Jim Cramer Blog

Stocks extended losses as after unexpected oil inventory drawdowns. Stocks lowered 8 times in the last 11 sessions. S&P down .1% for 2007, Dow up 3.1%, Nasdaq up 5.7%. Most of the airlines were down for the week. Latin America was also hit very hard today. Higher oil prices are approaching historic lows hitting $99.29 today. Oil inventories down 1.1 million barrels. Refinery utilization is at 87%. Crude imports dropped 700,000 barrels. Gasoline inventories up 200,000 barrels. Heating oil is up right now, which is really key. Heating oil could go up 20%. What will this mean for consumers? How to play defense against this? JJ Burns says structured investments give you a barrier protection on the upside and downside to this market. Dow leaders today are coca-cola, 3M, Boeing, Proctor & Gamble. Financials were way down today. Citigroup, FreddieMac, and JPMorgan were at 52 week lows. Crude oil came in at just $97 this afternoon, showing that some are taking profits off the table expecting oil to hit that $100 mark. Nariam Behravesh was on the show to discuss oil and the implications. He says if it comes down in the next few weeks or month, we should be ok. But if it keeps going up we could be in trouble. They also said that consumers might not feel the pressure until oil gets up around $140-150 a barrel. Consumers with larger vehicles are most affected when they have to spend $100 to fill up their tank every time. Dennis Kneale said that high oil prices have no affect on fueling inflation. Retail names have also suffered tremendously in the past month or so. Morgan Stanley Retail index has fell 10% this month to a 2-year low. In November we should expect pent-up demand, unseasonally seasonal, 06 was weak, and what's not to hate. Retail saving may not be good, but stocks could be fine. Pick your retailers carefully. Exxon Mobil is a name benefiting with oil going up. Google is also performing well right now. Some speculate that the weak dollar is responsible for some of these drops. TJ Marta thinks the dollar weakness is a historic multi-generational crisis and reflects the fact the foreign investors have lost confidence in the US market. They think our market is liquid and transparent, but it becoming less of each. Steve Liesman says the balance in the trade deficit needs to readjust. The US dollar is down 16% this year against basket of major currencies. It hit a record low against the Euro on Tuesday. FED thinks US growth will slow in 2008 between 1.8% and 2.5%. California has been hurt greatly with the number of homes sold. Jane Wells said Countrywide Finl. Is down 10%, but is projected to be profitable this quarter. They have joined other lenders to cut a deal with people who are about to see their subprime mortgage rates plummet. There are also many lawsuits brought against them for outrageous fees. Continental Air started to move up toward the end of the show. Jeff Krumpelman recommends buying Intel (INTC). They are hiking the dividend which comforts investors. 80% of their revenues come from outside the US. They have a competitive edge over AMD. He also says buy Microchip (MCHP). Final Thoughts: Be skeptical but have hope. The bad affects have not happened yet relating to the weak dollar. It is the fear that is making us worry. It has contributed to the higher price of oil

Labels: 3M Co., Citigroup Inc., CNBC, CNBC's The Call, Crude Oil, DOW, GOOG, JP Morgan Chase and Co., Nasdaq, The Call

