you have sandisk, the trade below 48. dan is accurate in pointing out the stock is nowhere they haven't owned in a while. you have the moving average at 45. that could potentially be a spot if you wanted to buy it and use the lowest point of reference. >> the key is weak demand. how many times do you hear about how great it will be? weak demand. you have seen it in fedex and vhi. the support is 47 spot 88. if that doesn't hold, you have to look for lower lows. >> the other side is these guys are not executing where they expected to. the guidance is down. stock is trading sideways and this has been dead money and a big rally went out and as he talked about, they have problems under their roof. the operating margin is where people have to get the stock more than the overall environment. >> one more thing. people are so focused on the apple system, but it has a lot to do with mobile devices. what did dell tell us in february. pc demand is weak. all these pc guys went from the net books at $250 upstream to the ultra books tha

we aren't deterred by sandisk's numbers last night.h maker has been a terrible executioner for ages. however, here on "mad money" we never decide anything solely based on the charts. when it comes to stock picking, i'm a dyed in the wool fundamentalist. not to be confused with the other type of fundamentalist like the late not-so-great ayatollah khomeini. when i come back to explain the fundamental reasons why the stocks might be poised to roar, i realize i got to go over more than just a chart. when you know the story behind an intel or a microsoft, you won't get shaken out just because of a couple of ugly days like we've had this week, or any we might have ahead of us, frankly. instead, as long as you understand the thesis, you'll have the confidence to come in during any pullback and -- >> buy, buy, buy! >> while everyone else is -- >> sell, sell, sell! >> which is the essence of good investing. so what is breathing new life into intel and microsoft? back in the late '80s and the '90s, these two companies were the heart and soul of

the combination of weak demand and high supplies will hurt sandisk's revenue and profit rgins in its first quarter. llowemorsemicouctor mar micron slumped 4%. when micron reported its latest quarterly results, it also noted weaker prices. now, while there was some focus on all the monthly job growth reported by payroll firm a.d.p., more of the market worry was really about the economic data out of europe on retail sales and business activity. this exchange-traded fund follows 350 big european companies. it dropped more than 2.5%, falling to its lowest price in more than a month. obalonglomerate general electric used to be one of few companies to enjoy a triple-a credit rating. then the credit crunch hit and its financial business was slammed, taking down its credit rating. it got hit again today by credit ratings agency moody's. the agency said: "material risks remain in g.e. capital, the financial business of general electric." g.e. said the downgrade was due to moody's changing its ratings method. shares of general electric fell more than 1%. some good news from retailing after the

even a little bit of a sandisk warning perhaps. in the meantime, still a lot more "squawk on the street" still ahead. >>> coming up, kracramer is on hunt. will he find them in time? find out after this break. >>> all right. a check of the markets here. we have a triple-digit loss. the nasdaq seeing the hardest hit. down 28 points or .9%. we were saying it's not as bad as one would think. >> not a blood bath, for heaven's sake. not following pace with germany. turn it around. >> all right. let's hit 6 in 60 seconds. tiffany, raised. >> waiting for that. turned out to be a better quarter than people realized. >> international paper. >> charitable trust. i think it's headed to 40. acquisition. >> the firm raising the price target. >> where have they been? now they like it? come on. >> carnival, a short idea. >> totally disagree. i think that people go to be a wrong call. >> dick's sporting goods. >> i like this because at the same time, downgrades. under armour. i don't want to sell it. i want to buy it and buy the rest of the shoe we

now, for tech stocks, flash memory maker sandisk was the bearer of bad news, warning about weak demand from mobile phone makers, and plenty of inventories have led to a drop in prices. shares fell hard, down 11% on six times their usual volume. the combination of weak demand and high supplies will hurt sandisk's revenue and profit margins in its first quarter. fellow memory semiconductor maker micron slumped 4%. when micron reported its latest quarterly results, it also noted weaker prices. now, while there was some focus on all the monthly job growth reported by payroll firm a.d.p., more of the market worry was really about the economic data out of europe on retail sales and business activity. this exchange-traded fund follows 350 big european companies. it dropped more than 2.5%, falling to its lowest price in more than a month. global conglomerate general electric used to be one of few companies to enjoy a triple-a credit rating. then the credit crunch hit and its financial business was slammed, taking down its credit rating. it got hit again today by credit ratings agency moody's.

