street.
Morgan Stanley said that Zoe Cruz, a 25-year veteran at the firm, was ousted as co-president Thursday in a sweeping management shake-up aimed at turning around the investment bank amid turmoil in the credit markets.
Cruz joins a growing list of Wall Street's top names who have been fired since the summer, including Merrill Lynch & Co.'s Stan O'Neal and Citigroup Inc.'s Charles Prince, for presiding over their firms as they became mired in the subprime mortgage tar-pit.

Labels: Morgan Stanley, MS, Zoe Cruz

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.
Morgan Stanley Jan 65 Calls (NYSE:MS - News). MS's PowerRating (for Traders) is 3.
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.
Wal-Mart Stores Dec 45 Puts (NYSE:WMT - News). WMT's PowerRating (for Traders) is 4.
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.
E*TRADE Financial Jan 5 Calls (NYSE:ETFC - News). ETFC'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 185 Puts (NYSE:GS - News). GS's PowerRating (for Traders) is 4.
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.
Nabors Industries (NYSE:NBR - News). NBR'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.
Nexen (NYSE:NXY - News). NXY's PowerRating (for Traders) is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Countrywide Financial (NYSE:CFC - News). CFC's PowerRating (for Traders) is 5.
Published By TradingMarkets.com

Labels: CFC, ETFC, GS, MS, NBR, NXY, stock options, WMT

The Dow finished down 33 points and the Nasdaq down 63 points on Thursday. Bank stocks like Citigroup (C) and Morgan Stanley (MS) recovered in late trading Thursday. Charlie Gasparino joined the show to discuss his take on the bank stocks. He doesn't think the worst is over for Citigroup. Gasparino next tackled American International Group (AIG). He described how former CEO Hank Greenberg wants to take over AIG and put his people in charge of the insurance giant.
Technology: The four horseman of technology were crushed Thursday, with Apple (AAPL) falling 6%, Google (GOOG) falling 5%, Research In Motion (RIMM) falling 6% and Amazon.com (AMZN) falling 4%. Seymour thinks Cisco Systems (CSCO) looks pretty good here and the firm has moved lots of business abroad. Adami says if you want to play tech look at EMC (EMC) and VMware (VMW).
Speculation made the rounds on Wall Street Thursday that BHP Billiton (BHP) might looking for a new takeover target after Rio Tinto (RTP) rejected BHP's takeover offer. Seymour remarks that potential targets are: Southern Copper (PCU), Freeport McMoRan (FCX), Cameco (CCJ), Potash (POT), Alcoa (AA) and US Steel (X).
Although retailers reported the worst October same-store sales numbers since 1995, Finerman maintains that retail still has some value and companies to consider would be Gymboree (GYMB), Children's Place (PLCE), Kohl's (KSS), Wal-Mart (WMT) and Nordstrom (JWN).
Disney (DIS) profits rose 12% on ESPN and US theme parks. Priceline.com (PCLN) beats third quarter profit expectations and the stock soars 16% after hours. iShares MSCI Emerging Markets Index bucks the market weakness and closes up on the day. First Solar (FSLR) explodes 28%. Najarian has now sold Cypress Semiconductor (CY) into the solar strength. At this point, the solar stocks are beginning to get to over-heated. Adami advises taking profits in Evergreen Solar (ESLR).
Auction house Sotheby's (BID) had major issues selling a quarter of its paintings, including a well known Van Gogh piece that was suppose to fetch $35 million. Finerman tells viewers that when BID doesn't sell these pieces they own them and they now own them at the worst time. She predicts a crack in the art market and BID could get annihilated.
Bidding for Biogen (BIIB) has begun with rumored acquirers Pfizer (PFE), Merck (MRK) and Johnson & Johnson (JNJ) leading the pack.
Pops & Drops
Pops- McDonald's (MCD) traded up 2% after posting a 6.9% increase in October same-store sales.
Monsanto (MON) traded up 4% .
Mobile Telesystems (MBT) 9% and VimpelCom (VIP) jumped 8%.
Procter & Gamble (PG) traded up 2%
King Pharmaceuticals (KG) traded up 14% after posting a quarterly loss.
Restoration Hardware (RSTO) exploded up 140%.
Drops- PetroChina (PTR) fell 6% as the China trade continues to unwind.
Oracle (ORCL) fell 8% as the Nasdaq took it on the chin Thursday.
Final Trade
Seymour is positive about Alcoa (AA).
However, Adami thinks the market will continue to decline and he would play it with Short Dow30 Proshares (DOG).
Finerman recommends Watts Water Technologies (WTS).
Najarian favors Boston Scientific BSX for the options activity he noticed in the device maker on Thursday.
Vig likes EOG Resources (EOG) and Continental Resources (CLR) for plays on oil and natural gas.

