Turkey Week Begins
Morning News of Note:
- GM: GM Weighs Closing Three Plants Under Plan to Reduce Capacity General Motors Corp. could close at least three North American assembly plants and additional support facilities such as metal-stamping plants when it announces a plan to cut excess capacity in its home market, people who have studied the company's operations say. GM Chairman and Chief Executive Rick Wagoner has promised to unveil a plan before year's end to bring GM's capacity in line with North American sales by 2008, and an announcement could come as early as today. (Full Story) WSJ
- TIVO AAPL: TiVo Plans to Allow Unlimited TV-Show Downloads to iPods Since Apple introduced a new iPod that plays video last month, users of the device have been able to buy episodes from only five television series produced by just one media company, Walt Disney Co. Soon, virtually any show that airs on TV will be available for watching on an iPod, courtesy of TiVo Inc. (Full Story) WSJ
- Skype RSH: Skype to make U.S. retail debut Net telephone service Skype Technologies is set to make its first appearance in a U.S. retail store. The Luxembourg-based Net telephony company, founded by the people behind the Kazaa peer-to-peer service, is expected to announce on Monday that it has struck a partnership with consumer electronics chain RadioShack. (Full Story) CNET
- WMT: Wal-Mart Stores-WMT sees November SSS up 3%-5%
- Mad Money Summary: Jim Cramer was positive on shares of RADS on his show Friday night, saying the stock is being held down by investors. Cramer said that the investors holding down the shares just "don't understand where it fits in the scheme of things" and that RADS is a play on increased productivity. Cramer was also bullish on HLEX and prefers the company over CMX and MHS. He believes that HLEX is "in the sweet spot" to be acquired and that shares are headed to $30. SBUX's CEO Howard Schultz joined Cramer by satellite, Cramer said that he wished he owned shares as SBUX is a "'mon back" and the ultimate play for China. LEND's CEO James Konrath also joined Cramer on his show via telephone, Cramer believes the company has an excellent track record and is giving the stock a "'mon back."
Market Comments: The market is fairly flat to slightly down in early trading. Bond yields are lower also (4.48%). GM announced 30,000 job cuts-- not pretty for Detroit. How would you like to be a homebuilder there?
Energy stocks are bucking the trend so far (trading higher), followed by a few select retailers. Semis are under the most pressure, led by SNDK.
Thanksgiving week is often a positive one for the market, but the strength last week might have taken some of the thunder out of a potential rally this week. We shall see. The fact that the SPX closed at a new yearly high on Friday does bode well for further strength, it's just a question of if the market needs to pause first.