The Dow closed down 218 points and the Nasdaq fell 43 points on Monday. Finerman sees storm clouds are everywhere and the Goldman downgrade of Citigroup (C) really hurt the markets. Najarian had a fun day trading. He also thinks the financial sector is in big trouble and he is extremely worried about General Motors (GM) which fell below $27.
Louise Yamada, a highly ranked technician on Wall Street, joined the show to discuss her analysis on the technicals of the market. She is currently worried that the S&P 500 could break 1406, which would signal to her an end of the longer-term uptrend. Yamada is still bullish on Cisco Systems (CSCO) and she would look to buy pullbacks on the name. She looked at the chart on Broadcom (BRCM) calling it a sell because it hasn't followed through after a false break-out. The chart on Coca-Cola (KO) is initiating an uptrend according to Yamada, so she would be a buyer of KO. Bed Bath and Beyond (BBBY) should be sold.
Retail
Nordstrom (JWN) reported a 22% rise in third-quarter profits helped by an extra week of sales.
Sears Holdings (SHLD) disclosed it has taken a 13.7% stake in Restoration Hardware (RSTO) and the possibility of proposing an acquisition.
Target (TGT) is set to report earnings Tuesday before the opening bell.
Hewlett-Packard (HPQ) clocked a 28% jump in profits off of strong notebook sales.
Medtronic (MDT) reported a 2% decline in profits, but the stock trades 3% higher after hours.
Lowe's (LOW) dropped 7% after reporting a 10% decline in profits due to the weak housing market.
Celgene (CELG) bought Pharmion (PHRM) for $2.9 billion. Adami thinks that Phizer must make a similar acquisition.
EchoStar (DISH) shares exploded higher Monday after Citigroup said there was a 65% chance that AT&T (T) will buy DISH.
Ultimate Fighting is now the fasting growing spectator sport in the United States. Macke says look for growth in cable companies and satellite companies like Viacom (VIA) and EchoStar. He also thinks makers of energy drinks like Coca-Cola will benefit. He said avoid the World Wrestling Entertainment (WWE) because the UFC is taking share. Lastly, Macke speculated that Anheuser-Busch (BUD) could be near a beverage deal with the UFC.
Pops & Drops
Pops - Xerox (XRX) traded up 2%.
Intercontinental Exchange traded up 3%
VeriSign (VRSN) traded up 2%.
Drops - E*TRADE (ETFC) fell 13% even with speculation of a takeover by Ameritrade (AMTD)
Wynn Resorts (WYNN) fell 7%
Genesco (GCO) plunged 24%.
Disney (DIS) fell 4%
General Motors (GM) fell 8% after the automaker announced plans for year-end discounts to clear out inventory.
Dillard's (DDS) fell 5%.
Tween Brands (TWB) fell 13%
Final Trade
Macke would purchase Dicks Sporting Goods (DKS) and Target on any selloff Tuesday
Najarian advises buying EchoStar (DISH) on a pullback under $44.
Finerman is long Goldman Sachs Group (GS) and short Lehman Brothers Holdings (LEH).
Adami recommends Vodafone Group (VOD) for a play on China.

Labels: BBBY, BRCM, CELG, Citigroup Inc., CNBC, CNBC's Fast Money, CSCO, DISH, Dow Jones, Fast Money Recap, GM, HPQ, JWN, KO, LOW, MDT, Nasdaq, PHRM, SHLD, TGT

Wall Street retreated Wednesday as investors around the world reacted to a plunge in China's stock market, and awaited the release of minutes from the last Federal Reserve meeting.
The pullback in the U.S. wasn't seen as a surprise as stocks were perhaps overdue for a consolidation after a strong run since the second half of 2006. And the declines in Asian and European markets did not appear as dramatic as on Feb. 27, when investors around the world recoiled at a 9 percent slide in the Shanghai index.
The tumble in Chinese stocks rippled through the global markets. When Beijing tripled a tax on stock trading to cool the country's market boom, the main Shanghai Composite Index dropped 6.5 percent and the Shenzhen Composite Index for China's smaller second market slid 7.2 percent.
Investors also retrenched ahead of the Fed minutes, which Wall Street hopes will indicate that policy makers are leaning more toward a rate cut by the end of the year than a rate hike. The minutes will be released at 2 p.m. EDT.
In the first hour of trading, the Dow Jones industrial average fell 38.93, or 0.29 percent, to 13,482.41.
Broader stock indicators were also lower. The Standard & Poor's 500 index was down 4.06, or 0.27 percent, at 1,514.05, and the Nasdaq composite index dropped 12.30, or 0.48 percent, to 2,559.76.
Source: AP

