Jim Cramer Blog

JP Morgan Chase (NYSE:JPM) reported first quarter earnings of $0.68, beating estimates by $0.04. JPM's Short term PowerRating is 5.
Intel (NasdaqGS:INTC) also beat estimates by $0.04 and issued Q2 guidance in-line. INTC's Short term PowerRating is 5.
comScore reported the number of people clicking Google's paid search ads fell for the third straight month. Google (NasdaqGS:GOOG) is scheduled to report earnings after the close on Thursday. GOOG's Short term PowerRating is 5.
After the market close, eBay (NasdaqGS:EBAY) reported earning of $0.42, beating estimates by $0.03. EBAY's Short term PowerRating is 4.
And, International Business Machines (NYSE:IBM) beat estimates by $0.20 and issued an upbeat forecast. IBM's Short term PowerRating is 5.
Before the market open, Merrill Lynch (NYSE:MER) is scheduled to report, with analysts looking for a loss of -$1.99 per share. MER's Short term PowerRating is 5.
Pfizer (NYSE:PFE) is also due to report and expectations are pegged at $0.66. PFE's Short term PowerRating is 4.

Labels: Ebay, GOOG, IBM, MER, pfe, Stocks to Watch

Altria (MO), Bank of America (BAC), Chevron (CVX), Honeywell (HON), Conco-Phillips (COP), Freeport-McMoran (FCX), Schlumberger (SLB), American International Group (AIG), Pfizer (PFE), Cisco (CSCO)
Cramer was disappointed with Dow Jones' facelift which involved getting rid of Altria, and Honeywell, and adding Bank of America and Chevron. Three economic themes Cramer thinks should have been expressed in the Index changes are the growing importance of natural resources, the dwindling power of the financial sector and international growth. None of these themes were reflected in today's choices, Cramer commented. He said a financial should have been removed rather than added to the Dow, COP would have been a better choice than CVX, and would have considered including FCX or SLB in addition to keeping HON. He would have dropped AIG which is a travesty masquerading as an insurance company whose CEO, Martin Sullivan, was recently added to Cramer's Wall of Shame. He would also give Pfizer the pink slip, and would consider adding CSCO, since it is diversified.
Raytheon (RTN)
In spite of Goldman's Sachs note of Early indications of slowing growth in defense spending..., the military budget keeps growing; President Bush is asking for a $515 million for 2009 which is a 7.5% increase. Cramer likes RTN in this space because it has strong international sales, and is up 25% since Goldman's downgrade last March, but he would wait for a pullback before buying.
McDonald's (MCD), Darden (DRI)
One month of data does not justify a bearish position on a restaurant stock, said Cramer, noting McDonald's $6 rise since Bear Stearns hastily downgraded the stock for weak December same store sales (January same store sales increases 5.7%) An even faster kneejerk (or, rather, prejerk) occurred when Darden was downgraded only a few minutes before its better-than-expected guidance was released. The moral of the story, according to Cramer, is that when analysts unfairly downgrade stock on scant data, it is time to buy. Cramer would buy MCD now even though it has risen a bit.
Published By SeekingAlpha

Labels: AIG, BAC, COP, CSCO, CVX, DRI, FCX, HON, Jim Cramer, Mad Money, MCD, MO, pfe, RTN, SLB

Pfizer Inc., the world's largest drugmaker, said Wednesday its fourth-quarter profit fell 70 percent from year-ago results that included hefty gains on the sale of the company's consumer health business.
Its adjusted profit and sales both topped Wall Street expectations, and the maker of the top-selling drug Lipitor raised its fiscal 2008 revenue outlook.
For the three months ended Dec. 31, net income fell to $2.88 billion, or 42 cents per share, from $9.45 billion, or $1.32 per share, a year ago, which included divestiture gains of $1.11 per share. Excluding items, net income in the latest period totaled $3.6 billion, or 52 cents per share.
Revenue climbed 4 percent to $13.07 billion from $12.60 billion in the 2006 period, as international sales -- buoyed by the weaker dollar -- helped offset the loss of patent protection on blood pressure drug Norvasc and antidepressant Zoloft.
The results beat expectations of analysts polled by Thomson Financial, who forecast fourth-quarter profit of 47 cents per share on $12.19 billion in revenue.

