Dow Stock News

The New York Times reports that Ed Lampert, head of Sear (SHLD) has lost a large sum by investing in Citigroup (C).

The Wall Street Journal reports that AIG's (AIG) net fell 27%, hurt by a write-down.

   Ice Man Stocks

Depressed stocks the Ice Man may buy:

DOW - 11774 Gap (extrapolated from the S&P Gap)
S&P 1468G, then 1435 Gap
CSCO - 31.20 Gap
GE - 37.20 Gap

Dollar Man Ideas:

VG - 2.20

   Media Commentators

Cramer's Comments:

Bullish: NRG, HLF, NSTK (sticking with the name)

   Ice Cold Commentators

Break Man Video Summary:

Break out buy (or short sell) watch list for short term gains November 8 includes: AMMD, OXY, PLUG, TEN, GRS, SYMC, EMR, HBAN, CMRG, LRY.

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 Recap:

The market gapped down Wednesday morning on heavy overnight selling in the stock index futures.  The SPX lost 15 points in the first few minutes hitting 1505 before a rally attempt lifted the index to 1511 by 10:30.  As more negative news hit the financial stocks the market again sold off with the SPX breaking thru our support level at 1490.  The SPX moved down to the 1484 pivot support area by 1:30 when another rally attempt brought the index back up to 1495.  However, around 2:30 the intense selling resumed as the SPX convincingly broke thru support and ended up closing on the lows at 1475.  At the close the SPX/DOW were down 2.8% while the NDX/Nasdaq lost 2.6%.

As a result of Wednesday´s action the SPX, DOW, and NYA have all now joined the Russell 2000, TRAN, SOX, and Wilshire 5000 in confirmed downtrends.  In other words, each of these indexes has now made a lower high along with a lower low.  We also noted several days ago that SPX 1479 and DOW 13.387 were important levels that had to be maintained for this uptrend to continue.  Today the market decisively confirmed a new downtrend for the cyclical stocks by breaking these levels.  This leaves only the NDX and Nasdaq still in uptrends.  The next obvious question regards the big picture and where we stand.  As of now, we still remain in a bull market.  We need to monitor how deep this selling takes the market, but for now it should be viewed as a correction.  That does not mean you should be attempting to get long at this time but instead focus on the how the various indexes respond to the highlighted support levels shown in the charts below.  I have included numerous index and sector charts that show their respective support levels – we suggest you save these charts for future reference.

Over the last few weeks, we have been warning about the underlying health of this market due to the deteriorating internals.  For several days, we have highlighted the poor breadth figures (weak advance/decline readings) as well as the fact that new lows were consistently outpacing new highs on the major indexes.  The true weakness was being masked by the strength in a few heavily weighted big cap stocks such as AAPL, GOOG, ISRG, RIMM, etc.  These stocks were in effect holding up the market but underneath the market internals were eroding.  Another way to explain this fact is that supply was in control of the market – the number of stocks on technical point and figure sell signals exceeded the number of buy signals.  Realistically, a market can only hold up so long with so few stocks participating to the upside.  Simply put, the market was coming under pressure of the mounting supply and Wednesday it imploded.

Wednesday´s breakdown inflicted substantial technical damage to the charts and thus the market is likely to head lower for a period of time.  Sure there will be bounces along the way, but please refrain from chasing these bounces except for a few scalps.  Thus, caution is advised until this market settles down, and the indicators align for some type of tradable bottom.  Likewise, you should avoid shorting a gap down Thursday after all this selling Wednesday.  Objectively it´s much better to short up moves back towards some resistance levels that correspond with the oscillators becoming overbought.

In summary, we hope you have heeded our advice to take things lightly over the past few weeks.  Our primary objective is to make you aware when risk is high and in turn preserve your capital.  With the volatility increasing, please remember to check on the intraday updates from the Ice Man. He does an outstanding job of identifying the shorter term trends that will assist you on a day to day basis.

Good Trading.

   CNBC Fast Money Review

1. WORST DAY FOR BANKS IN FIVE YEARS
  
The headline: Banking Index Posts Worst Loss in Five Years as Citigroup, Morgan Stanley, Merrill Hit New Lows.
  
Dylan Ratigan explains that WM plunged 16% on
Wednesday after warning credit losses this year may amount to $2.9 billion.
  
