Jim Cramer Blog

Buy Caterpillar (CAT), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
On news of an earthquake that has cost a great deal of damage and as many as 15,000 lives, Cramer spoke of the "rebuild in China," which he said was an equivalent of Hurricane Katrina in terms of infrastructure buildout. He pointed viewers to Caterpillar and Terex (TRX) as plays on the news. He also recommended Cummins (CMI). "They're all headed up ... because of the rebuild," he said.
Cramer said today's rally has a lot to do with bullish action from mortgage insurer Freddie Mac (FRE). "They have gotten rid of the systemic risk," he said. He called Freddie Mac and Fannie Mae (FNM) the "last of the black holes" for the financial crunch.
Cramer said Freddie is getting a lot of business, which he thinks may actually offset the company's losses. He said bears don't believe that's the case, but he pointed out that Freddie is a well-run company. Fannie is not as good, he said.
In the consumer discretionary space, Cramer said he had thought "the buyers would just call it quits" after the government's stimulus checks came in. He revised his forecast, saying maybe earnings from Kohl's (KSS) tomorrow will be the time to sell.
He expressed his surprise at the continued rise of some retailers. "Certainly we know that Costco (COST) is better than we thought. ... TJX (TJX) was a little disappointing, and look -- it goes up." He pointed out that Wal-Mart (WMT) stock has traded back to where it was before reporting earnings.
"A lot of people feel that the worst is over," Cramer said. He pointed out that the Fed called victory when inflation numbers came in better than expected.
Cramer also said that the year of wind power may arrive this year, not next year as he had previously predicted. He pointed out bullish action in Fluor (FLR) and First Solar (FSLR) as evidence of alternative energy stories.
He also said that Research In Motion (RIMM), Apple (AAPL) and MasterCard (MA) are offering leadership in the economy.
On the housing crisis, Cramer said that Toll Brothers (TOL) CEO Bob Toll was "negative negative negative" when the two spoke on last night's "Mad Money" TV show. He predicted that the housing problem in Florida would be much better in 18 months.

Published By TheStreet.com

Labels: AAPL, CAT, CMI, COST, FLR, FNM, FRE, FSLR, Jim Cramer, KSS, MA, RIMM, Stop Trading, TJX, TOL, TRX, WMT

Crocs (NasdaqGS:CROX) ended Thursday up more than 14% after the company announced a forecast for 2008 that was better than expectations. The company's first quarter profits of $0.09 per share, excluding some items, were in line with analyst estimates. The Short Term PowerRating for CROX is 5.
Better than expected same store sales helped boost shares of Wal-Mart (NYSE:WMT) though Costco (NasdaqGS:COST), which also reported strong sales, was lower on the day. The Short Term PowerRating for WMT is 6 and the Short Term PowerRating for COST is 5.
Defense contractor Alliant Techsystems (NYSE:ATK) announced fourth quarter earnings that were up by nearly 20% to $1.83 per share, beating estimates. The Short Term PowerRating for ATK is 5.
Activision (NasdaqGS:ATVI) reported quarterly earnings of $0.17 per share, more than triple analyst estimates. The Short Term PowerRating for ATVI is 5.
Questions by the Justice Department about the company's handling of a study involving its cholesterol drug Vytorin did not stop shares of Schering Plough (NYSE:SGP) from gaining nearly 3% on the day. The Short Term PowerRating for SGP is 5.
Shares of Best Buy (NYSE:BBY) slid more than 3% on news that the company has spent $2.1 billion for a stake in British consumer electronics retailer, Carphone Warehouse. The Short Term PowerRating for BBY is 4.

Labels: ATK, ATVI, BBY, COST, CROX, Hot Stocks, SGP, WMT

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Fossil (NasdaqGS:FOSL - News) reports earnings on Tuesday before the bell; look for $0.67EPS. FOSL's Short Term PowerRating is 6.
Medco Health Solutions (NYSE:MHS - News) is expected to report $0.41 EPS on Tuesday before the stock markets open. MHS's Short Term PowerRating is 6.
Analysts are watching for Medtronic (NYSE:MDT - News) to announce $0.62 EPS before the bell rings on Tuesday morning. MDT's Short Term PowerRating is 4.
When OfficeMax (NYSE:OMX - News) reports quarterly results on Tuesday before the bell, look for $0.52 EPS. OMX's Short Term PowerRating is 5.
Marvel Enterprises (NYSE:MVL - News) is set to report $0.29 EPS before the market opens on Tuesday. MVL's Short Term PowerRating is 6.
Steve Madden (NasdaqGS:SHOO - News) is looking to report $0.18 EPS on Tuesday before the market opens. SHOO's Short Term PowerRating is 5.
Analysts are expecting Wal-Mart (NYSE:WMT - News) to announce $1.02 EPS before the market opens on Tuesday. WMT's Short Term PowerRating is 6.