Labels: pfe, Pfizer Inc.

The Dow closed down 211 points and the Nasdaq finishing down 34. The S&P 500 has now given up all of its gains on the year. Najarian continues to like the four horseman names like Apple (AAPL), Google (GOOG) and Research In Motion (RIMM) which showed strength on Wednesday. Adami recommended getting long General Motors (GM) right here with a specific stop price in mind. Finerman found it strange that Fannie Mae (FNM) went up Wednesday. Crude oil came close to $100 on Wednesday, but fell just short and finished the day at $97.19. Gartman feels the stock market is behaving horribly and he is short names like Harley-Davidson (HOG), Tiffany (TIF) and Coach (COH) and long Microsoft (MSFT)and Apple (AAPL). Gartman's favorite position right now is short Cummins (CMI).
CNBC Pharmaceuticals Reporter Mike Huckman joined the show to discuss his take on big pharma stocks. Huckman explained that Pfizer (PFE) is having issues with safety concerns on a stop smoking drug, falling Lipitor sales and generic competition. Huckman also mentioned that Merck (MRK), Eli Lilly (LLY) and Bristol Myers (BMY) were all down on Wednesday. Finerman likes Johnson & Johnson (JNJ).
Investors tend to sell their biggest losers towards the end of the year to reduce the tax hit they take from their winners. Some of the names at 52-week lows are Citigroup (C), Pfizer (PFE), Merck (MRK), J.C. Penny (JCP), Capital One Financial (COF), Advanced Micro Devices (AMD) and AIG (AIG).
Word on the Street
Macke recommended buying The Gap (GPS) on dips. Finerman likes Limited (LTD) on valuation. Adami suggested buying Citi Trends (CTRN) ahead of earnings for Monday. Najarian likes Target (TGT) for its valuation in retail.
Deere & Company (DE) traded up 5% after profits rose 52%.
Najarian suggests looking at Agco (AG)
Najarian noted strong call options trading activity on Tibco Software (TIBX).
Pops & Drops
Pops - Google (GOOG) traded up 2%
U.S. Steel (X) traded up 5% also bucking the down trend in the market.
Drops - Tesoro (TSO) fell 3%
American International Group (AIG) fell 6%.
Circuit City (CC) fell 6% after a JPMorgan analyst downgraded the stock.
Jamba Juice (JMBA) plunged 30%
Final Trade
Macke says don't buy stocks if you don't have to and Adami and Finerman just gave thanks in the holiday spirit.
Najarian likes Apple (AAPL) and he thinks the stock will explode into January.

Labels: AAPL, BMY, CMI, CNBC, CNBC's Fast Money, COF, COH, Fast Money Recap, FNM, GM, GOOG, HOG, LLY, LTD, MRK, MSFT, pfe, RIMM, TGT, TIF

