Traders-Blog.com

Stocks rallied and sent the Dow Jones Industrial Average to a record high and the broad S&P 500 index near its all-time high, thanks to a flurry of deals. A flurry of deals, including a Microsoft Corp. acquisition and a potential divestiture by General Electric Co., boosted interest for blue chips, along with upgrades of Intel Corp. and Verizon Corp.

Today, the Dow closed up 79.81 or 0.59% to 13,556.53, the broader S&P 500 index closed up 10.00 or 0.66% to 1,522.75, just a few points shy of its al time high from March 2000. The tech-fueled Nasdaq composite closed up 19.07 or 0.75% to 2,558.45. For the week, the Dow closed up 1.7%, the S&P gained 1.1%, and the Nasdaq lost 0.2%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by 5 to 3 on volume of 1.6 billion shares. On the Nasdaq, advancers topped decliners by nearly 9 to 5 on volume of 2.1 billion shares.

Since the major gauges are touching records, there has been some nervousness that stocks could be in for a big pullback. However, as each day goes by, the backdrop remains positive and valuations are still historically low. There have been concerns raised about economic growth, in that some economists expect U.S. growth to be revised down to 0.7% for the first quarter from 1.3% previously. But the continuation of the M&A and private equity deals have been keeping the market going and it appears that we are going to see a continuation of the market moving methodically higher.

On the economic front, the University of Michigan’s consumer sentiment index rose to 88.7, as a favorable job outlook and a booming stock market muted the impact of record high gasoline prices. Moreover, rising gasoline prices did not intensify consumers’ inflation fears, as some analysts had predicted.

Shares of General Electric closed up $0.60 or 1.6% to $37.13, on a report that its selling its plastics business for about $11 billion. Riyadh-based chemicals company Saudi Basic Industries is in the lead to buy the business. GE placed the Plastics unit on the block in January, after 2006 profit at the unit fell 22% to $674 million as the rising price of raw material benzene took a toll on margins.

Shares of Microsoft closed down $0.21 to $30.77, after it stated that it was buying online ad agency aQuantive, whose shares closed up $27.91 or 77% to $63.78. The deal is for $6 billion, an 85% premium over Thursday’s price. Analysts felt the company was paying a high premium for the ad firm. Microsoft said the deal was important, because many online services that the company is offering, from software to video games, become more dependent upon online advertising revenue.

U.S. light crude oil for June delivery rose 8 cents to $64.94 a barrel on the New York Mercantile Exchange. It early rose above $65 a barrel amid expectations of strong demand for gasoline ahead of the summer driving season and continued tensions in Nigeria.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Stock picks by each of the traders on the latest episode of “Fast Money.” (Archives at Online Traders’ Forum here.)

Bullish
“Gold & Silver” (”take half off the table”) (Bolling)
American Express (AXP) (Adami)
Amgen (AMGN) (Greenberg)
Apple (AAPL) (Adami)
Blue Nile (NILE) (Adami)
Blue Nile (NILE) (Bolling)
Blue Nile (NILE) (Macke)
Blue Nile (NILE) (Strazzini)
Chevron (CVX) (Bolling)
Companhia de Saneamento Basico do Estado de Sao Paulo (SBS) (Bolling)
Dell (DELL) (Adami)
Downey Financial (DSL) (Strazzini)
eBay (EBAY) (Strazzini)
Electronic Data Systems (EDS) (Strazzini)
Foster Wheeler (FWLT) (Bolling)
Home Depot (HD) (Bolling)
Home Depot (HD) (Macke)
Home Depot (HD) (Strazzini)
iShares MSCI Brazil Index (EWZ) (Strazzini)
JetBlue (JBLU) (Strazzini)
Nordstrom (JWN) (Macke)
Petsmart (PETM) (Adami)
Petsmart (PETM) (Macke)
Phillips Electronics (PHG) (Strazzini)
RadioShack (RSH) (Macke)
Research In Motion (RIMM) (Adami)
Shaw Group (SGR) (”buy on dip”) (Adami)
US Airways (LCC) (Strazzini)
USEC (USU) (Bolling)