Labels: Dow Jones, Nasdaq, Shanghai Composite, Shenzhen Composite

Stocks snapped this week's rally, as a mixed batch of earnings reports led some traders to take profits after two weeks of gains in the Dow Jones industrials.
Investors pulled back after Yahoo Inc. posted a surprising 11 percent drop in its first-quarter profit. Also making investors shudder were disappointing results from International Business Machines Corp. and Motorola Inc.
JPMorgan Chase & Co. gave some support to the Dow after the bank reported a 55 percent jump in profits that far surpassed Wall Street's expectations. The 30 companies that make up the index -- nearly half of which report earnings this week -- have been mostly beating the Street's predictions.
Wall Street was rattled by a sharp drop in the dollar, which is now at 26-year lows against the British pound. The U.S. currency has been weakening because interest rates have remained steady since the summer, and because the U.S. economy is slowing. In midmorning trading, the Dow Jones industrial average fell 18.94, or 0.15 percent, to 12,754.10. The Dow has advanced in 12 of the past 13 sessions.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 2.13, or 0.14 percent, at 1,469.35, and the Nasdaq composite index shed 11.72, or 0.47 percent, to 2,505.23.

Labels: Dow Jones, IBM, JPM, MOT, Nasdaq, YHOO

Stocks rose in cautious trading Thursday following warnings of lackluster retail sales and a greater-than-expected increase in weekly jobless claims.
Retailers' reports on sales at stores open at least a year, an important measure known as same-stores sales, concerned some investors because of scattered warnings that sales would be light during April.
The number of Americans filing new claims for unemployment benefits rose last week to the highest level in two months. The Labor Department's weekly report, which Wall Street often regards as a volatile number, showed applications for jobless benefits totaled 342,000 last week.
After falling earlier, the Dow Jones industrial average rose 5.85, or 0.05 percent, in morning trading to 12,490.47.
Broader stock indicators also gained after being down in the first 90 minutes of trading. The Standard & Poor's 500 index rose 2.12, or 0.15 percent, to 1,440.99, and the Nasdaq composite index rose 7.27, or 0.30 percent, to 2,466.58.
Bonds advanced amid concerns of weaker corporate profits. The yield on the benchmark 10-year Treasury note fell to 4.72 percent from 4.74 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose.
The small moves Thursday follow a pullback Wednesday prompted by minutes from the Federal Reserve's last meeting that showed the central bank remains concerned enough about inflation that it won't rule out an increase in interest rates.
Higher oil prices weighed on stocks. On Wednesday, weekly government figures showed a larger-than-expected decline in gasoline stockpiles. Light, sweet crude rose 92 cents to $62.91 on the New York Mercantile Exchange.

Labels: Dow Jones, Jobless Claims, Nasdaq, Oil Prices, Wall Street

Wall Street rose cautiously in early trading Monday amid a batch of takeover deals, and as investors speculated that manufacturing data will suggest slightly slower growth in the sector.
Investors were encouraged after a number of big acquisitions were announced before the market opened. Among them was private equity firm Kohlberg Kravis Roberts & Co.'s deal to take credit card transaction processor First Data Corp. private for about $29 billion.
Further direction about the economy could come with the 10 a.m. EDT release of the Institute for Supply Management's March index of the nation's manufacturing activity. The market is expecting a reading of 51.0, down from 52.3 in February but still indicating growth in the sector. A lower figure could cause a sell-off, especially given that last week's Chicago regional manufacturing index came in strong.
In the first hour of trading, the Dow Jones industrial average rose 23.40, or 0.19 percent, to 12,377.75.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 2.39, or 0.17 percent, at 1,423.25, and the Nasdaq composite index rose 5.12, or 0.21 percent, to 2,426.76.
Published by Joe Bel Bruno, AP Business Writer

Labels: Dow Jones, FDE, Nasdaq

Stocks opened moderately higher Wednesday as investors treaded water ahead of the Federal Reserve's latest take on the economy, which could signal where interest rates are headed.
While Wall Street largely expects the Fed will leave short-term interest rates unchanged at 5.25 percent, investors are eager to learn whether the central bank will reveal a shift in its assessment of the economy. The Fed has remained vigilant about the threat of inflation, which it has said remains stubbornly high. However, a softening economy could quell the threat of inflation and, some investors are hoping, open the way for a rate cut. The Fed left interest rates unchanged at its last five meetings after a string of 17 straight increases that began in 2004.
In the first minutes of trading, the Dow Jones industrial average rose 5.61, or 0.05 percent, to 12,293.71.