Labels: AAPL, BHP, CNBC, CSCO, EMC, Fast Money, Fast Money Recap, GOOG, MS, RTP, VMW

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
RPM (NYSE:RPM - News) reports earnings on Wednesday before the bell, with analysts looking for $0.55 EPS. RPM's PowerRating (for Traders) is 5.
Wolverine (NYSE:WWW - News) should announce $0.53 EPS before the stock market opens on Wednesday morning. WWW's PowerRating (for Traders) is 4.
Immucor (NasdaqGS:BLUD - News) is looking to report $0.22 EPS on Wednesday after the bell. BLUD's PowerRating (for Traders) is 5.
Morgan Stanley (NYSE:MS - News) announced plans to cut 600 jobs related to its home loan division; MS rallied over 3% on the news. MS's PowerRating (for Traders) is 4.
Ford (NYSE:F - News) announced that U.S. sales of light vehicles fell more than 20% in September; F rallied nearly 4% despite the news. Rival General Motors (NYSE:GM - News) managed to record a slight jump in sales, while Toyota (NYSE:TM - News) also posted a decline. F's PowerRating (for Traders) is 6, TM's PowerRating (for Traders) is 4, and GM's PowerRating (for Traders) is 4.

Labels: BLUD, F, Ford Motor co., General Motors Corp., GM, Hot Stocks, Morgan Stanley, MS, RPM, TM, Toyota Motor Corp., WWW

Equities continued their march higher after yesterday's Fed-fueled rally as investors continued to find comfort in buying attractive names. At the end of Wednesday's session, all three major market averages finished the session with gains of just over half a percent. Oil, meanwhile, continued to trade higher, ending the session up 42 cents to $81.93 a barrel. Gold also kept on climbing, trading up $5.80 to settle out at $729.50 a troy ounce.
The Labor Department reported today that U.S. consumer prices fell -0.1% in August. Excluding food and fuel prices, which tend to be volatile, prices rose 0.2%, in line with what economists were forecasting. Energy prices fell -3.2%, while prices for medical care rose. In other economic news, the Commerce Department said that housing starts fell to a 12-year low in August. Home starts declined by -2.6% to a seasonally adjusted rate of 1.33 million. Meanwhile, authorized building permits fell by -5.9%. In the past year, overall housing starts are down by -19.1%, while permits have plummeted -24.5%.
On the earnings front, Morgan Stanley (NYSE: MS - News) shares declined -2.2% after the company reported earnings from continuing operations of $1.47 billion, or $1.38 a share, down from $1.59 billion, or $1.50 a share, last year. Revenue rose 13% to $8 billion, despite fixed income and trading revenue falling -3% from year-ago levels. During the quarter, the company said it took a -$940 million loss from the decreased market value of loans on its books, mostly due to the recent turmoil in credit markets. Analysts expected the investment bank to post earnings of $1.54 a share on revenue of $8.35 billion.
Restaurant operator Darden Restaurants (NYSE: DRI - News) posted a 20% rise in second-quarter earnings as sales growth at its Olive Garden and Red Lobster establishments grew. For the quarter, the company earned $105.9 million, or 72 cents a share, up from $88.5 million, or 59 cents a share, in the year-ago period. Earnings from continuing operations, meanwhile, rose to 73 cents a share from 62 cents a share last year. Sales totaled $1.47 billion. Same-store sales increased 7% at its Red Lobster locations and 4.8% at its Olive Garden restaurants. The results sent the share up 1.6% on the day.
Used car seller CarMax (NYSE: KMX - News) saw its shares hit a brick wall after the company slashed its 2008 fiscal-year outlook. The company now sees earnings coming in at a range of 92-98 cents a share, down from its previous range of $1.03-$1.14 a share. The company cited a slower-than-anticipated pace in same-store sales growth. The guidance overshadowed its second-quarter earnings, which came in at $65 million, or 29 cents a share, up from $54.3 million, or 25 cents a share, a year earlier. Revenues rose to $2.12 billion.
General Mills (NYSE: GIS - News), the world's second-largest maker of cereal, posted first-quarter net income of $289 million, or 81 cents a share, compared to $267 million, or 74 cents a share, last year. The 8.2% profit jump was due to price hikes for its products. Sales rose a robust 7% to $3.07 billion. Analysts were looking for revenue of $3.0 billion. The company also affirmed its full-year profit outlook of $3.39-$3.43 a share. Shares gained 0.3%.
By the BullMarket.com Staff

