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.

Wednesday’s show was a repeat - below are the stock picks from the latest new show from Tuesday, November 21, 2006.

Bullish
Allergan (AGN) (RealMoney Radio)
American Capital (ACAS) (Lightning Round)
Apple (AAPL) (RealMoney Radio)
BEA Systems (BEAS) (Mad Money)
Best Buy (BBY) (Lightning Round)
Best Buy (BBY) (RealMoney Radio)
Boeing (BA) (RealMoney Radio)
Continental Airlines (CAL) (RealMoney Radio)
Cyberonics (CYBX) (Mad Money)
Deere (DE) ($100 target) (mentioned on Stop Trading!)
Deere (DE) (RealMoney Radio)
Federated Department Stores (FD) (CEO interview on Mad Money)
FedEx (FDX) (RealMoney Radio)
FLIR Systems (FLIR) (Lightning Round)
GameStop (GME) (RealMoney Radio)
Genomic Health (GHDX) (Lightning Round)
Goldman Sachs (GS) ($225 target) (mentioned on Stop Trading!)
Goldman Sachs (GS) (Lightning Round)
Goldman Sachs (GS) (RealMoney Radio)
Google (GOOG) ($750 target) (mentioned on Stop Trading!)
Google (GOOG) (Lightning Round)
Google (GOOG) (RealMoney Radio)
Hasbro (HAS) (Mad Money)
IBM (IBM) (Lightning Round)
J.C. Penney (JCP) (Lightning Round)
KB Home (KBH) (Mad Money)
L-1 Identity Solutions (ID) (Lightning Round)
LaBranche (LAB) (Lightning Round)
Lowe’s (LOW) (RealMoney Radio)
MasterCard (MA) (Lightning Round)
MasterCard (MA) (RealMoney Radio)
Medtronic (MDT) (RealMoney Radio)
New York Stock Exchange (NYX) (could be worth $250) (RealMoney Radio)
New York Stock Exchange (NYX) (Lightning Round)
Nice Systems (NICE) (Lightning Round)
Sears (SHLD) (RealMoney Radio)
Sirius Satellite Radio (SIRI) (Lightning Round)
UAL (UAUA) (RealMoney Radio)

Bearish
Acxiom (ACXM) (Lightning Round)
Arch Chemicals (ARJ) (Lightning Round)
Convergys (CVG) (Lightning Round)
Crocs (CROX) (RealMoney Radio)
Dollar General (DG) (Lightning Round)
Emdeon (HLTH) (Lightning Round)
Family Dollar (FDO) (Lightning Round)
Haverty Furniture (HVT) (Lightning Round)
Intermec (IN) (Lightning Round)
Mattel (MAT) (Mad Money)
Mentor (MNT) (RealMoney Radio)
Nasdaq (NDAQ) (Lightning Round)
Nordic American Tanker Shipping (NAT) (Lightning Round)
Sony (SNE) (RealMoney Radio)
Tyco (TYC) (Lightning Round)
Vasco Data Security (VDSI) (Lightning Round)
Wal-Mart (WMT) (Lightning Round)
XM Satellite Radio (XMSR) (Lightning Round)

Stocks closed slightly higher as a big drop in crude oil prices and better than expected earnings from Dell Inc. offset an unexpected drop in consumer confidence. The Nasdaq composite surged to its highest point in nearly six years, but the blue chip averages meandered the day before Thanksgiving, with investors distressed by a slump in GM shares on news that one of its major shareholders has shed stock.

Today, the Dow Jones industrial average closed up 5.36 or 0.04% to 12,326.95, the broader S&P 500 index closed up 3.28 or 0.23% to 1,406.09, and the Nasdaq composite index closed up 11.14 or 0.45% to 2,465.98, ending at its highest point since February 2001.

Market breadth was mixed and volume was moderate. On the New York Stock Exchange, winners beat losers 19 to 12 on volume of 1.3 billion shares. On the Nasdaq, decliners and advancers were narrowly mixed on volume of 1.6 billion shares.

Stocks seesawed throughout the day, as investors reacted to falling oil prices and the day’s corporate news. Stocks were expected to remain volatile, due to lower than usual volume, with many Wall Streeters checking out early ahead of Thanksgiving holiday.

