Jim Cramer Blog

Stocks seesawed back and forth between positive and negative territory today, with the major market indices finishing the day mixed. The Dow and Nasdaq both closed higher, while the S&P was off fractionally. Gold slipped on the day, while oil fell to close under $80 a barrel at $79.53.
Economic news was plentiful on the day, with some continuing unsettling data on the housing market. The National Association of Home Builders reported that existing home sales fell -4.3% to 5.5 million units. Sales dropped -13% compared with a year earlier. The group noted that median home prices rose 0.2% to $224,500. Meanwhile, the S&P Case-Shiller home price index stated that home prices in 20 metro areas fell the most on record in July. Shifting gears a bit, The Conference Board announced that its index of consumer sentiment fell to 99.8 in September, which is the lowest level since November of 2005, and down from 105.6 in August.
In corporate news, several retail warnings weighed heavily on investors. The nation's second-largest discount retailer, Target (NYSE: TGT - News), cut its September same-store sales growth figures citing weaker traffic during the month, especially in Florida and the Northeast. The company cut same-store sales growth to 1.5-2.5%, down from its previous expectations of 4-6%. Shares slid -4.6%. Subscribers can read our take on Target in today's issue.
Meanwhile, shares of home improvement retailer Lowe's (NYSE: LOW - News) shares fell -6.7% after the company announced that it sees full-year earnings at the low end or slightly below its prior forecast. Lowe's cited lower-than-expected sales trends. The company had predicted earnings of $1.97-2.01 a share previously. The company did note that for 2008-2010 it expects earnings to increase 12-15%, while seeing sales rise 8-11% per year.
Also lowering guidance on the day was McCormick & Schmick's Seafood Restaurants (Nasdaq: MSSR - News). After previously forecasting earnings of 21-23 cent a share on revenue of $90-$91 million, McCormick & Schmick's now anticipates reporting a profit of 16 cents a share on revenue of $88 million. The company's CEO attributed the lowered outlook to weak demand from "aspirational guest[s]." Shares plunged -22.9%
The losses continue to mount for our nation's homebuilders, as Lennar (NYSE: LEN - News) posted a loss of -$514 million, or -$3.25 a share, for the quarter ended August 31st. The loss compared to a year-ago profit of $207 million, or $1.30 a share. Revenues fell -44% to $2.2 billion during the quarter, and the company took a -$848 million charge due to valuation reductions and write-offs. Home deliveries declined a drastic -41%, while new orders plunged -48%. The company announced that it is seeking further reductions in head count. Shares fell -4.0%.
By the BullMarket.com Staff

Labels: LEN, LOW, Lowe's Companies Inc., MSSR, Target, TGT

By the BullMarket.com Staff
Investors appeared to be somewhat hesitant to take positions as they try to decipher the next move by the Fed. At the end of the day, the Dow declined -30 points, while both the Nasdaq and the S&P 500 advanced slightly. Over in the energy pits, crude oil fell -$1.65 to end at $69.47. Treasuries ended the session with the benchmark 10 year yielding 4.59%.
In economic-related news, Senate Banking Committee Chairman Chris Dodd said Federal Reserve Chairman Ben Bernanke is "absolutely" prepared to use all tools he has at his disposal to address the credit crisis in the U.S. financial system. The comments were made following a closed-door meeting between Dodd, Bernanke, and Treasury Secretary Henry Paulson. Richmond Federal Reserve Bank President Jeffery Lacker, however, came out separately and said that market volatility alone is no reason for the Fed to cut the Fed funds target rate.
On the earnings front, the nation's second-largest discount retailer behind Wal-Mart (NYSE: WMT - News), Target (NYSE: TGT - News), said second-quarter profits rose 13% to $686 million, or 80 cents a share, up from $609 million, or 70 cents a share, in the same period a year ago. Sales rose 9.5% to $14.62 billion from $13.55 billion last year. Same-store sales in the quarter just ended rose 4.9%. The discount retailer also backed its full-year profit forecast of $3.60 a share. Shares rose 1.7%. Subscribers can read our analysis of Target in today's issue.
Staples (Nasdaq: SPLS - News), the world's largest office supplier, reported a mixed quarter before the bell this morning. For its second quarter, it posted a profit of $178.8 million, or 25 cents a share, up from $161.2 million, or 22 cents a share, last year. Sales climbed to $4.29 billion from $3.88 billion in the second quarter of 2006, but North American comparable-store sales were down -2% in Q2. It sees third-quarter and full-year EPS growth of 15%, but anticipates its North American retail division to see flat to slightly negative same-store sales in the third quarter, and flat same-store sales for the full year.
In other news, financial services company Capital One Financial (NYSE: COF - News) slashed 2007 earnings guidance and cut 1,900 jobs after it announced it was exiting the wholesale mortgage business. The company is closing its GreenPoint Mortgage unit after conditions in the overall secondary mortgage market weakened considerably. It will take an $860 million charge in the current quarter. The company now sees full-year earnings of $5 a share, down from $7.15 prior to the closing of the unit. Shares rose 2.6%, as excluding the charges, its forecast remained intact.

