Jim Cramer's Mad Money Review

Homebuilders are getting gloomier about the slumping housing market, as a 22-year-old index that tracks their sentiment set a new record low Tuesday.
The National Association of Home Builders said its housing market index, which tracks builders' perceptions of conditions and expectations for home sales over the next six months, fell two points to 18 in October, the lowest level since the index began in Jan. 1985. It was the eighth straight monthly decline.
The consensus forecast of economists surveyed by Thomson/IFR was for a reading of 19.
Index readings higher than 50 indicate positive sentiment. The seasonally adjusted index has been below 50 since May 2006.
The report came as Treasury Secretary Henry Paulson, in a speech at Georgetown University's law school, said the housing market correction is persisting for longer than expected and appears likely to "continue to adversely impact our economy, our capital markets and many homeowners for some time yet."
Declines in builder confidence were seen across the country, except for the Midwest, which increased by two points but remained the weakest region nationwide.
Source: Alan Zibel, AP Business Writer

Labels: BZH, CTX, DHI, Homebuilders, HOV, KBH, LEN, PHM, RYL, TOL

This year's decline in existing home sales will be steeper than previously anticipated, a trade group for real estate agents predicted Wednesday.
The eighth straight downwardly revised forecast from the National Association of Realtors calls for U.S. existing home sales to be 10.8 percent below last year as housing market woes persist. Sales of new homes, meanwhile, are expected to finish 2007 at the lowest level in a decade.
The trade group's outlook for 2007 homes sales has grown more pessimistic through the year as foreclosures soared, credit market troubles developed and sales fell. Back in February, the group forecast an annual decline in existing home sales of only 0.6 percent.
In its October report, the association predicts 5.78 million existing homes will be sold in 2007, down from 6.48 million last year. Last month, the association predicted an 8.6 percent drop from a year ago.
This year's sales would be the lowest since 2002, when sales hit 5.63 million.
Sale prices for existing homes are forecast to drop 1.3 percent to a median of $219,000 this year -- a slight improvement from last month's prediction of a 1.7 percent decline. The median price refers to the point where half sold for more and half for less.
Next year, the trade group expects existing home sales to climb to 6.12 million. That is 2.4 percent lower than last month's prediction.
Source: Alan Zibel, AP Business Writer

Labels: BAC, BZH, CFC, DHI, Home Sales, KBH, LEN, MDC, PHM, SPF, TOL, WB, WFC, WM

Housing stocks rose along with the broader market Tuesday after the U.S. central bank sharply cut its target interest rate for the first time in four years.
The Federal Reserve cut the federal funds rate by half a percentage point to 4.75 percent, exceeding expectations on Wall Street for a quarter-point cut. The bank said it made the move to prevent the housing market turmoil from causing more widespread economic problems.
The housing sector is in the third year of its worst contraction in 16 years. Earlier Tuesday, a reading of business sentiment among homebuilders matched its lowest level ever in September, primarily because builders are seeing record-low numbers of potential buyers.
The Fed's move makes it less expensive for mortgage lenders to borrow money to finance loans to home buyers, which should lower consumer borrowing rates. Investors expect that to boost demand among potential home buyers who had become priced out of the market for a home loan.
Here's a look at how shares of some major homebuilders fared in afternoon trading Tuesday .
D.R. Horton Inc. rose 63 cents, or 4.3 percent, to $15.15.
Pulte Homes Inc. rose 60 cent, or 3.7 percent, to $16.69
Hovnanian Enterprises Inc. jumped $1.68, or 14.9 percent, to $13.02
Lennar Corp. rose 29 cents to $26
Centex Corp. rose 59 cents, or 2 percent, to $28.43
Toll Brothers Inc. rose 62 cents, or 2.2 percent, to $28.46
Published by AP

Labels: CTX, DHI, Federal Reserve, Hot Stocks, Housing Stocks, HOV, LEN, PHM, TOL

Home is Where the Debt Is: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Beazer (NYSE: BZH - News), KB Home (NYSE: KBH - News), Countrywide Financial (NYSE: CFC - News), Annaly Capital Management (NYSE: NLY - News)
It isn't just about sub-prime anymore; "All mortgages that were written between 2005 and 2007 I think are corrupted," said Cramer. He came to this conclusion after reading conference calls of CTX, LEN BZH and KBH. However, he zeroed in on two conference calls which are required reading: CFC's and NLY's. In CFC's "long and tedious" call is the implication there is no such thing as sub-prime because all mortgages are bad due to piggybacking equity loans and rising rates. CEO Angelo Mozilo said he doesn't predict a recovery until 2009. NLY's CEO, Michael Farrell, made "some incredible allusions to Moscow and Napoleon." While the situation is bad, Cramer says it is not as dire as it was in 1990 and 1991 when "almost every major money center bank was insolvent, and most of the big regionals either went under or were so impaired that they had to do shotgun marriages." After reading these calls, Cramer arrives at the grim conclusion that anyone involved with mortgages "could be wiped out in this environment."