Labels: Dow Jones, Hot Stocks, Nasdaq, Wall Street

Stocks opened higher Monday as Wall Street looked to rising stocks overseas and a falling yen as it tried to bounce back from a losing week.
The advance came ahead of a report on home sales as well as a reading on manufacturing in the Midwest. The economic data arrive before the start Tuesday of the Federal Reserve's two-day meeting on interest rates.
While few expect the Fed will adjust short-term interest rates, investors will be looking for any change in the central bank's posture that could hint at where rates are headed in the coming months.
In the first hour of trading, the Dow Jones industrial average rose 79.87, or 0.66 percent, to 12,190.28.
Broader stock indicators also moved sharply higher. The Standard & Poor's 500 index rose 9.97, or 0.72 percent, to 1,396.92, and the Nasdaq composite index rose 15.58, or 0.66 percent, to 2,388.24.
Bonds fell as stocks made gains. The yield on the benchmark 10-year Treasury note rose to 4.57 percent from 4.55 percent late Friday. The dollar wax mixed against other major currencies, while gold prices fell. The dollar rose to 117.34 yen from 116.73 yen late Friday.
Economic data will again loom large on Wall Street in the coming week as investors try to determine whether the economy can pull off a so-called soft landing or whether areas of weakness such as the housing sector are poised to drag the economy into a pronounced slowdown.
On Monday, the National Association of Home Builders expects to release its index on builders' perceptions of new single-family home sales and near-term sales prospects on Monday. Also, the Chicago Fed is expected to report that its manufacturing index rose 0.3 percent in February.
Concerns about the economy and areas such as the subprime mortgage lending sector, which makes a business of making loans to people with poor credit, helped push stocks lower last week. The Dow industrials fell 1.35 percent, the S&P 500 gave up 1.13 percent, and the Nasdaq composite index slid 0.62 percent.
In corporate news, ServiceMaster Co., a provider of housecleaning, landscaping, and pest-control services, agreed to be acquired by an investment group for about $4.48 billion. The deal, led by Clayton, Dubilier & Rice Inc., has a value of $5.5 billion when including about $1.02 billion in debt. The company said in late November it was considering a change in its strategy.
The Russell 2000 index of smaller companies rose 6.26, or 0.80 percent, to 785.03.
Overseas, Japan's Nikkei stock average rose 1.59 percent, Hong Kong's Hang Seng index advanced 1.65 percent, and the sometimes volatile Shanghai Composite Index rose 2.87 percent despite an increase in interest rates in China. In afternoon trading, Britain's FTSE 100 rose 0.52 percent, Germany's DAX index added 1.04 percent, and France's CAC-40 rose 0.89 percent.
Published by Tim Paradis, AP Business Writer

Labels: Dow Jones, Hot Stocks, Nasdaq, SVM

Stocks opened moderately lower Monday as further cracks appeared in the subprime lending sector, stirring concerns that a blowup among companies making loans to consumers with poor credit will spill over to other sectors.
A warning from New Century Financial Corp. early Monday about its financial woes overshadowed merger news, which often gives a boost to enthusiasm on Wall Street.
The renewed concerns about subprime lenders follow a relatively successful week on Wall Street. Stocks etched out gains last week U.S. and overseas markets managed to regain some sense of stability following a sharp pullback that began Feb. 27. Even amid the gains seen last week, however, concerns about subprime lenders weighed on investors.
In the opening minutes of trading, the Dow Jones industrial average fell 5.28, or 0.04 percent, to 12,271.04.
Broader stock indicators also fell. The Standard & Poor's 500 index fell 1.19, or 0.08 percent, to 1,401.66, and the Nasdaq composite index 0.95, or 0.04 percent, to 2,386.60.

