Thursday Morning, September 6th
Dow Stock News
MSFT - initiated with a Buy at Deutsche Securities with $33 price target;
The Wall Street Journal writes that Boeing (BA) will delay the first test flight of its new 787.
The Wall Street Journal reports that Intel (INTC) is upgrading its line of high-end server chips.
The Wall Street Journal writes that Johnson & Johnson (JNJ) is seeking approval for wider use of its drug Procrit.
The New York Times reports that Citigroup (C) closed one of its troubled hedge funds.
Ice Man Stocks
Breakouts the Ice Man may consider trading:
SMSC - 31
SOHU - 36
LIFC - 34.50
Regular Trades the Ice Man may consider:
NTRI - 55.25
BTJ - 40
FFIV - 37.65
OSK - 59.25
ASPV - 20
EW - 48.75 = 49.88 Gap
AEIS - 16.80
NVTL - 24.10
ARAY - 15
WINN - 22
Depressed stocks the Ice Man may buy:
CROX - 51.25 Gap
TGT -60.10 Gap
RVBD - 39.80 Gap
AAPL -126.90 Gap
BSC - 106.70 Gap
GS - 171.40 Gap
AEM - 43.05 Gap
ILF - 205 Gap
ASEI - 68 Gap
ZNH - 56.10 Gap, 50 Gap
PKX - 138.60 Gap
SLB - 104 Gap
Dollar Man Ideas:
CNOA - 2
FLML - 10.15
LTON - 2.80
COMS - 4
ENT - 4.70
Media Commentators
Cramer's Comments:
Bullish: RL, PVH, HLF
Bearish: PERY
Zanger Report:
The market was in overbought condition which it began to work off with yesterday's decline. From current levels, there could be a few more days of selling pressure.
AAPL sold off hard on the run up to product news which this stock often does. The heavy volume suggests that there might be more downside. Descending trendline would be the next buy point but might be good to lighten up a bit on this one and see what happens.
BIDU made a modest move up as it tries to add to the gains of the previous day.
GRMN is trying to break out of its base but is having some trouble. Withmore time, i think this one could work its way much higher.
EXM and DRYS great price action since they broke out from the last buy points.
AMZN is trying to reach the recent highs. Might take a few weeks to get there.
RIMM - not much movement since its recent BO but it needs time following its huge runup from the recent market selloff lows
NOV with a few more days rest could resume its more higher. Consider adding on weakness.
OIH is up nicely since last buy point. With a little rest it could challenge the recent highs.
Ice Cold Commentators
Break Man Video Summary:
Break out buy (or short sell) watch list for short term gains September 6 includes: SPPI, SMTX, RZ, ISIS, CRGN, CAMP, NVAX, ARQL, MFE, TMO.
Several candidates for break out or short sell plays for at least short term gains by buying the break out (or selling the break down) on good volume and closing at least some on the first day.
Swing Man Market Comment:
I wouldn't be surprised to see the Russell 2000 bust to the downside over time to flush out some players and quickly reverse back up. If you remember from my lesson this is typically a bearish pattern which breaks to the downside.
CNBC Fast Money Review
1. Here We Go Again
The headline: Summer's Volatility Returns as Dow Plunges 177 Points Today After a 91 Point Gain Tuesday
Najarian: explains that stocks erased Tuesday´s gains on new housing woes and job growth concerns. He feels volatility is here to stay.
Karen Finerman: recommends being defensive. She´s looking for another shoe to drop.
2. COSTCO PLUNGES
The headline: Retail Sales Figures Get Off To Gloomy Start As COST Disappoints
Macke: Costco shares plunged after August same-store sales missed estimates. He recommends buying into the weakness.
Karen Finerman: recommends waiting a while before buying COST stock.
3. APPLE'S IPHONE, STOCK GETS CHEAPER
The headline: AAPL Shares Retreat From Near Record Even After iPhone Price Cut.
Najarian: explains that Apple slashed the price of the iPhone by $200. He recommends buying into the news.
Adami: doesn´t like Apple stock at its current level.
Macke: doesn´t like APPL, at all!
4.THE CHEESE STANDS ALONE
The headline: Kraft Foods Bucks Market As Shares Rise On Higher Forecast
Karen Finerman: likes KFT for its products and cost cutting program.
Najarian: thinks KFT stock is going higher.
Adami: feels the stock has done nothing for quite some time.
5. BE CAREFUL WHAT YOU WISH FOR
Investors are calling on Ben Bernanke to cut interest rates at The Fed's next meeting on September 18th in order to save the bull market. However, they should be careful what they wish for. History shows that rate cuts actually are not good for stocks because they are indicative of a weak economy and profits.