Labels: FOSL, Hot Stocks, MDT, MHS, MVL, OMX, SHOO, WMT

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, CHINA, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

Cramer began Wednesday's show talking about Wal-Mart's (WMT) good quarter and investment ideas from its conference call. Cramer remarked how well GameStop will do during the holidays and how other consumer electronics will continue to be strong. Cramer disagrees on digital cameras because they're made in China making them hard to buy right now. He does not like Garmin (GRMN) either. In computers, Cramer supports Hewlett-Packard (HPQ), which Wal-Mart is not a big carrier of. They do sell Dell but Cramer prefers HP. He mentioned Activision as a possible investment for video games, but prefers GameStop.
TV's: Cramer considered Corning (GLW), who are involved in liquid crystal display televisions. It is not trading as high as it should be, but has a raised outlook in pricing. It has bendable fiber not priced in the stock and is heading much higher.
Am I Diversified?
The first caller had Sirius Satellite Radio (SIRI), Ford (F), AT&T (T), McDonald's (MCD) and Human Genome Sciences (HGSI). Cramer called HGSI too speculative and said he'd rather see the caller in a stock like Celgene (CELG) instead.
Another caller held Daimler (DAI), Coca-Cola (KO), Google (GOOG), Celgene and CVRD (RIO). Cramer blessed the portfolio.
The final caller asked if he was diversified with Apple (AAPL), Occidental Petroleum (OXY), MetLife (MET), Cisco (CSCO) and Yum! Brands (YUM). Cramer suggested the caller swap out of MetLife and into Prudential (PRU).
Tetra Tech (TTEK) CEO Dan Batrack joined Cramer on the show, where he said his company beat fourth-quarter expectations due to increased margins. He said they had a great performance on earnings.

Labels: CELG, GLW, GRMN, HGSI, HPQ, Jim Cramer, Mad Money, Mad MOney Recap, MCD, SIRI, WMT

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

Wal-Mart Stores Inc. posted third-quarter profits Tuesday of $2.86 billion and upped its projected earnings for the year as it heads into the holiday shopping season.
The 8 percent rise in profits by the world's largest retailer beat Wall Street expectations and drew recognition from analysts.
Shares jumped 5.7 percnet, or $2.46, to $45.78 in early trading.
The company earned 70 cents per share, up from 62 cents per share in the same period a year ago. The 70 cents includes an after-tax gain equal to 1 cent per share. Analysts surveyed by Thomson Financial had forecast earnings of 67 cents per share on revenue of $91.67 billion
Wal-Mart had revenue of $91.95 billion in the period ending Oct. 31, up 8.8 percent from $84.47 billion a year ago.

Labels: Wal-Mart Stores Inc., WMT

Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on the dollar, which he predicted last Friday was due for a bounce. The dollar had its biggest one day reversal in a year on Monday. He also noted that in the last 4 days the U.S. dollar had the biggest rally versus the Canadian dollar that he has seen in his life. He also wouldn't be surprised to see gold fall another $40. Also, Gartman is looking for oil to fall $10-$15 before Thanksgiving.
Merrill Lynch economist David Rosenberg said on Monday that the last time he's seen a drop in consumer confidence to this degree during the Holiday season; the economy was in a recession. Macke thinks the Tuesday earnings reports from Home Depot (HD) and Wal-Mart (WMT) will be horrific. The only retailer he expects a good earnings report from is Kohl's (KSS) and his wild card is Macy's (M). He would get long Costco (COST) and Target (TGT). Adami thinks a trade is setting up for Coldwater Creek (CWTR), which he mentions has a very high short interest.
E*Trade (ETFC) lost 60% of its value Monday on concerns over the companies loan portfolio. Finerman thinks the most clear trade is to be long TD Ameritrade Holding (AMTD). Finerman sees opportunity for TD Ameritrade to steal E*Trade clients with all the problems they're having. She also likes Charles Schwab (SCHW).
IBM (IBM) bought Cognos (COGN) for $5 billion and Fortune Brands (FO) sold its wine business to Constellation Brands (STZ) for $885 million. Adami declares United States Steel (X) will be the next company to be taken over.
Word on the Street
Technology stocks continued to slide Monday with leaders like Google (GOOG) dropping 5%, Apple (AAPL) dropping 7% and Research In Motion (RIMM) dropping 9%. Adami likes Hewlett Packard (HPQ) ahead of next Monday's earnings report.
Rio Tinto (RTP) hits a record high after BHP Billiton (BHP) laid out the details for its $140 billion all-share offer.
Adami says the big pharmaceutical story is not fiction and Merck (MRK) is for real. He also loves defense play Johnson & Johnson (JNJ). Macke agrees with Adami and that right now is a good time to be long Merck, Procter & Gamble (PG), Pfizer (PFE) and Church & Dwight (CHD) for a defensive portfolio. Najarian wants to keep an eye on Eli Lilly (LLY).
Pops & Drops
Pops - Cisco Systems (CSCO) traded up 2% on Monday as the market declined.
Mattel (MAT) traded up 4% off a JPMorgan upgrade.
Starwood (HOT) traded up 2%
Washington Mutual (WM) traded up 1% as the financial stocks mounted a rally on Monday.
American Airlines (AMR), US Airways (LCC) and Delta (DAL) all traded up more than 5% as oil prices declined.
Starbucks (SBUX) traded up 3%.
Drops - Freeport McMoRan (FCX) fell 10% as commodity stocks were hit off the dollar rally.
Tyson Foods (TSN) fell 3% after cutting its 2008 forecast.
Sotheby's (BID) fell 2%.
Mosaic (MOS) fell 14% off the dollar rally.
Final Trade
Macke likes defensive play Procter & Gamble (PG).
Adami recommends Cisco Systems (CSCO).
Finerman and Najarian both picked TD Ameritrade Holding (AMTD).