Bearish
“Airlines” (Bolling)
Amgen (AMGN)(AMGN) (Strazzini)
RadioShack (RSH) (Greenberg)
USEC (USU) (Greenberg)

Dylan Ratigan - The Commissioner
moderator of “Fast Money”

Eric Bolling - The Admiral
“Independent trader at the New York Mercantile Exchange. His specialty, navigating the charts to make you money.”

Guy Adami - The Negotiator
“Block trader at CIBC. He sees what the big boys are doing before anyone else even knows.”

Jeff Macke - The Lone Wolf
“Head of Macke Asset Management. He’ll call a criminal a criminal and a genius a genius.”

Tim Strazzini - The Risk Doctor
“Former head of wealth management at Merill Lynch. You work to make money, he works to help you protect it.”

* Click here and receive a free market forecast using VantagePoint software.
* Click here for 2 free books that teach you how to trade the E-mini’s.
* Click here for free cassette “17 Rules for Successful Futures Trading.”

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) (”I say it goes to 100″) (Lightning Round)
Agrium (AGU) (Lightning Round)
Caterpillar (CAT) (mentioned on Mad Money)
Chipotle Mexican Grill (CMG) (CEO on Mad Money)
Cisco (CSCO) (Lightning Round)
Clearwire (CLWR) (Lightning Round)
Cleveland-Cliffs (CLF) (”buy below 70″) (Lightning Round)
Crocs (CROX) (mentioned on Mad Money)
Cypress Semiconductor (CY) (Mad Money)
Dynegy (DYN) (Lightning Round)
El Paso (EP) (Lightning Round)
Halliburton (HAL) (Lightning Round)
ING Group (ING) (Lightning Round)
Monsanto (MON) (Lightning Round)
Potash (POT) (Lightning Round)
ViaSat (VSAT) (Lightning Round)
Virgin Media (VMED) (Lightning Round)
William Wrigley (WWY) (”triple buy”) (Mad Money)
Yum! Brands (YUM) (mentioned on Mad Money)

Bearish
Evergreen Solar (ESLR) (Mad Money)
First Solar (FSLR) (Mad Money)
Giant Industries (GI) (Lightning Round)
Harris Interactive (HPOL) (Lightning Round)
HMS Holdings (HMSY) (Lightning Round)
Lamar Advertising (LAMR) (Lightning Round)
SunPower (SPWR) (Mad Money)
Trina Solar (TSL) (Mad Money)

* Click here and receive a free market forecast using VantagePoint software.
* Click here for 2 free books that teach you how to trade the E-mini’s.
* Click here for free cassette “17 Rules for Successful Futures Trading.”

Stocks ended lower as investors consolidated some of the previous session’s strong gains, and the surge in crude oil prices offsetting upbeat outlooks from Hewlett-Packard Co. and JC Penney Co. Inc. The speech from Federal Reserve Chairman Ben Bernanke, on the sub-prime mortgage market and its impact on housing, stating that they didn’t expect those problems to “significantly” affect the broader economy. Concerns about the economy and interest-rate policy overshadowed strength in energy and financial shares.

Today, the Dow Jones industrial average closed down 10.81 or 0.08% to 13,476.72, the broader S&P 500 index closed down 1.39 or 0.09% to 1, 512.75, and the tech-fueled Nasdaq composite down 8.04 or 0.32% to 2, 539.38.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 19 to 12 on volume of 1.4 billion shares. On the Nasdaq, decliners topped advancers by nearly 18 to 11 on volume of 1.9 billion shares.