Tim Seymour explains that volatility is back to pre-Fed rate cut levels and he wonders where investment banks will make their money in days to come?
  
Guy Adami replies, they will make their money from trades! Guy speculates that the Street is overshooting on the downside and thinks GS is a buy at $205.
  
Karen Finerman reveals she is long Goldman because
she feels there are a lot of places they can make money. And she´s short LEH and Merrill.
  
Pete Najarian likes STT.
  
2. WILL CHINA SELL THEIR DOLLARS?
  
The headline: Dollar Dives To New Record Low Vs. Euro After China Signals Plan To Diversify Foreign Currency Reserves.
  
Dylan Ratigan asks is the dollar becoming so limited in value that it´s devaluing American assets in a meaningful way.
  
Guy Adami replies only the Treasury Secretary can answer that question, replies Guy Adami.
  
Karen Finerman reminds Dylan that there are benefits to having a weak dollar.
  
Tim Seymour concurs. He
speculates that the government is probably quite happy with the weak dollar because exports are strong as a result.
  
3. WHAT WAS GREEN ON YOUR SCREEN?
  
The headline: RIMM & AMZN Among The Few Stocks Finishing Higher Wednesday.
  
Pete Najarian likes RIMM. In an awful tape the stock popped 4 bucks, he says.
  
Guy Adami recommends buying ALL as a trade, with a stop out at $50.
  
4. CISCO
  
The headline: Despite Strong Quarterly Profits, Cisco Shares Fall About 4% In After Hours Trading
  
Pete Najarian says the Street expected Cisco to blowout their numbers, and they didn´t. He´s long
CSCO and not happy about it. But he´s holding.
  
Guy Adami recommends buying the dip.
  
Tim Seymour adds that Cisco is growing in emerging markets and he likes CSCO for this reason.
  
5. IS THE CONSUMER OK?
  
October sales figures from JWN and
TGT hit the Street, Thursday. Not much is expected but will the retailers at least tell the market that the consumer is ok?
  
Guy Adami thinks the way to play retail is MA because they don´t take credit risk, they only process transactions. He adds that Deutsche bank just put a $250 price target on MA and he agrees.
  
Karen Finerman likes that expectations are really low. She doesn´t think anyone on the Street is bullish on Back-To-School and these companies have strong balance sheets, she adds. Finerman still owns WMT.
  
6. POPS AND DROPS
  
POT popped 2%: Tim Seymour likes POT.
  
DTV popped 3%: Guy Adami says DTV looks okay.
  
OVEN popped 9%: Tim Seymour thinks this stock could be interesting.
  
FNM dropped 10%: Karen Finerman says stay away.
  
F dropped 5%: Guy Adami recommends buying F on the dip.
  
YHOO dropped 8%: Pete Najarian says he´s long and going to stay long and hope it turns around.
  
COF dropped 16%: Karen Finerman doesn´t feel consumer credit is a good place to be.
  
FLR dropped 6%: Guy Adami still likes the name because they have a strong backlog.
  
7. YOUR FIRST MOVE FOR THURSDAY
  
Tim Seymour likes GFI, which he feels, has underperformed, recently.
  
Guy Adami recommends shorting the Dow with DOG because he doesn´t anticipate a bounce on Thursday. The next 300-500 point he thinks will be
lower.
  
Karen Finerman is sticking with her financials trade; long GS and short LEH.
  
Pete Najarian likes ESLR because he believes in green.

   News and Events Digest

Breaking News

Beverage maker Hansen Natural Corp (HANS) on Thursday posted a more than 70 percent increase in its quarterly profit as its Monster Energy drink performed strongly, but results fell short of market expectations. The Corona, California-based company reported third-quarter net of $45.8 million, or 46 cents a share, up from $26.5 million, or 27 cents a share, last year. Net sales for the third quarter rose 38.4 percent to $247.2 million, the company said in a statement.
Analysts were expecting earnings of 49 cents a share, before items, on revenue of $256.95 million, according to Reuters Estimates. - Reuters

Solar modules maker First Solar Inc. said Wednesday its third-quarter profit ballooned as revenue more than tripled, beating Wall Street estimates.
First Solar shares jumped $40.52, or 24 percent, to $207.64 in aftermarket trading, after falling $1.88 to $167.12 in the regular session.
In the third quarter, First Solar earned $46 million, or 58 cents per share, compared with $4.3 million, or 7 cents per share, for the same quarter in 2006.
The 2007 quarter's results were based on a total of about 79.1 million shares outstanding, while the 2006 quarter's results were based on about 58 million shares outstanding. - AP

