Jim Cramer Blog

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Genentech (NYSE:DNA - News) beat earnings estimates on Monday afternoon, reporting $0.69 EPS over a consensus of $0.67 EPS. DNA's PowerRating (for Traders) is 3.
Charles Schwab (NasdaqGS:SCHW - News) reports earnings on Tuesday before the market opens, with traders looking for $0.26 EPS. SCHW's PowerRating (for Traders) is 6.
Analysts expect Citigroup (NYSE:C - News) to report -$1.00 EPS on Tuesday before the bell. C's PowerRating (for Traders) is 3.
State Street (NYSE:STT - News) announces quarterly results on Tuesday morning; look for $1.31 EPS. STT's PowerRating (for Traders) is 5.
US Bancorp (NYSE:USB - News) is looking to report $0.59 EPS on Tuesday before the market opens. USB's PowerRating (for Traders) is 4.
After the close, watch for Intel (NasdaqGS:INTC - News) to announce $0.40 EPS in quarterly results. INTC's PowerRating (for Traders) is 4.
Linear Tech (NasdaqGS:LLTC - News) should report $0.41 EPS on Tuesday afternoon. LLTC's PowerRating (for Traders) is 5.

Labels: C, DNA, Hot Stocks, INTC, LLTC, SCHW, STT, USB

Charles Schwab Corp.'s third-quarter profit surpassed analyst expectations as the discount stock brokerage reaped a big gain from the sale of its wealth management division and harvested more revenue from an expanding mix of customers.
The San Francisco-based company said Monday that it earned $1.53 billion, or $1.28 per share, during the three months ended in September, a more than fivefold increase from $266 million, or 21 cents per share, a year ago.
A $1.2 billion windfall from Schwab's $3.3 billion sale of its U.S. Trust wealth management subsidiary accounted for most of the higher profit. Bank of America Corp. completed the U.S. Trust acquisition at the start of the quarter.
Revenue for the period totaled $1.29 billion, a 21 percent improvement from $1.07 billion in the prior year.
If not for the U.S. Trust sale, Schwab said it would have earned $323 million, or 27 cents per share. That figure was two cents above the average estimate among analysts surveyed by Thomson Financial.

Labels: Charles Schwab Corp., SCHW

All the major market averages surged out of the gate to open the third quarter today. Stocks rose as M&A continued to drive the markets and economic data pointed to a strong manufacturing sector. Oil started the session lower, but finished with a 41-cent gain to end at $71.09. Treasury prices rallied sending the yield on the benchmark 10-year note to under 5% for the first time in more than a month.
On the economic front today, the Institute of Supply Managers said growth accelerated in June. The ISM index rose to 56 for the month of June, up from 55 in May. The increase in the index was boosted by a rise in new orders and increased production. Any reading above 50 marks expansion in the manufacturing sector.
In company news, shares of Trump Entertainment (Nasdaq: TRMP) slid -16.6% on the day after the company came out and announced that negotiations to sell itself has ended in no transaction. The operator and owner of hotels and casinos in Atlantic City had been trying to sell itself for the past several months, but a large debt load contributed to the sale process ending.
Charles Schwab (Nasdaq: SCHW) rose 7.2% on the session after the company announced plans for a $3.5 billion capital restructuring that includes a large share buyback and also a special dividend. Meanwhile, The Carlyle Group agreed to take nursing home and assisted living operator Manor Care (NYSE: HCR) private in a $6.3 billion deal. The all-cash deal represents a 20% premium on its shares from its closing price on Friday.
In other merger related news, Dobson Communications Corporation (Nasdaq: DCEL) rose 11.8% after telecom giant AT&T (NYSE: T) agreed to buy the rural wireless company for $2.8 billion in cash. The deal will give AT&T access to all of Dobson's 1.7 million customers. Keeping on the telecommunications theme, Canada's largest telecom group BCE Inc. agreed to be taken private by a consortium of investors led by private equity group Dearborn Madison Partners, LLC, Providence Equity Partners, and Ontario's Teachers Pension Plan. The price tag on the deal is valued at $48.5 billion. The deal carries a premium of 7% from Friday's closing price.
Hedge Fund Och-Ziff Capital announced plans for an initial public offering. The multi-strategy investment fund with over $26.8 billion under management said it would offer up to $2 billion worth of Class A shares to the public. Och-Ziff is the latest in a string of private funds to raise capital via a public markets.
By the BullMarket.com Staff