In economic news, the weekly jobless claims rose by a greater-than-expected 12,000 last week to 321,000, but remained at levels still pointing to a healthy labor market. The University of Michigan consumer sentiment index inched lower to 92.1 in late November from 92.3 earlier in the month and 93.6 in October. This reduced confidence also led to some weakness in the markets.

Shares of General Motors closed down $1.52 or 4.7% to $31.09, on news that billionaire investor Kirk Kerkorian’s Tracinda Corp. has cut its stake in the automaker to 7.4% from 9.9%. This is in the aftermath of lifting of the moratorium that had prevented Tracinda from trading the shares for 45 days.

Shares of Dell closed up $2.31 to $27.13, after reporting higher quarterly earnings that topped estimates on revenue that was just short of estimates. It reported net income of $677 million, up 12% from $606 million, last year. Its revenue rose 3.5% to $14.38 billion, up from $13.91 billion but slightly lower than the $14.44 billion expected by analysts.

Stock of Alcoa closed up $1.24 or 4.2% to $30.43, after it unveiled a broad restructuring program. The company would cut its work force by about 10%, and lead to a spin-off of its molded soft-alloy business via a joint venture with Norway’s Orkla ASA.

Stock of Merck closed up $0.15 to $44.37, after it was dealt a court victory when a federal judge denied a motion that would have allowed class-action status for injury and death cases involving Vioxx, the company’s withdrawn painkiller. Judge Eldon Fallon of New Orleans, who is overseeing federal lawsuits involving Vioxx, denied a request by plaintiffs’ attorneys for the class-action status.

Shares of International Business Machines Corp. rose 0.5% after it said the Defense Advanced Research Projects Agency has given it a four year, $244 million contract to develop a supercomputer that is more efficient and simpler to program.

U.S. light crude oil for January delivery closed down 90 cents to $59.27 a barrel on the New York Mercantile Exchange. This is due to the bearish inventory data from the American Petroleum Institute and the Energy Department.

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
Allergan (AGN) (RealMoney Radio)
American Capital (ACAS) (Lightning Round)
Apple (AAPL) (RealMoney Radio)
BEA Systems (BEAS) (Mad Money)
Best Buy (BBY) (Lightning Round)
Best Buy (BBY) (RealMoney Radio)
Boeing (BA) (RealMoney Radio)
Continental Airlines (CAL) (RealMoney Radio)
Cyberonics (CYBX) (Mad Money)
Deere (DE) ($100 target) (mentioned on Stop Trading!)
Deere (DE) (RealMoney Radio)
Federated Department Stores (FD) (CEO interview on Mad Money)
FedEx (FDX) (RealMoney Radio)
FLIR Systems (FLIR) (Lightning Round)
GameStop (GME) (RealMoney Radio)
Genomic Health (GHDX) (Lightning Round)
Goldman Sachs (GS) ($225 target) (mentioned on Stop Trading!)
Goldman Sachs (GS) (Lightning Round)
Goldman Sachs (GS) (RealMoney Radio)
Google (GOOG) ($750 target) (mentioned on Stop Trading!)
Google (GOOG) (Lightning Round)
Google (GOOG) (RealMoney Radio)
Hasbro (HAS) (Mad Money)
IBM (IBM) (Lightning Round)
J.C. Penney (JCP) (Lightning Round)
KB Home (KBH) (Mad Money)
L-1 Identity Solutions (ID) (Lightning Round)
LaBranche (LAB) (Lightning Round)
Lowe’s (LOW) (RealMoney Radio)
MasterCard (MA) (Lightning Round)
MasterCard (MA) (RealMoney Radio)
Medtronic (MDT) (RealMoney Radio)
New York Stock Exchange (NYX) (could be worth $250) (RealMoney Radio)
New York Stock Exchange (NYX) (Lightning Round)
Nice Systems (NICE) (Lightning Round)
Sears (SHLD) (RealMoney Radio)
Sirius Satellite Radio (SIRI) (Lightning Round)
UAL (UAUA) (RealMoney Radio)