The Bank of England left U.K. interest rates on hold for the fourth month in a row Thursday as it remained unconvinced that the crisis in global credit markets is causing any significant slowdown in economic growth. The decision to leave its key rate at 5.75% was in line with the forecast of most economists, though a few had predicted an immediate rate cut and many expect the bank to relax borrowing costs early in 2008. - MarketWatch

Ford Motor Co (F) posted a sharply narrower third-quarter loss on Thursday after cutting costs and boosting margins on vehicle sales.
The automaker also said it expects to conclude a deal to sell its British luxury brands Jaguar and Land Rover early next year.
Ford posted a third-quarter net loss of $380 million, or 19 cents per share, compared with a loss of $5.2 billion, or $2.79 a share, a year earlier.
Ford's loss from continuing operations, excluding one-time items, was 1 cent per share. On that basis, the average Wall Street forecast was a loss of 48 cents per share, according to Reuters Estimates.
Ford said it cut 6,800 jobs in North America during the quarter. - Reuters

Morgan Stanley (MS) said Wednesday it will take a $3.7 billion write-down to reflect a drop in the value of mortgage-related positions taken by its traders. The hit, which resulted from a speculative trading bet with the bank's own money, could reduce fourth-quarter net income by about $2.5 billion, Morgan Stanley said. The bank said the loss could grow if markets worsen before its fiscal year wraps up at the end of November, and put its remaining exposure at $6 billion. The write-down is in line with estimates made by analysts this week and well below the $7.9 billion in similar write-offs taken by Merrill Lynch & Co. two weeks ago and the $8 billion to $11 billion in additional write-downs announced Sunday by Citigroup Inc. - MarketWatch

Sprawling German conglomerate Siemens on Thursday reported a loss of $107 million in the fiscal fourth-quarter after a tax write-down for selling a division that makes automotive electronics.
But shares were lifted, in an otherwise dreary day on worldwide stock markets, by the company's pledge to buy back up to 10 billion euros ($15 billion) in shares. - MarketWatch

Barrons article stated it may be time to get out of expensive small cap stocks and they highlighted Advent Software (ADVS) as one such company to sell.

Media Summary:

Reuters writes that shares in Cisco (CSCO) were driven down on concerns that orders from the financial sector would drop.

Reuters reports that Fed officials mentioned more rate cuts would be necessary if the economy slows.

Reuters also reports that Merrill Lynch (MER) said that the SEC is investigating certain aspects of its subprime mortgage portfolio.

Reuters also writes that BT (BT) hit earnings estimate on strength of its broadband business.

The Wall Street Journal also reports that the US is recalling another four million Chinese made toys.

The Wall Street Journal writes that Tivo (TIVO) is marketing a service that allows advertisers to see details  of people's TV watching habits.

The Wall Street Journal writes that Moody's say that certain asset pools to be protected by a superfund set up by banks are already liquidating their portfolios.

The Wall Street Journal writes that shares in content delivery firms Akamai (AKAM) and Limelight (LLNW) have taken a beating and could go lower.

The Wall Street Journal writes that Europe cellular giant Vodafone (VOD) will use the new Nokia ((NOK) music and internet services.

The Wall Street Journal writes that Kraft (KFT) added two board members approved by shareholder Nelson Peltz.

The New York Times writes that home owners are beginning to feel the pinch of lost equity.

The New York Times writes that high gas prices are adding to the strain on US consumers.

The FT writes that Ford (F) may face a hurdle in selling Jaguar and Rover--a $2 billion pension fund deficit.

The FT writes that Wall St. expectations for fourth quarter earnings has fallen sharply.

M&A Activity:

BHP Billiton confirmed it had made an approach to buy rival mining company Rio Tinto, sending Rio Tinto shares 19% higher in London. But Rio Tinto later said it had rejected the proposed acquisition. - WSJ

Stock Split Announcement:

Foster Wheeler Ltd. (Ticker: FWLT) announced that its board of directors approved a 2 for 1 stock split.

