Jim Cramer Blog

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

Bullish:
Cisco (CSCO): if you want to be in tech.
J.C. Penney (JCP): He thinks that this stock is undervalued and is a buy at this price.
Integrated oil companies like ConocoPhillips (COP), Chevron (CVX), and Exxon Mobil (XOM) are better plays.
American Eagle (AEO), Abercrombie & Fitch (ANF) or Aeropostale (ARO), in that order.
Kellogg (K): Cramer is bullish on Kellogg, as well as General Mills (GIS) and ConAgra (CAG).
Cramer is sticking with Baidu.com (BIDU) as the best China play.
Cramer likes NVIDIA (NVDA), Texas Instruments (TXN), and Intel (INTC)

Bearish:
Xerox (XRX)
American Capital Strategies (ACAS): Cramer's undecided on the stock, so he's avoiding it.
Tesoro (TSO): Cramer thinks gas prices aren't high enough to be in a refiner,
Luxottica (LUX): "Don’t buy!"
Hot Topic (HOTT)
Aluminum Corp. of China (ACH)
American Superconductor (AMSC)

Labels: ACAS, AEO, ANF, ARO, BIDU, CAG, COP, CSCO, CVX, GIS, INTC, JCP, Jim Cramer, Lightning Round, Mad Money Lightning Round, NVDA, TXN, XOM, XRX

Bullish Calls:
Nova Chemicals (NYSE: NCX - News): 'I believe that the chemical companies are radically undervalued, particularly because there are still a lot of Europeans that still want to buy them because of strong currency... I am saying yes to NCX.'Research In Motion (NasdaqGS: RIMM - News): ' ..the highest-growth companies with best balance sheets... I am not backing away from a stock like RIMM.'EMC (NYSE: EMC - News): ' ... was down horribly today, even though the VMWare, but it was a bad day. I would buy EMC.'Hewlett-Packard (NYSE: HPQ - News)Intel (NasdaqGS: INTC - News) Cisco Systems (NasdaqGS: CSCO - News)Avnet (NYSE: AVT - News): 'I've been recommending Avnet Inc. which, weirdly, was at a 52-week high yesterday. I would swap out of IM and buy AVT. Can we wait for AVT to pull back? It just hit a high, but I like it.'
Bearish calls:
Xerox (NYSE: XRX - News): 'I feel that this is a stock that is just going to be nibbling... Don't buy, don't buy.... I am not going to recommend it.'ViroPharma (NasdaqGS: VPHM - News): 'I just recommended it. It went down and, ever since then, I have hated it. I just feel like it's not what you want to do. Sell, sell, sell!'Brocade Communications (NasdaqGS: BRCD - News): 'Huge insider buying. I thought it went down because of Greg Reyes... I know that he was just convicted....don't buy, don't buy.'Ingram Micro (NYSE: IM - News): 'It's down a lot. If I want to buy a distributor, I want something that has a little more value added.'Dun & Bradstreet (NYSE: DNB - News): 'I've always liked that company ... It's still pretty high. It's at $95 ... Don't buy, don't buy.'North American Palladium (AMEX: PAL - News): 'Bernanke doesn't know that this is a deflationary spiral... You cannot be in PAL. I do not want you to stick with PAL.'
Published By SeekingAlpha

Labels: AVT, BBY. RIMM, BRCD, CSCO, DNB, EMC, HPQ, IM, INTC, Jim Cramer, Lightning Round, Mad Money, NCX, PAL, VPHM, XRX

Xerox Corp. said Wednesday its net income totaled $266 million in the second quarter, a 2.3 percent increase from a year earlier on strength in revenue from financing and office equipment servicing and supplies.
Earnings for the April-June period worked out to 28 cents a share, up from the year-earlier profits of $260 million, or 26 cents a share.
Revenue for the Stamford-based office equipment manufacturer was $4.2 billion, up 6 percent from $3.98 billion a year earlier.
The results were slightly better than the 27 cents a share profit on $4.2 billion in revenue expected by analysts surveyed by Thomson Financial.

