Traders-Blog.com

Please do your own research, and verify all information before acting on it. This summary of Cramer’s picks is not intended to replace watching the shows, where his comments about the stocks often include advice about entry and exit points.

Bullish
Advanced Micro Devices (AMD) ($30 target) (Lightning Round)
Allegheny Technologies (ATI) (Lightning Round)
Allergan (AGN) (mentioned on Mad Money)
Ameritrade (AMTD) (RealMoney Radio)
Ameritrade (AMTD) ($19 target) (mentioned on Stop Trading!)
AMN Healthcare (AHS) ($32 target) (RealMoney Radio)
Boeing (BA) (RealMoney Radio)
Boston Scientific (BSX) (Lightning Round)
Caterpillar (CAT) (Lightning Round)
Caterpillar (CAT) (mentioned on Mad Money)
Charles Schwab (SCHW) (mentioned on Stop Trading!)
Coca-Cola (KO) ($50 target) (RealMoney Radio)
Crystallex (KRY) (mentioned on Mad Money)
Cummins (CMI) (Lightning Round)
E*Trade (ET) (mentioned on Stop Trading!)
Electronic Arts (ERTS) (Lightning Round)
FedEx (FDX) (mentioned on Mad Money)
Ford (F) (RealMoney Radio)
Google (GOOG) (RealMoney Radio)
Halliburton (HAL) (Lightning Round)
Halliburton (HAL) (mentioned on Mad Money)
International Flavors & Fragrances (IFF) (mentioned on Mad Money)
Johnson & Johnson (JNJ) (Lightning Round)
Level 3 Communications (LVLT) (Lightning Round)
Life Time Fitness (LTM) (Lightning Round)
Medicis Pharmaceutical (MRX) (mentioned on Mad Money)
OM Group (OMG) (Lightning Round)
Rare Hospitality (RARE) (Lightning Round)
Rite Aid (RAD) (RealMoney Radio)
Rite Aid (RAD) (Lightning Round)
Rockwell Automation (ROK) (Lightning Round)
SAIC (SAI) ($20 target) (Lightning Round)
Symantec (SYMC) (Lightning Round)
Tribune (TRB) (RealMoney Radio)
USG (USG) (RealMoney Radio)
Wal-Mart (WMT) (RealMoney Radio)
Walgreen (WAG) (RealMoney Radio)
Whirlpool (WHR) ($100 target) (Lightning Round)
Wrigley (WWY) (buy on pullback) (RealMoney Radio)
Wrigley (WWY) ($60 target) (mentioned on Stop Trading!)

Bearish
Avon (AVP) (mentioned on Mad Money)
Bare Escentuals (BARE) (mentioned on Mad Money)
Cameco (CCJ) (Lightning Round)
Elizabeth Arden (RDEN) (mentioned on Mad Money)
Estee Lauder (EL) (mentioned on Mad Money)
Revlon (REV) (mentioned on Mad Money)
Schlumberger (SLB) (mentioned on Mad Money)
Secure Computing (SCUR) (Lightning Round)
UPS (UPS) (mentioned on Mad Money)
Valero Energy (VLO) (Lightning Round)

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Stocks rallied to a sharply higher close after plans by Wal-Mart Stores Inc. to improve profitability at its existing stores sparked a broader market rally, with gains for General Motors Corp, 3M Co. and others lending further blue-chip support. The latest round of solid corporate earnings and perhaps some speculative buying, pushed the Dow Jones industrial average up more than 100 points to another record close.

Today, the Dow Jones Industrial Average closed up 114.54 points or 0.95% at 12,116.91, the S&P 500 Index closed up 8.42 points or 0.62% at 1,377.02, and the Nasdaq Composite Index rose 13.26 points or 0.57% to 2,355.56.

Market breadth was mixed. On the New York Stock Exchange, winners beat losers 19 to 13 on volume of 1.554 billion shares. On the Nasdaq market, decliners edged out advancers 15 to 14 as 1.869 billion shares changed hands.

Results so far show that companies are having a strong earnings season, and things look strong. It appears as if investors are moving from fixed income and going into equities, in a bid to chase profits going into the fourth quarter. However, they are nervous as to whether the economy can handle a cooling period without slipping into recession.