Victors: Apple (AAPL) crushed Wall Street estimates by reporting a 67% jump in profits. Najarian says it's an amazing number and everything is working. He owns the stock and continues to stay long. American Express (AXP) beats expectations and trades higher after hours. Merck (MRK) reports a 62% jump in third quarter profits and the stock trades higher. Macke continues to be bullish on Merck. Adami suggests looking at Pfizer (PFE) on a valuation basis.Homebuilding stocks were strong on Monday with the Homebuilders ETF (XHB) trading up 3%. Finerman mentions that a private equity group Hellman & Friedman bought Goodman Global (GGL) for $2.65 billion and tells viewers to trade off that news by going long MDC Holdings (MDC).
Victims: Texas Instruments (TXN) shares dip on the chip maker's outlook that was below Wall Street estimates. Najarian hinted that Texas Instruments isn't managed as well as Apple (AAPL) and he would rather own Apple. Adami counsels investors to buy Intel (INTC) off the TXN numbers. Alos, crude oil and gold both fell 1% Monday as the dollar gains strength.
Merrill Lynch (MER) is set to report earnings on Wednesday. CNBC's Charlie Gasparino discussed his take on Merrill. Insiders at Merrill tell him that some are calling for CEO Stan O'Neal's head. Even outside shareholders want him out. Macke tells investors not to bother buying this stock. Gasparino is now giving O'Neal 8-to-1 odds of being removed as CEO.
SanDisk Corporation (SNDK) co-founder, president and COO Sanjay Mehrotra joined the shpw to discuss his firm's prospects. Mehrotra says demand remains strong especially for the mobile phone segment of the business. He sees continued growth for SanDisk in 2008 and higher profitability.
OIL: Higher oil prices may actually cause BP (BP) and Exxon (XOM) to report a decline in profit for the first time in 5 years. Finerman wants to short tanker stocks like Teekay (TK) because of declining tanker rates.
Retail: Amazon.com (AMZN) is set to report earnings Tuesday after the bell. Macke loves the stock and thinks they will blow out the earnings. Finerman prefers Target (TGT) and Wal-Mart (WMT) and she hopes they trade lower so that she can buy more for her hedge fund. Adami is partial to United Parcel Services (UPS)
Pops & Drops
Pops- Altria (MO) trades up 1% after a UBS upgrade. Finerman is bullish on Altria.
Kimberly Clark (KMB) trades up 5% after posting strong profit numbers.
ExpressJet Holdings (XJT) trades up 16% after the firm announced possible plans of going private.
Sears Holdings (SHLD) popped 4% after a positive mention in Barron's. Finerman would rather be long Target (TGT).
Royal Caribbean Cruises (RCL) traded up 8% after reporting strong profits. The stock is working for Macke.
Radiation Therapy Service exploded higher by 44% after Vestar Capital Partners took the company private.
Lululemon Athletica (LULU) traded up 5% after the firm raised third-quarter estimates and Adami would buy it.
Final Trade
Macke counsels investors to buy Short Dow30 ProShares (DOG).
Adami likes Intel (INTC).
Finerman recommends Covidien (COV).
Najarian offers up Yahoo! (YHOO) for a play on Alibaba.

Labels: AAPL, AMZN, AXP, CNBC, Fast Money, Fast Money Recap, GGL, INTC, MDC, MER, MRK, pfe, SNDK, TXN, XHB, XOM

Technology
Google (GOOG) reported quarterly profits that soar 46% and the search giant added 2,130 employees in the third quarter. Nokia (NOK) traded higher after earnings nearly doubled and global market share rose to 39%.
The big pharmaceutical companies will have earnings rolling in with Pfizer (PFE), Eli Lilly (LLY) and Wyeth (WYE) set to report Thursday and Merck (MRK) and Schering-Plough (SGP) set to report Monday. Pfizer issued news that it will no longer sell Exubera which is an inhalable insulin device. This news took down Alkermes (ALKS), MannKind (MNKD) and Nektar (NKTR). Finerman continues to believe that Merck will buy Biogen (BIIB).
Word on the Street
Advanced Micro Devices (AMD) reported a quarterly loss but, revenues soared. Adami suggests trading off of AMD with Dell (DELL). However, Macke would buy Microsoft (MSFT) based on this news. Baxter (BAX) traded higher after earnings beat Wall Street estimates. Najarian recommends looking at Intuitive Surgical (ISRG). Bank of America (BAC) traded lower after reporting a 32% drop in earnings. Capital One Financial (COF) reported a third quarter loss as profits fell 32%. Najarian would sell Capital One Financial and buy State Street (STT) and JPMorgan (JPM). Wal-Mart (WMT) announces plans to drop prices ahead of the holiday season. Finerman maintains that Wal-Mart is attractive on valuation and she owns the stock.
Rail Trade: Finerman and Adami picked CSX (CSX) in the rail space. Najarian's favorite was Burlington Northern (BNI) and Macke prefers Union Pacific (UNP).
Oil: As oil continues to hit record highs, Najarian proposes playing off oil with solar stocks and recommends buying Cypress Semiconductor (CY), SunPower (SPWR), JA Solar (JASO) and Suntech (STP). Macke favors NRG Energy (NRG). Adami says buy Shaw Group (SGR) for a play on nuclear power.
Pops & Drops
Pops - Callaway Golf (ELY) traded up 12% on higher profits.
Drops - Allstate (ALL) dropped 4% after revenues fell 16%.
iShares FTSE/Xinhua China 25 Index Fund (FXI) fell 3%.
American Standard (ASD) fell 5% after cutting its 2007 forecast.
Final Trades
Macke recommends Intel (INTC).
Adami would short Exxon Mobil (XOM) for the second day in a row.
Finerman is a buyer of Limited Brands (LTD) on a pullback after the retailer was replaced in the S&P 100 index.
Najarian loves and owns Cypress Semiconductor (CY).