Labels: Xerox Corp., XRX

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Amazon.com (NasdaqGS:AMZN - News) beat earnings on Tuesday, reporting $0.19 EPS over an expected $0.16 EPS. AMZN's PowerRating is 8.
Boeing (NYSE:BA - News) should report $1.16 EPS on Wednesday before the market opens. BA's PowerRating is 4.
When Colgate-Palmolive (NYSE:CL - News) announces earnings early Wednesday morning, look for $0.83 EPS. CL's PowerRating is 5.
ConocoPhillips (NYSE:COP - News) is expected to announce $2.68 EPS on Wednesday morning before the market opens. COP's PowerRating is 7.
Analysts will be watching for Xerox (NYSE:XRX - News) to report $0.27 EPS tomorrow morning. XRX's PowerRating is 6.
When New York Times (NYSE:NYT - News) reports earnings early tomorrow morning, be watching for $0.31 EPS. NYT's PowerRating is 5.
Tribune (NYSE:TRB - News) should report $0.49 EPS tomorrow morning. TRB's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AMZN, BA, CL, COP, Hot Stocks, NYT, TRB, XRX

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. Historically, these stocks have provided traders with a significant edge.

Xerox (NYSE:XRX) & Dow Chemical (NYSE:DOW). XRX's PowerRating is 6, and DOW's PowerRating is 6.
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.
CKE Restaurants (NYSE:CKR) & Southwestern Energy (NYSE:SWN). CKR's PowerRating is 7, and SWN's PowerRating is 7.
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.
F5 Networks (NasdaqGS:FFIV). FFIV's PowerRating is 7.
Bearish
5+ Consecutive Up Days: 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.
Hawaiian Electric Industries (NYSE:HE). HE's PowerRating 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.
Varian Medical Systems (NYSE:VAR). VAR's PowerRating is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CKR, DOW, FFIV, HE, Hot Stocks, SWN, VAR, XRX

Xerox profit jumped by nearly 17 percent in the first quarter of the year, to $233 million, with a lower than expected restructuring charge for Fuji Xerox Co., the office equipment manufacturer announced Friday.

The company's shares rose 47 cents, or 2.6 percent, to $18.55 in morning trading on the New York Stock Exchange.
Per-share earnings were 24 cents, up from 20 cents in the first quarter of 2006. Analysts polled by Thomson Financial were predicting profit of 20 cents per share.
Revenue was up by 4 percent, to $3.8 billion.

Labels: Xerox Corp., XRX

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Oxford Industries (NYSE:OXM - News) and Robbins & Myers (NYSE:RBN - News) both report earnings after the bell on Tuesday, so watch for heightened price action and volume ahead of the close. OXM's PowerRating is 6, and RBN's PowerRating is 4.
Subprime lender New Century Financial (Nasdaq:NEWC - News) filed for bankruptcy today; NEWC's creditors include Goldman Sachs (NYSE:GS - News) and Citigroup (NYSE:C - News). NEWC does not have a PowerRating due to price restraints, GS's PowerRating is 6, and C's PowerRating is 4.
Apple (NasdaqGS:AAPL - News) and EMI announced plans to release music without the standard anti-piracy software. AAPL's PowerRating is 6.
Xerox (NYSE:XRX - News) closed its takeover deal with Global Imaging Systems (NasdaqGS:GISX - News). XRX will buy GISX for $1.5 billion. XRX's PowerRating is 6, and GISX's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AAPL, C, GISX, GS, Hot Stocks, NEWC, OXM, RBN, XRX

Stocks traded flat to mixed for much of the day after a closely watched gauge of U.S. manufacturing activity came in weaker than expected. Late buying helped to give a modest lift to the market as stocks closed fractionally higher. The 10-year Treasury note closed unchanged, while crude oil prices also nudged higher by a few pennies.