Bearish
Acxiom (ACXM) (Lightning Round)
Arch Chemicals (ARJ) (Lightning Round)
Convergys (CVG) (Lightning Round)
Crocs (CROX) (RealMoney Radio)
Dollar General (DG) (Lightning Round)
Emdeon (HLTH) (Lightning Round)
Family Dollar (FDO) (Lightning Round)
Haverty Furniture (HVT) (Lightning Round)
Intermec (IN) (Lightning Round)
Mattel (MAT) (Mad Money)
Mentor (MNT) (RealMoney Radio)
Nasdaq (NDAQ) (Lightning Round)
Nordic American Tanker Shipping (NAT) (Lightning Round)
Sony (SNE) (RealMoney Radio)
Tyco (TYC) (Lightning Round)
Vasco Data Security (VDSI) (Lightning Round)
Wal-Mart (WMT) (Lightning Round)
XM Satellite Radio (XMSR) (Lightning Round)

Stocks closed higher with gains by Alcoa Inc., Caterpillar Inc. and Boeing Co. supporting the Dow Jones Industrial Average and helping offset higher crude prices and light volumes ahead of Thursday’s Thanksgiving holiday. The Nasdaq composite and S&P 500 managed to carve out fresh multi-year highs.

Today, the Dow Jones industrial average closed up 5.05 or 0.04% to 12,321.59, the broader S&P 500 index closed up 2.31 or 0.16% to 1,402.81, and the Nasdaq composite index closed up 2.12 or 0.09% to 2,454.84, its highest level since February 2001.

Market breadth was mixed. On the New York Stock Exchange, winners topped losers five to three on volume of 1.53 billion shares. On the Nasdaq, decliners and advancers were roughly even as almost 1.71 billion shares changed hands.

While the market appears overbought, investors continue to buy on little weakness aggressively. A correction or at least some consolidation may be expected in the near term. The market was concerned that the M&A activity did not spur a major rally. This is an indication that the market is now “screaming for relief”. Additionally, Federal Reserve Board Governor Kevin Warsh said that inflation remains “uncomfortably elevated” even after coming off its worst levels from earlier this year. However, many opine that the benign October reports on consumer and producer prices, indicate that the Fed is done with raising interest rates.

Stocks will likely have more direction next week, as investors return from vacations and as retailers give fuller reports about Black Friday and the weekend. December should be another positive month for stocks, since the major underlying factors that have supported the advance since the summer are still in place.

Shares of Boeing Co. closed up $1.98 to $91.10, after winning a $5.5 billion order for 25 planes from Korean Air Co. Additionally, former Boeing unit Spirit Aerosystems Holdings Inc. priced its IPO at $26 a share, above the $23 to $25 a range.

Stock of Verizon Communications closed up $0.46 or 1.3% to $35.13, after Credit Suisse First Boston upgraded it to “outperform” from “neutral”. It believes that the company is setting itself up for earnings growth as dilution from its FiOS Internet service reaches its peak.

Stock of Google closed up $14.60 or 3% to $509.65, as the search engine leader shot past $500 for the first time. The Internet search engine unveiled discounts for online shoppers who use its payment service during the holiday season.

Stock of Medtronic closed up $4.60 or 9.4% to $53.55, as it reported higher than expected quarterly earnings. Its quarterly profit beat expectations as it gained share from rivals in the market for implantable devices that manage irregular heart rhythms.

Maker of iPod, Apple closed up $2.13 to $88.60 - at an all-time high as investors expressed optimism about the strength of the company’s iPod sales in the crucial holiday period. There is also speculation that it is working on the launch of an Iphone that would combine the capability of its blockbuster Ipod media player with a phone.

U.S. light crude oil for January delivery rose $1.37 to settle at $60.17 a barrel on the New York Mercantile Exchange. The rise in price is owing to the news that Alyeska Pipeline Service Co. has cut flow in the 800-mile Trans-Alaska Pipeline to 25% of normal capacity as high winds stymied tanker loadings in Valdez, Alaska.

