Jim Cramer Blog

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

All three major indices ended significantly lower for the day, as a Citigroup (NYSE: C - News) downgrade fueled financial sector concerns and Lowe's (NYSE: LOW - News) disappointed investors with its outlook. The Dow was off -218 points at the bell to close at 12,958. Meanwhile, the Nasdaq and S&P each lost more than -1.5% to end at 2,593 and 1,433, respectively. Oil traded higher on the day to close at $94.64 per barrel for December delivery. Treasury prices rose, while the price of gold fell to close at $778 an ounce. The dollar traded flat against the euro, and declined versus the yen.
On the earnings front, shares of Lowe's plunged -7.6% on the day after the company reported that profits fell -10% in the third quarter. For the period, net income was $643 million, or 43 cents per share, down from $716 million, or 46 cents per share, last year. Quarterly revenue rose to $11.6 billion, up 3% from $11.2 billion a year earlier. On average, analysts were expecting earnings of 41 cents per share on revenue of $11.78 billion. Looking forward, Lowe's adjusted its fiscal-year earnings forecast lower to a range of $1.83-$1.87 a share, down from previous guidance of $1.97-$2.01 per share given in September.
Campbell Soup (NYSE: CPB - News) reported first-quarter earnings today of $270 million, or 70 cents per share, down from $291 million, or 72 cents per share, a year ago. Excluding last year's results from operations that have since been jettisoned, profit was up $1 million from $269 million reported a year earlier. Revenue for the quarter was $2.3 billion, up 6.7% from $2.15 billion in 2006. Analysts, on average, were looking for earnings of 71 cents per share. Shares of Campbell's were off -0.9% in trading for the day.
In other corporate news, shares of Citigroup tumbled -5.9% after a Goldman Sachs analyst downgraded the stock and predicted the company could write down an additional $15 billion over the next two quarters. The Goldman analyst also predicted that the nation's largest bank may be forced to cut its dividend in order to save money. Subscribers can read our take on Citigroup in today's edition.
Elsewhere, Xerox (NYSE: XRX - News) announced today that the company will pay its first quarterly cash dividend in nearly six years. According to the release, the company will pay a dividend of 4.25 cents per share on January 31st to shareholders of record on December 31st. Xerox also predicted the company will see double-digit earnings growth over the next few years. Shares of Xerox were up 1.6% for the session.
In M&A news, Celgene (Nasdaq: CELG - News) announced that it will acquire drug developer Pharmion (Nasdaq: PHRM - News) in a cash and stock deal worth approximately $2.9 billion. According to terms released, Celgene will pay $72 per share for Pharmion stock, including $25 per share in cash. The deal represents a 46% premium over Pharmion's closing price on Friday. After the deal closes, Pharmion shareholders will hold approximately 6% of Celgene's outstanding shares. Pharmion's stock surged on the news to close up 32.1% on the day, while shares of Celgene were down -1.4% at the bell.
By the BullMarket.com Staff

Labels: C, CELG, CPB, LOW, PHRM, XRX