>> i would not yet as far as anybody other than sandisk on this side.s is certainly not good for them. >> all right. let's talk about housing. despite starts falling to a five-month low. our next guest says housing recovery debates could soon be settled and he's increasing the price targets across his coverage universe. welcome to the program. so without question as far as you're concerned, we have the recovery that so many times people have bet on before and failed. >> yes, that's correct. i think the debate goes on in the market about whether housinhouse i ing's recovering orn not. showing a recovery already in place and happening. for example, we get some order data from markets around the country. those numbers are up 35%, 40% over the year. the macro data seems to be confused, but eventually those two should converge. >> let's get to the stops. the important thing about your research, you're saying to people, look, you've got to frame the way you see the home builders on an asset-based approach. and that is a game-changer from your point of view. e

apple, we saw sandisk too two weeks ago, not an up day since it announced. awe supplier to apple. everybody thinks the apple supply chain, best thing ever. it's not. look at nokia, squeezing the heck out of suppliers and it's sucking the life out of market caps over the market. >> financials, two great barometers from jp gorman. the space battered across the board. concerns out of europe. we saw banks sell into the european close and u.s. banks take their lead from that sell-off and dan, next week, you take a look at march gone stanley, the most correlated to european banks of late. >> we had wells fargo and jpmorg jpmorgan. as good as it gets. at the end of the day, morgan stanley down 8% on the highs here. really tough to press short in a very uncertain market. the implied move is higher than a lot of its peers. a little under 5%, and i'm not really looking to make a move, just on earnings here. i want to look out to may. moody's told us they may down grid this company, the credit rating by three notches. going to increase their cost, and make them less competitive with pires. i

sandisk getting hit hard. already lowered soft q-1 guidance trading down nearly 10%. ibm lower after downgrade from b of a. and citi one of the financials sinking down to 34.97. look at some of the winners. aig higher after an upgrade from bernstein. just heard more news from david faber about the giant. brown forman on a rise. and u.s. airways taking off on a record load factor as well as potential merger talks with american airlines. now to the trading floors. bob pisani joins us from the nyse. >> hello, kayla. there's worry about spain and that's worried our market a little bit, but we also had a separate event here today. there's the open, which was not particularly pretty. but right about here we saw stocks moving further down as the ism services number came in. that's a little after 10:00 eastern time. numbers a tad disappointing. new orders light. and a lot of people watching these very carefully. remember, we're the engine of growth. we're getting better growth than the rest of the world. that's the thesis. it didn't help today. once europe closed right around

apple is one that we saw sandisk. haven't had an upday. it is a supplier to apple. everyone thinks it's the best thing ever. it's not. look what happened to nokia. they are destroying the competitors and squeezing the heck out of the suppliers and sucking the life out of a lot of market caps. >> let's focus on the financials. jpmorgan and wells fargo. we saw the space completely battered across the board. part was concerns out of europe. the european banks fell into the close and the u.s. banks take their lead from that sell off. next week you are looking at morgan stanley and that moves into the european banks of late. >> we have wells fargo and jpmorgan and that is as good as it gets. they are down almost 18% off the march highs. it's short that is down this much into events and what's becoming an uncertain market. the implied move is higher and almost a little under 5% going into the event. i'm not looking to make a move just on earnings here. i want to look out to may. moody's told us that they may downgrade this company with the credit rating by three notches t

one from sandisk indicating that business is week.down the tech complex right from the get-go. the other, really surprising. big truck orders, remember i told you in our playbook what was going to happen. they were very disappointing. that's going to hurt cummins. i'm jim cramer. see yoto

sandisk shares closed 11% lower today. >>> legislation was introduced in sacramento to limit how much tax californians pay at the pump. the bill's author argues that's double taxation. the measure would cap the excise cap at 36-cents per gallon. >>> well the tax foundation says this is tax freedom day. that's the day californians have earned enough money to pay all of their local, state and federal taxes. california's tax freedom day is three days later than that of the average american. >>> the state capital was evacuated as part of a disaster drill. the emergency drill simulated the response to a fire burning out of control on the sixth floor. capital workers had to use stairwells and learn where the exits are near their offices. everyone eventually left the building and met at their predetermined stations outside. >>> serving its final meal. the rush to get that last piece of china town history in san francisco. >>> some contra costa county teachers are getting a raise. what made it possible during a year of cuts. when i take a picture of this check, it goes straight to the bank. o