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
AIG (AIG) (RealMoney Radio)
Allergan (AGN) ($12 gain) (RealMoney Radio)
Allergan (AGN) (mentioned on Stop Trading!)
Amgen (AMGN) (Lightning Round)
AMR (AMR) (Lightning Round)
Automatic Data Processing (ADP) (Lightning Round)
Banco Itau (ITU) (Lightning Round)
Cisco (CSCO) (Lightning Round)
Disney (DIS) (Lightning Round)
DynCorp (DCP) (Lightning Round)
eBay (EBAY) (Lightning Round)
FedEx (FDX) (Lightning Round)
Freeport-McMoRan’s (FCX) (RealMoney Radio)
Fuel-Tech (FTEK) (Lightning Round)
GOL Linhas Areas (GOL) (Lightning Round)
Granite Construction (GVA) (Lightning Round)
IBM (IBM) ($120 target) (RealMoney Radio)
Interpublic Group (IPG) (Mad Money)
J.C. Penney (JCP) (Lightning Round)
Jacobs Engineering (JEC) (Lightning Round)
KBR (KBR) (Lightning Round)
Kohl’s (KSS) (Lightning Round)
Lundin Mining (LMC) (RealMoney Radio)
MasterCard (MA) (Lightning Round)
MasterCard (MA) (RealMoney Radio)
New York Stock Exchange (NYX) (Lightning Round)
New York Stock Exchange (NYX) (RealMoney Radio)
NYMEX (NMX) (Lightning Round)
Phelps Dodge (PD) (RealMoney Radio)
Prudential (PRU) (RealMoney Radio)
Reliance Steel (RS) (Mad Money)
Research In Motion (RIMM) (mentioned on Stop Trading!)
Research In Motion (RIMM) (RealMoney Radio)
Sears (SHLD) (RealMoney Radio)
Treehouse Foods (THS) (Mad Money)
Trump Entertainment (TRMP) (Lightning Round)
UAL (UAUA) (Lightning Round)

Bearish
Alcoa (AA) (RealMoney Radio)
American Eagle Outfitters (AEOS) (Lightning Round)
Carrizo Oil & Gas (CRZO) (CEO interview on Mad Money)
Double Hull Tankers (DHT) (Lightning Round)
Ford (F) (RealMoney Radio)
Motorola (MOT) (RealMoney Radio)
National Instruments (NATI) (Lightning Round)
TAM (TAM) (Lightning Round)
Williams-Sonoma (WSM) (Lightning Round)

Stocks closed mixed with the Dow Jones Industrial Average snapping a six-day winning streak, as waning forward momentum led to selling pressure. A spate of mega-merger news, including Freeport-McMoRan Copper & Gold’s $26 billion deal for Phelps Dodge Corp., the Blackstone Group bid $20 billion to take Equity Office Trust private, and many more kept the day interesting.

Today, the Dow Jones industrial average closed down 26.02 or 0.21% to 12,316.54, the broader S&P 500 index closed down 0.70 or 0.05% to 1,400.50, and the Nasdaq composite index closed up 6.86 or 0.28% to 2,452.72.

Market breadth was mixed. On the New York Stock Exchange, winners topped losers by a narrow margin on volume of 1.50 billion shares. On the Nasdaq, decliners and advancers were roughly 15 to 14 on volume of 1.72 billion shares.

Trade was muted as investors played it cautious ahead of a holiday-shortened trading week. However, the market was helped by the bevy of merger and acquisition news. While the deals did not move the market, they represent that Corporate America believes the economy is not heading for a recession and that you still have a growth story for 2007. While there is a lot of talk about the market being in an overbought condition, there are still people who are afraid of missing out on the rally. There’s a lot of excess cash that people will want to put to work.

The session’s one economic report was the index of leading economic indicators (LEI). LEI rose 0.2% in October after climbing an upwardly revised 0.4% in September. Economists had expected the LEI to rise 0.2%. This suggested the economy is still expanding at a slow pace.

Stock of Equity Office Properties Trust closed up $3.42 or 7.6% to $48.14, after it agreed to a $36 billion buy-out. This acquisition by Blackstone Group represents the largest deal ever for real estate investment trusts. The offer of $48.50 per share in cash - an 8.5% premium to the stock’s last closing price - values the equity of the company at nearly $19 billion.