The Institute of Supply Management's manufacturing index declined in March to 50.9 from 52.3 in February. While a reading over 50 still indicates expansion in the factory sector, analysts were looking for a reading of 52. Investors were also concerned by a rise in the ISM's price index, since it indicates inflationary pressures.
Dealmaking again caught the attention of investors. Grabbing the headlines was the $29 billion deal for First Data (NYSE: FDC - News) by Kohlberg Kravis Roberts. KKR offered $34 a share for the payments processing company, which amounted to a 26% premium over Friday's closing prices. First Data added 20.6% on the news. Subscribers can read our analysis of the First Data buyout offer in today's issue.
In other M&A news, Global Imaging Systems (Nasdaq: GISX - News) shares surged 46.9% after Xerox (NYSE: XRX - News) signed a deal to buy the seller of office-imaging products and services for $1.46 billion. Tribune Co. (NYSE: TRB - News), meanwhile, agreed to be acquired by Chicago real estate mogul Sam Zell in a deal valued at $8.2 billion. The acquisition plan contains an employee ownership structure. Tribune said it will sell the Chicago Cubs baseball team at the end of the Major League baseball season to cut its debt. In February, Zell sold his firm, Equity Office Properties, to private equity firm Blackstone Group for $23 billion.
European-based recording giant EMI Group split with other music companies and agreed to offer its songs through the Apple (Nasdaq: AAPL - News) iTunes music store without copy protections. EMI's new offerings will cost $1.29 per song, or 30 cents more than copy-protected songs on iTunes, but users will be able to more easily share their purchases with friends. EMI's artists include the Rolling Stones, Coldplay, and Norah Jones. Excluded from the deal is music from The Beatles, which though distributed by EMI, remains under the control of the band's music holding company, Apple Corps Ltd.
In other news, shares of farm and construction equipment maker Deere (NYSE: DE - News) shed -3.8% on an analyst's downgrade. Stifel Nicolaus cut its rating for Deere to "hold" from "buy." Shares of competing equipment makers CNH Global (NYSE: CNH - News) and AGCO (NYSE: AG - News) were also lower in today's trading.
Shares of MT Bank (NYSE: MTB - News) slid -8.5% after the company said that trouble in its subprime residential mortgage segment will cut its expected Q1 income. As expected, the nation's most-troubled subprime lender, New Century Financial, today filed for bankruptcy protection and fired about half of its work force.

By the BullMarket.com Staff

Labels: AAPL, AG, CNH, DE, FDC, GISX, MTB, TRB, XRX

Sonic Automotive Inc. (NYSE:SAH - News) said Tuesday its fourth-quarter earnings from continuing operations rose to $28.4 million, or 63 cents a share, from $26.7 million, or 61 cents, a year earlier. The average earnings estimate of eight analysts surveyed by Thomson Financial was 60 cents a share. The Charlotte, N.C., automotive retailer said revenue for the three months ended Dec. 31 rose to $1.96 billion from $1.84 billion.
Sonic Corp. (NasdaqGS:SONC - News) said it expects fiscal second-quarter earnings to come in at the low end of its previous forecast of 9 cents to 10 cents a share. The Oklahoma City-based restaurant chain also said it expects systemwide same-store sale to be near or slightly below the low end of its target range of a 2% to 4% increase.
Symantec Corp. (NasdaqGS:SYMC - News) said that its security and data management group president, Jeremy Burton, left the company.
Target Corp. (NYSE:TGT - News) said its fourth-quarter profit jumped 19%, helped by robust holiday sales, new store expansion, and its credit card operations.
Tenet Healthcare Corp. (NYSE:THC - News) said Tuesday its fourth-quarter loss widened to $386 million, or 82 cents a share, from a loss of $286 million, or 61 cents, a year earlier. The average estimated loss of 18 analysts surveyed by Thomson Financial was 4 cents a share. The Dallas company said revenue for the three months ended Dec. 31 rose 2.6% to $2.18 billion from $2.12 billion.
Threshold Pharmaceuticals Inc.'s (NasdaqGM:THLD - News) Phase III trial of glufosfamide didn't show significant improvement in overall survival among metastatic pancreatic cancer patients.
United Rentals Inc.'s (NYSE:URI - News) fourth-quarter net income rose 8.2% as revenue rose 5.5% to $939 million.
USEC Inc.'s (NYSE:USU - News) shares slipped after the Bethesda, Md.-based energy company late Monday reported fourth-quarter net earnings of $40.1 million, or 46 cents a share, vs. $29.6 million, or 34 cents a share, in the year-ago period. Revenue fell to $544.2 million from $549.7 million. USEC forecast a 2007 loss of $10 million to $20 million on revenue of $1.86 billion.
Vornado Realty Trust (NYSE:VNO - News) said Tuesday its fourth-quarter funds from operations rose to $211.8 million, or $1.34 a share, from $194.1 million, or $1.26. a year earlier. The Paramus, N.J., real-estate investment trust said net income for the three months ended Dec. 31, fell to $105.4 million, or 69 cents a share, or $105.7 million, 71 cents, a year earlier.
Warnaco Group Inc.'s (NasdaqGS:WRNC - News) fourth-quarter net income nearly tripled to $18.9 million, or 41 cents a share, as the New York apparel company's revenue grew 36% to $480.6 million.
Washington Group International Inc. (NasdaqGS:WGII - News) reported fourth-quarter earnings of $28.9 million, or 95 cents a share, up 42%. Revenue at the Boise, Idaho, provider of design, engineering and construction services was $855.3 million vs. $899.4 million.
WebSideStory Inc.'s (NasdaqGM:WSSI - News) swung to a fourth-quarter loss of 7 cents a share, from profit of 28 cents a share, a year earlier. The San Diego provider of on-demand digital marketing and customer analysis applications said revenue increased 55% to $18.2 million.
Xerox Corp. (NYSE:XRX - News) cut its first-quarter earnings estimate to account for restructuring charges at its 25%-held Fuji Xerox.