Investors now await the Federal Reserve decision on interest rates due Wednesday. With growth slowing and inflation worries easing a little, most economists expect the central bank to leave its key federal funds rate unchanged at 5.25%. Wednesday, will provide data on existing-home sales while new-home sales data and a report on durable-goods orders would come out Thursday. The initial forecast on third-quarter economic growth will be released on Friday. The pace of U.S. economic growth is expected to have slowed to 2% from 2.6% in the second quarter.

Stock of Wal-Mart closed up 3.9% at $51.28, after discussing its future plans. The company will slightly slow down new-store growth in fiscal 2008 while significantly reducing capital expenditures. It will increase new-store growth throughout the world by about 7.5% next year, compared with an average 8% increase of recent years. Capital spending will run about 2% to 4% higher next year, compared with a 15% to 20% increase in the current fiscal year.

Shares of AT&T Inc. closed up 27 cents at $34.71. The company reported third-quarter net income jumped nearly 74%, lifted largely by acquisitions and results at the Cingular Wireless joint venture. The company earned $2.17 billion in its third full quarter of operations since the former SBC Communications bought the old AT&T and adopted its name. Revenue jumped 52% to $15.64 billion from $10.3 billion.

Forest Laboratories and partner Replidyne Inc. were hit hard by news that the FDA has given the thumbs down for their antibiotic candidate faropenem medoxomil. Shares of Replidyne plunged 45% to close at $5.59, while Forest shares skidded almost 6% to $48.54. The FDA has stated that it would not approve the antibiotic unless more clinical trials were conducted.

Shares of Ford declined 1.4% to close at $7.90 after the automaker reported a wider third-quarter loss, reflecting difficulties in its operations and restructuring costs, and said that it would restate earnings going back five years for derivatives accounting. It reported a $5.8 billion third-quarter loss compared to $284 million last year. It also said that the current quarter’s operating results are shaping up to be even worse.

It is reported that Ripplewood Holdings LLC is preparing a likely $10 billion bid for Delphi Corp. The stock of Delphi rose 8.7% to $2.62. This push is being led by Thomas Stallkamp, a Ripplewood partner and former president of Chrysler. The bid would likely surpass $10 billion, as Ripplewood would be joined by other interested parties such as Appaloosa Management, a hedge fund, and Cerberus Capital Management LP, a private-equity firm.

Oil prices fell 48 cents to $58.85 a barrel on the New York Mercantile Exchange despite an announcement from Saudi Arabia that it would cut production. Oil traders have strong doubts that the rest of OPEC will follow Saudi Arabia’s lead and rein in production, regardless of what OPEC officially says.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
30-day risk-free trial

Please do your own research, and verify all information before acting on it. This summary of Cramer’s picks is not intended to replace watching the shows, where his comments about the stocks often include advice about entry and exit points.