Shares of Phelps Dodge Corp. closed up $25.45 or 27% to $120.47. Its acquisition by Freeport-McMoRan Copper & Gold will create the world’s largest publicly traded copper producer. However, shares of Freeport closed down $1.77 or 3% to $55.63. Phelps Dodge will be bought for $25.9 billion in cash and stock.

Russian steelmaker Evraz will buy Oregon Steel Mills in a $2.3 billion deal, creating the world’s largest rail producer. Shares of Oregon Steel closed up $4.81 or 7% to $63.77. The offer is 22.3% above the weighted average stock price for the past three months. The combined company would produce 16.8 million tons a year of crude steel, placing it just outside the world’s top 10, and will ship 17.4 million tons of steel products in 2006.

Shares of Bank of America closed up $0.05 to $54.90, after it declared that it was buying U.S. Trust - the private banking unit of Charles Schwab for $3.3 billion. Shares of Charles Schwab closed up $0.38 or 2% to $18.94. This would vault Bank of America to the top tier of private banks.

U.S. light crude oil for January delivery fell 17 cents to $58.80 a barrel on the New York Mercantile Exchange.

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
Activision (ATVI) (Lightning Round)
Bank of America (BAC) (Lightning Round)
Blockbuster (BBI) ($6 target) (Mad Money)
Boston Scientific (BSX) ($18-$19 target) (Stop Trading!)
CSX (CSX) (Lightning Round)
Disney (DIS) (Mad Money)
DJO (DJO) (Mad Money)
FedEx (FDX) ($140 target) (RealMoney Radio)
FedEx (FDX) (Lightning Round)
Gap (GPS) (Lightning Round)
Google (GOOG) ($600 target) (Lightning Round)
Harris (HRS) (Lightning Round)
Lowe’s (LOW) (RealMoney Radio)
Marvell Technology (MRVL) (Mad Money)
New York Stock Exchange (NYX) (Mad Money)
New York Stock Exchange (NYX) (worth $250) (RealMoney Radio)
Nymex (NMX) (buy at $110-$120) (Stop Trading!)
NYMEX (NMX) (Mad Money)
Nymex (NMX) (RealMoney Radio)
Oracle (ORCL) ($20 target) (Lightning Round)
Sears (SHLD) (RealMoney Radio)
Sears (SHLD) (Stop Trading!)
Sirius Satellite Radio (SIRI) ($6 target) (RealMoney Radio)
Six Flags (SIX) (Mad Money)
Starbucks (SBUX) (RealMoney Radio)
Toyota Motor (TM) (RealMoney Radio)
Walgreen (WAG) (Lightning Round)
XM Satellite Radio (XMSR) (RealMoney Radio)

Bearish
Archer Daniels (ADM) (Lightning Round)
Bristol-Myers Squibb (BMY) (RealMoney Radio)
Caremark (CMX) (Mad Money)
ConocoPhillips (COP) (drop to $60) (Lightning Round)
Home Depot (HD) (RealMoney Radio)
JB Hunt Transport (JBHT) (Lightning Round)
Lamar (LAMR) (Lightning Round)
Pacific Ethanol (PEIX) (Lightning Round)
Panera Bread (PNRA) (RealMoney Radio)
Rambus (RMBS) (Lightning Round)
S1 (SONE) (Lightning Round)
Sony (SNE) (Mad Money)

Stocks closed mixed as the Dow Jones Industrial Average extended its winning streak to a sixth session and set yet another record high, bolstered by a continued slide in crude-oil prices. The S&P 500 finished above 1,400 for the first time in more than six years.

Today, the Dow Jones industrial average closed up 36.74 or 0.30% to 12,342.56, the broader S&P 500 index closed up 1.44 or 0.10% to 1,401. 20, and the tech-fueled Nasdaq composite index closed down 3.20 or 0. 13% to 2,445.86. For the week, the Dow rose 1.9%, the S&P was up 1.5%, and the Nasdaq added 2.3%.

Market breadth was negative. On the New York Stock Exchange, decliners edged out advancers 17 to 15 on volume of about 1.698 billion shares. On the Nasdaq, losers topped winners by about 17 to 12 on volume of 1.772 billion shares.