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Labels: BZH, CFC, CTX, Jim Cramer, KBH, LEN, NLY, Wall Street Confidential

Doomsday Scenario: MDC Holdings (NYSE: MDC - News), DR Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News) and Toll Brothers (NYSE: TOL - News)
Cramer created a doomsday scenario which probably will not happen, since the bank crisis in 1990 was "ten times worse" than the problems of today. However, he would avoid any companies which deal with borrowing and lending money, particularly housing: DHI, PHM and TOL. The only housing stock that isn't hopeless now is MDC, but Cramer would still not buy. He would also avoid financials amid bearish fears that loans will not be repaid and yields will shrink; "You can't own anything that even walks by a mortgage," Cramer warned. He would not touch companies which need financing for deals. However, Cramer added; "the worst-case scenario will be derailed," and the doom and gloom will not really materialize
If Ben will Budge: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
Cramer discussed two scenarios which could reverse doomsday: overseas buyers and an interest rate cut. He is confident that if the Federal Reserve reduces rates by only one percent, housing will make a comeback (especially DHI, PHM, CTX, LEN), financials GS and C will recover and the Dow will jump to 15.
Playing it Safe: Celgene (NasdaqGS: CELG - News), Kellogg (NYSE: K - News), Schlumberger (NYSE: SLB - News), Medco Health Solutions (NYSE: MHS - News), Kimberly-Clark (NYSE: KMB - News), Amazon.com (NasdaqGS: AMZN - News), Google (NasdaqGS: GOOG - News), Apple (Other OTC: APPL.PK - News) and Research in Motion (NasdaqGS: RIMM - News)
Even if the Fed doesn't budge rates, investors can still create a safe portfolio consisting of CELG, K, SLB, MHS and KMB. He also directed viewers to his six wild bull markets: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals, and his four horse men of tech: AMZN, GOOG, APPL and RIMM.
Mad Mail: Brookfield Asset Management (NYSE: BAM - News), Rite Aid (NYSE: RAD - News), ValueClick Inc. (VLCK)
Cramer urged a mailer not to sell BAM, because it is an international company, unaffected by subprime woes, and is similar to Warren Buffet's Berkshire Hathaway; "If you sold Warren Buffet because of a housing problem, forget it!" To a mailer concerned about RAD, Cramer said, "The integration is going very well. I'm holding your hand on RAD, and begging you not to sell it." Concerning VLCK's bad quarter, he commented, "I don't have my arms around it yet. To me, the stock looks like it's going to see $18, before you see a bottom."
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Labels: AMZN, BAM, BSC, C, CELG, CTX, DHI, GOOG, GS, Jim Cramer, K, KMB, LEN, MDC, MHS, PHM, RAD, RIMM, SLB, TOL

Bullish Calls:
ConocoPhillips (NYSE: COP - News): 'I would start with an oil. I recommended it last week. COP to go from $80 to $120 ... we buy that, particularly on any pullback.'Bolt Technology (AMEX: BTJ - News): 'This is a company that has a lot of machine parts that go into equipment that goes into oil rigs. This company has not kept pace ... I don't get it. Let me tell you something... I would buy it... 'LodgeNet Entertainment (NasdaqGM: LNET - News): 'This is a company that has a lot of machine parts that go into equipment that goes into oil rigs ... I don't get it. Let me tell you something... I would buy it... 'Millipore (NYSE: MIL - News): 'I like the filtration business ... It's a mini bull market, and MIL is in it.'Altria (NYSE: MO - News): 'This is one of the greatest, greatest value creators in history. They will split the company. I am telling you, in no uncertain terms, if it was not options expiration week, and the stock's being pinned at $70... this stock would be at $72-73, where it will be in the next few weeks. What I am saying is, pull the trigger... buy some MO.'Honeywell (NYSE: HON - News): 'HON is probably the most out-performed of any of the DOW stocks that I picked at the beginning of the year... I'm telling you to pull the trigger. Buy, buy, buy! Beautiful quarter! He ain't done.'
Bearish calls:
Knight Capital (NasdaqGS: NITE - News): 'I think NITE's a good outfit ... this brokerage industry - it is just not a place to go right now. I am giving it a 'don't buy, don't buy' to NITE. 'Toll Brothers (NYSE: TOL - News): 'The stock cannot be owned.'Lennar (NYSE: LEN - News)K.B Home (NYSE: KBH - News)
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Labels: BTJ, COP, HON, Jim Cramer, KBH, LEN, Lightning Round, LNET, Mad Money, MIL, MO, NITE, TOL