Labels: AMTD, CNBC, CNBC's Fast Money, COST, CWTR, dennis gartman, ETFC, Fast Money, Fast Money Recap, HD, KSS, TGT, WMT

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Esco Technologies (NYSE:ESE - News) missed earnings on Monday afternoon, announcing $0.64 EPS versus expectations of $0.66 EPS. ESE's PowerRating (for Traders) is 6.
Bob Evans (NasdaqGS:BOBE - News) beat earnings expectations, announcing $0.45 EPS over $0.39 EPS. BOBE's PowerRating (for Traders) is 3.
Fossil (NasdaqGS:FOSL - News) reports earnings on Tuesday morning before the market opens, with traders looking for $0.34 EPS. FOSL's PowerRating (for Traders) is 7.
When Home Depot (NYSE:HD - News) announces quarterly results on Tuesday before the bell, look for $0.61 EPS. HD's PowerRating (for Traders) is 5.
Pilgrim's Pride (NYSE:PPC - News) looks set to announce $1.13 EPS on Tuesday morning. PPC's PowerRating (for Traders) is 7.
Analysts are watching for Wal-Mart (NYSE:WMT - News) to report $0.67 EPS on Tuesday before the bell rings. WMT's PowerRating (for Traders) is 4.
Excel Maritime Carriers (NYSE:EXM - News) reports earnings after the bell on Tuesday, so watch for heightened price action and volume ahead of the bell. EXM's PowerRating (for Traders) is 10.

Labels: BOBE, ESE, EXM, FOSL, HD, Hot Stocks, PPC, WMT

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.
Imergent (NYSE:IIG - News). IIG's PowerRating (for Traders) is 8.
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.
Pharmaceutical HOLDRS (NYSE:PPH - News). PPH'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.
Sun Healthcare (NasdaqGM:SUNH - News). SUNH's PowerRating (for Traders) is 7.
Bearish
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.
Unisys (NYSE:UIS - News). UIS's PowerRating (for Traders) is 3.
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.
Chemtura (NYSE:CEM - News). CEM's PowerRating (for Traders) is 3.
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.
Wal-Mart (NYSE:WMT - News). WMT's PowerRating (for Traders) is 3.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Akamai Technologies (NasdaqGS:AKAM - News). AKAM's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: AKAM, CEM, Hot Stocks, IIG, PPH, SUNH, UIS, WMT