Fed chief Ben Bernanke, said that the fallout from the sub-prime mortgage lending market would weigh on home sales, but is not expected to hurt the broader economy. The weekly jobless claims posted a drop, while the index of leading economic indicators fell in April, versus forecasts for an unchanged reading. The weekly jobless claims report attests to the ongoing strength of the economy - and the risk of higher wage inflation. Should the economic news continue to suggest greater strength and should wage inflation keep rising, the Federal Reserve may not be able to cut interest rates later this year, as investors have been hoping.

Shares of Hewlett Packard closed down $0.36 to $44.85, after reporting lower quarterly earnings and higher quarterly revenue. The tech leader also lifted its 2007 sales and earnings forecast.

Stock of J.C. Penny closed up $4.13 or 4% to $79.85, after the clothing retailer posted higher first-quarter earnings that topped estimates and lifted its 2007 profit outlook.

Shares of Sun Microsystems closed up $0.21 or 4% to $5.33, after the tech leader announced plans for a $3 billion stock buyback. Stock of Acxiom closed up $4.17 or 17% to $27.84, after agreeing to be taken private by two firms in a $2.2 billion deal.

U.S. light crude oil for June delivery rose $1.90 to $64.45 a barrel on the New York Mercantile Exchange.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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
Bear Stearns (BSC) (mentioned on Stop Trading!)
BigBand Networks (BBND) (Lightning Round)
Boeing (BA) (Mad Money)
Federated (FD) (mentioned on Stop Trading!)
General Maritime (GMR) (Lightning Round)
Golden Star Resources (GSS) (Lightning Round)
Halliburton (HAL) (”going to $37″) (mentioned on Stop Trading!)
Halliburton (HAL) (Lightning Round)
Hewlett-Packard (HPQ) (Mad Money)
Honeywell (HON) (Mad Money)
JPMorgan Chase (JPM) (Lightning Round)
Kinross Gold (KGC) (Lightning Round)
Kookmin Bank (KB) (Lightning Round)
Level 3 Communications (LVLT) (Mad Money)
Monster Worldwide (MNST) (Lightning Round)
National Oilwell Varco (NOV) (Lightning Round)
Nokia (NOK) (mentioned on Stop Trading!)
Nymex (NMX) (Lightning Round)
Raytheon (RTN) (”going to 60″) (Lightning Round)
Schering-Plough (SGP) (Mad Money)
Superior Energy (SPN) (Lightning Round)
Syneron Medical (ELOS) (Mad Money)
Texas Instruments (TXN) (mentioned on Stop Trading!)
Toyota Motor (TM) (Mad Money)
Wynn Resorts (WYNN) (Lightning Round)
Yamana Gold (AUY) (Lightning Round)
Zimmer (ZMH) (Lightning Round)

Bearish
Johnson & Johnson (JNJ) (Lightning Round)
Jones Soda (JSDA) (Lightning Round)
KLA-Tencor (KLAC) (mentioned on Stop Trading!)
Lam (LRCX) (mentioned on Stop Trading!)
Melco PBL Entertainment (MPEL) (Lightning Round)
Motorola (MOT) (mentioned on Stop Trading!)
Novellus (NVLS) (mentioned on Stop Trading!)
Syntax-Brillian (BRLC) (Lightning Round)
Volcano (VOLC) (Lightning Round)

* Click here and receive a free market forecast using VantagePoint software.
* Click here for 2 free books that teach you how to trade the E-mini’s.
* Click here for free cassette “17 Rules for Successful Futures Trading.”

Stocks rallied and sent the Dow Jones Industrial Average to a new record high, as investors cheered stronger-than-expected industrial production data, Bausch & Lomb’s buyout by a private equity firm and speculation about a break-up of Citigroup Inc. The industrial data helped ease concerns about a slowing economy, amid sustained weakness in the housing market. Momentum also helped investors overcome a cautious outlook at chip-equipment maker Applied Materials Inc.