Labels: Capital One Financial Corp., COF, Mortgages, SPLS, Staples Inc., Target, TGT, Wal-Mart Stores Inc., WMT

Wal-Mart and rival Target are brewing up a price war for toys, electronics and other things consumers may want for Christmas that could spell savings for shoppers, but profit woes for retailers in the critical holiday quarter.
Wal-Mart Stores Inc., the world's largest retailer, on Tuesday promised "its most aggressive pricing strategy ever" to fuel year-end business, but warned the move could also make it miss Wall Street's expectations for fourth-quarter earnings.
That announcement came as Wal-Mart posted an 11.5 percent profit increase in the third quarter when improved merchandise mix and stricter cost controls offset weak growth in U.S. sales.
Its adversary, Target reported a 16 percent gain in third-quarter profit, beating analyst expectations as its sales rose 11 percent. Target President Gregg Steinhafel told investors during a conference call Tuesday that the retailer would compete on long-running discounts, noting that it has often matched those before Wal-Mart advertises them in its circulars.

Labels: holiday shopping, retailer, retailers, Target, TGT, Wal-Mart, WMT

Discount retailer Target Corp. said Tuesday its third-quarter profit rose 16 percent, beating analyst expectations as its sales rose 11 percent.
The nation's second largest discount chain after Wal-Mart Stores Inc. said it earned $506 million, or 59 cents per share, up from $435 million, or 49 cents per share, during the same period last year.
Revenue rose to $13.57 billion from $12.21 billion during the same period last year. Target attributed the growth to new stores, a 4.6 percent sales rise at stores open at least a year, and credit card revenue.
Analysts surveyed by Thomson Financial were expecting 55 cents per share on revenue of $13.59 billion.

Labels: Target, TGT

China Medical (NASDAQ:CMED - News) beat earnings on Monday afternoon, with $0.33 EPS vs an expected $0.28 EPS. CMED's PowerRating is 2.
Dillard's (NYSE:DDS - News) beat earnings by a long-shot on Monday, announcing $0.17 EPS vs an expected -$0.01 EPS. DDS's PowerRating is 5.
NBTY (NYSE:NTY - News) also beat late Monday, reporting $0.54 EPS vs a consensus of $0.40 EPS. NTY's PowerRating is 4.
American Eagle (NASDAQ:AEOS - News) reports earnings Tuesday before the open; look for $0.65 EPS. AEOS's PowerRating is 5.
Saks (NYSE:SKS - News) announces earnings early Tuesday, with analysts expecting $0.03 EPS. SKS's PowerRating is 5.
Target (NYSE:TGT - News) reports early Tuesday; expect $0.55 EPS. TGT's PowerRating is 5.
Wal-Mart (NYSE:WMT - News) is expected to announce $0.60 EPS tomorrow morning. WMT's PowerRating is 5.

Labels: China Medical Technologies Inc., DDS, Dillard's, NBTY, NTY, Saks, SKS, Target, TGT, Wal-Mart, WMT