Labels: DRI, GIS, KMX, MS

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Comtech Telecommunications (NasdaqGS:CMTL - News) beat earnings on Wednesday afternoon, announcing $0.63 EPS versus estimates of $0.44 EPS. CMTL's PowerRating (for Traders) is 5.
Morgan Stanley (NYSE:MS - News) fell over 2% on Wednesday after missing earnings, reporting a 7% decline in profit from last year. MS's PowerRating (for Traders) is 4.
Bear Stearns (NYSE:BSC - News) reports earnings on Thursday morning, with analysts looking for $1.78 EPS. BSC's PowerRating (for Traders) is 4.
When Carnival (NYSE:CCL - News) announces earnings on Thursday before the bell, be watching for $1.62 EPS. CCL's PowerRating (for Traders) is 4.
Circuit City NYSE:CC is expected to announce a loss of -$0.12 EPS on Thursday morning. CC's PowerRating (for Traders) is 2.
Analysts are watching for Goldman Sachs (NYSE:GS - News) to report $4.37 EPS tomorrow morning before the market opens. GS's PowerRating (for Traders) is 3.
FedEx (NYSE:FDX - News) reports earnings early tomorrow morning; watch for $1.53 EPS. FDX's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: BSC, CCL, CMTL, FDX, GS, Hot Stocks, MS

Morgan Stanley on Wednesday said third-quarter profits sank 17 percent, as the No. 2 U.S. investment bank was forced to write down nearly $1 billion worth of loans amid the summer's global credit crisis.
The investment bank, like others on Wall Street, was squeezed as borrowers with poor credit histories defaulted on home-loan payments at an alarming rate. This curbed investor appetite for everything from mortgage-backed bonds to loans for corporate buyouts.
It was Morgan Stanley's first drop in earnings under Chief Executive John Mack, and follows a smaller-than-expected decline in profits from rival Lehman Brothers Holdings Inc. on Tuesday. But, executives held out some optimism that financial markets may be starting to turn around.

Labels: Morgan Stanley, MS

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

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

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 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down 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 close down 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.
Hanesbrands (NYSE:HBI - News). HBI's PowerRating (for Traders) is 7.
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.
Endurance Specialty Holdings (NYSE:ENH - News). ENH'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.
United Rentals (NYSE:URI - News). URI's PowerRating (for Traders) is 6.
Bearish
Laps Up 5% or More: These are stocks that lap up by 5% or more and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that lap up by more than 5% have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Countrywide Financial (NYSE:CFC - News). CFC's PowerRating (for Traders) is 4.
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.
Progress Energy (NYSE:PGN - News). PGN's PowerRating (for Traders) is 4.
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.
Jabil Circuit (NYSE:JBL - News). JBL's PowerRating (for Traders) is 4.
2-Period RSI Above 98: These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Morgan Stanley (NYSE:MS - News). MS's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CFC, Countrywide Financial Corp., ENH, HBI, Hot Stocks, JBL, MS, PGN, URI

The Securities and Exchange Commission is examining major Wall Street banks to determine their vulnerability to home-loan defaults, two people familiar with the accounting inquiry said.

The people, who declined to be identified by name because the inquiry has not been publicly disclosed, described the examination as a routine part of the SEC's oversight authority and said it involved Goldman Sachs Group Inc., Merrill Lynch & Co. and several rival investment banks.
The Wall Street Journal reported the SEC's probe on Friday.
Trouble in the U.S. mortgage market, and a related credit crunch, has rippled across the globe. French bank BNP Paribas on Thursday suspended three securities funds valued at $2.75 billion, saying it could not value them accurately because of problems in the U.S. mortgage market.
Credit is drying up in the mortgage and corporate buyout markets after several years in which lending standards were loosened -- too far, in retrospect, many experts say. With big mortgage-related losses affecting companies as diverse as German banks and Australian hedge funds, investors are uncertain about how far the problems will spread.