. >> doc, do you have a comment on sandisk in general for the story going forward, or does the cutting of its guidance change that story now? >> well, i mean, i think the cutting of the guidance justifies where the stock is now then. i think, judge, you'll get a chance to pick it up around 40, so i think it -- >> you're killing me, john, you're killing me. >> i don't know that it goes there right away, and, in fact, i've sold a lot of 43 puts here today in sandisk so i'm obviously betting it doesn't go a lot below 40, but i think that this is a story that will continue to be positive as the rest of the demand cycle picks up. just too much extra, and they are working through the inventory now. >> let's look at the next trade, jobless claims falling to a four-year low but the next jobs report comes tomorrow, expectations for a gain of 200,000 jobs in march. our next guest has an unusual but highly accurate way of predicting job losses and gains. it's bill greenblatt, good to see you. >> good to see you, too. >> why should people listen to the information that you're giving? you do backgr

. >> sandisk. i don't want to miss the preannouncement. >> jon. >> underarmor. >> that does it for halftime. "power lunch" up next. >>> michelle, thank you very much. three hours to go in the trading day and the markets trying to end the week on the upside. more strong earnings powering stocks today. but europe and the economy still looming very large. advice from our money man whose u.s. growth fund is up 22%. where does he see opportunity? sue. >>> ty, the market is up but apple is down. it reports on tuesday. should you buy, sell or hold heading into this weekend? >> and what's next for rival microsoft? a big earnings report, but three big things you should think about before you buy-in. with sue herera, i'm tyler mathisen. "power lunch" for friday begins right now. >>> welcome to "power lunch." i'm kayla tausche at the realtime exchange. first day in three all major markets in the green. they're now up for the week. the dow up just about .08. the s&p adding 8.5 points. and nasdaq up 15 points i

sandisk not a big apple supplier. very cheap. >> sandisk. broadcome, qualcomm, possible movers. >> absolutely. >> you're going to come back later and tell us what the heck to buy if numbers aren't so good. >> absolutely. >> see you before then as well. sue, back to you at the exchange. >> breaking news from chicago. one of the challenges for the market this week is off loading supply. rick santelli is at the cme with the details on the first step, the 2-year bond auction. how did we do? >> i'm going to give this auction an "a minus." almost a straight "a.." let's go over the metrics. 35 billion 2-year notes. the yield, .27. where was the market trading in the one issued market up to the end of the auction? pretty much right there. 27 point basis point bid offered at 26.5. the bid to cover, 3.76. blew away the 10-auction average, 3.56. the second best number going back to september of 2010. to find a higher number you'd have to go back to november of this past year. that was good. indirects were 32.1. pretty much right on the 10-auction avera

but sandisk, ouch. things may not improve in the second half. >> and we have big one-day pops as well. are those early valuations jumping the shark? we're going to travel to cramer and get some answers. >> first, mcdonald's reporting first quarter earnings. same-store sales boosted in part by new menu items. sales were the big stand-ups. a lot of concerns from notes yesterday saying europe is going to be a problem. some of the remodeling is beginning to wear off. >> no. >> didn't happen. >> i want to point out, carl, let's contrast yum, which is kentucky fried chicken. everyone thought yum would shoot the lights out. we had to downgrade mcdonald's saying they were not going to outperform. they outperformed. that's how things work in this business. people at home both deliver good but one was prepped and one was unexpected and that's why you get this price change. >> still, we're not seeing the 8, 9% figures that we saw a few quarters ago. do you think it is a proxy for slowing growth? >> no. look, i thi

