Cramer's Stop Trading! When Will the Fed Raise Interest Rates? (1/6/10)

Includes: AMT, CCI, F, JCI, LEA, MGA, SBAC, T, TEN
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday January 6.

Ford (NYSE:F), Johnson Controls (NYSE:JCI), Magna (NYSE:MGA), Lear (NYSE:LEA), Tenneco (NYSE:TEN), AT&T (NYSE:T), SBA Communications (NASDAQ:SBAC), Crown Castle (NYSE:CCI), American Tower (NYSE:AMT)

Cramer predicts that when the Federal Reserve completes its purchase of mortgage-backed securities, "interest rates will go up pretty rapidly." He suggests homeowners refinance at a fixed rate now before rates increase. He would also take profits in long-term municipal bonds "right here, right now."

Ford (F) should report a strong quarter, and Cramer thinks suppliers Johnson Control (JCI), Magna (MGA), Lear (LEA), Tenneco (TEN) are poised to benefit. Cramer would use the opportunity to pick up "a diminishing number of stocks in a segment that many portfolio managers want to be overweighted in. That's why Ford can go up for so long."

Cramer thinks NICE Systems (NASDAQ:NICE) is the ideal security play for its advanced fingerpint and camera technology. Nice's state-of-the art Israeli security technology is what is needed in American airports.

On news that AT&T (T) upgraded its towers, Cramer thinks SBA Communications (SBAC), Crown Castle (CCI) and American Tower (AMT) are worth buying.


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