Labels: Dow Jones, Hot Stocks, Nasdaq, NEW

Wall Street bounced higher Monday after a proposed takeover of Texas power company TXU Corp. gave investors another dose of optimism about the pace of acquisitions this year.
The company said before the opening bell it agreed to be bought by a consortium of private equity firms led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group. The deal, worth $45 billion with the assumption of debt, marks the biggest leveraged buyout in U.S. corporate history.
Also lending support to stocks was Station Casinos Inc., which agreed to be taken private by a private equity firm started by the company's founding family. Temple-Inland Inc., a conglomerate that offers everything from packaging material to financial services, announced it plans to separate itself into three standalone public companies.
The takeover activity injected confidence into the market, and snapped a three-day slide in the Dow Jones industrials. Last year, the amount of mergers and acquisitions surpassed the $4 trillion level for the first time and helped power the Dow into record territory.
In the first hour of trading, the Dow rose 34.05, or 0.27 percent, to 12,681.53.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 5.39, or 0.37 percent, at 1,456.58, and the Nasdaq composite index added 8.44, or 0.34 percent, to 2,523.54.

Labels: Dow Jones, Hot Stocks, Nasdaq, STN, TIN, TXU

Stocks rose Wednesday after Wall Street digested a robust sales forecast from Cisco Systems Inc. and a stronger-than-expected productivity reading gave investors fresh signs that the economy is holding up and keeping inflation largely in check.
The Cisco forecast gave a boost to technology stocks, while the productivity figures were stronger than expected for the fourth quarter but showed a slowdown for the year. If productivity falls and wages increase too quickly, the Federal Reserve could be forced to raise interest rates.
The data seemed to overshadow comments from Philadelphia Fed President Charles Plosser that an improving economy might force the central bank to raise short-term interest rates. Last week, the Fed left rates unchanged for the fifth straight time, interrupting a string of 17 straight increases than began in 2004. Plosser said the productivity gains were helping consumers but that it was too soon to declare the threat of inflation neutralized.
Figures Wednesday showed productivity grew at a 3 percent annual rate in the fourth quarter, nearly double what Wall Street had been expecting. For all of 2006, however, productivity rose at the slowest rate in nine years while labor costs climbed at the fastest rate in six years.
In midmorning trading, the Dow Jones industrial average rose 11.22, or 0.09 percent, to 12,677.53.
Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 2.12, or 0.15 percent, at 1,450.12, and the Nasdaq composite index rose 10.40, or 0.42 percent, to 2,481.89.
Bonds rose following the productivity data, with the yield on the benchmark 10-year Treasury note falling to 4.76 percent from 4.77 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude rose 54 cents to $59.42 per barrel on the New York Mercantile Exchange.
In corporate news, Cisco rose $1.11, or 4.1 percent, to $28.39 after the networking equipment maker predicted its third-quarter revenue would rise 19 to 20 percent.
Multi-Fineline Electronix Inc., which makes circuit boards, rose $2.72, or 15.5 percent to $20.30 although its fiscal first-quarter profit came in below Wall Street's expectation. Some analysts suggested the company's revenue had hit a low point.
Appliance maker Whirlpool Corp. saw its fourth-quarter earnings fall 14 percent as it recorded a loss from discontinued operations. The stock fell $2.30, or 2.4 percent, to $92.60.
Cheesecake Factory Inc. fell 81 cents, or 2.9 percent, to $26.95 after the restaurant chain's fourth-quarter profit fell 9 percent amid compensation charges and increased operating costs.
Advancing issues outnumbered decliners by about 4 to 3 on the New York Stock Exchange, where volume came to 246 million shares.
The Russell 2000 index of smaller companies was up 1.05, or 0.13 percent, at 811.46.
Overseas, Japan's Nikkei stock average closed down 0.66 percent. In afternoon trading, Britain's FTSE 100 was up 0.19 percent, Germany's DAX index was up 0.49 percent, and France's CAC-40 was up 0.24 percent.
Published by Tim Paradis, AP Business Writer

