Monday Morning Musings

Morning News of Note:

• COF: Bet the Bank CREDIT-CARD MERCHANDISER CAPITAL ONE IS BEST known for its humorous TV commercials -- like the one where a boisterous band of Vikings is reduced to driving kiddy trains at a mall and selling hot dogs, to survive in a world that no longer values their skills (which happen to be pillaging and plundering). Capital One Financial (ticker: COF) seems intent on avoiding such a fate. (Full Story) BARRONS
• RIO RTP BHP: Prospecting For Bargains FEARS OF A CRASH IN PRICES OF BASE AND PRECIOUS metals, which have soared over the past year, have caused mining shares to dive. But bulls on the sector believe that long-term demand for many metals will be robust, supply won't be excessive, miners' earnings are likely to stay strong and the industry's consolidation trend will make some companies takeover targets. (Full Story) BARRONS
• BIDU YHOO GOOG SOHU: Baidu has almost 44% of Q1 search engine market share in China-DigiTimes.com: According to China-based consulting company Analysys International, Baidu (BIDU) was the largest search engine portal in China during 1Q06, accounting for 43.9% of the total market value of $37.6M. Yahoo (YHOO) was in second place with 21.1%, Google (GOOG) was in third place with 13.2% and Sohu (SOHU) was in fourth place with 9.2%
• GE: General Electric focusing on "clean coal" technology-FT. General Electric (GE) is planning to increase sales of "clean coal" technology ten-fold, in an effort to curb emissions of environmentally harmful gases. John Krenicki, head of GE’s energy division, said he is aiming for annual sales of coal-gasification systems to rise from less than $500M to between $4B and $5B over the next decade
• Mad Money Summary: Cramer opened his show saying that in order to make money, you have to look ahead and think months ahead. He said he is already looking toward back to school season, and he believes the No. 1 back to school stock will be Aeropostale (ARO). Cramer then recommended buying companies for this coming week, such as Bear Stearns (BSC), Best Buy (BBY), Goldman Sachs (GS), Caterpillar (CAT), Ralcorp (RAH), General Mills (GIS), Pepsi (PEP), Bed, Bath and Beyond (BBBY) and FedEx (FDX). Cramer then suggested two Canadian oil patch plays, Talisman Energy (TLM) and Trinidad Energy Services Income, which trades on the Toronto Stock Exchange under the symbol TDG.UN. In the "Lightning Round," Cramer was bullish on Harris (HRS), Triumph Group (TGI), Merrill Lynch (MER), Staples (SPLS), Network Appliance (NTAP), General Dynamics (GD), Quest Diagnostics (DGX), Old Republic International (ORI), Allegheny Technologies (ATI), Nucor (NUE), Smith & Wesson (SWB), Newcastle Investment (NCT) and Qulacomm (QCOM), and was bearish on Univision Communications (UVN), EMC (EMC), Syngenta (SYT), Mittal Steel (MT), Advanced Micro Devices (AMD), Juniper (JNPR) and Sirius Satellite Radio (SIRI).

Market Comments: I guess all of the hawkish talk out of the Fed is having its intended consequences. There is talk by various strategists that the Fed will now take rates anywhere from 5.50% - 6.0%. I disagree, but if they do, it will be a signal to get much more defensive in our portfolios.

The market is bouncing around in early trading, oscillating above and below Friday's closing levels. Oil and commodities are trading lower, while the 10-year yield is up a bit (5.13%). This North Korea missile test may be weighing on global sentiment. I am more worried about how the market closes, as compared to the open.

GOOG is breaking above its overhead 50-day average, a good sign. If it can close above it, it could be the start of a new run for the stock.

long GE, GOOG