- J.B. Hunt's earnings and what they meant for the transport stocks;
- what to do if you managed to score some shares of Workday; and
- the seeming disappearance of the fourth-quarter tech trade.
Transports Are in Roar Mode Posted at 3:16 p.m. EDT on Friday, Oct. 12 Whoever thought you could get solace from the OK earnings from J.B. Hunt Transport Services ( JBHT), a trucking company? When I came in at the beginning of the week, I noted to myself that you had to be careful because J.B. Hunt could take down the whole transportation average and we would be back into a world of nonconfirmation. Turns out that J.B. Hunt did well and that the best part came from intermodal. That shouldn't be a total shock, as even Norfolk Southern ( NSC) said that intermodal is good, and Union Pacific ( UNP) said that it's been the standout. Still, because we are so skittish, just a reaffirmation of any positive rail traffic data points is going to be positive for the transports. > > Bull or Bear? Vote in Our Poll And boy do we need it. You have more than 35% of the S&P 500 being taken down by some bank reports that are disliked and a tech market that's taking its cue from Advanced Micro Devices ( AMD), not Workday ( WDAY). To me, it will be hard to take down this whole market with the transports in roar mode. The fact that a trucking company didn't slice numbers dramatically was enough to ignite a beaten-down group, and that bodes well for a market in which we are constantly trying to gauge expectations. Maybe, just maybe, despite Wells Fargo ( WFC) and JPMorgan Chase ( JPM), they are lower than you think? At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long WFC and JPM.
Set the DeLorean for 1999 Posted at 11:50 a.m. EDT on Friday, Oct. 12 Sometimes even when you get it right, it doesn't matter. This morning the stock of an initial public offering, Workday ( WDAY), a cloud-based software company, was priced at $28 per share by Morgan Stanley and Goldman Sachs and opened as high as $48. That's 40x sales. Not 40x earnings, 40x sales. That makes it the single most richly valued company I follow, a $7.5 billion concern with no earnings that is spending aggressively to take share in the cloud space. You hire Workday, you tend to save 50 cents on every dollar that you spend in taking out costs that are largely related to personnel and human resources hardware and storage expenses that it replaces by putting their data in the cloud.
Isn't Tech Supposed to Rock Now? Posted at 2:27 p.m. EDT on Wednesday, Oct. 10 Whatever happened to seasonality? Whatever happened to the trading pattern that has made you money for ages? I am talking about the fourth-quarter tech trade, the one that allows you to take advantage of all of the tech that enterprise buys and the consumer buys. You know, I don't like trades based on pure calendar superstition like "sell in May and go away," or "sell in October because we have crashed in October," or "buy in an election year because we've been up in an election year."