Labels: ALKS, AMD, CNBC, Fast Money, Fast Money Recap, GOOG, LLY, MRK, NOK, pfe, WYE

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
eBay (NasdaqGS:EBAY - News) smashed earnings expectations on Wednesday, announcing $0.41 EPS over an expected $0.33 EPS. EBAY's PowerRating (for Traders) is 5.
Alliance Data (NYSE:ADS - News) also beat earnings Wednesday, with $1.01 EPS over a consensus of $0.93 EPS. ADS's PowerRating (for Traders) is 5.
Bank of America (NYSE:BAC - News) reports earnings on Thursday before the bell, with analysts looking for $1.06 EPS. BAC's PowerRating (for Traders) is 5.
Commerce Bancorp (NYSE:CBH - News) is looking to report $0.41 EPS before the market opens on Thursday morning. CBH's PowerRating (for Traders) is 7.
Dow Jones (NYSE:DJ - News) should report $0.22 EPS on Thursday morning before the bell. DJ's PowerRating (for Traders) is 5.
Analysts are watching for Continental Airlines (NYSE:CAL - News) to report $2.19 EPS on Thursday before the market opens. CAL's PowerRating (for Traders) is 5.
Pfizer (NYSE:PFE - News) should announce $0.52 EPS tomorrow morning. PFE's PowerRating (for Traders) is 5.

