Chaos Ends With Bulls Ahead
08/01/07 - 05:14 PM EDT
Robert Holmes
Among earnings, Time Warner (TWX Quote - Cramer on TWX - Stock Picks) topped analysts' second-quarter profit estimates and said it would buy back up to $5 billion of its own stock. Revenue for the quarter rose 6% from the same period last year to $11 billion. The stock ended down 62 cents, or 3.2%, at $18.64.
Clothing maker Jones Apparel (JNY Quote - Cramer on JNY - Stock Picks) swung to a second-quarter loss and missed expectations. It also cut its full-year forecast, citing a weaker retail environment. Shares tumbled $3.10, or 12.4%, to $21.86. On the other hand, Kraft Foods (KFT Quote - Cramer on KFT - Stock Picks) posted a second-quarter profit that beat the consensus, and OfficeMax (OMX Quote - Cramer on OMX - Stock Picks) also surpassed estimates. Kraft was lower by 35 cents, or 1.1%, at $32.40. OfficeMax jumped $2.23, or 6.8%, to $35.11. Dow Jones (DJ Quote - Cramer on DJ - Stock Picks) has finally reached an agreement that will see it be acquired by Rupert Murdoch's News Corp. (NWS Quote - Cramer on NWS - Stock Picks) after enough members of the Bancroft family said that they would sign off on the deal. Shares of Dow Jones finished with a gain of 72 cents, or 1.3%, at $58.10. On the research front, Citigroup upgraded Apple (APPL Quote - Cramer on APPL - Stock Picks) to buy from hold, assigning a stock price target $160. Shares added $3.24, or 2.5%, to $135. Credit Suisse upgraded PetSmart (PETM Quote - Cramer on PETM - Stock Picks) to outperform from neutral, while William Blair downgraded Amgen (AMGN Quote - Cramer on AMGN - Stock Picks) to market perform from outperform. PetSmart added 0.5%, but Amgen gave back 3.1%. Markets overseas had a tough time. Tokyo's Nikkei dropped more than 2%, and Hong Kong and Shanghai stock trackers declined over 3%. Korea and Taiwan plummeted 4%. Losses for many of Europe's major markets were between 1.4% and 2%.
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