Here are 7 stocks for traders for Friday from TradingMarkets.com:
Ruby Tuesday (NYSE:RT - News) fell 14% on Thursday, after announcing that future revenues (2008) will miss projections by a long shot. RT's PowerRating (for Traders) is 6.
During market hours on Thursday, SLM Corporation (NYSE:SLM - News) missed earnings, announcing $0.70 EPS over an expected $0.73 EPS. Despite missing numbers, SLM fell only fractionally. SLM's PowerRating (for Traders) is 4.
Wal-Mart (NYSE:WMT - News) rose about 3.4% on Thursday, after guiding higher for Q3 profit. WMT's PowerRating (for Traders) is 4.
General Electric (NYSE:GE - News) reports earnings on Friday before the market opens, with traders looking for $0.50 EPS. GE's PowerRating (for Traders) is 6.
JP Morgan cut its Q3 revenue forecasts for Baidu.com mid-day, resulting in an industry-wide selloff; Baidu.com (NasdaqGS:BIDU - News) fell -10% on the negative news. BIDU's PowerRating (for Traders) is 5.
J.C. Penney (NYSE:JCP - News) fell about 7% after missing estimates for September sales, while Nordstrom (NYSE:JWN - News) fell just over 7% on similar bad news. JCP's PowerRating (for Traders) is 5, and JWN's PowerRating (for Traders) is 5.

Labels: BIDU, GE, Hot Stocks, JCP, JWN, RT, SLM, WMT

Buy Costco (COST), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the warehouse retailer is uniquely attractive to shoppers because it's an ever-changing experience. "They have an exciting thing," he said. "They made it so you can't regard it as a Wal-Mart (WMT) or a Target (TGT )."
Cramer likes Gap (GPS) because of the incentives set up for new management.
Cramer still likes refiners Valero (VLO), Chevron (CVX) and Conoco (COP) despite recent warnings by Valero and Chevron, because he says recent weeks have seen refining margins "explode."

Labels: CNBC's Stop Trading, COP, COST, CVX, GPS, Jim Cramer, Stop Trading, TGT, VLO, WMT

On Tuesday's show, Cramer started by talking about the acquisition of Commerce Bank (CBH) by TD Bank, and how he feels that Canadian banks will buy more US regional banks because of the strength of the Canadian dollar. Cramer listed 9 other banks that he thinks could be takeover targets; National City (NCC), New York Community Bank (NYB), Comerica (CMA), KeyCorp (KEY), Hudson City Bank (HCBK), M&T Bank (MTB), BB&T (BBT), Fifth Third Bank (FITB), Capital One (COF)
CVS Caremark (CVS): Cramer thinks it was unfairly punished by Walgreen's (WAG) bad quarterly report yesterday. Cramer thinks that CVS will be able to profit for the same reason that Walgreen's had problems because of their merger with Caremark. CVS is now "best of breed" in the pharmacy sector.
Cramer then took a phone call about Wal-Mart (WMT) which he thinks is not a big factor in this sector.
After the lightning round, Cramer was looking for more overlooked IPOs. Today's pick was comScore (SCOR). This stock is the Nielsen of the web and gives companies data to help them advertise better. They are in the early stages of growth.
CEO of Perry Ellis (PERY) was on the show. Cramer thinks the stock is not for him, and asked the CEO some tough questions.
In the last segment, Cramer talked about Baidu.com (BIDU), which he said is up 136% since he recommended the stock. He "commands you" to take your cost basis out of the market to lock in profits.

Labels: BBT, CBH, CMA, CVS, HCBK, Jim Cramer, KEY, Mad Money, Mad MOney Recap, MTB, NYB, SCOR, WMT