Labels: SAH, SONC, SYMC, TGT, THC, THLD, URI, USU, VNO, WGII, WRNC, WSSI, XRX

Abercrombie & Fitch Co. (NYSE:ANF - News) said a special litigation committee established by the board found that there is no evidence to support claims asserted in certain derivative lawsuits brought against current and former directors and management, including Chairman and Chief Executive Michael Jeffries.
AMB Property Corp. (NYSE:AMB - News) said its board has raised the quarterly cash dividend 8.7% to 50 cents per share. The dividend is payable April 16 to shareholders as of April 6.
Bare Escentuals Inc. (NasdaqGS:BARE - News) filed with the Securities and Exchange Commission to offer 12 million shares. The beauty products company said it's offering 575,000 of the shares, while selling stockholders are offering an additional 11.4 million shares.
Gilead Sciences Inc. (NasdaqGS:GILD - News) said the Food and Drug Administration has granted priority review status to its new drug application for ambrisentan, a treatment for pulmonary arterial hypertension.
Harley-Davidson Motor Co. (NYSE:HOG - News) said it has reached a tentative labor agreement with representatives of the International Association of Machinists and Aerospace Workers Local 175 in York, Pa. The motorcycle manufacturer said the agreement is subject to membership ratification, adding that it expects members to vote the week of Feb. 19. If approved, the agreement would end a strike by 2,800 unionized employees in York that began Feb. 2.
K2 Inc. (NYSE:KTO - News) said it has named J. Wayne Merck president, chief executive, and board member. The provider of sporting and recreational products said Merck, who has been president and chief operating officer since November of 2003, succeeds Richard Heckmann as CEO.
Krispy Kreme Doughnuts Inc. (NYSE:KKD - News) said it has closed a new senior secured credit facility of $160 million, made up of a $50 million revolving credit facility and a $110 million term loan. The doughnut retailer said proceeds of the term loan were used to repay about $107 million outstanding balance under the company's prior credit facility, and to pay fees and expenses related to the new financing and the retirement of the prior facility.
Power-One Inc. (NasdaqGM:PWER - News) said Chief Financial Officer Paul Ross plans to resign to accept another position. The maker of power conversion products named Jeffrey Kyle to succeed Ross as CFO.
Scotts Miracle-Gro Co. (NYSE:SMG - News) said its board has declared a one-time cash dividend of $8 per share. The dividend is payable March 5 to shareholders as of Feb. 26.
Don Ackerman, chairman of WCI Communities Inc. (NYSE:WCI - News), said Carl Icahn's plans to run his own slate of candidates for the WCI Board "would be highly disruptive to our company and not in the best interests of all our shareholders."
Xerox (NYSE:XRX - News) said it expects 2007 operating cash flows to fall to a range of $1.2 billion to $1.5 billion from $1.6 billion last year. The forecast confirms an estimate for cash flows made at an investor meeting in November.
Published By MarketWatch

Labels: AMB, ANF, BARE, GILD, HOG, KKD, KTO, PWER, SMG, WCI, XRX