Labels: DCEL, HCR, SCHW, T, TRMP

It was a tale of two markets today as solid earnings reports from two of the Dow Jones Industrial Average, coupled with benign inflation data, helped push that market indicator to new heights intraday before it closed short of another record. The tech-heavy Nasdaq composite, in contrast, hovered near the unchanged mark for much of the session before ultimately closing fractionally lower. The 10-year Treasury note again found buyers today while crude oil prices declined. The British pound also made news on the currency markets, pushing past the psychologically important $2 level for the first time since 1992, though the weak-dollar trend has been in place for some time.
U.S. consumer prices rose a sharp 0.6% in March, but much of that gain was attributable to the rising price of energy, which jumped 5.9% last month. It was the sharpest one-month increase in energy costs since Hurricane Katrina helped shut down a portion of the nation's refining capacity in the summer of 2005. Investors were encouraged, however, that so-called core inflation, which strips out energy as well as food costs, was only up a scant 0.1%.
In earnings news, strong sales outside of North America helped propel the soft-drink maker Coca-Cola (NYSE: KO - News), a Dow component, to a 14% earnings increase. Revenue increased 17%. Growth was propelled by a 9% gain in overseas unit-case volume, which offset a -3% decline in the same North American sales metric. Satisfied investors pushed the company's shares up 3%.
The Q1 bottom-line results for pharmaceutical maker Johnson & Johnson (NYSE: JNJ - News) declined -22% as the result of charges related to its acquisition of Conor Medsystems, but investors were encouraged by record sales of nearly $13 billion, a 16% increase over last year's Q1 results. Shares increased 2% in today's trading. J&J is another one of the 30 stocks that make up the blue chip Dow index, which was also helped by a late afternoon rally from McDonald's (NYSE: MCD - News)
TD Ameritrade (Nasdaq: AMTD - News), meanwhile, slumped -9% after the online broker posted results that missed expectations and lowered its outlook for the remainder of the year. The company said it earned $141 million, or 23 cents a share for its second fiscal quarter ended March 31, against $173 million, or 30 cents a share, last year when results were aided by one-time gains. Its rival Charles Schwab (Nasdaq: SCHW - News), meanwhile, reported a Q1 profit of $273 million, or 22 cents a share, compared with $243 million, or 19 cents a share, a year earlier. Revenue from continuing operations increased 9% to $1.15 billion. The results were in line with Wall Street's expectations.
Earnings results continued to come in from the banking sector. Wells Fargo (NYSE: WFC - News), the nation's No. 4 bank, reported an 11% increase in Q1 profits, but also revealed an increase in bad loans. The bank, however, insisted its loan portfolio is largely isolated from difficulties in the subprime sector. Wells Fargo earned $2.24 billion, or 66 cents per share, compared with $2 billion, or 60 cents, a year ago. Revenue rose 10%. Regional bank SunTrust Banks (NYSE: STI - News) said its Q1 net income fell 3% to $514 million, while Regions Financial (NYSE: RF - News) reported a 13% profit increase to $333 million. After the bell, Washington Mutual (NYSE: WM - News) reported a decline in Q1 profit, hurt by a loss in its mortgage unit.

Labels: AMTD, JNJ, KO, MCD, RF, SCHW, STI, WFC, WM

Charles Schwab Corp. posted its eighth consecutive quarter of double-digit earnings growth as an influx of customer deposits during the first three months of the year helped the discount broker shake off turbulent market conditions.
The San Francisco-based company said Tuesday that it made $273 million, or 22 cents per share, during the first quarter. That represented a 12 percent increase from net income of $243 million, or 19 cents per share, at the same time last year.
The earnings matched the average estimate among analysts surveyed by Thomson Financial.

Labels: Charles Schwab Corp., SCHW

Charles Schwab Corp., the nation's largest brokerage, said its fourth quarter profit more than doubled, helped in part by a non-cash tax benefit related to its pending sale of U.S. Trust asset management to Bank of America (BAC). The latest results come a day after rival TD Ameritrade (AMTD) also reported strong earnings.
Briefing.com currently has an Overweight rating on the Financial sector, based on favorable interest rates and earnings trends. While Schwab should continue to do well based on those views, we are reluctant to commit new money to the stock at this time given its recent run, and would suggest taking some money off the table. At the current level, the stock, which is up more than 42% from its July lows, is trading at 24.9x trailing twelve month earnings, compared to 19.1x for TD Ameritrade and 18.1x for E*Trade Financial (ETFC).
For the fourth quarter, the San Francisco-based broker said it earned $467 million, or $0.37 per share, compared to $187 million, or $0.14 per share, in the year ago period. Excluding a non-cash tax benefit of $205 million, earnings were $0.21 per share - in line with the Reuters Estimates consensus.
Revenue for the quarter rose 13.7% year/year to $1.1 billion, but fell short of analysts' forecast of $1.27 billion. Schwab said it adjusted revenue to focus on operations after it completes the sale of U.S. Trust later this year. Total client assets rose 18% in 2006 to $1.2 trillion at year-end, while net new assets increased 33% to $87 billion in its core Schwab Investor Services and Schwab Institutional businesses, the company said. Meanwhile, the company's pre-tax profit margin improved from 28% to 34%, as it held expense growth to 9% over the previous year.
(Disclosure: Briefing.com has a business relationship with Charles Schwab, TD Ameritrade, and E*trade Financial)
--Richard Jahnke, Briefing.com