Labels: Bear Stearns Companies Inc., BSC, Goldman Sachs Group Inc., GS, LEH, MER, Merrill Lynch and Co. Inc., Morgan Stanley, MS

Morgan Stanley (NYSE: MS - News), Goldman Sachs (NYSE: GS - News), Merrill Lynch (NYSE: MER - News), AIG (NYSE: AIG - News), Apple (Other OTC: APPL.PK - News), IBM (NYSE: IBM - News)
Options expiration and earnings, which occur this week, coincide only four times a year, and Cramer says the driving force is the options rather than the earnings. He predicts there will be one down day, for which the media will try to find lame excuses. Cramer adds on Wednesday at 2:30, MS, GS and MER will report how much there is to buy and sell. "If I am right, you will begin to see -- between 2:30 p.m. and 3 p.m. -- a rise in the market," he said. "If we get that, it's clear sailing until Friday." Cramer would use the decline early in the week as an entry point to buy AIG, which may drop from $70 to as low as 68, APPL at $136 or IBM, which may be down from $110 to $108 or $107. He suggests waiting for the down day before buying, but for those who can't wait, he would only pick up a quarter of a position.

Labels: AAPL, AIG, GS, IBM, Jim Cramer, MER, MS, Wall Street Confidential

Eagle Bulk Shipping (NasdaqGS: EGLE - News): 'This company with an 8% yield is going higher. I've got to say, you've got a good one.'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Verizon (NYSE: VZ - News): ' ... I'd much rather own ... Verizon (than Smith Micro Software).'Morgan Stanley (NYSE: MS - News)WPP Group (NasdaqGS: WPPGY - News): 'Really terrific. ... I am going to endorse it. ... Europe's doing much better than America.'Barnes Group (NYSE: B - News): 'I endorse it. I think you should buy some Barnes.'BE Aerospace (NasdaqGS: BEAV - News)Cnooc (NYSE: CEO - News): 'I am going to get behind any oil stock in the world. ... I like your Cnooc. I think that goes higher.'PetroChina (NYSE: PTR - News): 'I have liked PetroChina more than this (Cnooc) ... "I am going to get behind any oil stock in the world.' ValueClick (NasdaqGS: VCLK - News): 'It's been stalled here. ... At $30, I still like it. ... I'm staying bullish.'Goldman Sachs (NYSE: GS - News): ' ... pull the trigger on Goldman Sachs.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'To back away from the stock at $11 is a major league mistake ... going to go much higher.'Celgene (NasdaqGS: CELG - News)Helmerich & Payne (NYSE: HP - News): 'This is one of the most unsung drilling oil and gas stocks that there is. ... This one's got a lid on it because it's too domestic. ... You know what? I think HP is cheap. ... How could a 30% grower only have a 10 multiple? The answer is the market's wrong.'Chesapeake Energy (NYSE: CHK - News) Mastercard (NYSE: MA - News): 'I actually prefer MasterCard on a pullback than Discover right here.'
Bearish calls:
Starbucks (NasdaqGS: SBUX - News): 'This is a quality control problem. ... Basically, you can't grow that fast. I remain in the Don'tBuy mode.'Heelys (NasdaqGM: HLYS - News): 'I am bearish on Heelys.'Smith Micro Software (NasdaqGM: SMSI - News): 'I think you've got too much hype here. I've got to throw the flag. ... It's a decent story ... Your stock is too speculative.'Discover Financial Services (NYSE: DFS - News): 'I'm not behind Discover.'The Blackstone Group (NYSE: BX - News): 'I'm not a fan of Blackstone.'Boston Scientific (NYSE: BSX - News)Align Technology (NasdaqGM: ALGN - News)

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Labels: B, BEAV, CELG, CEO, CHK, CROX, EGLE, GS, HPQ, Jim Cramer, Lightning Round, MA, MS, NSTK, PTR, UA, VCLK, VZ, WPPGY