Labels: CAKE, CSCO, Dow Jones, Hot Stocks, MFLX, Nasdaq, WHR

Wall Street surged higher Wednesday, hurtling the Dow Jones industrials past 12,500 for the first time as yearend bargain hunters picked up stocks across a variety of sectors. The auto industry was in focus after a meeting between executives at Toyota Motor Corp. and Ford Motor Co. sparked hope about a potential alliance between the two rivals. Shares of both companies moved sharply higher.
Further takeover activity lent support to the overall market after McClatchy Co. announced late Tuesday it agreed to sell the Star Tribune newspaper in Minneapolis to a private equity fund. Also, graphics communication company Cenveo Inc. agreed to buy rival Cadmus Communications Corp.
But investors looking to buff up their portfolios by year's end were behind most of the gains.
"What you're seeing is window dressing, people want to finish up the year looking like they own the best names," said Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher. "And for those that missed the market, they're trying to put their cash to work and play catch-up. You've got momentum on your side this year."
The session was again marked by thin volume typical of the week between Christmas and New Year's. The New York Stock Exchange began the session with two minutes of silence as a tribute to President Gerald Ford, while the Nasdaq Stock Market had a similar observance later in the morning.
According to preliminary calcuations, the Dow rose 102.94, or 0.83 percent, to 12,510.57. The index hit a record trading level of 12,519.22 earlier in the session.
Broader stock indicators also advanced. The Standard & Poor's 500 index was up 9.94, or 0.70 percent, at 1,426.84, and the Nasdaq composite index rose 17.71, or 0.73 percent, to 2,431.22.

Labels: Dow Jones, Nasdaq

Stocks rallied Wednesday, with the Dow Jones industrial average hitting a record high above 12,500 as investors welcomed falling oil prices and a surprisingly strong report on new home sales. The Dow Jones industrial average (up 99.98 to 12,507.61, Charts) jumped more than 90 points with less than 30 minutes left in the session. Should the blue-chip barometer close where it stood at around 3:30 p.m. ET - just above 12,500 - it would be a record closing high. The Nasdaq (up 18.34 to 2,431.85, Charts) composite added 0.8 percent and the broader S&P 500 (up 9.91 to 1,426.81, Charts) index gained 0.7 percent. The Russell 2000 (up 8.60 to 796.77, Charts) small cap index jumped about 0.8 percent. "We're seeing some end of the year good cheer," said John Forelli, portfolio manager at Independence Investments. He said that the Dow hitting a new record was important for the psychology of the market, adding to hopes that the more than four-year old bull market can continue next year.
Source: CNNMoney.com

Labels: Dow Jones, Nasdaq

UTStarcom (NASDAQ:UTSI - News) announced that the company was undergoing an SEC investigation for trading by unnamed third parties. UTSI's PowerRating is 4.
Lockheed Martin (NYSE:LMT - News) announced a $635 million deal to help upgrade the Turkish Air Force. LMT's PowerRating is 5.
Par Pharmaceutical (NYSE:PRX - News) announced that the FDA approved its new drug, Ondansetron ODT, which is a generic drug used to battle nausea associated with chemotherapy. PRX's PowerRating is 5.
Amazon.com (NASDAQ:AMZN - News) announced that the 2006 Christmas shopping season was the company's "best ever." The orders for December 11th alone topped 4 million separate items. AMZN's PowerRating is 5.
Iron Mountain (NYSE:IRM - News) and Perry Ellis (NASDAQ:PERY - News) have both scheduled a 3:2 stock split for Friday, December 29. IRM's PowerRating is 5, and PERY's PowerRating is 6.
Learning Tree (NASDAQ:LTRE - News) is the only major stock reporting earnings next week. LTRE is expected to report $0.03 EPS on Thursday.
PowerRatings are courtesy of PowerRatings.net