this was by spurred by a surfeit of sandisk flash drives, to make up for their own shortcomings.e too much flash, not an apple issue, and apple has expanded because flash and disk drives were in oversupply. came in at 46.7% and no wonder apple's earnings were higher than what the street was expecting. analysts failed to recognize the power of the amazing network of retail stores. sold 24% more product. they don't get 360 plus stores moving a huge amount of merchandise. 24% same-store sales growth. there were fears after qualcomm announced a shortage of capacity. a lot of people were worried about the delay of iphone 5, but we found out that apple has far more supplier options. we also heard chatter that domestic smartphone market was saturated. that threw people off the scent and that could stunt apple's growth. apple has become an international story. sell 150 different countries and 230 carriers. and in china in particular, five-fold increase. in fact, astonishing how sales totally ignore the impact of china. i saw some analysts today talking about how apple was rescued by chin

sandisk, micron, big semiconductor names. and broadcomm has been a monster.ither of the other financials out there. it's certainly not all due to that. clearly we don't have a lot of loan growth. and mortgage division. finally, in terms of the

. >>> and sandisk is cutting the first quarter revenue outlook blaming weak demand.ey make memory chips, but many of the customers have been scaling back on the orders. sandisk expects sales of $1.2 billion down from the previous estimate, we saw shares dropping 7% in the after hours session. they're down 36%. >>> and burger king is shining up its crown with plans to go public again, the fast food chain expecting to relist the shares on the nyse in the next three months. bk's private equity owner 3g capital will sell a 29% stake to justice holdings for $1.4 billion. justice was founded by activist and investor bill akman. justice will shift the listing from the lse to the nyse. burger king was taken private in 2010. >>> and the march adp employment report is out at 8:15. 200,000 private sector jobs last month versus 216,000 last march. down nearly half a point from february. joining us now, of course, still with us, bill stone at pnc financial to talk a little bit more about it. bill, going to be interesting in terms of what we see in the adp number today before frid

sandisk. >> first solar, any bounce you get in solar has been to sell. the price of polysilicon is down 35%. they are laying off 3500 people. they have done 25% of the work staff. things are really in a difficult place. i don't think you buy any of these bounces in the space. there have been great rallies to trade. >> i look at one. the jen worth is one that sticks out to me. the stock traded about 200 million shares that is tremendous volume for these guys. the mortgage insurance is lousy, but improving. they are doing a report after the bell. there is a get chance it is obliterated. there is an equally good if not a better chance. if you are looking for beta, get into it tomorrow. >> that's what i'm talking about. >> where as netflix is still negative. >> i am negative on it. we have put spreads on earnings and we have put spreads out in june. i would look to roll down and take money off. the valuation changed quite a bit since the day before they reported earnings. i would not be going long. >> you wouldn't? let's look at the best performers and stick

the kingsfords until they catch and then they walk away, and didn't like that after they closed, sandisk blew up. it announced disapoingt orders for their flash drive and it will certainly impact apple tomorrow. you know? i have a hard time decliring this is irrationally exuberant. $1,000 handle as we call it in the business seems highly unusual. we have accepted it with berkshire hathaway. and i think call comes out to be perfectly racitional. let me walk you through why. this is about fruit arithmetic, about making apple juice and selling it, and then comparing apples to apples, to set the ground work for some simple, plain english exclamations for what the piper jaffray analyst expects to happen. the fundamental security analysis to figure out what underlying earnings are going to be. the "e" in the price to earnings multiple and then figure out what people will pay, the "m" in the equation. let's use the apple juice stand. a childish twist on the lemonade stand because it's my show and not yours. you buy apples or your mom buys them, smash them up, add a little sugar, okay? we're mak

sandisk is down better than 10%, first solar, micron technology all posting pretty sharp losses, bill and then there's gold, maria. levels we haven't seen since january. it begs the question, is this a golden buying opportunity or is there more downside to come? joining us to pose that question and answer it, director of technical research at januarying capital markets. gold has struggled so far this year. >> absolutely. >> you don't think that's going to last forever, right? >> no, it's not going to last forever. gold and all of the commodities have been fortunately equities. we feel they have come to an inflection point and we have a very long-term chart of gold. >> wow, back to '87. >> absolutely. because the market works in long cycles. >> until 2000 -- >> exactly. a cycle low in gold in 2000, trading around $250 an ounce. for the last 12 years or so, they have been outperforming the stock markets. over the short run and with this weakness that we are seeing today and over the last few months, gold is coming into a key test at around $1600 on a daily closing basis. our opinion is

