Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday July 12.
19 Things To Watch in the Week Ahead: Citigroup (NYSE:C), Coca-Cola (NYSE:KO), Goldman Sachs (NYSE:GS), Johnson&Johnson (NYSE:JNJ), Yahoo (YHOO), Bank of America (NYSE:BAC), U.S. Bancorp (NYSE:USB), IBM (NYSE:IBM), Intel (NASDAQ:INTC), Xilinx (NASDAQ:XLNX), Union Pacific (NYSE:UNP), United Healthcare (NYSE:UNH), Verizon (NYSE:VZ), Microsoft (NASDAQ:MSFT), General Electric (NYSE:GE), Schlumberger (NYSE:SLB), Google (NASDAQ:GOOG). Other stocks mentioned: Wells Fargo (NYSE:WFC), Valero Energy (NYSE:VLO), Soda Stream (NASDAQ:SODA), Apple (NASDAQ:AAPL).
Chinese economic data will be released on Sunday and should set the tone for the week. Cramer doesn't expect the news to be good, and the market may open down on Monday.
Citigroup (C) is a "tough one" since it has a large global banking business, particularly in emerging markets. It reports on Monday, and Cramer doesn't think the strength of the U.S. segment will outweigh the troubled international business.
Coca Cola (KO) reports. KO just might be "the global soft goods play that doesn't need economic wind at its back." However, currency will be an issue.
Goldman Sachs (GS) can often excel in volatile times, and doesn't need housing to be strong.
Johnson & Johnson (JNJ) is fixing what was once broken, and Cramer says the company is now well-managed. He thinks the JNJ should spin off some divisions, and expects a good quarter.
Yahoo (YHOO) should report a strong quarter, since "CEO Marissa Mayer put Yahoo back on the map." Cramer hopes for a decline prior to earnings so it can be bought.
Fed Chairman Ben Bernanke speaks to the House of Representatives: Cramer thinks Bernanke should and will stay the course, and predicts the Fed chairman will measure his words. This is a non-event, but it probably will be interpreted as a major event.
U.S. Bancorp (USB) has a lot of mortgage exposure. This stock might not return a lot now, but it can be bought for the long-term if it gets hit.
IBM (IBM) may benefit from low expectations. IBM delivered a shortfall last quarter, but it probably won't do as poorly as it did before. However, Cramer doesn't have much conviction in IBM.
Xilinx (XLNX) is benefiting from increased telecom spending, and Cramer expects a strong quarter.
Union Pacific (UNP) is Cramer's favorite rail. It might report a decent quarter, in spite of the decline in coal. UNP could be "the trade of the week" if it declines prior to earnings, but Cramer would use deep in the money calls.
United Healthcare (UNH): "Everything's coming up roses" for UNH. Cramer predicts a terrific quarter.
Verizon (VZ) is now being treated like a bond equivalent stock and has been punished. Cramer is not inclined to buy it.
Google (GOOG) needs to report good numbers. The stock is not that expensive, it has "a lot of irons on the fire," and if earnings are good, price targets should rise.
Microsoft (MSFT) got 3 downgrades last quarter, but the company performed well, with its new Windows and Xbox launches. Cramer predicts upgrades.
General Electric (GE) is a holding in Cramer's charitable trust and has been a "headache." GE needs to say something about a dividend boost or a buyback.
Schlumberger (SLB) is a good long-term stock that has 3 points downside risk and 10 points of possible upside.
Cramer took some calls:
Valero Energy (VLO) is not worth playing with, although it is a good company. The stock won't rise until oil prices fall.
Soda Stream (SODA) has had a big run and is ripe for a selloff.
Off The Charts
Can the averages keep roaring higher? Carolyn Boroden of FibonacciQueen.com thinks so. She has had the "hot hand" in predicting where the S&P 500 is going, and not only anticipated the rally that started early in 2013, but also foretold the recent correction. Boroden believed the correction would be a small one, and noted that the decline and duration was similar to past corrections. She believes the S&P 500 will rally higher to the key levels of 1721, 7165 and eventually 1823. However, Carly Garner of RealMoney.com is less sanguine. She thinks the S&P 500 will likely get choppy during the summer, but believes it will make a comeback in the fall. Cramer thinks both technical analysts are reliable, but along with Garner, recommends cautious optimism.
JPMorgan (JPM) has been highly successful in all of its segments, apart from lending, but if the bank is performing well now, it should do even better when loan demand picks up. JPM thrives in a high interest rate environment. CEO Jamie Dimon is not worried about impending government regulation of the banks. He admitted that Wells Fargo has recently outperformed JPM in the mortgage business, with WFC's 30% market share. WFC has transformed itself from a bank with many bad loans to an "amazing retailer of money." WFC is also feeling the pinch lately because of rate rises, but eventually, just like JPM, it will benefit from higher rates.
Cramer took some calls:
Royal Bank of Scotland (RBS) is worth buying because it has a significant amount of assets.
Charles Schwab (SCHW) has been going higher because interest rates are going up, but Cramer "wouldn't get ahead of it." He prefers JPM and WFC.
The biotech sector is on fire, particularly biotech IPOs. Epizyme (EPZM), which produces targeted cancer treatments that turn off parts of the DNA in cancer-ridden cells, rose 53% on its first day of trading, and in the following six weeks has risen 140%. Early phase tests have shown that leukemia has been completely eliminated in mice given EPZM's treatment. Dr. Robert Gould discussed the company's partnerships with Celgene (CELG) and GalxoSmithKline (GSK). He predicts EPZM could produce a game-changing cancer treatment that may be on the market before 2017.
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