Economic Data:

8:30 Initial Claims

   Upgrades and Downgrades by Sector:

Aerospace
 ETN Eaton Bernstein Upgraded from Mkt Perform to Outperform

Airlines - Passenger
 AAI Air Tran Holdings UBS Downgraded from Buy to Neutral
 AMR AMR Corp UBS Downgraded from Neutral to Sell
 GOL Gol Intelligent Airlines Deutsche Securities Downgraded from Buy to Hold $28.30

Apparel
 MFB Maidenform Brands Brean Murray Downgraded from Buy to Hold

Beverages
 BF.A Brown-Forman JP Morgan Downgraded from Overweight to Neutral

Biotech
 IDIX Idenix Pharma Friedman Billings Cut Price Target Mkt Perform $5 to $4
 NSTK Nastech Pharm Rodman & Renshaw Cut Price Target Mkt Outperform $22 to $14

Brokerage Services
 NDAQ NASDAQ Jefferies & Co Price Target Raised Buy $48 to $54
 GS Goldman Sachs Wachovia Downgraded from Outperform to Mkt Perform

Business Services
 SRVY Greenfield Online Needham & Co Upgraded from Buy to Strong Buy $20
 SXC Stantec Brean Murray Upgraded from Hold to Buy
 JOBS 51job Bear Stearns Initiated at Outperform
 INWK InnerWorkings Jefferies & Co Downgraded from Buy to Hold $17

Chemicals
 GGC Georgia Gulf HSBC Securities Cut Price Target Underweight $13 to $9

Computer Hardware
 NICE Nice Systems Banc of America Sec Downgraded from Buy to Neutral
 TACT Transact Tech Roth Capital Cut Price Target Buy $8 to $7

Computer Services
 HLTH HLTH Corp Friedman Billings Upgraded from Mkt Perform to Outperform $15.50 to $16
 TEAM TechTeam Roth Capital Price Target Raised Buy $16 to $18
 SINA Sina Bear Stearns Initiated at Outperform
 RATE Bankrate RBC Capital Mkts Downgraded from Outperform to Sector Perform
 RATE Bankrate CIBC Wrld Mkts Downgraded from Sector Perform to Sector Underperform

Computer Software
 ARBA Ariba Broadpoint Capital Initiated at Buy $15
 KNXA Kenexa Needham & Co Downgraded from Buy to Hold
 KNXA Kenexa Wedbush Morgan Downgraded from Buy to Hold $34 to $27
 KNXA Kenexa CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform
 KNXA Kenexa Brean Murray Downgraded from Buy to Hold
 KNXA Kenexa JMP Securities Downgraded from Mkt Perform to Mkt Underperform
 KNXA Kenexa Susquehanna Financial Downgraded from Neutral to Negative
 KNXA Kenexa Cantor Fitzgerald Cut Price Target Hold $43 to $41
 OPTV OpenTV Kaufman Bros Cut Price Target Buy $4 to $2

Construction
 FLR Fluor Friedman Billings Price Target Raised Mkt Perform $115 to $149
 MTZ MasTec Kaufman Bros Cut Price Target Buy $16 to $15
 VMED Virgin Media Morgan Joseph Cut Price Target Buy $40 to $26

Finance Companies
 GCA Global Cash Access JP Morgan Downgraded from Overweight to Neutral
 PRS Primus Guaranty Lehman Brothers Downgraded from Overweight to Underweight
 ALD Allied Capital Friedman Billings Cut Price Target Mkt Perform $31 to $27

Foods
 TSN Tyson Foods Wachovia Upgraded from Underperform to Mkt Perform

Gaming Operations
 CHDN Churchill Downs Brean Murray Price Target Raised Buy $58 to $62
 LACO Lakes Entertainment Nollenberger Capital Cut Price Target Buy $15 to $13
 UBET Youbet.com Roth Capital Cut Price Target Hold $1.50 to $1.25
 STN Station Casinos Susquehanna Financial Coverage Dropped

Gold and Silver Mining
 CDE Coeur d'Alene Mines JP Morgan Upgraded from Neutral to Overweight
 NEM Newmont Mining Credit Suisse Price Target Raised Outperform $55 to $70
 KGC Kinross Gold CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform $20 to $22
 KGC Kinross Gold Credit Suisse Downgraded from Outperform to Neutral