Labels: ADS, BAC, CAL, CBH, DJ, Ebay, Hot Stocks, pfe

Intel (INTC) reported strong quarterly earnings and traded up after hours on the robust numbers. Macke likes Intel's margins and revenue estimate bump, and Adami suggests buying Intel above $27 with a stop at $26.50. Their CFO, Andy Bryant, joined the show to discuss their numbers. Bryant says the company saw the highest quarter-to-quarter revenue growth in 10 years. Adami favors Dell (DELL) off this worldwide demand. Macke suggests getting into Microsoft (MSFT). Najarian thinks the trade off of Intel is Apple (AAPL). Yahoo (YHOO) also traded higher after hours. Adami says IBM (IBM) fell short a bit on gross margins and hardware revenue in other tech earnings.
Word on the Street
Tuesday the Dow dropped 71 points and oil hit another high above $88 a barrel on geopolitical concerns that Turkey might attack Iraq. The crew offered up their trades based on these events. In the health care sector, Bristol-Myers (BMY) received Food and Drug Administration approval for breast cancer treatment Ixempra. Najarian likes Bristol. Adami likes Pfizer (PFE) into earnings. Finerman bought some Biogen Idec (BIIB). Johnson & Johnson (JNJ) reported a drop in profits off of poor heart stent sales. In regards to oil Adami likes Apache (APA) and he believes it'll go to $105. Adami doesn't think the $80-to-$90 move in oil is a good thing for the overall stock market. Finerman still likes ConocoPhillips (COP) for a play on rising oil prices.
Banking: Najarian noticed some unusual options activity in some regional banks on Tuesday. He saw heavy trading in PNC Bank (PNC) options.
CSX Corp (CSX) reported strong third-quarter earnings after the bell. Macke says the railroad stocks have pulled back and could offer a decent entry here. Adami believes CSX is a buy. Finerman has been looking at FreightCar America (RAIL).
AT&T (T) has hired Goldman Sachs to look into buying EchoStar (DISH).
Ericsson (ERIC) crashed 24% after issuing an earnings warning.
Dennis Gartman, author of The Gartman Letter, joined the show to discuss his take on crude oil. He doesn't believe we will get $100 oil, but if it does move that high it won't last long. He would play natural gas with United States Natural Gas Fund (UNG), San Juan Basin Royalty Trust (SJT) and Pengrowth Energy Trust (PGH).
eBay (EBAY) is set to report earnings on Wednesday after the bell.
Kraft (KFT): Wall Street whale and activist shareholder Nelson Peltz could be ready to make some noise at Kraft.
Pops & Drops
Pops: Supervalu (SVU) traded up 6% on a strong profits report.
Bear Stearns (BSC) traded up 2% after a Chinese investment firm expressed interest in acquiring a stake in the brokerage.
Marriott (MAR) traded up 4% on rumors of a takeover.
E.W. Scripps (SSP) traded up 9% after the company announced plans to split into two companies. Macke advises selling the pop.
Saks (SKS) traded up 5% on takeover speculation. Finerman isn't buying the rumors.
Robbins & Myers (RBN) exploded up 18% on strong fourth-quarter profits. Finerman believes this is a great earnings story.
Drops: Amylin (AMLN) fell 5% after the FDA said diabetes drug Byetta might cause pancreatitis. Najarian says this is negative news.
Domino's Pizza (DPZ) crashed 14% after taking a hit on profits from the rising costs of cheese and declining customer visits. Macke advises getting long beer stocks shorting pizza stocks.
Final Trade
Macke recommends Microsoft.
Adami suggests buying Intel.
Finerman favors Kraft.
Najarian says the options activity in EchoStar has him bullish on the satellite firm.

Labels: AAPL, ATT. T, BIIB, BMY, CNBC, COP, DELL, ERIC, Fast Money, Fast Money Recap, IBM, INTC, MSFT, pfe, RAIL, YHOO

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.
Men's Warehouse (NYSE:MW - News). MW's PowerRating (for Traders) is 7.
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.
Infineon Technologies (NYSE:IFX - News). IFX'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.
Integra Lifesciences (NasdaqGS:IART - News). IART's PowerRating (for Traders) is 6.
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.
Cardinal Health (NYSE:CAH - News). CAH'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.
Pfizer (NYSE:PFE - News). PFE's PowerRating (for Traders) is 4.
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.
Tyson Foods (NYSE:TSN - News). TSN'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.
Interoil Corporation (NYSE:IOC - News). IOC's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: CAH, Hot Stocks, IART, IFX, IOC, MW, pfe, TSN