Today, the Dow Jones industrial average closed up 103.69 or 0.77% to 13,487.53, and ended at an all-time high for the second straight day. The broader S&P 500 index closed up 12.95 or 0.86% to 1,514.14, and the tech-fueled Nasdaq composite closed up 22.13 or 0.88% to 2,547.42.

Market breadth was positive. On the New York Stock Exchange, winners beat losers 5 to 3 on volume of 1.51 billion shares. On the Nasdaq, advancers topped decliners by almost 17 to 12 on volume of 2.13 billion shares.
Stocks benefited from reports of big first-quarter investments from Warren Buffett, George Soros, Carl Icahn and others. Housing starts unexpectedly rose in April versus expectations for a drop, but building permits, a sign of upcoming construction, fell more than expected. This is in itself a mixed development, in that it’s bad for the home builders but not necessarily bad for the overall market if it boosts existing home sales. Investors may be looking for new economic developments before deciding whether to push the major gauges to new levels.

A report also showed that industrial production rose 0.7% in April, topping forecasts. Capacity utilization also rose more than expected. News on leading economic indicators and mid-Atlantic manufacturing from the Philadelphia Fed are expected tomorrow. Friday brings the May consumer sentiment report from the University of Michigan. Additionally, Federal Reserve Chairman Ben Bernanke is due to speak tomorrow on the impact from the fallout of the subprime mortgage lending market.

Shares of Citigroup closed up $2.12 to $54.91, after hedge fund manager Eddie Lampert revealed an $800 million stake in it. Stock of Microsoft closed up $0.17 to $31.07, after George Soros stated that he has more than doubled his holdings on the company. He has increased his stake to $30.6 million from $5.9 million.

Shares of Bausch & Lomb closed up $6.00 or 10% to $67.50, after it agreed to be taken private by Warburg Pincus for nearly $3.7 billion in cash and stock. Under the deal, Warburg Pincus will acquire all of the outstanding shares of Bausch & Lomb common stock for $65 a share in cash. It will also assume about $830 million in debt.

Stock of Dell closed up $1.25 to $25.92, despite news that the New York State Attorney General’s office has sued the tech leader over consumer complaints about its financing practices. The suit accuses the company and its financial services unit of misleading customers with enticing financing offers that carry many restrictions and limitations.

U.S. light crude oil for June delivery fell 62 cents to settle at $62.55 a barrel on the New York Mercantile Exchange, remaining lower after the weekly inventories report showed a rise in gasoline and crude oil stocks.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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
Aecom Technology (ACM) (Mad Money)
Bunge (BG) (mentioned on Stop Trading!)
Caterpillar (CAT) (Lightning Round)
Charter Communications (CHTR) (Lightning Round)
Chemed (CHE) (Lightning Round)
Dick’s Sporting Goods (DKS) (Lightning Round)
Ford (F) (Lightning Round)
Goldman Sachs (GS) (”going to 300″) (Lightning Round)
Goldman Sachs (GS) (Lightning Round)
Herbalife (HLF) (”I stand corrected”) (Mad Money)
Hewlett-Packard’s (HPQ) (Mad Money)
J.C. Penney (JCP) (Lightning Round)
Joy Global (JOYG) (Lightning Round)
Kohl’s (KSS) (Lightning Round)
Limited (LTD) (mentioned on Stop Trading!)
Lowe’s (LOW) (Lightning Round)
Monsanto (MON) (”could soar to $75″) (mentioned on Stop Trading!)
Peabody Energy (BTU) (Lightning Round)
Saks (SKS) (Lightning Round)
Sears (SHLD) (Lightning Round)
Six Flags (SIX) (”buy below 6″) (Lightning Round)
Syneron Medical (ELOS) (Lightning Round)
Wells Fargo (WFC) (Lightning Round)

Bearish
Big Lots (BIG) (Lightning Round)
Central Garden & Pet (CENT) (Lightning Round)
Consol Energy (CNX) (Lightning Round)
DivX (DIVX) (Lightning Round)
Massey Energy (MEE) (Lightning Round)
Sport Chalet (SPCHB) (Lightning Round)
Usana Health Sciences (USNA) (Mad Money)

* Click here and receive a free market forecast using VantagePoint software.
* Click here for 2 free books that teach you how to trade the E-mini’s.
* Click here for free cassette “17 Rules for Successful Futures Trading.”