. >>> sandisk shares are falling in the extended hours. taking a hit after they lowered first quarter quitance, saying there is weak demand and weak pricing. down more than 6%. the day on wall street also under pressure. a quick market check for you and stocks coming off lows triggered by the latest minutes today. the minutes showed a diminished likelihood of quantitative easing from the fed over the near term due to gradual improvements in the economic outlook. down 65 points, but at the worst it was down 13 points. s&p 500 pulled back 4 slash lash 10 of a percent. utilities eeked out a gain and there was a bit for retailers. nasdaq 2/10 of a percent and the last trading sessions despite the pull back up almost 20% year to date. see you tomorrow on closing

. >> the comments that was in chambers and sandisk and you put all these things together on top of the s&p and that reached the 1425 level that we spoke about. it's given a lot of folks the opportunity or the excuse to get out of things. i remember the 130s and 140s. not to say that it's not somewhat stretched now. there was an analyst that raised the price target and they went on to be specific and they thought by april 23rd, you would see a dividend increase and see them basically say we will reauthorize the stock buy back plan. people come down on both sides of the fence even with what we saw. ibm didn't get obliterated. we saw the all time high yesterday. it wasn't a horrible day for ibm. >> in line with what the nasdaq had today. it did account for 25% of the losses. if you read through the note to cut into the neutral, it was a lukewarm and there were fewer sat lifts to the upside and we are not saying we don't like it. the price started at 215 which was pretty bullish. >> all about expectations and even about yesterday about the fed. the market's expectations and ibm is about pr

sandisk, ibm weighing on the risk. large hard declines, first solar another loser today.vestors continue to hit the sell button on that name. jpmorgan siting a change and lastly i want to bring your attention to polycom. the company didn't go into a lot of details, basically citing shortfalls in asia pacific and north america. maria? >> seema, thank you so much. >>> we kicked off the second quarter on a positive note on monday but things took a turn for the worst today the dow and s&p at a more modest pace. the catalyst behind the move, we have the march federal reserve minutes after no indication of additional qe 3 to come anded aing to was the flight from risk where we saw the u.s. dollar gain strength. how do you protect yourself? chief investment officer at capital iq and kate moore a. strategist. good to see you ladies, thank you so much. are you expecting a correction in the second quarter? >> yes. in the second and third quarter we would expect a pullback and we're looking to protect ourselves. >> how do you do that? >> two steps. first, it's identifying the stocks

sandisk following micron and monster. they are betting on a recovery by summer for those shares. monster worldwide falling better than 2.7%. even though we had an upbeat gdp report. soaring near the $33 mark, up 5.5% at the close. numerous reports about the fed potentially selling a third batch of assets, couple that with an upgrade from bernstein and that batch up closely. one of the positive s&p, 2.5% but if you'll take a look, it's at 22.75, still below the offer it rejected from coty. maria? >> kayla, thank you so much. >>> concerns that qe 3 is becoming less and less likely slowed down the sales in march. one market is not concerned. bill gross saying that the market is overreacting to the federal reserve. >> i think it's much to do about nothing or much to do about little. bernanke is obviously the queen. yellin is the queen and the rest are knights. so i think you have a story when one of the three basically concedes and says check mate. but we haven't seen that. until that happens, i think this word submitting in terms of a couple or a few i think is relatively unimportan

i blasted sandisk management for being wildly inconsistent.en overly critical of the avon company for not being able to deliver to shareholders. and despite the rise in bank of america stock, i'm perturbed at the execution of that bank's plan to return to health after the hideous countrywide accusation, and the horrid lending standards of both the original bank of america and then the successor that includes countrywide. the pushback i have been getting on these judgments. it isn't critical about the managements i've selected to be harsh on, most people agree with my choices. it's much more of a sense and this is @jimcramer on twitter. what does it mean to execute, jim? who is executing well? tell us what good execution is. okay. so here we go. good execution means having a coherent strategy and then prosecuting that strategy with effective tactics that bring out value and reward shareholders. so who's performing both tasks perfectly? how about chuck bunch, a frequent guest of "mad money" who is ceo of ppg and that's the old pittsburgh plate g