Bullish
3M (MMM) (mentioned on Stop Trading!)
Akamai Technologies (AKAM) (Lightning Round)
Alaska Air (ALK) (mentioned on Mad Money)
Altria (MO) (mentioned on Mad Money)
Apple (AAPL) ($100 target) (Lightning Round)
Apple (AAPL) (RealMoney Radio)
ASV (ASVI) (Lightning Round)
AT&T (T) (mentioned on Mad Money)
Bank of America (BAC) (mentioned on Mad Money)
Bankrate (RATE) (mentioned on Mad Money)
Bare Escentuals (BARE) (Lightning Round)
BB&T (BBT) (Lightning Round)
Caterpillar (CAT) (target 10 points up) (mentioned on Stop Trading!)
Charles Schwab (SCHW) (RealMoney Radio)
Comcast (CMCSA) (mentioned on Mad Money)
Corning (GLW) (mentioned on Mad Money)
Diageo (DEO) (mentioned on Mad Money)
DivX (DIVX) (Lightning Round)
Du Pont (DD) (Lightning Round)
E*Trade (ET) (RealMoney Radio)
Exxon Mobil (XOM) (mentioned on Mad Money)
FedEx (FDX) (mentioned on Mad Money)
Ford (F) (mentioned on Mad Money)
General Motors (GM) (mentioned on Mad Money)
Goldman Sachs (GS) (RealMoney Radio)
Google (GOOG) (mentioned on Mad Money)
Google (GOOG) (RealMoney Radio)
IBM (IBM) (mentioned on Mad Money)
International Securities Exchange (ISE) (buy in stages) (RealMoney Radio)
Mattel (MAT) ($25 target) (Lightning Round)
Merck (MRK) ($50 target) (Lightning Round)
MetLife (MET) (mentioned on Mad Money)
Monster Worldwide (MNST) (mentioned on Mad Money)
Oracle (ORCL) (Lightning Round)
Oregon Steel (OS) (mentioned on Mad Money)
Parker Hannifin (PH) (mentioned on Stop Trading!)
SAIC (SAI) ($18.89 target) (Lightning Round)
SAIC (SAI) ($20 target) (RealMoney Radio)
Starbucks (SBUX) ($45 target) (RealMoney Radio)
TD Ameritrade (AMTD) (RealMoney Radio)
Terex (TEX) (mentioned on Stop Trading!)
The Knot (KNOT) (mentioned on Mad Money)
Under Armour (UARM) (Lightning Round)
Wells Fargo (WFC) (Lightning Round)
Whole Foods (WFMI) (RealMoney Radio)
World Wrestling Entertainment (WWE) (RealMoney Radio)
Yahoo! (be cautious)(YHOO) (RealMoney Radio)
Yahoo! (YHOO) (triple buy if CEO fired) (mentioned on Mad Money)

Bearish
Anheuser-Busch (BUD) (mentioned on Mad Money)
Bristol-Myers (BMY) (mentioned on Mad Money)
Broadcom (BRCM) (buy at $25) (Lightning Round)
CommVault Systems (CVLT) (Lightning Round)
Dow Chemical (DOW) (Lightning Round)
Molson Coors (TAP) (mentioned on Mad Money)
Occidental Petroleum (OXY) (Lightning Round)
Sony (SNE) (Lightning Round)

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Stocks ended mixed after a profit warning from Caterpillar Inc. wrapped up an otherwise largely positive week for quarterly earnings reports. While, the Nasdaq and the S&P rose, Caterpillar dragged the Dow industrials down from record levels.

Today, the Dow Jones Industrial average closed down 9.36 or 0.08% to 12,002.37, the broader S&P 500 index closed up 1.64 or 0.12% to 1,368.6, and the tech-laden Nasdaq index closed up 1.36 or 0.06% to 2,342.3. On the week, the Dow rose 0.3% while the S&P 500 gained 0.2%. The Nasdaq Composite logged a weekly loss of 0.6%.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 17 to 14 on volume of 1.63 billion shares. On the Nasdaq market decliners topped advancers 18 to 11 as 1.89 billion shares changed hands.

This week, the market has been able to overcome a little bit of adverse news in terms of data pointing to a slowdown in the economy, which has been somewhat balanced by benign PPI and CPI reports and an in-line earnings season so far. On balance there was no reason to go up and no reason to go down so the market chose the path of least resistance which at the moment is to move higher. The profit warning from Caterpillar fueled concerns that corporate earnings may be feeling the pinch of a slowing economy. It also caused investors to once again re-think the soft landing scenario for the economy. However, a further decline in oil prices helped limit market losses.

Shares of Caterpillar closed down $10.02 or 12% to $59, after profits rose but fell short of estimates. The company also warned of slower economic growth ahead. It said that a number of factors weighed on third-quarter results, costs related to settling a dispute with Navistar International Corp. and slowing machinery sales. Profits rose 15.3%, to $769 million, up from $667 million a year earlier. Sales rose 17% to $10.52 billion.

Shares of Google closed up $33.61 or 7% to $459.67, as profits nearly doubled. The company reported sales of $2.69 billion, up 70% from a year earlier. It reported a net income of $733 million, up 92% from last year. These results beat all market expectations.

Stock of 3M closed up $1.94 or 3% to $78.34, on reporting results that beat forecast. It reported third-quarter net income of $894 million, or $1.18 a share, up from $840 million, or $1.08 a share, a year earlier. Sales rose nearly 9% to $5.86 billion, above the $5.77 billion expected by the market. The company forecast a fourth-quarter EPS of $1.10 to $1.16.