A big drop in housing unnerved investors. However, the consumer sector got a boost from Altria and falling oil prices. Housing starts slumped 14.6% in October to a 6-1/2 year low, while building permits fell to the lowest pace in 9 years. This was much larger than expected by Wall Street economists, who forecast a 4.5% drop in starts and a marginal drop in permits.

Stock of Altira closed up $1.44 or 2% to $85.01, after a U.S. Appeals Court decided to grant a permanent stay in the class action suit against light cigarettes. The court has decided to review a lower court ruling that let a $200 billion lawsuit filed by “light” cigarette smokers.

Shares of Hewlett-Packard closed down $0.36 to $39.77, despite reporting higher earnings and revenue that topped forecasts, and offered a bullish outlook for the current period. Its net income rose to $1.7 billion, up four-fold from the year-earlier period when the company took a hefty restructuring charge. Its sales rose 7% to $24.6 billion during the quarter, above the expected $24.1 billion.

Shares of Starbucks closed down $2.01 or 5% to $37.42, after it reported lower profits and issued a sales and earnings forecast in a range that could miss analysts’ expectations. Net income for the fiscal fourth quarter was $117.3 million, compared with $123.7 million a year ago. Total revenue jumped 20.7% to $2.003 billion but fell short of the forecast of $2.01 billion.

Stock of Johnson & Johnson closed up $0.71 or 1% to $67.24, on announcing that it would buy Conor Medsystems for around $1.4 billion in cash. Shares of Conor closed up $5.16 or 19% to $32.68. It will pay $33.50 for each share of Conor that makes drug-eluting stents used to keep blocked arteries open.

Light, sweet crude oil for December delivery fell 45 cents to $55.81 a barrel on the New York Mercantile Exchange, after hitting a 17- month trading low of $55.08 earlier in the session.

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) (RealMoney Radio)
American Standard (ASD) (Mad Money)
Autodesk (ADSK) (Mad Money)
Berkshire Hathaway (BRKA) (Mad Money)
Boeing (BA) (Lightning Round)
Boeing (BA) (RealMoney Radio)
Bunge (BG) (Mad Money)
Bunge (BG) (RealMoney Radio)
Chicago Mercantile Exchange (CME) (mentioned on Stop Trading!)
Coldwater Creek (CWTR) (RealMoney Radio)
Costco (COST) (Mad Money)
eBay (EBAY) (Lightning Round)
Exxon Mobil (XOM) (RealMoney Radio)
Fortune Brands (FO) (Mad Money)
Garmin (GRMN) (Lightning Round)
Goldman Sachs (GS) (RealMoney Radio)
Halliburton (HAL) (Mad Money)
IBM (IBM) (RealMoney Radio)
International Game Technology (IGT) (RealMoney Radio)
J.C. Penney (JCP) (Mad Money)
JPMorgan (JPM) (Lightning Round)
KB Home (KBH) (Mad Money)
L-1 Identity (ID) (Lightning Round)
Las Vegas Sands (LVS) (RealMoney Radio)
Level 3 Communications (LVLT) (Lightning Round)
Merck (MRK) (Lightning Round)
Microsoft (MSFT) (RealMoney Radio)
NightHawk Radiology (NHWK) (Mad Money)
Nike (NKE) (Mad Money)
Nymex (IPO Friday) (mentioned on Stop Trading!)
NYSE (NYX) (mentioned on Stop Trading!)
Oracle (ORCL) (Lightning Round)
Precision Castparts (PCP) (Lightning Round)
Provident Energy Trust (PVX) (Mad Money)
Research In Motion (RIMM) (Lightning Round)
Research In Motion (RIMM) (RealMoney Radio)
Sears (SHLD) (Mad Money)
Six Flags (SIX) (Lightning Round)
Starbucks (SBUX) (RealMoney Radio)
Trimble Navigation (TRMB) (Lightning Round)
Under Armour (UARM) (Mad Money)
USG (USG) (RealMoney Radio)
Vulcan Materials (VMC) (Mad Money)
Wynn Resorts (WYNN) (RealMoney Radio)