one from sandisk, that will sends down the tech complex. the other, really surprising. big truck orders, remember i told you in our playbook? they were very disappointing. that's going to hurt cummins. always a bull market somewhere, i promise to find it on "mad money." hey, larry, what do you have tonight? >> the market didn't like the fed minutes. dow down 65. i thought they were bullish and i'll tell everybody why. good evening. this is "the kudlow report." the president unleashes a vicious attack on paul ryan, mitt romney, and the republican budget. he calls it a trojan horse, a radical vision and thinly veiled social darwinism. is he trying to make himself the centrist in the race? the man's budget he was referring to wisconsin congressman paul ryan will join us live with response to the president, later on. >>> and the dow dives minutes after the fed cited a stronger economy downgraded more bond buying. dow down 65 points, and nasdaq and s & p down 6 points each. i'll tell you why i think it's bullish. and markets may not have liked obama's speech. i'll tell you w

we've seen that hurt sandisk. ipads are supply constrained.elling those as fast as they can make them. expect a big ipad quarter. >> the developers conference is going to be june 11th. what are you looking for from that particular event? >> well, the developer conference usually isn't a time for apple to announce new hardware. they haven't done that recently. they've taken out time to talk about the mac os and more importantly ios 6. that's going to be the new operating software for ipads, iphones and that kind of family of devices. i also expect an update to icloud. i was talking to an apple executive not too long ago who was saying now the application teams, people from iphoto to imovie know they have cloud to use. i wouldn't be surprise today see that built into more products, sue. >> jon, thank you. who's making money today in apple's surge. maybe you are if you have invested with these mutual fund giants. top apple shareholders. fidelity, blackrock, vanguard, state street t. rowe price among others. tech having one of the best days since

sandisk, are you still long? >> yeah, it has been. we bought it well last year so we haven't taken much of a loss but we certainly round tripped it and we're still doing work on it. we're inclined to add more but just need a little more -- need to get a little more conviction that this is a short-term issue. so for now we're holding. >> we're showing your largest long positions behind us. walmart not among them. curious, you're take on the story that is developing. the allegations that have been made and a value investor, do you see value giving the pullback that we've seen in shares? >> yeah, we know the can't fairly well and it's an incredible company overall. the article, the front-page story on sunday was one of the best pieces of journalism i've read in a long time. it completely exposes what seems to be -- obviously i don't know all of the details but it's a multi-year flagrant violations of u.s. law and mexican law. i think the stock is acting appropriately here. this will likely cost them a couple board members. there could be

one of the things we were talking about earlier talking about sandisk, a stock underperforming, up 2%issed. down 13% so for the last two quarters google has moved 10%, a huge mover on earnings with a company this size. make a bullish bet, define your risk and your call spread can make a lot of sense. >> feel like the glasses are in the category of a self-driving car. as an investor i would not be as thrilled about google spending their money. >> there's a business there. >> you buy the glasses. >> no, no, no. >> i think there's a business there. it's a difference. i can't see myself walking around new york with those glasses on, but i could see myself perhaps sitting at home with your feet up and have your google glasses. >> like all that people did with 3-d televisions sitting in their home. >> this is different. right in front of your face. >> certainly the glasses worked in "back to the future 2," marty's little son there, how they put their glasses there, a futuristic concept but something that can take hold. >> better than a self-driving car. >> let's agree to disagree. catch "op

sandisk rounding out the top five. walmart wier hauser, first solar and kellogg off earnings.n rovell had to say about that. we have gold just shutting down at the open outcry session. sharon epperson at the nymex. gold down about $10 today. >> brian, we've been talking a lot about what has happened in europe and the concerns about a global economic slowdown, china manufacturing data also weak. all of that weighing on metals prices across the board. gold actually is holding up relatively well compared to some of the other metals that we have seen selloff pretty sharply. and it's relatively quiet here in this gold options pit. keep in mind we are looking at pretty big selloffs in silver, copper and palladium down about 2% or platinum i should say down about 2%. we are seeing net long positions that have been cut by hedge funds in the past week. that is part of it. and a big trade, very popular trade has been to short the gold miner stocks and be long the gld. we are seeing that in play as well in this session as that gdx, that gold miner's etf hits a 52-week low, sue. >> sharon