Macke: it´s foolish to think a rate cut is a panacea. He doesn´t think The Fed can solve the credit crunch problem quickly or easily.
Adami: the less The Fed says the better the market will be.
Najarian: agrees.
Karen Finerman: the market was in a similar situation in 1998, then The Fed made a surprise rate cut and it was, in fact, a panacea.
6. TAKE TWO NAJARIANS AND CALL ME IN THE MORNING
Pete and Jon told you correctly that buying technology stocks was a safe haven during the recent market turmoil and now another sector may be emerging for the fall.
Big Pharma
Pete Najarian: likes MRK in the Big Pharma sector as well as BMY and LLY.
Jon Nararian: explains his attraction to these stocks is two fold; a flight to quality and their promising drug pipeline.
Biotech
Pete Najarian: feels AMGN and DNA have completely under-performed in the last 52-weeks and suggests they´re going to move soon. Recommends taking a long look at BIIB as well as AMLN.
Adami: likes BIIB
Najarian: thinks DNDN and SLXP could be moving lower.
7. Pops and Drops
SIRI popped 4%: Macke recommends buying SIRI with a 2-handle, but says don´t chase it here.
LIBOR Rates popped TO 7-year high: Karen Finerman says it´s a sign of more fear.
C dropped 3%: Karen Finerman believes there´s another shoe to drop.
CROX dropped 6%: Adami says it´s a minor drop.
KBH dropped 5%: The homebuilder is leading the way down for the whole sector after the number of Americans buying previously owned homes hit its lowest level since 2001.
TSN dropped 13%: Karen Finerman says she smells something.
WMG dropped 5%: Karen Finerman says stay away from this stock.
8. The Final Trade: Your First Move For Thursday
Macke: recommends Short DOG for the second day in a row.
Karen Finerman likes KFT.
Adami: prefers BIIB.
Pete Najarian: says NOK is a buy.
News and Events Digest
Breaking News
In an unprecedented statement Thursday, The Bank of England said it's too soon to tell how the disruption in financial markets will impair the availability of credit to companies and households, as it kept its key interest rate on hold at 5.75%. The central bank has previously only made a statement on the reason for an interest rate decision when rates have been changed. The bank said its Monetary Policy Committee discussed the heightened concerns around a variety of asset-backed securities and is monitoring closely "the evolution of both credit spreads and the quantity of credit extended." The bank said there are tentative signs of a slowdown in consumer spending, but it also noted that the recent solid pace of output growth has been sustained and the margin of spare capacity appears limited. - MarketWatch
Apple lopped $200 off the iPhone price, causing its shares to fall 5.1%. Apple also revamped its iPods to include Wi-Fi and a touchscreen. - WSJ
Seagate Technology is introducing drives for desktop personal computers that use special chips to encrypt data. - WSJ
Teva Pharmaceutical Industries Ltd. (TEVA) said that the U.S. Food and Drug Administration has granted final approval for the company to market its generic version of GlaxoSmithKline's (GSK) cardiovascular agent Coreg (Carvedilol) tablets in 3.125 mg, 6.25 mg, 12.5 mg and 25 mg versions. Shipment will begin immediately, Teva said. GlaxoSmithKline shares eased 0.1% in London. - MarketWatch
TASER International Inc. (TASR) announces that it received an order from the California Highway Patrol for 1,659 TASER X26 electronic control devices and related accessories.
Media Summary:
According to Reuters, Countrywide (CFC) will eliminate 900 jobs.
Reuters writes that Apple (AAPL) is looking for higher sales and Europe launch of the iPhone as part of the reason it cut prices on the device.
Reuters writes that the ITC will begin an investigation into patent concerns on some of Nokia's 3G phones.
Reuters writes that Network Appliances has sued Sun (JAVA) over several patents.
The Wall Street Journal writes that Seagate (STX) will release PC disks with encryption chips which will protect data.
The Wall Street Journal also reports that customers at Starbucks (SBUX) will be able to get free iTunes access within the coffee stores.
The FT reports that the Organisation for Economic Co-Operation and Development said that there is great risk for a major slowdown in the US economy
Barron's writes that Cisco (CSCO) said that it is still on track to hit its full-year numbers.