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Synnex (NYSE:SNX - News) beat earnings expectations on Monday afternoon, announcing $0.46 EPS over an expected $0.44 EPS. SNX does not have a PowerRating due to volume constraints.
Kroger (NYSE:KR - News) is expected to report $0.48 EPS on Tuesday before the opening bell. KR's PowerRating is 6.
When Lennar (NYSE:LEN - News) announces quarterly earnings tomorrow morning, watch for $0.01 EPS. LEN's PowerRating is 6.
Analysts are watching for Steelcase (NYSE:SCS - News) to announce $0.19 EPS before the bell on Tuesday. SCS's PowerRating is 6.
Nike (NYSE:NKE - News), H.B. Fuller (NYSE:FUL - News) and Oracle (NasdaqGS:ORCL - News) all report earnings on Tuesday after the market closes, so watch for heightened price action and volatility ahead of the bell. NKE's PowerRating is 6, FUL's PowerRating is 6 and ORCL's PowerRating is 6.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: FUL, Hot Stocks, KR, LEN, NKE, ORCL, SCS, SNX

On Not Feeling at Home with Housing: D.R. Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News), Lennar (NYSE: LEN - News), Centex (NYSE: CTX - News)
Cramer would not touch DHI, PHM or LEN, at least not with a long pole, after reading a report by Ivy Zelman of Credit Suisse during which she discussed her downgrade of Pulte and Horton and upgrade of Centex. Cramer comments DHI is "the most dangerous homebuilder" because it bought a gigantic amount of property in its quixotic delusion of "endless demand" and has the least written down on its property. Cramer would approve of shorting DHI and being long Centex. He says the problem with homebuilders is while "the rigor of the writedowns is clearly there, all the price targets are still way too high." He sees the potential of another leg down, and until more is written down on Horton and Pulte homes, he would not touch them on the long side.
Published by SeekingAlpha

Labels: CTX, DHI, Hot Stocks, Jim Cramer, LEN, PHM, Wall Street Confidential

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
None Today
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Whole Foods Market Inc. Apr 45 Puts (NasdaqGS:WFMI - News). WFMI's PowerRating is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. May 95 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 4.
Baidu.com May 115 Calls (NasdaqGM:BIDU - News). BIDU's PowerRating is 2.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDRs May 135 Puts (AMEX:OIH - News). GOOG's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
American Electric Power Co. (NYSE:AEP - News). AEPs PowerRating is 5.
Stocks with Abnormal Put Volume:These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Lennar Inc. (NYSE:LEN - News). LEN's PowerRating is 5.
Network Appliance Inc. (NasdaqGS:NTAP - News). NTAP's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, AEP, BIDU, Hot Options, LEN, NTAP, OIH, WFMI

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
MBIA Inc. Apr 70 Calls (NYSE:MBI - News). MBI's PowerRating is 5.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Express Scripts Apr 80 Puts (NasdaqGS:ESRX - News). ESRX's PowerRating is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Indymac Bancorp Apr 30 Calls (NYSE:NDE - News). NDE's PowerRating is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced. Research in Motion Apr 120 Puts (NasdaqGS:RIMM - News). RIMM's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Mirant (NYSE:MIR - News). MIR's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Lennar (NYSE:LEN - News). LEN's PowerRating is 5.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Centex (NYSE:CTX - News). CTX's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: CTX, ESRX, Hot Options, LEN, MBI, MIR, NDE, RIMM

Yahoo (NASDAQ: YHOO - News), Google (NASDAQ: GOOG - News), Sun Microsystems (NASDAQ: SUNW - News), AT & T (NYSE: T - News), Verizon (NYSE: VZ - News), Apple (NASDAQ: AAPL - News), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Lennar (NYSE: LEN - News), Centex Corp (NYSE: CTX - News), Toll Brothers (NYSE: TOL - News), DR Horton (NYSE: DHI - News) and Pulte (NYSE: PHM - News)
Cramer described the "glass half full mode" in tech as the shorts were looking at options expiration last week. "We were confounded by the work off of the options hangover which then positioned tech to be too low and ready for a trade -- just a trade, but a trade is worth grabbing." He added that the fact that Yahoo is up even though the company "doesn't have a clue" will give hedge funds the impression that it will go up whether Yahoo is good or bad and will encourage the shorts to change their position. Cramer also noted that Google was up on Yahoo, and that SUNW is also up, but he doesn't think that the company is doing anything interesting. What Cramer does find interesting is AT & T's strategy, outlined in its conference call, to take customers away from Verizon wireless by offering free service for a 18 months to Apple's iPhone users. Cramer says that NSC's drop is a "false tell" because the company periodically messes up and then ramps. He predicts that UNP will reach $110 to $115 from a recent $97. The "infrastructure crumble" for trucks make the rails "superior to almost any other trend I've got." Cramer calls CTX a "bunch of idiots" because they, along with LEN, TOL, DR Horton and PHM were too bullish at the top. "None of these companies distinguished themselves as good businessmen," he said. "None of them turned out to be cautious." However, he likes the fact that these companies are not building more homes, and prefers being long land inventory than home inventory because land is selling.
Published by SeekingAlpha

