Monday Morning Musings

Morning News of Note:

• DHI NVR KBH CTX PHM MTH TOL: Heard on the Street... Doing Your Homework To Find a Solid Builder With new-home sales slowing in some parts of the country, investors are anxious to know which builders are prepared to ride out the storm. Figuring that out, though, can be tough because industry analysts are all over the map. "It's really going to be about finding the best companies with the best business models in the best markets," says Margaret Whelan, an analyst at UBS. "It's going to be a stock picker's market." (Full Story) WSJ
• YHOO: Yahoo Launches a Tech Site With Aim of Aiding Consumers Yahoo Inc. today plans to launch a Web site designed to help consumers research, purchase and learn to use technology products, marking the Internet portal's first new content site in five years. The site, dubbed Yahoo Tech, will provide information on gadgetry in 18 categories, including cellphones, laptops and digital-music players. In each category, Yahoo will highlight the top five products according to Consumer Reports magazine, which is providing product ratings under an exclusive deal. (Full Story) WSJ
• MSFT: Please Reboot All the folks who dumped Microsoft shares Friday might feel some seller's remorse today. Thursday the world's biggest software company reported a 16% rise in profit. But the company also outlined plans to sink more than $2 billion into new products to fend off rivals like Google Inc (Full Story) WSJ
• F: Ford May Produce Its Own Reality TV Show Project Runway, meet Monster Garage. That is the gist of a concept executives at the Ford Motor Company are tossing around for a new reality show. While corporate sponsorships of reality shows are nothing new — Ford has been a prominent sponsor of "American Idol" — the company is looking to produce the show itself in the hope of reconnecting with younger consumers who have drifted away to other brands like Honda and Toyota. (Full Story) NY Times
• Mad Money Summary: Cramer opened his show discussing West Pharmaceutical Services (WST), a drug packaging company around its 52-week high. It makes tamper-proof seals, and has a new catalyst, the inhalable insulin Exubera. Cramer then discussed Aetna's (AET)implosion, and how it caused a selloff in health insurance companies and HMOs. Friday, the Street recognized the selloff was overdone and bounced back in to bull mode. But they left behind HealthSpring (HS), leaving a "major opportunity to make money." Cramer then recommended Perusahaan Perseroan Perseropt PTelekomunikasi Indonesia (TLK), or Telekom Indonesia, as a play in Indonesia. Cramer was then joined by NuVasive (NUVA) chairman and CEO Alexis V. Lukianov. Lukianov said that NuVasive has not given aggressive guidance, but that people are getting excited about the company's great first quarter. In the "Lightning Round," Cramer was bullish on Ultra Petroleum (UPL), Peabody Energy (BTU), Finisar (FNSR), BHP Billiton (BHP), Southern Copper (PCU), Ladish (LDSH), Boeing (BA), Amerada Hess (AHC), Houston Exploration (THX), Hana Biosciences (HNAB) and Energy Partners (EPL), and was bearish on Travelzoo (TZOO), Tanzanian Royalty Exploration (TRE), Moody's (MCO), Covad Communications (DVW) and International Securities Exchange (ISE).

Market Comments: The markets have opened on an up note this morning. Both personal income and personal spending came in above expectations. And Wal-Mart (WMT) reported much stronger retail sales over the weekend, saying April was +6.8% versus guidance of about +4-6%.

That is helping all the retail stocks get a bounce, as well as some analyst comments that April was strong in general, helped by the late Easter this year. Will high gas prices make this a one month phenomenon?

Oil is trading higher so far today, and the energy stocks are up. But bond yields are also higher, with the 10-year rising to 5.11%.

The SPX has been up all 4 months ytd. Will this month bring out the 'Sell in May' camp?

long MSFT