Economic Data:
8:30 Initial Claims
8:30 Productivity Report
10:00 ISM Services
10:30 Crude Inventories
Upgrades and Downgrades by Sector:
Aerospace
EDO EDO Corp CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $40 to $53
Biotech
MATK Martek Biosci Needham & Co Price Target Raised Buy $31 to $32
SGXP SGX Pharma Needham & Co Initiated at Buy $10
Business Services
RTRSY Reuters Group Lehman Brothers Upgraded from Equal-weight to Overweight
Computer Hardware
LXK Lexmark Bernstein Upgraded from Mkt Perform to Outperform
OMCL Omnicell First Albany Price Target Raised Strong Buy $27 to $28
SANM Sanmina-SCI UBS Cut Price Target Neutral $3.30 to $2.50
TEL Tyco Electronics UBS Cut Price Target Neutral $43 to $39
AAPL JPMS Buying Opportunity
Computer Services
HLTH Emdeon Friedman Billings Downgraded from Outperform to Mkt Perform $15.50
Computer Software
COGN Cognos JP Morgan Upgraded from Neutral to Overweight
FIRE Sourcefire Stifel Nicolaus Upgraded from Hold to Buy $12
EPIC Epicor Software KeyBanc Capital Mkts Initiated at Buy $16
TLEO Taleo KeyBanc Capital Mkts Initiated at Buy $27
APLX Applix Sun Trust Rbsn Humphrey Downgraded from Buy to Neutral
APLX Applix First Albany Downgraded from Buy to Neutral
TIBX TIBCO Software Friedman Billings Cut Price Target Mkt Perform $9 to $8
Construction
NCS NCI Building Sys UBS Cut Price Target Buy $60 to $56
Entertainment
CNK Cinemark Wedbush Morgan Initiated at Buy $22
TWX Time Warner Pali Research Downgraded from Buy to Neutral
Financial
BFF BFC Financial Oppenheimer Initiated at Buy $3.50
PNNT Pennant Investment UBS Initiated at Buy
Foods
GIS General Mills UBS Upgraded from Neutral to Buy
Gaming - Chinese
PWRD Perfect World CIBC Wrld Mkts Initiated at Sector Outperform $27
Gold and Silver Mining
AAUK Anglo American Bernstein Upgraded from Underperform to Mkt Perform
Healthcare
FRX Forest Labs Jefferies & Co Upgraded from Hold to Buy $43 to $50
SLXP Salix Pharm Roth Capital Price Target Raised Buy $16 to $17
Insurance
MTG MGIC Investment Friedman Billings Cut Price Target Mkt Perform $43 to $35
RDN Radian Group Friedman Billings Cut Price Target Mkt Perform $35 to $20
Major Pharmaceutical
NVS Novartis AG UBS Initiated at Buy
Mining Non-Ferr Metal
RTP Rio Tinto PLC Bernstein Upgraded from Mkt Perform to Outperform
CCJ Cameco RBC Capital Mkts Cut Price Target Top Pick $70 to $63
Oil and Gas
MRO Marathon Oil Bernstein Upgraded from Underperform to Mkt Perform
SUN Sunoco Bernstein Upgraded from Underperform to Mkt Perform
TSO Tesoro Petroleum Bernstein Upgraded from Underperform to Mkt Perform
VLO Valero Energy Bernstein Upgraded from Underperform to Mkt Perform
HK Petrohawk Energy RBC Capital Mkts Initiated at Outperform
SFY Swift Energy RBC Capital Mkts Cut Price Target Outperform $55 to $53
Paper and Packaging
PTV Pactiv Corp Citigroup Upgraded from Hold to Buy
Publishing
HHS Harte-Hanks Matrix Research Downgraded from Hold to Sell
REITs
TMA Thornburg Mortg RBC Capital Mkts Upgraded from Underperform to Sector Perform
SLG SL Green Rlty Lehman Brothers Downgraded from Overweight to Equal-weight
Retail Trade
COH HSBC Upgraded to Overweight $54
DKS Dick's Sporting Goods UBS Initiated at Buy
JCG J. Crew Lehman Brothers Cut Price Target Equal-weight $50 to $48
Semiconductors
CNXT Conexant CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $2
Telecommunications
CSCO Jeffries Reiterated Buy after analyst meeting
ADCT ADC Telecom Friedman Billings Price Target Raised Outperform $23 to $24
ADCT ADC Telecom Robert W. Baird Price Target Raised Outperform $19 to $22
CSCO Cisco Systems Robert W. Baird Price Target Raised Outperform $36 to $38
PWAV Powerwave Caris & Company Initiated at Buy $9
Transportation
GNK Cantor Fitzgerald Price Target Raised $71
GNK Genco Shipping & Trading Cantor Fitzgerald Price Target Raised Buy $69 to $71
CP Canadian Pacific RBC Capital Mkts Cut Price Target Outperform $81 to $80
Utilities
WEC Wisconsin Energy JP Morgan Upgraded from Neutral to Overweight
NU Northeast Utilities JP Morgan Downgraded from Overweight to Neutral