Labels: AAPL, CTX, DHI, GOOG, Jim Cramer, LEN, NSC, PHM, SUNW, T, TOL, UNP, VZ, YHOO

Lear (NYSE: LEA - News), Time Warner (NYSE: TWX - News), WCI Communications (NYSE: WCI - News), Lennar (NYSE: LEN - News)
Cramer says that it is a good idea to piggyback off of financial wizards such as Carl Icahn who made good calls with Lear and TWX and is currently buying WCI. However, he stressed that it is important to understand why Icahn likes this upscale homebuilder which owns 86% of its properties. Cramer notes that WCI is sitting on a pile of real estate, is selling at below book value, and predicts that the stock will eventually be more valuable than the properties. While some are worried about Florida real estate, Cramer observes that Lennar recently made a successful Florida investment. An important rule in piggybacking, says Cramer, is to wait for the hype to pass before investing; Icahn bought WCI when it was four points lower, andit is now nearly $22.

Genentech (NYSE: DNA - News)
After enjoying a successful year, DNA is lower than it has been in the last 14 months, and Cramer attributes this to the market's subjectivity, especially since the company was expected to see 30% growth and it actually reported 70% growth. Cramer explained that the factors affecting the movement of a stock are its earnings and its multiple. Since DNA reported strong earnings, its multiple, or what people are willing to pay for the earnings, must have been a factor in its decline. A multiple is affected by three kinds of risk: political, earnings and inflation. Cramer eliminated earnings risks from the equation, said that inflationary risks affect future earnings and have peaked, and that worries about the Democrats hurting DNA have abated. Cramer concluded that DNA is heading back up to where it was 14 months ago, called it a best-of-breed biotech stock with a great pipeline. His conservative estimate is that DNA will go to $104 from $87.53 and his bullish figure is $140.

Sell Block:Guess? (NYSE: GES - News), XM Satellite Radio (NASDAQ: XMSR - News), Interpublic Group of Companies (NYSE: IPG - News), Deere (NYSE: DE - News)
Cramer would sell Guess after it rose 38.7% since his initial recommendation. He would get rid of XMSR because it has "run out of steam." Although IPG may have some upside, Cramer would take profits and sell it. He has liked DE for a long time, but Cramer says that it is time to say goodbye. Although it might go up an other 8 points, Cramer says that this $100 stock has given its investors substantial profits.Mad Mail: Apple (NASDAQ: AAPL - News)
Cramer disagrees with an Investors' Business Daily bullish call on tech; "I like IBD very much but think they are wrong here," he said. When asked who is selling Apple, Cramer says that the shorts are putting pressure on the stock, adding that it should not have risen 8 points on the release of iPhone and its negative guidance may be bringing it down. However, he would build a position on the stock as it declines.

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Labels: AAPL, DE, DNA, GES, IPG, Jim Cramer, LEA, LEN, Mad Money, TWX, WCI, XMSR

Wells Fargo (NYSE: WFC - News), JP Morgan (NYSE: JPM - News), Citigroup (NYSE: C - News), Bank of America (NYSE: BAC - News), Northern Trust (NASDAQ: NTRS - News): Cramer declared WFC and JPM as the only bank stocks investors need to own, and added that while some worry that JPM is looking at a new acquisition, CEO Jack Dimon is the kind of guy who knows "how to do deals that are accretive." He adds that JPM's most recent quarter proves that "every single cylinder is finally firing. At the other extreme, Cramer says that Citigroup seems lost and that BAC is harming its shareholders with a dilutive acquisition. Cramer suggest backing up the truck and buying NTRS at $60, noting that Wall Street is temporarily disappointed with the bank's numbers, but adding that ultimately it is a "good situation."
Mastercard (NYSE: MA - News): Cramer says the "shorts will be routed" when Mastercard, which has tripled since his initial recommendation, goest to $110 from $109.
Lennar (NYSE: LEN - News): Housing rallied on Wednesday, but Cramer was not excited, particularly about homebuilder Lennar which was up 5% in spite of a huge loss and a very conditional earnings guidance for 2007. He would "sell the rally."
Published by SeekingAlpha