Labels: AMZN, IRM, LMT, LTRE, Nasdaq, NYSE Group, PERY, PRX, UTSI

U.S. blue-chip stocks turned negative on Monday and the Nasdaq fell more than 1 percent as renewed worries about the sustainability of technology companies' profits prompted a fresh round of selling. The Dow Jones industrial average <.DJI> was down 3.44 points, or 0.03 percent, at 12,442.08. The Standard & Poor's 500 Index <.SPX> was down 5.47 points, or 0.38 percent, at 1,421.62. The Nasdaq Composite Index <.IXIC> was down 25.04 points, or 1.02 percent, at 2,432.16. Shares of Apple Computer Inc. (AAPL.O: Quote, Profile , Research) fell 3.1 percent to $85.03, while Web search leader Google Inc. (GOOG.O: Quote, Profile , Research) suffered its biggest tumble in a month, falling 3.4 percent to $463.80.
Source: Reuters.com

Labels: AAPL, Dow Jones, GOOG, Nasdaq, Standard and Poor 500

t's a good day for hopeful Fools waiting patiently for a turnaround at Intel (Nasdaq: INTC). On Monday, the chipmaker said it had met its deadline for completing design work on its latest chip, which is code-named "Penryn." Based on Intel's Core microarchitecture, Penryn is to be initially used in high-end desktop and laptop computers. Server vendors, too, are expected to use the chip when it ships in the coming months. That's good news; rival Advanced Micro Devices (NYSE: AMD) has made enormous gains in servers thanks to its highly popular Opteron chip. Can Penryn stop the bleeding? It's possible. The chip is built with a 45-nanometer process, which is roughly 30% smaller than existing designs. In an email to me earlier today, In-Stat analyst Jim McGregor said the smaller platform is key to Intel's success with quad-core chips. "To get the 50% to 70% performance boost out of the current generation, you have to deal with 130 watts plus of power consumption." Penryn's more efficient design, McGregor said, will keep costs low and cut power usage. In addition, Penryn's greater efficiency could produce a more competitive offering at a time when IT managers are complaining about electric bills. AMD got the message months back with its somewhat overhyped though on-target "Green Grid" initiative. Meanwhile, investors should be applauding because Penryn's smaller-scale design could lead to better margins. And that's not just an attraction for Intel. Dell (Nasdaq: DELL), which defected to AMD earlier in the year due to sales woes, is yearning to squeeze more out of every business system it sells. IBM (NYSE: IBM), Hewlett-Packard (NYSE: HPQ), and Sun Microsystems (Nasdaq: SUNW) would probably say the same about their server offerings. Many of the savvy investors in Motley Fool CAPS are asking whether Intel has finally regained its competitive edge. With all due respect, that's the wrong question. What matters is whether Intel CEO Paul Otellini and his team are making decisions now that will pay dividends in later years. On that score, Penryn appears to deserve the nod. Look for further news on this issue, from the sounds of it, Intel could be back in business.
Source: fool.com

Labels: Advanced Micro Devices Inc., AMD, INTC, Intel, Nasdaq

U.S. stocks opened lower on Tuesday, extending sharp declines from Monday, as weaker-than-expected orders for manufactured durable goods triggered concern about economic growth and corporate profits. The Dow Jones industrial average <.DJI> was down 24.52 points, or 0.20 percent, at 12,097.19. The Standard & Poor's 500 Index <.SPX> was down 2.44 points, or 0.18 percent, at 1,379.46. The Nasdaq Composite Index <.IXIC> was down 8.28 points, or 0.34 percent, at 2,397.64.