Shares of Merck & Co closed up $1.15 or 2.6% to $45.64. The company has set aside an additional $598 million to fight lawsuits over its withdrawn painkiller Vioxx. The company raised its full-year 2006 earnings guidance to an EPS range of $2.48 to $2.52.

U.S. light crude fell $1.68 to $56.82 a barrel on the U.S. Mercantile Exchange. OPEC agreed to curb its output by 1.2 million barrels per day to halt a precipitous fall in prices. This reduction was deeper than anticipated and trims OPEC output to 26.3 million bpd from Nov. 1.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
30-day risk-free trial

Please do your own research, and verify all information before acting on it. This summary of Cramer’s picks is not intended to replace watching the shows, where his comments about the stocks often include advice about entry and exit points.

Bullish
Advanced Micro Devices (AMD) (mentioned on Mad Money)
Apple (AAPL) (mentioned on Mad Money)
Apple (AAPL) (RealMoney Radio)
AT&T (T) (RealMoney Radio)
AU Optronics (AUO) (Lightning Round)
Bankrate (RATE) (mentioned on Mad Money)
Best Buy (BBY) (RealMoney Radio)
Continental Airlines (CAL) (RealMoney Radio)
Continental Airlines (CAL) (sell some gains) (mentioned on Mad Money)
E*Trade (ET) (Lightning Round)
eBay (EBAY) (mentioned on Mad Money)
eBay (EBAY) (RealMoney Radio)
EuroZinc Mining (EZM) (Lightning Round)
Flir (FLIR) (Lightning Round)
Ford (F) (Lightning Round)
GameStop (GME) (’mon back at $47) (Lightning Round)
Genentech (DNA) (target $15 gain) (RealMoney Radio)
Google (GOOG) ($560 target) (mentioned on Mad Money)
Harley-Davidson (HOG) (RealMoney Radio)
JC Penney (JCP) (RealMoney Radio)
Johnson & Johnson (JNJ) (mentioned on Mad Money)
JPMorgan (JPM) (mentioned on Stop Trading!)
Knight Capital (NITE) (mentioned on Mad Money)
MasterCard (MA) ($80 target) (Lightning Round)
McDonald’s (MCD) (RealMoney Radio)
McGraw-Hill (MHP) (RealMoney Radio)
NICE Systems (NICE) (Lightning Round)
Pharmaceutical Product Development (PPDI) (Lightning Round)
Procter & Gamble (PG) (Lightning Round)
Senomyx (SNMX) (Lightning Round)
Southern Copper (PCU) (Lightning Round)
TD Ameritrade (AMTD) (Lightning Round)
Tempur Pedic (TPX) (Lightning Round)
The Knot (KNOT) (mentioned on Mad Money)
Toyota (TM) (RealMoney Radio)
Trump Entertainment (TRMP) (Lightning Round)
United Technologies (UTX) (’mon back at $64) (Lightning Round)
UnitedHealth (UNH) (too cheap to sell) (mentioned on Mad Money)
Walter Industries (WLT) ($10 gain target) (mentioned on Mad Money)
World Wrestling Entertainment (WWE) (CEO interview on Mad Money)

Bearish
C.R. Bard (BCR) (mentioned on Mad Money)
Circuit City (CC) (RealMoney Radio)
Citigroup (C) (mentioned on Stop Trading!)
Jefferies (JEF) (mentioned on Mad Money)
Lear (LEA) (mentioned on Mad Money)
Level 3 Communications (LVLT) (mentioned on Mad Money)
Red Hat (RHAT) (RealMoney Radio)
Santarus (SNTS) (mentioned on Mad Money)
Unilever (UL) (Lightning Round)

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Stocks ended higher with the Dow Jones Industrial Average closing above 12,000 for the first time after a raft of upbeat earnings reports led by Apple Computer Inc., eBay Inc and the Coca-Cola Co. eased concerns about a slowing economy. This record close came on the 19th anniversary of the stock market crash of 1987, in which the Dow fell 508 points, or 22.6% to 1,738.40.

Today, the Dow Jones Industrial average closed up 19.05 or 0.16% to 12,011.73, the broader S&P 500 index closed up 1.00 or 0.1% to 1,366.96, while the Nasdaq composite index closed up 3.79 or 0.16% to 2,340.94.