The crew at Fast Money discussed how retail stocks may be affected by the whipsaws of trading. Najarian pointed at that while stocks were down early, technology names recovered. According to Macke, investors shot first and didn't bother to ask the questions in the retail sector. Finerman feels something else besides fundamentals were at work with regards to the overall market sell off and the selling seen in retail stocks.
Target (TGT), Lowe's (LOW) and Wal-Mart (WMT) traded lower off the poor consumer confidence numbers. Adami thinks Target is worth a trade here.
Christmas Season:
Margret Brennan, CNBC's chief correspondent, thinks consumer electronics and retail accessories like handbags and shoes will be strong again this Christmas. She is looking at Wal-Mart and agrees with Adami on Target for a play on strong consumer electronics demand. Macke recommends Coach (COH). Adami suggests Saks (SKS). Najarian continues to favor athletic apparel maker Under Armour (UA)
Word on the Street
Existing home sales were reported on Tuesday and hit a five-year low. Finerman has concerns that Lennar (LEN) may have write-downs in the future, and that short-term trade is in order at Centex (CTX). Adami: if KB Home (KBH) trades down to a 52-week low on 10 million shares, buy it for a short-term trade. The strike at General Motors (GM) hit its second day on Tuesday as investors grow nervous of a stalemate. Najarian doesn't want to see the strike go more then five days. Adami's idea for an auto trade look is to look for a pullback in BorgWarner (BWA).
Technology Sector
Apple (AAPL) and Google (GOOG) hit new records as technology stocks continued to shine. Najarian says gadget stocks like Garmin (GRMN) and Research In Motion (RIMM) continue to be strong as well.
Chemical and Consumer Sectors:
Najarian: Likes Crocs (CROX), Monsanto (MON) and Digital River (DRIV).
Carter Worth: chief market technician at Oppenheimer, joined the crew to discuss his take on technical analysis in the markets. Says there is strength in materials, energy and industrial stocks, but that strength is being offset by weakness in consumer discretionary and financial stocks.
BHP Billiton (BHP) vs. Wal-Mart (WMT). BHP is killing WMT in performance. The second chart was Schlumberger (SLB) vs. UBS (UBS) and the third was Arcelor Mittal (MT) vs. Toyota (TM). UBS and MT are the out performers in the above three comparisons and BHP has room to go higher.
Pops & Drops
Pops -- ValueClick (VCLK) traded up 13% and Focus Media (FMCN) traded up 19%.
NAVTEQ (NVT) traded up 11%.
Tesoro (TSO) popped 3%. Adami is bearish on the refineries.
USEC (USU) popped 6%.
Drops -- Vonage (VG) plunged 34%
Whirlpool (WHR) fell 5%
Freeport McMoRan (FCX) fell 2%
Face2Face
Intercontinental Exchange (ICE) has fallen considerably from its high of $174. Is this an opportunity to accumulate a larger position, or is ICE's stock price reflecting slower growth? Finerman responds by noting that the exchanges are in play for M&A and this could draw in more investor interest for names like ICE.
Macke was asked his opinion on Chipotle Mexican Grill's (CMG). Macke likes CMG for a trade.
Final Trade
Macke favors eBay (EBAY).
Finerman prefers Comverse Technology (CVMT).
Najarian tells investors to play the online ad space with Digital River (DRIV).
Adami likes USEC (USU)

Labels: AAPL, CNBC, COH, CTX, Fast Money, GOOG, GRMN, LEN, LOW, RIMM, SKS, TGT, UA, WMT

Equity prices rebounded from yesterday's losses as upbeat retail sales left investors bidding up stock prices. At the close all major indexes finished with modest gains. The price of Gold finally closed out a session above the key psychological $700 level, rising $13.90 on the day. Over in the energy pits, crude finished higher but off its highs, finishing the day up 57 cents to $76.30.
In economic news, the Institute of Supply Managers (ISM) said its non-manufacturing businesses index held steady at 55.8, as retailers, restaurants, and healthcare companies expanded. The Labor Department also announced that productivity, a measure of employee efficiency, rose at an annual rate of 2.6%, the most in almost two years. On the housing front, the overall picture continues to show troubling signs as the Mortgage Bankers Association reported that foreclosures in the second quarter set a record at 0.65% of all loans.
Several retailers reported same-store sales today, among them the nation's second largest discount retailer Target (NYSE: TGT - News). For the month, it reported same-store growth of 6.1%, higher than its own forecast of 4-6% growth, and handily beating analyst's estimates of 4.9%. Target shares rose 2.4%. Chief rival Wal-Mart Stores (NYSE: WMT - News) also reported a better-than-expected comparable store number of 3.1%. Wall Street analysts had expected the company to report 1.6% growth for the month. The company has cut prices by as much as 50% in order to entice back-to-school shoppers. Subscribers can read our analysis of Target in today's issue.
Clothing retailers also reported monthly figures, including J.C. Penney (NYSE: JCP - News) which said that same-store sales declined -4% in the month, but noted that July and August figures were distorted due to the first week of August being counted in the July reporting period. The decline less severe than analysts had predicted. The company expects September same-store sales growth will be in the low single digits. Macy's (NYSE: M - News), meanwhile, said sales for the month rose 2.4%, significantly higher than analysts expected. The company had earlier predicted growth of -1% to 2%.
In other corporate news, biotech firm Biogen Idec (Nasdaq: BIIB - News) shares surged to a new 52-week high after the company reaffirmed its full-year 2007 outlook. It expects profits to reach $1.84-1.94 a share, or $2.60-2.70 a share excluding charges. It sees sales of $3.12-3.16 billion and told investors that revenue and earnings growth over the next three years will be 15% and 20% respectively.
The king of beers, Anheuser-Busch (NYSE: BUD - News) rose 2.3% on the session after the brewer said it expects to see accelerated sales and earnings growth in the second half of the year and said EPS growth for the full year will exceed its long-term objective of 7-10%. The company said that many of its brands continue to show growth.
By The BullMarket.com Staff

Labels: BIIB, BUD, JCP, M, TGT, WMT