General Motors (GM): Hit with its first nationwide strike in 37 years, and the crew at Fast Money was focused on what it means to the market. Adami: has been consistently negative on GM and would rather own Ford (F). Macke agrees that GM is a sell, unless they take a huge hit on health care without giving job guarantees.
Online Ad Play: Microsoft (MSFT) made headlines today as rumors floated around Wall Street that the firm is planning on taking a 5% stake in Facebook.com. Kourosh Karimkhany, manager of wired digital at Conde Naste, sees Microsoft's play for Facebook as one for software development. Macke: time to get long MSFT. Najarian prefers ValueClick (VCLK) and Focus Media (FMCN). Tuesday will be a big day for Microsoft as they will release the hyped up Halo 3 game which is predicted to be the biggest selling game ever.Macke proposes investors play Halo 3 with trades in Gamestop (GME) and Activison (ATVI). He advises getting out of Sony (SNE).
Drug Trade: The UBS health care industry conference could help jump start some of the pharmaceutical and biotech stocks this week. Adami suggests Pfizer (PFE). Najarian: Myraid Genetics (MYGN) and Quest Diagnostics (DGX). Macke: Johnson & Johnson (JNJ).
Burning Down the House: The homebuilders sector was annihilated on Monday, as investors fear more bad news is on the way when the government reports existing home sales data Tuesday. Adami advises not to trade this sector unless you have to. Finerman: stay away from WCI Communities (WCI) and Hovnanian (HOV).
Chartology: Technical analysis expert Jeff DeGraaf was on the show. DeGraaf likes the technology sector right now and he thinks it will outperform in the coming months. He feels positive about tech because the sector was strong in the summer when it normally tends to trade down. DeGraaf looked at Fedex (FDX) and the chart isn't showing bullish trends. Adami: doesn't like FDX until it trades above $121 and DeGraaf agreed. DeGraaf: loves the pattern in gold and continues to be bullish longer term on the yellow metal. He would look to buy gold on pullbacks.
Word on the Street: Target (TGT) lowered same-store sales on Monday. SABMiller reported an 11% jump in beer volumes on Monday. Macke likes Molson Coors (TAP). Najarian likes BHP Billiton (BHP) and copper and gold producer Freeport McMoRan (FCX).
Alternative Energy: NRG Energy (NRG) submitted its first application for a new US nuclear reactor in 30 years. Najarian would play this news with (BHP) Billiton and Cameco (CCJ). Finerman: Flowserve (FLS) and Adami likes Fluor Corp (FLR). Macke would just play NRG Energy (NRG). Trina (TSL) traded higher 8% as solar stocks were active with a major solar conference started. Najarian likes TSL.
Pops & Drops
Pops- Crocs (CROX) traded up 9%. Adami thinks a big short was forced to cover on Monday. He would take profits on CROX.
NYSE Euronext (NYX) traded up 2% off a JP Morgan upgrade. Finerman continues to be long this stock and she feels it has more room to run higher.
Las Vegas Sands (LVS) traded up 7% off a Jeffries upgrade. Macke says time to get out.
PrimeWest Energy Trust (PWI) exploded 32% on news that Abu Dhabi National Energy Co. bought them out. Finerman hopes we keep seeing deals like this.
EMC Corporation (EMC) traded up 8% after Citigroup and Bear Stearns upgraded the name. Adami still likes it.
Drops- AMR Corp (AMR) fell 14% after revenue forecasts missed Wall Street expectations. This drop took down all the airline companies for the day.
Harman (HAR) dropped 6% after the company said profits would miss Wall Street expectations. Finerman wouldn't touch it.
Adtran (ADTN) plunged 14% after the telecom company warned on 3rd quarter earnings and revenue. Macke suggests avoiding these guys on the telecom side.
Final Trade:
Finerman: likes NYMEX (NMX)
Najarian: ValueClick (VCLK).
Adami: Pfizer (PFE) for its cheap valuation.
Macke: Short Dow30 ProShares (DOG).

Labels: ATVI, CNBC, CROX, DGX, EMC, Fast Money, FDX, FMCN, GM, GME, HOV, JNJ, MSFT, MYGN, NYX, pfe, SNE, VCLK, WCI