Market breadth was positive. On the New York Stock Exchange, winners beat losers five to three on volume of 1.6 billion shares. On the Nasdaq market advancers topped decliners 17 to 12 as 2 billion shares changed hands.

The 12,000 mark signifies a good strong market, and is particularly important for investor confidence because it comes in the middle of earnings season amid concerns of a slowing U.S. economy. A lot of companies are beating expectations giving us the likelihood of double-digit earnings growth in the third quarter, and possibly another quarter of double-digit growth in the fourth. This suggests the economy is not weakening as much as people expected and that we may get something a little bit better than a soft landing which will help to power earnings.

The factory sector in the Philadelphia region was flat for a second straight month in October, with the index falling to negative 0.7 from negative 0.4 in September. The new orders index rose to 13.4 in October vs. negative 1.3 in September. The shipments index rose to 5.3 in October vs. negative 6.8 in September. The price paid index fell to 32.0 in October vs. 38.1 in September. The index of leading indicators, a gauge of future growth, rose 0.1% in September after falling in July and August. This suggests that economic growth should continue at the slow rate in the near term.

Stock of Apple Computer closed up $4.46 to $78.99, on reporting earnings that topped Wall Street expectations. Its profit soared 27% on strong sales of its Macintosh computers and iPod digital music players. Its income rose to $546 million, from $430 million last tear. Revenue jumped nearly 32% to $4.84 billion.

Shares of eBay closed down $0.29 to $28.49, despite better results that fell below expectations. The company also expects fourth-quarter revenue in a range from $1.62 billion to $1.68 billion, against the expected $1.60 billion to $1.73 billion. Net income during the third-quarter grew to $281 million, from the $255 million last year. Profit grew 30% to $332 million while net revenue rose 31% to $1.45 billion.

Stock of Advanced Micro Devices showed sign of the price war and closed down $3.22 or 13% to $21.01, on reporting improved earnings that fell short of expectations. Its third quarter net profit was $134.5 million, versus $76 million a year ago. These include a tax benefit of $21 million. Its average revenue rose 9% from the previous quarter while unit shipments were up 18%. This shows that the average selling price fell about 9%.

Shares of Citigroup closed down $0.32 to $49.87, despite reporting better-than-expected earnings. However, its revenue that fell short of forecasts. Its net income fell to $5.51 billion, from $7.14 billion last year. Income from continuing operations rose 6% to $5.3 billion, from $4.99 billion a year earlier.

Stock of Bank of America Corp closed down $0.55 to $53.26, despite reporting profits that topped estimate. Its third-quarter profit rose 41% to $5.42 billion, from $3.84 billion a year earlier. The EPS of $1.22 topped the average forecast of $1.16. Its revenue increased 32% to $18.65 billion. Card services revenue increased 137% to $5.33 billion. Fee income soared 57% to $10.07 billion, while lending income rose 11% to $8.59 billion.

Shares of Pfizer fell 1.5% to $27.48, despite reporting a dramatic jump in third-quarter earnings. It also announced that its top-line isn’t expected to grow again until 2009. It plans to buyback $10 billion in its stock during 2007. For the quarter, it reported a net income of $3.36 billion, compared to $1.59 billion last year.

Shares of Nokia fell 2.6% to $19.35 after it reported a 4% drop in third-quarter profit as it booked a restructuring charge and margins eroded at its mobile-phone business. Nokia’s results, nevertheless, topped expectations.

U.S. light crude gained 85 cents to settle at $58.50 a barrel on the New York Mercantile Exchange. Oil prices rose after Saudi Arabia said it supports a production cut of 1 million barrels a day.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
30-day risk-free trial

Please do your own research, and verify all information before acting on it. This summary of Cramer’s picks is not intended to replace watching the shows, where his comments about the stocks often include advice about entry and exit points.