Stocks finished mixed with the Dow Jones Industrial Average closing at a record high on the back of weaker-than-expected consumer prices, while the broad market succumbed to selling late in the session. The inflation data boosted hopes that the Federal Reserve will cut interest rates to boost a slowing economy and initially helped offset disappointing results from Home Depot Inc. and Wal-Mart Stores. Investors remain concerned about the housing market ahead of a key report.

Today, the Dow closed up 37.06 or 0.28% to 13,383.84, the broader S&P 500 index closed down 1.96 or 0.13% to 1,501.19, and the tech-fueled Nasdaq composite closed down 21.15 or 0.83% to 2,525.29.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by more than 19 to 12 on volume of 1.64 billion shares. On the Nasdaq, decliners topped advancers by more than 21 to 8 on volume of 2.24 billion shares.

Initially, investors focused on the mild reading on inflation and what it might mean for interest rates going forward. However, this was tempered by a report showing further weakness in home building ahead of tomorrow’s housing market report.

The Consumer Price Index rose 0.4% in April, short of expectations; while the Core CPI, rose 0.2%, as expected. Overall, the report indicated a moderate level of inflation, which was comforting to investors. The weakness in core inflation was driven by things that may be sustainable going forward, as opposed to last month’s report. If these trends remain in place, there is the potential for the Fed outlook to soften.

A report from the National Association of Home Builders showed confidence sank in the first part of May. Another report showed that home prices fell in the first quarter. A separate report, the May NY Empire State index, rose to a level of 8, up from the previous month, but short of forecasts. Additionally, Chairman Ben Bernanke discussed financial market regulation at a financial conference, but did not address the U.S. economy or interest rate policy. All this has had investors worried.

Shares of Wal-Mart closed down $0.22 to $47.62, despite reporting quarterly earnings that rose from a year ago and met estimates. It reported earnings from continuing operations of $2.8 billion, up from $2.7 billion last year earlier. Total revenue came in at $86.4 billion, up 8.5% but a bit shy of the forecast of $86.9 billion. Sales overseas rose 18.5% in the quarter and now account for about 23% of the company’s total business.

Shares of Home Depot closed down $0.71 or 1.8% to $38.30, after reporting a drop in quarterly earnings that missed estimates and warned about the current quarter.

Shares of Amgen closed down $2.06 or 3.7% to $54.01, on concerns about its anemia drugs. The Medicare health insurance program has proposed limiting payments for Amgen Inc. and Johnson & Johnson anemia drugs in response to safety concerns.

U.S. light crude oil for June delivery rose 71 cents to settle at $63.17 a barrel on the New York Mercantile Exchange.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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
Abbott Laboratories (ABT) (Lightning Round)
BHP Billiton (BHP) (Lightning Round)
Cepheid (CPHD) (Lightning Round)
Cheesecake Factory (CAKE) (Lightning Round)
Chipotle Mexican Grill (CMG) (Lightning Round)
Darden Restaurants (DRI) (Lightning Round)
Deere (DE) (”buy after Wednesday”) (Mad Money)
Enterprise Products Partners (EPD) (Lightning Round)
Force Protection (FRPT) (Lightning Round)
Freeport-McMoRan Copper & Gold (FCX) (Lightning Round)
GameStop (GME) (Lightning Round)
Home Depot (HD) (”buy before Tuesday”) (Mad Money)
IBM (IBM) (Lightning Round)
ITT Educational Services (ESI) (Lightning Round)
J.C. Penney (JCP) (”buy before Thursday”) (Mad Money)
Jack in the Box (JBX) (”buy before Tuesday”) (Mad Money)
Jack in the Box (JBX) (Lightning Round)
JMP (JMP) (mentioned on Stop Trading!)
Kinetic Concepts (KCI) (”speculative”) (Mad Money)
Kohl’s (KSS) (”buy before Thursday”) (Mad Money)
Micrus Endovascular (MEND) (”speculative”) (Mad Money)
Rio Tinto (RTP) (Lightning Round)
Schering-Plough (SGP) (Lightning Round)
Six Flags (SIX) (CEO on Mad Money”) (Mad Money)
Spartan Motors (SPAR) (Lightning Round)
Thermo Fisher Scientific (TMO) (”buy before Tuesday”) (Mad Money)
TJX Companies (TJX) (”buy before Tuesday”) (Mad Money)