Labels: BAC, C, Jim Cramer, JPM, LEN, MA, NTRS, Stop Trading, WFC

Wall Street retreated Wednesday, pausing from its record-breaking run as a higher-than-expected producer price index reignited interest rate worries in the market.
In midmorning trading, the Dow Jones industrial average fell 16.42, or 0.13 percent, to 12,566.17, pulling back after three straight days of record closes. Broader stock indicators also slipped. The Standard & Poor's 500 index was down 1.40, or 0.10 percent, at 1,430.50, and the Nasdaq composite index fell 8.45, or 0.34 percent, to 2,489.33.
The Labor Department said the PPI, an indicator of inflation, rose by 0.9 percent in December -- slower than in November, but faster than the market expected. The report raised concerns that the Federal Reserve might have reason to resume its rate-hiking campaign to curb inflation.
Inflation worries have been calmed lately by plummeting energy prices, which should save Americans some money on their fuel costs. Crude oil prices are down 16 percent on the year. But Wednesday's Labor Department report showed that even the core producer price index, which strips out food and energy, rose a bit quicker than expected.
Also Wednesday, investors weighed another batch of earnings reports that showed strength in some sectors and weakness in others.
The market has been moving erratically lately, due to uncertainty about whether the economy's moderation will take a toll on corporate earnings this year, and whether U.S. consumers' spending power will be helped by a possible rate cut and falling energy prices.
Bond prices edged lower after the PPI data, as most Treasury market watchers don't anticipate any moves by the Fed until much later in the year. The yield on the benchmark 10-year Treasury note rose to 4.76 percent from 4.75 percent late Tuesday.
Crude oil on the New York Mercantile Exchange fell 14 cents to $51.07 a barrel, testing prices not seen since May 2005.
The dollar edged lower against other major currencies, while gold prices rose.
Homebuilders -- a sector that has been struggling in the tepid housing market of the past couple years -- got a boost after Lennar Corp.'s chief executive said the company would fare better in 2007 than it did in 2006.
Lennar slipped 43 cents to $49.72 due to a fourth-quarter loss, but KB Home rose 70 cents to $49.92, Toll Brothers Inc. rose 24 cents to $31.57, and Centex Corp. rose 69 cents to $52.30.
The technology sector looked less impressive, though, after chip maker Intel Corp.'s late Tuesday report that fourth-quarter profit plunged and forecast that 2007 profit margins would be weaker than analysts had expected.
Intel, the world's largest chip maker, dropped $1, or 4.4 percent, to $21.30.
Meanwhile, JPMorgan fell 24 cents to $48.15, despite reporting fourth-quarter profit that beat analysts' expectations. Mellon Financial also reported strong earnings and revenue, which boosted the stock 7 cents to $43.49.
Declining issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange, where volume came to 133.1 million shares.
The Russell 2000 index of smaller companies was down 2.13, or 0.27 percent, at 789.35.
Overseas, Japan's Nikkei stock average rose 0.34 percent. In afternoon trading, Britain's FTSE 100 was down 31.70 percent, Germany's DAX index was down 28.84 percent, and France's CAC-40 was down 33.70 percent.
Published by Madlen Read, AP Business Writer

Labels: CTX, INTC, KBH, LEN, TOL

Intel (NASDAQ:INTC - News) beat earnings estimates, announcing $0.26 EPS over an expected $0.25 EPS. INTC's PowerRating is 4.
AMR Corp (NYSE:AMR - News) is set to announce $0.03 EPS on Wednesday before the open. AMR's PowerRating is 3.
Look for Charles Schwab (NASDAQ:SCHW - News) to report $0.21 EPS before the bell Wednesday. SCHW's PowerRating is 5.
Analysts are expecting JP Morgan (NYSE:JPM - News) to announce $0.94 EPS on Wednesday morning. JPM's PowerRating is 5.
Lennar (NYSE:LEN - News) looks set to report -$1.11 EPS tomorrow before the opening bell. LEN's PowerRating is 5.
Progressive (NYSE:PGR - News) is expected to report $0.50 EPS Wednesday morning. PGR's PowerRating is 5.
Southwest Air (NYSE:LUV - News) looks to announce quarterly earnings of $0.13 EPS Wednesday. LUV's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AMR, INTC, JPM, LEN, LUV, PGR, SCHW