Labels: Dow Jones, durable goods, Nasdaq, Stocks

The Nasdaq extended the day's declines, sliding 2 percent as investors sold Google Inc. (GOOG.O: Quote, Profile, Research) after Barron's newspaper said the stock was overvalued in a report published over the weekend. A disappointing sales forecast from Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) raised doubts about consumers' holiday spending, dragging down the blue-chip Dow average and weighing on the broad S&P 500. The Nasdaq Composite Index <.IXIC> was down 49.71 points, or 2.02 percent, at 2,410.55. The Dow Jones industrial average <.DJI> was down 149.25 points, or 1.22 percent, at 12,130.92. The Standard & Poor's 500 Index <.SPX> was down 17.20 points, or 1.23 percent, at 1,383.75.
Source: Reuters.com

Labels: GOOG, Google, Nasdaq

U.S. blue chips ended lower on Monday as investors sold stocks after a series of record-high closes and a drop in oil prices hit energy shares. Stocks were higher for most of the trading day after takeover offers for mining company Phelps Dodge Corp. and office real estate company Equity Office Properties Trust, but traders said the market lost steam in late trading. Meanwhile, a brokerage upgrade of Microsoft Corp. (MSFT.O: Quote, Profile, Research) helped the Nasdaq end slightly higher. The Dow Jones industrial average <.DJI> was down 26.02 points, or 0.21 percent, to end at 12,316.54. The Standard & Poor's 500 Index <.SPX> closed down 0.70 point, or 0.05 percent, at 1,400.50. The Nasdaq Composite Index <.IXIC> edged up 6.86 points, or 0.28 percent, to end at 2,452.72. Shares of General Motors Corp. were the biggest weight on the Dow, falling 3.4 percent to $34.18, after an executive from the No. 1 U.S. carmaker said it is open to a deal with its rival Ford Motor Co.. Traders said a tie-up would be viewed negatively by GM shareholders. Ford shares fell 2.5 percent to $8.67 on the NYSE. Oil for January delivery ended down 19 cents a barrel at $58.78 a barrel on ample supplies and concern about demand. Shares of Exxon Mobil Corp., the world's largest publicly traded oil company, dipped 0.9 percent to $72.43 and was the top negative factor on the S&P 500. The Chicago Board Options Exchange Volatility Index -- known as the market fear gauge -- closed below 10 on Monday for the first time since January 1994, suggesting stocks' month-long rally may have further to go. In another major deal, Nasdaq Stock Market Inc. made a $5.1 billion bid for the London Stock Exchange to create a trans-Atlantic market, but the London exchange rejected Nasdaq's offer. Shares of Nasdaq rose 3.1 percent to $37.71. Also on Monday, Bank of America Corp. agreed to buy to buy Charles Schwab Corp.'s U.S. Trust Corp. wealth management unit for $3.3 billion. Bank of America shares rose 0.1 percent to $54.90 while Charles Schwab shares climbed 2.1 percent to $18.94. Trading volume was moderate on the New York Stock Exchange where about 1.5 billion shares were traded, below the 1.61 billion daily average for last year. On Nasdaq, about 1.7 billion shares were traded, below the 1.8 billion daily average last year. Advancing shares were about even with declining shares on both the Nasdaq and the NYSE.
Source: Reuters.com

Labels: Blue Chips, Deals, Hot Stocks, Mad Money, Nasdaq, NYSE

Nasdaq Stock Market Inc. shrugged off a swift rejection of its $5.1 billion bid to take over the London Stock Exchange Monday, saying it will make its offer directly to stockholders until the LSE board agrees to negotiate a deal.
The London exchange, which has fought off a string of suitors, said Nasdaq substantially undervalued the company with a cash offer of 1243 pence, or $23.56, per share for the more than 70 percent of shares the Nasdaq doesn't already own. The offer values the LSE at 2.7 billion pounds, or $5.1 billion.

Labels: Nasdaq, Nasdaq Stock Market Inc., NDQ

Wireless device chip maker Broadcom Corp. said Thursday it was notified by the Nasdaq Stock Market that the delayed filing of its third-quarter results could serve as an additional reason for the exchange to delist the stock.
Broadcom is one of at least 180 companies that have launched internal probes or are under federal scrutiny for possibly backdating stock option grants.
The company said in July it uncovered some accounting errors related to stock option grants and would need to record an additional $750 million in expenses. In September, the company said it uncovered even more accounting errors, and it expected to record double the amount initially expected, which implied expenses of $1.5 billion.

Labels: BRCM, Broadcom Corp., Nasdaq, NDQ