Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday October 16.
Stop Picking On Jamie Dimon: JPMorgan (JPM)
Warren Buffett commented that the pursuit of JPMorgan (JPM) for bad mortgages is unfair. The government pressured JPM to acquire banks that were guilty of bad loans, and now the company is being dragged into litigation for mortgages the core company was not responsible for. While the London Whale incident was a scandal, JPM has already paid its dues. Cramer agrees with Buffett that CEO Jamie Dimon has been given an unfairly bad rap for loans on the books that were the result of banks that were bought by JPM under government pressure, not JPM itself.
Regeneron (REGN), Sanofi-Aventis (SNY), Bank of America (BAC), Ford (F), GM (GM), PepsiCo (PEP), Abbott Labs (ABT), Pioneer Natural Resources (PXD), EOG Resources (EOG), Continental Resources (CLR), Cheniere Energy (LNG), FedEx (FDX), IBM (IBM), eBay (EBAY), Veeva (VEEV), Wynn Resorts (WYNN)
The Dow roared 206 points on the strength of the stock market rather than on Washington. There was significant good news from many companies. Regeneron (REGN) along with Sanofi-Aventis (SNY) is producing an anti-cholesterol drug which may be a blockbuster. European auto sales have been the strongest in two years, which is good news for Ford (F) and GM (GM). Bank of America (BAC) reported a strong quarter and might return to its former greatness. PepsiCo (PEP) made up for slower beverage sales with its snacks. Abbott Labs (ABT) reported a strong number and will benefit from its spin-off. Pioneer Natural Resources (PXD) was backed by analysts, and EOG Resources (EOG) and Continental (CLR) rose on the news. Cheniere Energy (LNG) plans to do more exporting. FedEx (FDX) jumped 4 points despite the lack of consumer confidence. Veeva (VEEV) had a stellar IPO. Even though there were bad earnings from IBM (IBM) and eBay (EBAY), stocks rose on strong news and the indication of a compromise in Washington.
Cramer took a call:
Wynn Resorts (WYNN): Cramer thinks CEO Steve Wynn is "best in show," and believes in the stock.
CEO Interview: Beth Mooney, KeyCorp (KEY)
Regional banks are performing well, including KeyCorp (KEY) which jumped close to its 52 week high. The company reported a 5 cent earnings beat with in-line revenues. Its net margins declined only by 2 basis points when the street was expecting a 5-10 point decline. The company has seen a dramatic increase in loans and has a strong buyback. Loan growth is expanding, thanks in part to domestic drilling.
CEO Interview: David Demshur, Core Labs (CLB)
Core Labs (CLB) is the "tech" company at the forefront of domestic drilling. The company locates the resources that can be drilled and is improving returns from wells in strategic shale plays in the U.S. The company reported a 2 cent earnings beat on revenues that rose 11%. Core Labs reported a record EPS, and is continuing to find more resources ripe for exploration.
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