Bearish
Activision (ATVI) (Lightning Round)
Biovail (BVF) (Lightning Round)
Blockbuster (BBI) (Lightning Round)
Cabela’s (CAB) (mentioned on Stop Trading!)
Chevron (CVX) (mentioned on Stop Trading!)
NuStar GP Holdings (NSH) (Lightning Round)
Sysco (SYY) (Lightning Round)
Trump Entertainment (TRMP) (Lightning Round)
Valero (VLO) (mentioned on Stop Trading!)

* Click here and receive a free market forecast using VantagePoint software.
* Click here for 2 free books that teach you how to trade the E-mini’s.
* Click here for free cassette “17 Rules for Successful Futures Trading.”

Stocks closed mixed as investors consolidated some of the market’s recent gains ahead of key inflation data on Tuesday, offsetting news that DaimlerChrysler AG agreed to sell 80% of Chrysler for $7.45 billion. Earnings season is all but over, and the dragging tech shares limited gains for the Dow industrials as investors backed off after the recent rally.

Today, the Dow Jones industrial average closed up 20.56 or 0.15% to 13,346.78, the broader S&P 500 index closed down 2.70 or 0.18% to 1,503.15, and the tech-fueled Nasdaq composite closed down 15.78 or 0.62% to 2,546.44.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 21 to 11 on volume of 1.4 billion shares. On the Nasdaq, decliners topped advancers 20 to 9 on volume of 1.9 billion shares.

While investors welcomed the majority sale of Chrysler to a private equity firm, they hesitated ahead of a slew of economic reports. Tomorrow’s Consumer Price Index (CPI) and the core CPI, kick off a busy week that includes readings on manufacturing, housing, leading economic indicators (LEI) and consumer sentiment. CPI is likely to set the tone for the week. The market is showing signs of fatigue and needs a new strong catalyst. The economic news later in the week could provide that catalyst, one way or the other. Higher inflation at the consumer level or the LEI indicating slower economic growth, or especially weak housing numbers, could be big catalysts to the downside. Alternately, supportive reports could help move stocks higher.

Shares of Nokia closed up 4% after the company said that it expects to increase its share of the wireless-handset market in the second quarter, extending the gap from its smaller rivals. CIBC World Markets estimates Nokia will ship 95 million handsets in the second quarter, while the firm Oppenheimer & Co. predicted its market share would rise to 37%.

Stock of DaimlerChrysler closed up $2.12 or 2% to $84.12, after it said that it will sell an 80% stake in Chrysler, its U.S. auto unit, for $7.4 billion to private equity firm Cerberus Capital Management. Basically, it has decided to undo the most expensive and one of the least successful mergers in auto industry history as it agreed to essentially pay to dump the money-losing Chrysler unit, which it paid $37 billion for nine years ago.

Shares of Mylan labs closed down $2.70 to $19.70, after stating that it will buy German drug maker Merck KGaA’s generic drug unit for $6.7 billion. The deal is subject to regulatory approval and is expected to close in the second half of this year.

U.S. light crude oil for June delivery rose 13 cents to $62.50 a barrel on the New York Mercantile Exchange.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter