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Stocks finished mixed to with the Nasdaq leading tech-fueled gains, but with some weakness seen in the broad market after reduced sales forecasts from two major retailers and better than expected existing home sales for August. Investors belief that the worst of the crunch in the credit markets may be behind us. However, profit warnings from retailers and a big drop in consumer confidence revived worries about the economy.

The Dow Jones industrial average closed up 19.59 or 0.14% to 13,778.65, the broader S&P 500 closed down 0.52 or 0.03% to 1,517.21, and the tech-fueled Nasdaq composite closed up 15.50 or 0.58% to 2,683.45.

Market breadth was negative. On the New York Stock Exchange, losers topped winners by almost 10 to 7 on volume of 1.3 billion shares. On the Nasdaq, decliners beat advancers 4 to 3 on volume of 1.8 billion shares.

Choppy markets have been a result of investors that have mulled disappointing company news and continued to wrestle with the implications of the Fed’s decision to cut interest rates last week. Investors have digested the rate reduction over the weekend and now are split into two camps, wondering if the half-point cut is going to keep us out of a recession or drive up inflation. Therefore, the personal income and spending report at the end of the week, as well as the report’s inflation component, the PCE, will be closely watched.

In economic news, consumer confidence in September dropped to a lower-than-expected level of 99.8. Economists thought it would ease to 104.5 from an upwardly revised 105.6 in the previous month. August existing home sales fell to a 5.50 million unit annual rate, from 5.75 million units in the previous month. Additionally, July home prices posted the biggest monthly drop in 16 years.

Shares of Target closed down $2.95 or 4.79% to $61.35, after warning that September sales at stores open a year or more will miss previous estimates.

Stock of Lennar closed down $0.96 or 4.00% to $23.22, after posting a steeper than expected quarterly loss. It posted a net loss of $513.9 million, down from the net earnings of $206.7 million, in the year-earlier period. The builder delivered 7,636 homes in the period, down 41% from a year earlier, while new orders plunged 48% to 5,804. It also saw its cancellation rate rise to 32% of orders.

Shares of GM closed down $0.32 or 0.9% to $34.42, as it resumed talks with the United Auto Workers union one day after it launched a nationwide strike against the automaker. UAW President Ron Gettelfinger blasted GM management, saying that the company had not been willing to meet the union part way in negotiations.

Stock of Microsoft rose $0.48 or 1.7% to $29.56, after the launch of its Halo 3 video game. Separately, it was reported it is in talks to buy a stake in Facebook, a move that could value the social-networking site at up to $10 billion.

U.S. light crude oil for November delivery lost $1.43 to $79.53 a barrel on the New York Mercantile Exchange.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Stocks fell today, save for pockets of strength among technology shares, as investors consolidated strong gains seen last week after the Federal Reserve’s hefty rate cut. Investors struggled to remain positive ahead of a string of key economic reports due later in the week.

The Dow Jones industrial average closed down 61.13 or 0.44% to 13,759.06, the broader S&P 500 closed down 8.02 or 0.53% to 1,517.73, and the tech-fueled Nasdaq composite closed down 3.27 or 0.12% to 2,667.95.

Market breadth was negative. On the New York Stock Exchange, losers beat winners 5 to 3 on volume of 1.3 billion shares. On the Nasdaq, decliners topped advancers 9 to 5 as 1.9 billion shares changed hands.

While the Feds have put investors at ease, but it appears to be a temporary fix. Investors have been worried about sub-prime mortgages, housing and the economy as an overall.

Investors will be looking to the economic news later this week for short-term direction. Reports are due on consumer confidence, housing, durable goods orders and personal income and spending. The remarks by Federal Reserve Chairman Ben Bernanke at an education summit in Washington, did not address current monetary policy or the central bank’s economic outlook.

Shares of GM closed down $0.20 or 0.57% to $34.74, after the United Auto Workers’ union launched a nationwide strike against the company, saying key issues in contract talks could not be resolved. However, union leaders said they were willing to resume talks.

Shares of AMR slumped $3.49 or 14.39% to $20.77, after warning that third-quarter profit results won’t meet estimates. This resulted in the stock dragging on other airline stocks as well.

Stock of Standard Pacific closed down $1.05 or 12.96% to $7.05, after the homebuilder said it would stop paying a quarterly dividend and would instead use the money to pay down debt.

Shares of Sonus Pharmaceuticals closed down $3.65 or 83.85% to $0.70, after the company said a late-stage trial of its breast cancer treatment failed and it was giving up development of the drug.

Stock of Microsoft closed up $0.43 or 1.5% to $29.08, r ahead of the launch of its highly-anticipated Halo 3 videogame at midnight. It is also considering investing $300 million to $500 million for a 5% stake in Facebook.

Shares of EMC closed up $1.48 or 7.78% to $20.51, after Citigroup upgraded the computer data storage maker to “buy” from “hold.” Citigroup pointed to recent strong earnings and the outlook for VMware, the maker of virtualization software that EMC spun off last month but still holds a big stake in.

U.S. light crude oil for November delivery lost 67 cents to $80.95 a barrel on the New York Mercantile Exchange.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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

Buy
“Gold” (Jeff DeGraaf)
“Technology” (Jeff DeGraaf)
Activision (ATVI) (Macke)
Baidu.com (BIDU) (Najarian)
BHP Billiton (BHP) (Najarian)
Cameco (CCJ) (Najarian)
China Mobile (CHL) (Najarian)
EMC Corp (EMC) (Adami)
Flowserve (FLS) (Finerman)
Fluor Corp (FLR) (Adami)
Focus Media (FMCN) (Najarian)
Ford (F) (Adami)
Freeport McMorRan (FCX) (Najarian)
Game Stop (GME) (Macke)
Garmin (GRMN) (Najarian)
Johnson & Johnson (JNJ) (Macke)
Las Vegas Sands (LVS) (Macke)
Las Vegas Sands (LVS) (Najarian)
Microsoft (MSFT) (Adami)
Microsoft (MSFT) (Macke)
Microsoft (MSFT) (Najarian)
Molson Coors (TAP) (Macke)
Myraid Genetics (MYGN) (Najarian)
NRG Energy (NRG) (Macke)
NYMEX (NMX) (Finerman)
NYSE Euronext (NYX) (Finerman)
Pfizer (PFE) (Adami)
Quest Diagnostics (DGX) (Najarian)
SABMiller (SAB) (Macke)
Short Dow30 ProShares (DOG) (Macke)
Target (TGT) (Finerman)
Trina (TSL) (Najarian)
ValueClick (VCLK) (Najarian)
Wynn Resorts (WYNN) (Najarian)

Sell
“Gold” (Adami)
“Industrials” (Jeff DeGraaf)
Adtran (ADTN) (Macke)
AMR Corp. (AMR) (Macke)
China Mobile (CHL) (Adami)
Crocs (CROX) (Adami)
FedEx (FDX) (Adami)
General Motors (GM) (Adami)
General Motors (GM) (Macke)
Harman Int’l Industries (HAR) (Finerman)
Hovnanian (HOV) (Finerman)
Las Vegas Sands (LVS) (Macke)
Sony (SNE) (Macke)
WCI Communities (WCI) (Finerman)
Wynn Resorts (WYNN) (Macke)

* 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.”

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

Buy
“Corn” (Dennis Gartman)
“Crude Oil” (Dennis Gartman)
“Defense” (Adami)
“Gold” (Dennis Gartman)
“Soybeans” (Dennis Gartman)
“Steel” (Dennis Gartman)
“Technology” (Najarian)
“Wheat” (Dennis Gartman)
Apple (AAPL) (Najarian)
AT&T (T) (Macke)
Best Buy (BBY) (Macke)
BJ Services (BJS) (Najarian)
Blue Nile (NILE) (Macke)
Burlington Northern (BNI) (Adami)
Disney (DIS) (Macke)
Estee Lauder (EL) (Finerman)
Family Dollar (FDO) (Adami)
Ford (F) (Adami)
General Motors (GM) (Macke)
Genesco (GCO) (Finerman)
Google (GOOG) (Adami)
Google (GOOG) (Najarian)
Home Depot (HD) (Finerman)
Intel (INTC) (Macke)
Intel (INTC) (Najarian)
Microsoft (MSFT) (Adami)
Microsoft (MSFT) (Macke)
NYSE Euronext (NYX) (Finerman)
Oracle (ORCL) (Macke)
Texas Instruments (TXN) (Adami)
Texas Instruments (TXN) (Najarian)
Transocean (RIG) (Najarian)
United Parcel Service (UPS) (Adami)
United Rentals (URI) (Najarian)

Sell
“US Dollar” (Dennis Gartman)
Brocade Communications (BRCD) (Adami)
FedEx (FDX) (Adami)
General Motors (GM) (Macke)
Pool Corporation (POOL) (Macke)

* 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 climbed with the Dow industrials scoring it largest weekly gain since March, as positive earnings from Oracle Corp. and Nike Inc. spurred optimism amid high volume triggered by expiring futures and options contracts. This was a great closing for a week driven by the first interest rate cut from the Federal Reserve in more than four years.

Today the Dow Jones industrial average closed up 53.49 or 0.39% to 13,820.19, the broader S&P 500 closed up 7.00 or 0.46% to 1,525.75, and the tech-heavy Nasdaq composite closed up 16.93 or 0.64% to 2,671.22. For the week, both the Dow and the S&P gained 2.8%, and the Nasdaq rose 2.7%.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by 5 to 3 on volume of over 2.0 billion shares. On the Nasdaq, advancers beat decliners by 4 to 3 as 2.4 billion shares changed hands.

Volume was heavier than usual due to the quadruple options expiration, a quarterly event in which stock index futures and options - and individual stock futures and options - all expire simultaneously. This event can sometimes increase market volatility.

Strong earnings have rekindled investor interest. A spate of comments from Fed officials have added to the positive undertones. Fed governor Mishkin said that economic downturns have always been connected to instability in financial markets, and that policy makers should keep that in mind. Fed Vice Chairman Kohn, indicated he is now less opposed to inflation targeting - having specific set goals for price gains - than he has been in the past. He also spoke about whether this week’s Fed rate cut went too far and essentially bailed out investors who made bad decisions, saying that the focus of the central bank is always the macro economy. Fed governor Kevin Warsh, discussed the recent volatility in financial markets, the drying up of liquidity this summer and the sub-prime mortgage market fallout.

Shares of Oracle closed up $0.94 or 4.44% to $21.98, after reporting higher quarterly earnings and revenue that topped estimates. It also reported a large jump in sales of new software licenses. Its net income rose to $840 million, compared with $670 million in the quarter a year earlier. Meanwhile revenue rose to $4.53 billion from $3.59 billion.

Shares of Nike Inc. closed lower $1.06 or 1.82% to $57.26, despite reporting a 51% surge in fiscal first quarter profit, buoyed by a tax benefit and gains in Europe and Asia. Its profit rose to $569.7 million from $377.2 million a year earlier. Sales increased 11% to $4.66 billion, helped by currency translations.

Shares of Texas Instruments Inc. closed up $0.85 or 2.38% to $36.62, after it authorized further funds for stock repurchases and hiked the cash dividend for the second time this year. It plans to buy back up to $5 billion in common stock and lift its quarterly dividend by 25%.

U.S. light crude oil for November fell 16 cents to $81.62 a barrel on the New York Mercantile Exchange. The October contract settled the previous day at $83.32, ending at a record high for the fourth session in a row.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

etail Federation. Investors mulled record-high oil prices, weak earnings from Bear Stearns and a Congressional hearing on the sub-prime mortgage fallout.

Today, the Dow Jones industrial average closed down 48.86 or 0.35% to 13,766.70, the broader S&P 500 closed down 10.28 or 0.67% to 1,518.75, and the tech-heavy Nasdaq composite closed down 12.19 or 0.46% to 2,654.29.

Market breadth was negative. On the New York Stock Exchange, losers topped winners by over 2 to 1 on volume of 1.3 billion shares. On the Nasdaq, decliners topped advancers by 9 to 5 on volume of 1.8 billion shares.

Stocks ran into some resistance as investors struggled to sort through the longer-term impact of the rate cut. The slump in treasury prices following the rate cut, boosted the corresponding yields on worries that lower borrowing rates will drive up inflationary costs. Federal Reserve Chairman Ben Bernanke told Congress that the credit crisis has distressed financial markets and that the central bank will take steps to help the situation.

In economic news, the regional read on manufacturing rose to 10.9 from a previous flat reading. The index of leading economic indicators dropped 0.6% in August, topping forecasts. The number of Americans filing claims for unemployment dropped last week, which surprised economists.

Shares of Bear Stearns lost after reporting a big drop in third-quarter profit that missed estimates, due to the impact of the sub-prime mortgage fallout and financial market turmoil. It posted a sharp decline in net income for the third quarter - a period during which two of its hedge funds heavily invested in sub-prime securities blew up, helping to fuel a global credit storm.

Shares of Nasdaq Stock Market closed up $0.49 or 1.36% to $36.51, after it struck a multifaceted deal with Borse Dubai involving equity interests in the London Stock Exchange and Scandinavian bourse operator OMX.

Shares of Goldman Sachs posted a rise in earnings and revenue. Quarterly profit rose to $2.85 billion, compared to $1.55 billion a year earlier. Revenue soared 63% to $12.33 billion from $10.18 billion last year. Stock trading also racked up a record $3.13 billion of revenue during the period.

Stock of Circuit City lost 18% after reporting a quarterly loss versus a year-ago profit, a decline in sales at stores open a year or more versus a year-ago rise, and a drop in revenue from the previous year.

Shares of FedEx lost $3.06 or 2.85% after warning that second-quarter and full-year earnings won’t meet expectations, due to uncertainty about the economic outlook and housing market. It earned $494 million, compared with $475 million in the year-ago quarter. Revenue increased 8% to $9.2 billion, compared with $8.55 billion.

U.S. light crude oil for October delivery rose $1.39 to settle at $83.32 a barrel on the New York Mercantile Exchange, ending at an all-time high for the fourth session in a row. However, the record price remains below inflation-adjusted highs hit in the early 1980s, which would be equal to at least $95 a barrel today.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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

Buy
Activision (ATVI) (Macke)
Apple (AAPL) (Najarian)
Baker Hughes (BHI) (Najarian)
BEA Systems (BEAS) (Finerman)
Brightpoint (CELL) (Najarian)
Brown Shoe Co. (BWS) (Finerman)
Celgene (CELG) (Najarian)
ConocoPhillips (COP) (Finerman)
Cree (CREE) (Najarian)
EMC (EMC) (Adami)
Fluor Corporation (FLR) (Adami)
Freeport-McMoran Copper & Gold (FCX) (”sell at 115″) (Adami)
Geron (GERN) (Najarian)
Goldman Sachs (GS) (Adami)
Halliburton (HAL) (Najarian)
Kaiser Aluminum (KALU) (Finerman)
McDermott International (MDR) (Adami)
McDonald’s (MCD) (Finerman)
Microsoft (MSFT) (Adami)
NASDAQ Stock Market (NDAQ) (Finerman)
Nike (NKE) (Adami)
Nike (NKE) (Macke)
NYMEX Holdings (NMX) (Finerman)
NYSE Euronext (NYX) (Finerman)
Oracle (ORCL) (”above $20.50″) (Adami)
Oracle (ORCL) (Adami)
Oracle (ORCL) (Macke)
Oracle (ORCL) (Najarian)
Saks (SKS) (Macke)
SAP AG (SAP) (Najarian)
Schlumberger Limited (SLB) (Najarian)
Sohu.com (SOHU) (Najarian)
Southern Copper (PCU) (Najarian)
Tiffany & Co (TIF) (Macke)
United Parcel Service (UPS) (Adami)
Yum Brands! (YUM) (Finerman)

Sell
Circuit City (CC) (Macke)
FedEx (FDX) (Macke)
Infosys Technologies (INFY) (Adami)
Motorola (MOT) (Najarian)
Motorola (MOT) (Macke)
Pacific Ethanol (PEIX) (Najarian)
Pier 1 Imports (PIR) (Macke)

* 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.”

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

Buy
Blackstone (BX) (Adami)
Boardwalk Real Estate (BOWFF.PK) (Macke)
Brown Shoe (BWS) (Finerman)
Collective Brands (PSS) (Finerman)
Comcast (CMCSA) (Finerman)
Cree (CREE) (Najarian)
FedEx (FDX) (”sell at $110″) (Adami)
Fortress (FIG) (Finerman)
Gafisa (GFA) (Seymour)
Genesco (GCO) (Finerman)
Goldman Sachs (GS) (Adami)
Kellogg’s (K) (Macke)
Kraft (KFT) (Macke)
Limited Brands (LTD) (Finerman)
Mobile Telesystems OJSC (MBT) (Seymour)
Nasdaq Stock Market (NDAQ) (Finerman)
Nasdaq Stock Market (NDAQ) (Najarian)
Nike (NKE) (Finerman)
Nike (NKE) (Macke)
Nike (NKE) (Najarian)
Nokia (NOK) (Najarian)
Oracle (ORCL) (Macke)
Safeway (SWY) (Macke)
Tenaris (TS) (Seymour)
The Limited (LTD) (Finerman)
Titanium Metals (TIE) (Najarian)
Twin City Federal (TCB) (Macke)
UPS (UPS) (Adami)
Vimpel Communications (VIP) (Seymour)
Yahoo (YHOO) (Macke)

Sell
CarMax (KMX) (Macke)
Countrywide Financial (CFC) (Finerman)
Goldman Sachs (GS) (Adami)
Goldman Sachs (GS) (Najarian)

* 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 higher, capping a rally that thrust the Dow industrials to near two-month highs, amid optimism sparked by the Federal Reserve’s larger than expected answer to Wall Street’s call for a cut in interest rates. The Feds have reassured investors who were worried that the mortgage and credit market malaise could send the economy into recession.

Today, the Dow Jones industrial average closed up 76.17 or 0.55% to 13,815.56, the broader S&P 500 closed up 9.25 or 0.61% to 1,529.03, and the tech-heavy Nasdaq composite closed up 14.82 or 0.56% to 2,666.48.

Market breadth was positive. On the New York Stock Exchange, winners trounced losers by almost two to one on volume of 1.67 billion shares. On the Nasdaq, advancers beat decliners by more than three to two on volume of 2.21 billion shares.

The Fed’s decision to cut 50 basis points means central bankers opted to stay in front of any credit pressures on the consumer and will now sit back and watch the impact, hoping that inflation remains low and the economy continues to grow. Not only has the stock market reacted well, but there is relief in the credit markets also, since the fed funds rate impacts a variety of consumer loans. The move was important for the economy and for stock investors, as it is very positive and shows that the Fed stands ready to act.

Shares of Morgan Stanley closed down 2.7% after reporting a drop in quarterly earnings versus expectations for a rise, and a smaller-than-expected rise in quarterly revenue. Its income from continuing operations fell to $1.47 billion, from $1.59 billion a year earlier. Revenue climbed 13% to $8 billion from a year earlier.

Stock of Plexus Corp. climbed $1.86 or 7.82% to $25.66, after J.P. Morgan raised its rating on the stock to overweight from neutral, saying the electronics contract manufacturer is likely to see its sales outpace the industry average over the next 12 months.

Shares of Accredited Home Lenders Co. closed up $1.78 or 18.2% to $11.56, after it agreed to be acquired by private-equity group Lone Star for $11.75 a share in cash. The deal represents a 20% premium to the share price at Tuesday’s close, and resolves litigation between the two companies.

U.S. light crude oil for October delivery rose 42 cents to settle at $81.93 a barrel on the New York Mercantile Exchange, briefly hitting a fresh record trading high of $82.50 after a report showed a tepid rise in weekly crude oil and gas inventories.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

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

Buy
“Brazil” (Seymour)
“Brokers” (Macke)
“Gold” (Dennis Gartman)
“Gold” (Seymour)
“Oil” (Dennis Gartman)
“Russia” (Seymour)
“Wheat” (Dennis Gartman)
Alcoa (AA) (Adami)
Altria (MO) (Finerman)
Arch Coal (ACI) (Dennis Gartman)
Banco Itau Holding Financeira S.A. (ITU) (Seymour)
BHP Billiton (BHP) (Najarian)
Blackstone (BX) (Adami)
Blue Nile (NILE) (Macke)
Boeing (BA) (Adami)
Caterpillar (CAT) (Adami)
Caterpillar (CAT) (Macke)
Caterpillar (CAT) (Najarian)
Charles Schwab (SCHW) (Macke)
Charles Schwab (SCHW) (Najarian)
Companhia Vale do Rio Doce (RIO) (Najarian)
Conoco Phillips (COP) (Finerman)
Crocs (CROX) (Adami)
Freeport McMorRan (FCX) (Stacey Gilbert)
Goldman Sachs (GS) (Adami)
Goldman Sachs (GS) (Najarian)
Home Depot (HD) (Finerman)
Hovnanian (HOV) (Adami)
Macy’s (M) (Macke)
Morgan Stanley (MS) (Adami)
Morgan Stanley (MS) (Najarian)
Nasdaq Stock Market (NDAQ) (Finerman)
Nucor (NUE) (Adami)
NYMEX (NMX) (Adami)
Pulte Homes (PHM) (Adami)
Suncor (SU) (Dennis Gartman)
Target (TGT) (Finerman)
TD Ameritrade (AMTD) (Macke)
TD Ameritrade (AMTD) (Najarian)
Tiffany (TIF) (Macke)
Toll Brothers (TOL) (Adami)

Sell
Bear Stearns (BSC) (Najarian)
Blackstone (BX) (Macke)
Blackstone (BX) (Najarian)
E*Trade (ETFC) (Macke)
E*Trade (ETFC) (Najarian)
Hovnanian (DOG) (Macke)
Wendy’s (WEN) (Finerman)

* 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.”