Bearish
Arena Pharmaceuticals (ARNA) (Lightning Round)
Black & Decker (BDK) (Mad Money)
Borders Group (BGP) (Mad Money)
Coach (COH) (Mad Money)
Crocs (CROX) (Lightning Round)
Dell (DELL) (Lightning Round)
Delta (DALRQ) (RealMoney Radio)
HDFC (HDB) (Mad Money)
Isis Pharmaceutical’s (ISIS) (Mad Money)
Kraft (KFT) (mentioned on Stop Trading!)
Oil Services Holdrs (OIH) (Mad Money)
OneBeacon (OB) (Lightning Round)
Opsware (OPSW) (Lightning Round)
Palm (PALM) (RealMoney Radio)
Pepsi (PEP) (mentioned on Stop Trading!)
PepsiCo (PEP) (drop to $55) (RealMoney Radio)
Qualcomm (QCOM) (Lightning Round)
Qwest Communications (Q) (Lightning Round)
Reader’s Digest (RDA) (Mad Money)
Readers Digest (RDA) (RealMoney Radio)
Talbots (TLB) (RealMoney Radio)
Whole Foods (WFMI) (Lightning Round)
Zumiez (ZUMZ) (Mad Money)

Stocks closed higher with the Dow Jones Industrial Average finishing at another record high level, as tame consumer-price inflation and a big drop in crude oil prices helped offset bad news from Applied Materials Inc. and Dell Inc.

Today, the Dow Jones industrial average closed up 54.11 or 0.44% to 12,305.82, ending at a record close for the 17th time since Oct. 3. The broader S&P 500 index closed up 3.19 or 0.23% to 1,399.76, ending at a new six-year high. The tech-fueled Nasdaq composite index closed up 6.31 or 0.26% to 2,449.06, ending at its highest point since February 2001.

Market breadth was mixed. On the New York Stock Exchange, winners beat losers by 17 to 15 on volume of 1.68 billion shares. On the Nasdaq, advancers barely edged decliners by 15 to 14 on 2.1 billion shares changed hands.

Lower oil and gas prices means less inflationary pressure. It also means more money stays in the hands of consumers. The day’s read on inflation that gave investors hope for soft landing for the economy in coming months. The CPI fell 0.5% against the expected fall of 0.3%.

The core CPI rose just 0.1%, against a forecast rise of 0.2%t. This showed that inflation pressures continue to abate and that the economic slowdown won’t result in recession.

Chicago Fed President Michael Moskow said he sees the possibility of more tax increases to cool inflation, even though economic growth is likely to be below trend for the next year or so. St. Louis Fed President William Poole said that while inflation pressures are waning, they remain an issue.

Amongst economic news, U.S. industrial production rose 0.2% in October after dropping 0.6% in September, while capacity utilization rose to 82.2%. Both were roughly in line with economist expectations. The Philly Fed index rose to 5.1 from negative 0.7 in October and negative 0.4 in September. Economists expected an increase to 5.8. Any reading above zero indicates growth in the region’s manufacturing sector. The new orders index, a gauge of future growth, fell to -3.7 in November from 13.4 in October.

Shares of Dell closed down $0.65 or 2.6% to $25.10, as it stated that it would delay filing its quarterly report until later in the month. It clarified that the delay was due to issues it’s facing in preparing the results and not linked to an ongoing SEC probe into its accounting. Analysts expect the EPS to sink 38% to 24 cents and the revenue to edge higher by 4% to $14.4 billion.
Stock of Applied Materials closed down $0.67 or 4% to $17.98, despite reporting higher quarterly earnings and revenue that was shy of forecasts. The company also warned that sales and earnings in the current quarter will miss forecasts. It expects an EPS of 26 to 27 cents against the expected EPS of 29 cents.

Shares of Pfizer Inc. rose 23 cents to $26.76. The company said results of a new analysis showed that patients who have heart disease and chronic kidney disease and took 80 mg Lipitor tablets reduced their risk of heart attack and stroke by 32% compared with patients taking a 10 mg dose.

U.S. light crude oil for December delivery tumbled $2.50 to settle at $56.26 a barrel on the New York Mercantile Exchange. This is the lowest point this year. While this was bad news for oil stocks, it was encouraging for the rest of the market.

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