Healthcare
 BITI Bio-Imaging Technologies Roth Capital Price Target Raised Buy $9 to $10
 CHDX Chindex BWS Financial Price Target Raised Buy $30 to $40
 ARAY Oppenheimer Maintain Sector UnderPerform
 MS A Few Firms Lowered Price Target But Maintained their Ratings
 HOLX Hologic RBC Capital Mkts Downgraded from Outperform to Sector Perform
 SUNH Sun Healthcare Bear Stearns Upgraded from Peer Perform to Outperform
 WBMD WebMD Health Needham & Co Upgraded from Hold to Buy $51
 VTIV inVentiv Health Broadpoint Capital Cut Price Target Strong Buy $46 to $42

Industrial Equipment
 FWLT Foster Wheeler Citigroup Upgraded from Hold to Buy

Insurance
 AMSF Amerisafe Friedman Billings Price Target Raised Outperform $22 to $23
 CFSG China Fire & Sec Grp Brean Murray Initiated at Buy $19
 ING ING Groep Bear Stearns Downgraded from Outperform to Peer Perform
 AGII Argonaut Group Friedman Billings Cut Price Target Outperform $60 to $57

Internet Services
 BIDU Baidu.com RBC Capital Mkts Downgraded from Outperform to Sector Perform

Oil and Gas
 ASH Ashland Credit Suisse Upgraded from Underperform to Neutral
 EPE Enterprise GP Holdings Wachovia Upgraded from Mkt Perform to Outperform
 TOT Total S.A. JP Morgan Upgraded from Neutral to Overweight
 CHK Chesapeake Energy Calyon Securities Price Target Raised Add $40 to $45
 NE Noble Corp Credit Suisse Price Target Raised Outperform $64.50 to $71
 WTI W&T Offshore Calyon Securities Price Target Raised Neutral $26 to $28
 XEC Cimarex Calyon Securities Price Target Raised Neutral $40 to $42

Personal Services
 CLUB Town Sports Intl Banc of America Sec Upgraded from Sell to Neutral
 CTRP Ctrip.com Bear Stearns Initiated at Outperform

Pharmaceutical
 SOMX Somaxon Pharma JP Morgan Upgraded from Underweight to Neutral
 SOMX Somaxon Pharma Friedman Billings Cut Price Target Outperform $23 to $14

Publishing
 IQW Quebecor World CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform $15 to $11
 IQW Quebecor World UBS Downgraded from Buy to Neutral

Regional Banks
 FMER FirstMerit Corp Lehman Brothers Upgraded from Underweight to Equal-weight
 WM Washington Mutual Friedman Billings Cut Price Target Underperform $23 to $14

Restaurants
 MSSR McCormick & Schmick's Morgan Joseph Downgraded from Buy to Hold

Retail Trade
 FLWS 1-800-FLOWERS Nollenberger Capital Initiated at Buy $14
 BID Sotheby's Banc of America Sec Downgraded from Buy to Neutral
 BID Sotheby's JMP Securities Downgraded from Mkt Outperform to Mkt Perform
 ZUMZ Zumiez Caris & Company Cut Price Target Above Average $50 to $33

Semiconductors
 ONNN TWPT Upgraded to Overweight $15
 NETL NetLogic CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform

Solar Energy
 FSLR First Solar CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform $230

Specialty Funds
 AINV Apollo Investment Friedman Billings Cut Price Target Outperform $27 to $24
 TICC Technology Investmt Cap Friedman Billings Cut Price Target Outperform $16 to $14

Telecommunications
 GRRF China Grentech Susquehanna Financial Upgraded from Neutral to Positive
 NT Nortel Credit Suisse Upgraded from Underperform to Neutral $16 to $18
 CSCO A Few Firms Said to Buy on Weakness
 EQIX Equinix Kaufman Bros Price Target Raised Buy $120 to $130
 JCOM j2 Global Kaufman Bros Cut Price Target Buy $40 to $36
 JCOM j2 Global Broadpoint Capital Cut Price Target Buy $39 to $35
 JCOM j2 Global Friedman Billings Cut Price Target Mkt Perform $40 to $34

Transportation
 SFL Ship Finance Intl Citigroup Upgraded from Sell to Buy

Utilities
 MSEX Middlesex Water Boenning & Scattergood Upgraded from Market Perform to Market Outperform $22
 PCG PG&E Jefferies & Co Upgraded from Hold to Buy $48 to $50