Bullish
Altria (MO) (mentioned on Mad Money)
American Eagle Outfitters (AEOS) (RealMoney Radio)
AMR (AMR) (RealMoney Radio)
Apple (AAPL) (mentioned on Mad Money)
AT&T (T) (mentioned on Mad Money)
AU Optronics (AUO) (RealMoney Radio)
Bank of America (BAC) (target $3 gain) (RealMoney Radio)
Bankrate (RATE) (mentioned on Mad Money)
BellSouth (BLS) (RealMoney Radio)
Borders Group (BGP) (Lightning Round)
Caterpillar (CAT) (buy under $70) (Lightning Round)
CBOT (BOT) (RealMoney Radio)
CBS (CBS) (Lightning Round)
Cephalon (CEPH) (mentioned on Mad Money)
Chicago Mercantile Exchange (CME) (RealMoney Radio)
Chiquita (CQB) (mentioned on Mad Money)
Cognizant Technology (CTSH) (Lightning Round)
Continental (CAL) (RealMoney Radio)
Corning (GLW) (RealMoney Radio)
Costco (COST) ($57 target) (RealMoney Radio)
CSX (CSX) (Lightning Round)
Disney (DIS) (Lightning Round)
E*Trade (ET) (Lightning Round)
FedEx (FDX) (mentioned on Mad Money)
Ford (F) (mentioned on Mad Money)
Genentech (DNA) (Lightning Round)
Goldman (GS) (mentioned on Stop Trading!)
Hershey (HSY) (Lightning Round)
IBM (IBM) ($100 target) (RealMoney Radio)
J.C. Penney (JCP) (Lightning Round)
J.C. Penney (JCP) (RealMoney Radio)
JPMorgan (JPM) (mentioned on Stop Trading!)
Kaydon (KDN) (Lightning Round)
Kohl’s (KSS) (RealMoney Radio)
LM Ericsson Telephone (ERIC) (Lightning Round)
Mellon (MEL) (mentioned on Stop Trading!)
Monsanto (MON) (Lightning Round)
Nokia (NOK) (Lightning Round)
Nucor (NUE) (Lightning Round)
NYSE (NYX) (RealMoney Radio)
Parker Hannifin (PH) (wait for pullback) (mentioned on Stop Trading!)
Reliance Steel (RS) (Lightning Round)
Schering-Plough (SGP) (mentioned on Mad Money)
Sears (SHLD) (mentioned on Mad Money)
Sinclair Broadcasting (SBGI) (Lightning Round)
Sirius Satellite Radio (SIRI) (mentioned on Mad Money)
Smith & Wesson (SWHC) (mentioned on Mad Money)
Southern Copper (PCU) (buy on pullback) (mentioned on Mad Money)
Staples (SPLS) (Lightning Round)
Staples (SPLS) (RealMoney Radio)
Time Warner (TWX) (mentioned on Mad Money)
Under Armour (UARM) (mentioned on Mad Money)
UnitedHealth Group (UNH) (mentioned on Mad Money)
Valero Energy (VLO) (mentioned on Mad Money)
Varian Medical (VAR) (Lightning Round)
Wal-Mart (WMT) (mentioned on Mad Money)
Wendy’s (WEN) (Lightning Round)

Bearish
ConocoPhillips (COP) (Lightning Round)
Evergreen Solar (ESLR) (Lightning Round)
Family Dollar Stores (FOD) (Lightning Round)
Flamel Technologies (FLML) (Lightning Round)
Gibraltar Industries (ROCK) (Lightning Round)
Illumina (ILMN) (Lightning Round)
Jacobs Engineering (JEC) (Lightning Round)
JDS Uniphase (JDSUD) (Lightning Round)
Medtronic (MDT) (Lightning Round)
P.F. Chang’s (PFCB) (Lightning Round)
UPS (UPS) (mentioned on Mad Money)
XM Satellite Radio (XMSR) (Lightning Round)

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Stocks closed mixed with the Dow Jones Industrial Average failing to stay above 12,000, after it smashed through that barrier in early trade as IBM and Intel posted strong gains. The Dow soared after the latest reports on inflation and the housing market reassured investors. Corporate earnings and another drop in oil prices were also catalysts.

Today, the Dow Jones Industrial Average closed up 42.66 or 0.36% to 11,992.68, the broader S&P 500 index closed up 1.91 or 1% to 1,365.96, while the tech-fueled Nasdaq composite index closed down 7.80 or 0.33% to 2,337.15.

Market breadth was positive. On the New York Stock Exchange, winners edged out losers 9 to 7 on volume of 1.62 billion shares. On the Nasdaq market decliners edged out advancers 15 to 14 as 2.178 billion shares changed hands.

Investors bet that the economy, which is slowing, won’t tip into recession, and that corporate earnings will keep growing. Worries about the slowdown in housing have also lessened. The economic numbers support the idea of a soft landing, and moderation is the word that the market really likes. The market has been going up in small steps that indicate god health.

The tame consumer-price report and better-than-expected housing data helped set the positive tone in the market. The CPI fell an unexpectedly steep 0.5% in September but the core CPI, which excludes food and energy prices, rose 0.2%, in line with estimates. Analysts had predicted a fall of 0.3% for overall CPI. The pace of home building unexpectedly strengthened in September as new housing starts rose 5.9%.

Stock of JPMorgan Chase & Co closed down $0.78 or 2.3% to $47.21, despite reporting better than expected results. Its net income rose sharply on the back of record investment banking fees of $1.4 billion. However, analyst are worried about signs of weakness in traditional areas like credit cards, commercial banking and mortgage lending.

Shares of Intel closed up $0.25 or almost 1 % at $21.11 after its third-quarter earnings report showed signs of being past the worst of its problems. The EPS fell to 27 cents compared to the expected 18 cents. Its revenue declined 12% to $8.7 billion, a shade above the $8.6 billion expected.

Stock of IBM closed up $2.87 or 3% to $89.82, on beating forecast and on being upgraded by Goldman Sachs to a “buy” recommendation from neutral. The company reported a 47% rise in quarterly profit, after boosting software sales through acquisitions and improving hardware and services revenue.

Shares of Yahoo closed down $1.16 to $22.99, after reporting disappointing results. However, it also reported that its new search technology was now live. The company reported revenue of $1.12 billion, up 20% from a year ago, but below estimates of $1.14 billion. It also reported lower expectations in the next quarter. It has a net profit of $159 million, against $254 million a year earlier.

Shares of Motorola closed down $1.21 or 4.9% o $23.64, after the cell phone maker posted lower-than-expected quarterly revenues. Overall, there has been a 45% profit drop despite a 17% sales rise.

U.S. light crude for November delivery tumbled $1.28 to $57.65 a barrel on the New York Mercantile Exchange. Futures turned lower as traders mulled a mixed Energy Department report on weekly supplies of crude and its products.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
30-day risk-free trial

Please do your own research, and verify all information before acting on it. This summary of Cramer’s picks is not intended to replace watching the shows, where his comments about the stocks often include advice about entry and exit points.

Bullish
AMN Healthcare Services (AHS) (Lightning Round)
Arena Pharmaceuticals (ARNA) (Lightning Round)
Arena Pharmaceuticals (ARNA) (RealMoney Radio)
BE Aerospace (BEAV) (RealMoney Radio)
Bear Stearns (BSC) (RealMoney Radio)
Claire’s Stores (CLE) (Lightning Round)
Goldman Sachs (GS) ($225 target) (RealMoney Radio)
Goldman Sachs (GS) (Lightning Round)
IAC InterActiveCorp (IACI) (Lightning Round)
Johnson & Johnson (JNJ) (RealMoney Radio)
Lehman Brothers (LEH) (RealMoney Radio)
Level 3 Communications (LVLT) (RealMoney Radio)
Morgan Stanley (MS) (RealMoney Radio)
Norfolk Southern (NSC) (Lightning Round)
NYSE Group (NYX) ($100 target) (mentioned on Stop Trading!)
NYSE Group (NYX) ($100 target) (RealMoney Radio)
S1 (SONE) (mentioned on Mad Money)
Sears (SHLD) (RealMoney Radio)
Staples (SPLS) (mentioned on Mad Money)
Yahoo! (YHOO) (buy at $21.21) (mentioned on Mad Money)

Bearish
American Standard’s (ASD) (CEO interview with Mad Money)
Chico’s (CHS) (Lightning Round)
Conexant Systems (CNXT) (Lightning Round)
Diamond Offshore (DO) (buy at $60) (RealMoney Radio)
InterMune (ITMN) (Lightning Round)
Office Depot (ODP) (mentioned on Mad Money)
OfficeMax (OMX) (mentioned on Mad Money)
Sirius Satellite Radio (SIRI) (Lightning Round)
Vonage Holdings (VG) (Lightning Round)

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Stocks ended lower after the latest producer price report reignited inflation fears. However, Johnson & Johnson and Merrill Lynch both outperformed the broader market on the back of strong quarterly results. A report showing an improvement in builders’ sentiment eased concern about the housing market and helped stocks bounce off their lows for the session. However, troubling economic news overshadowed positive earnings reports and lead to the decline.

Today, the Dow Jones Industrial average closed down 30.58 or 0.26% to 11,950.02, the broader S&P 500 index closed down 5.00 or 0.37% to 1,364.05, while the tech-fueled Nasdaq composite index closed down 18.89 or 0.8% to 2,344.95.

Market breadth was negative. On the New York Stock Exchange, losers beat winners more than 5 to 3 on volume of 1.52 billion shares. On the Nasdaq, decliners topped advancers 9 to 5 volume of 2.16 billion shares.

The market was a little nervous on reports that North Korea may carry out another nuclear test. Further confusion was created by the producer-price report and a confusing industrial production report. However, a positive builders’ sentiment report was a helping factor that helped the market bounce off its lows.

The latest producer-price report reignited concerns about inflation. Core producer prices, which excludes food and energy costs, rose a surprising 0.6% in September, while economist were looking at a rise of only 0.2%. The investors were worried about the implications of the producer-price report for consumer prices. There was further bad news as the U.S. industrial sector slowed sharply in September, with the industrial production from factories, mines and utilities dropping 0.6%. Economists had been looking for a much smaller decline of 0.1%. However, the capacity utilization rate for the industrial sector fell to 81.9% from 82.5%, an indication of lessening inflationary pressures from potential bottlenecks.

Yahoo Inc. reported that third quarter profit fell 37%, as higher advertising sales at its collection of Internet sites weren’t enough to offset stock options costs and higher expenses. Additionally, its board has authorized the company to repurchase up to $3 billion worth of its common stock over the next five years. Net Income for the quarter fell to $158.5 million, from $253.8 million last year. Net sales rose 20% to $1.12 billion, against the expected $1.14 billion.

Stock of United Tech closed down $1.47 to $65.32, despite reporting better than expected results. Its earnings rose 21% to $996 million, compared to $821 million last year. Revenue rose 11.5% to $12.16 billion from $10.91 billion. The company also lifted its earnings forecast for the year.

Shares of Merrill Lynch closed up 41 cents at $84.52, after it reported a more than double increase in net income due to a one-time net benefit of $1.1 billion from its merger with asset-management firm BlackRock. It reported an EPS of $3.17 against the expected $1.47. Excluding the benefits from merger, the company’s third-quarter earnings rose 43%.

Shares of J&J closed up $1.12 to $66.05, after it posted forecast-beating third-quarter results, with performance spurred by solid growth in all three of its healthcare divisions. The company reported net income of $2.8 billion, compared with $2.5 billion last year. Revenue jumped 7.9% to $13.3 billion vs. $12.3 billion last year. This is against the expected growth of 7%.

Shares in the Chicago Mercantile Exchange closed up $13.25 or 2.6% to $516.50 after it reached an agreement to buy the Chicago Board of Trade for about $8 billion in stock and cash in a bid to win more of the booming market for derivatives. Chicago Board of Trade share rallied $17.48 or 13% to $151.99. This deal would combine the two largest futures exchanges in the United States.

Shares of Eli Lilly and Co. closed down 3% at $54.65, on news that it is buying Icos Corp. the maker of the erectile dysfunction drug Cialis for $2.1 billion in cash. Stock of Icos closed up 16% to $31.44. Additionally, Lilly reported second quarter earning of $822 million, against a loss of $252 million last year. Net sales rose to $3.87 billion from $3.67 billion.

U.S. light crude lost $1.01 to settle at $58.93 a barrel on the New York Mercantile Exchange. Prices fell on expectations that domestic supply data will show a rise in crude inventories for the latest week. Traders are also trying to second-guess the outcome of an OPEC emergency meeting to discuss ways to halt the recent slide in oil prices.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
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