Bulls were in a buying mood today after investors picked up stocks in anticipation of more deals coming to Wall Street. At the end of trading, all three major averages gained more than 1%. Leading the advance was the tech-laden Nasdaq, which gained 1.3%. Over in the energy sector, oil continued to sell off, ending the session at $69.26, down -31 cents.
The nation's four largest money center banks, Citigroup (NYSE: C - News), JP Morgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News), and Wachovia (NYSE: WB - News) all reported today that they borrowed $500 million each from the Federal Reserve's discount window on behalf of clients. The move was aimed at showing confidence amid a spreading credit crunch. The borrowing event comes after the Fed cut the discount rate by 50 basis points last Friday.
Staying on the topic of the recent credit crunch, shares of tax services company H&R Block (NYSE: HRB - News) fell -1.8% after it had to draw down bank credit lines when its Block Financial Unit was locked out of the commercial paper market. The company said it took down a net of $650 million in working capital lines.
On the news front, pharmaceutical giant Pfizer (NYSE: PFE - News) said it hired Frank D'Amelio to serve as its chief financial officer (CFO) replacing Alan Levin, who announced his resignation in May. D'Amelio recently served as SVP and chief administrative officer of Paris-based Alcatel-Lucent (NYSE: ALU - News).
Shares of energy exchange NYMEX Holdings (NYSE: NMX - News) rose 6.1% after the company officially announced that it is in talks with potential parties regarding a business combination. It also said it could cut 150 jobs and sell its Manhattan headquarters, which it thinks could fetch north of $500 million. Meanwhile, rumors swirled that Ameritade (Nasdaq: AMTD - News) and E*Trade (Nasdaq: ETFC - News) could merge following a report in The Wall Street Journal that the two sides were in talks.
Lastly, on the earnings front, medical device maker Medtronic (NYSE: MDT - News) said net income rose 13% to $675 million, or 59 cents a share, up from $599 million, or 51 cents a share, last year. Sales increased 8% to $3.13 billion. Excluding one-time items, it reported earnings of $711 million, or 62 cents a share, in line with what analysts had expected. Shares fell -0.4%.
By the BullMarket.com Staff

Labels: ALU, AMTD, BAC, C, ETFC, HRB, JPM, MDT, NMX, pfe, WB

PepsiCo (NYSE: PEP - News), Pfizer (NYSE: PFE - News), Schering-Plough (NYSE: SGP - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Altria (NYSE: MO - News), CVS Caremark (NYSE: CVS - News), MedcoHealth (NYSE: MHS - News), Cardinal Health (NYSE: CAH - News)
Cramer says almost everyone, including him, is "getting killed" in this market, and he wants viewers to understand "why it's so cataclysmic out there, so at least they have the grounding to say, 'OK, I'm willing to ride this out." While some suggest getting out of stocks, Cramer recognizes many people invest for the long term. However, he added; "What I'm trying to do is focus on what can work and what will really be hurt, not what's working, because nothing's working." Cramer said he got through the credit crunch in 1990s by focusing on the bull market and on 20 stocks that weren't losing. Examples may be PEP, PFE, SGP, K, GIS, MO, CVS, MHS, CAH. While he may have 10 to 1 bears out of every stock pile, Cramer urges viewers to "recognize that as the Federal Reserve continues to do a de facto tightening, you're going to continue to have spillover."
Published by SeekingAlpha

Labels: CAH, CVS, GIS, Jim Cramer, K, MHS, MO, PEP, pfe, SGP, Wall Street Confidential

Pepsi (NYSE: PEP - News), Procter & Gamble (NYSE: PG - News), Schering-Plough (NYSE: SGP - News) and Pfizer (NYSE: PFE - News): Cramer says the household goods sector is healthy given Pepsi's rise after Goldman Sach's downgrade. He also likes PG and SGP. He commented this sector did well during the 1990s' credit crisis which he compares to current subprime woes. Cramer would even think about Pfizer on the principle that "if anything good happens at Pfizer, you've got a good upside."

Labels: Jim Cramer, PEP, pfe, PG, SGP, Stop Trading

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.

CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."

Published By SeekingAlpha

Labels: AIG, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, VZ

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Bear Stearns Companies Aug 155 Calls (NYSE:BSC - News). BSC's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Google Inc. Sep 490 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Baidu.com Aug 230 Calls (NasdaqGS:BIDU - News). BIDU's PowerRating is 8.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Southern Copper Corp. Sep 100 Puts (NYSE:PCU - News). PCU' PowerRating is 3.
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.
Seaspan Corp. (NYSE:SSW - News). SSW's PowerRating is 4.
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.
SPDR S&P Homebuilders (AMEX:XHB - News). XHB's PowerRating is 4.
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.
Pfizer Inc. (NYSE:PFE - News). PFE's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, BSC, GOOG, PCU, pfe,