Labels: Charles Schwab Corp., SCHW

Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, INTC, JPM, LEN, LUV, PGR, SCHW

The stock market drifted today as investors failed to find a clear sign to follow at the start of a holiday-shortened trading week. There were some solid earning results from the banking and financial sector, but they failed to generate much excitement in the overall market, which closed mixed. The Dow Jones Industrial Average and S&P 500 both advanced, while the tech-heavy Nasdaq composite lagged. Oil prices tumbled to less than $51 a barrel after an oil minister in Saudi Arabia suggested there was little need for production cutbacks by OPEC. The 10-year Treasury note edged higher, cutting the yield to 4.75%.
Technology stocks have led recent market gains, and investors seemed to be holding back waiting for results from semiconductor maker Intel (Nasdaq: INTC - News), which is considered a sector bellwether. Intel disappointed investors after the bell, as the company guided for lower-than-expected gross margins. Tech stocks moved lower in the session, paced by declines by Cisco Systems (Nasdaq: CSCO - News), which was downgraded by two brokers. Prudential reduced Cisco to "neutral" from "overweight," and Bank of America cut the network equipment maker to "neutral" from "buy." In both cases, the new ratings are equal to a "hold" rating.
Elsewhere in tech, security software maker Symantec (Nasdaq: SYMC - News) plummeted -13% after the company reduced its fiscal Q3 and full-year outlook. The company cut its revenue outlook due to weak sales in its data center management business. CIBC World Markets immediately cut its rating on Symantec to "sector perform" from "sector outperform." In other ratings action, J.P. Morgan upgraded Sirius Satellite Radio (Nasdaq: SIRI - News) and its rival XM Satellite Radio Holdings (Nasdaq: XMSR - News) to "overweight" from "neutral." The former added 1%, while the latter finished only fractionally higher. FedEx (NYSE: FDX - News), meanwhile, added 3%, following a J.P. Morgan upgrade from "neutral" to "overweight."
Online broker TD Ameritrade Holdings (Nasdaq: AMTD - News) gained 4% after the company reported a blowout quarter. For its fiscal Q1 ended December 31st, the company reported a profit of $146 million, or 24 cents a share, up from $86 million, or 21 cents, a year ago. The small increase in EPS was due to a nearly 50% jump in the number of shares outstanding over the last year. Revenue and earnings gains benefited from Ameritrade's acquisition of TD Waterhouse's U.S. business last year. Rival E*Trade Financial (Nasdaq: ETFC - News) added 2%, while Charles Schwab (Nasdaq: SCHW - News) closed lower after trading flat for much of the day.
In the banking sector, San Francisco-based Wells Fargo (NYSE: WFC - News) reported results that were in line with expectations. The bank earned $2.2 billion, or 64 cents per share, in Q4, against $1.9 billion, or 57 cents, a year ago. In a disquieting note, The Wall Street Journal reported that the bank's results raised concerns about credit quality, as Wells Fargo reported an increase in bad loans. Wells Fargo reported -$726 million in net credit losses in the final three months of 2006, up from -$663 million the previous quarter and -$703 million in Q4 2005. Investors seemed unconcerned today as the stock rose 2%.
In other news, General Electric (NYSE: GE - News) said it would buy the aerospace business of Smiths Group, Britain's third-largest aerospace company, for $4.8 billion in cash. GE is already the world's largest manufacturer of aircraft engines. Citigroup (NYSE: C - News), meanwhile, is planning to drop the word "group" from its name along with its red umbrella logo, the New York Times reported. The umbrella logo came over with Travelers Group when it merged with then-named Citibank in 1998. The bank concluded from market research that the umbrella may have worked for an insurer for over 100 years, but it doesn't resonate with banking customers.
By the BullMarket.com Staff

Labels: AMTD, C, CSCO, ETFC, FDX, GE, INTC, SCHW, SIRI, SYMC, WFC, XMSR

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, Hot Stocks, INTC, JPM, LEN, LUV, PGR, SCHW

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, Hot Stocks, INTC, SCHW, USB, WFC

Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, INTC, SCHW, USB, WFC

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Ameritrade (NASDAQ:AMTD - News) announces earnings Tuesday morning; look for $0.22 EPS. AMTD's PowerRating is 3.
Charles Schwab (NASDAQ:SCHW - News) reports quarterly earnings before the open on Tuesday, with analysts expecting $0.21 EPS. SCHW's PowerRating is 5.
Commerce Bancorp (NYSE:CBH - News) is expected to announce $0.40 EPS before the bell Tuesday. CBH's PowerRating is 5.
On Tuesday morning, watch for US Bancorp (NYSE:USB - News) to report $0.67 EPS. USB's PowerRating is 6.
Analysts are expecting $0.64 EPS from Wells Fargo (NYSE:WFC - News) when the company reports Tuesday morning. WFC's PowerRating is 6.
Intel (NASDAQ:INTC - News) and H.B. Fuller (NYSE:FUL - News) both report on Tuesday afternoon, so watch for heightened volatility and volume ahead of the close. INTC's PowerRating is 4, and FUL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, CBH, FUL, Hot Stocks, INTC, SCHW, USB, WFC

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Cisco (NASDAQ:CSCO - News) has filed a lawsuit against Apple (NASDAQ:AAPL - News) over copyright infringement of the name iPhone. CSCO claims that the company has owned the rights to the name since 2000. CSCO's PowerRating is 5, and AAPL's PowerRating is 3.
The Buckle (NYSE:BKE - News) has scheduled a 3:2 stock split for Friday, January 12. BKE's PowerRating is 6.
Cerebus Capital Management has announced interest in acquiring the real-estate investment trust Equity Office Properties (NYSE:EOP - News). EOP's PowerRating is 5.
AstraZeneca (NYSE:AZN - News) and Bristol-Meyers (NYSE:BMY - News) announced a new $1 billion collaboration for diabetes studies. AZN's PowerRating is 5, and BMY's PowerRating is 6.
Next week earnings seasons kicks off in full force starting on Tuesday. Charles Schwab (NASDAQ:SCHW - News), US Bancorp (NYSE:USB - News) and Wells Fargo (NYSE:WFC - News) all report earnings before the bell, so watch for action as traders align their positions ahead of the announcements. SCHW's PowerRating is 5, USB's PowerRating is 6, and WFC's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, AZN, BKE, BMY, CSCO, EOP, Hot Stocks, SCHW, USB, WFC

Bank of America Corp. (BAC.N: Quote, Profile, Research) said on Tuesday customers may trade stocks online for free in 30 additional U.S. states, mainly in the Midwest and Southwest, speeding up the roll-out of a program that roiled the brokerage industry. The program lets investors make up to 30 free online equity trades per month through Banc of America Investment Services Inc. if they deposit at least $25,000 with the No. 2 U.S. bank. It is intended to encourage people to do more business with Charlotte, North Carolina-based Bank of America, which operates more than 5,700 branches. The bank has about 1.6 million brokerage customers. The launch of the program initially sent shares of Charles Schwab Corp. (SCHW.O: Quote, Profile, Research), E*Trade Financial Corp. (ET.N: Quote, Profile, Research) and TD Ameritrade Holding Corp. (AMTD.O: Quote, Profile, Research) several percent lower.
Rivals have not raced to match the lowered fees. E*Trade has said it will not offer free trades, but offers other accounts and services that may offset any benefits from free trading.
Bank of America shares closed Monday at $52.65 on the New York Stock Exchange. They began the year at $46.15.
Source: Reuters.com

Labels: AMTD, BAC, Bank of America, Charles Schwab Corp., ET, Hot Stocks, SCHW, Stock Market

Discount brokerage Charles Schwab Corp. (SCHW.O: Quote, Profile, Research) said on Monday its earnings could hit $1 billion this year, or almost $100 million ahead of its plan. Schwab Chief Financial Officer Chris Dodds said $1 billion in earnings are in the company's sights for 2006. He made his remarks during the San Francisco company's annual fall business update. Dodds also said he sees asset management fees up 13 percent to $1.9 billion in 2007. In addition, he expects net new assets of $130 billion next year.
Source: Reuters.com

Labels: Charles Schwab Corp., SCHW, Stock Market

Brokerage and financial services firm Charles Schwab Corp. said Monday it will sell its wealth-management subsidiary U.S. Trust to Bank of America Corp. for $3.3 billion in cash.
Based on assets under management by private banks, Bank of America is the second largest manager of private wealth in the U.S., while U.S. Trust is the fourth, according to Bank of America.
The combined entity, with $261 billion in assets under management, would be first, Bank of America said.
The deal is expected to close on March 31.

Labels: BAC, Bank of America, Charles Schwab Corp., SCHW