DAVE HARRIS: Welcome to Dave On Stocks Podcast #54. It's Thursday night April 19, 2007. I'm Dave Harris. I'm a long term investor with a perspective on the market with individual stock advice.

Today we had encouraging news on the labor front. Unemployment benefits fell by 4,000 last week to 339,000. That means more people should be out spending which, in turn, should drive corporate growth. I think expectations were pretty low for 1^st quarter earnings. Analysts are looking for only around 3% quarterly growth in corporate earnings for the S&P 500. I'm expecting most companies to do better than that. The stock market closed somewhat flat today with an eye on China's higher than expected inflation report.

Good earnings results from Google (GOOG) the internet search company. Profit was up nearly 70% with EPS at $3.68 far exceeding expectations. That stock is a buy here at $471.65.

There's mixed response to the first quarter earnings from Kraft Foods (KFT). The company said profit fell 30%, although results did beat analyst expectations excluding items. I have a sell rating on the stock. I want to see how they pan out as a separate company from Altria (MO). Meanwhile, Altria had a 21% drop in quarterly profit. Full year guidance was raised in the range of $4.20-$4.25 per share. That's slightly below Wall Street views. Kraft closed at $32.85 per share.

American Express (AXP) is looking good here. The company said revenue rose 10% in the quarter from more credit card usage. Earnings of 87 cents per share beat views.

Motorola (MOT) reported a quarterly loss, although they beat expectations after excluding special items. Revenue fell 2% to $9.43 billion. Second quarter sales should be even and the earnings were guided around 3 cents per share. I see better profitability in the longer term for Motorola with improved market share on fancy phones such as the RAZR. MOT is a buy. The closing price for MOT was $18.08 today.

Johnson & Johnson (JNJ) the healthcare company had a lower first quarter profit due to an acquisition charge that still beat expectations. Excluding charges, earnings were $1.16 per share. Sales rose 16% to over $15 billion. I have a buy on JNJ. It's going to $75. The stock closed at $64.94 per share today.

Wells-Fargo (WFC) had an 11% rise in earnings for the first quarter, beating expectations. Revenue rose an impressive 10%. I wouldn't worry about their exposure to subprime issues because investment banking partners take on the risk associated with those loans. Retail and wholesale business banking were strong areas. Some weakness was at Wells Fargo Financial; where profit went down 59% because of a year ago gain. I suggest buying WFC. The stock is going to $40. WFC trades at $36.14 per share.

Coffee maker Starbucks (SBUX) now offers a greater variety of blends in select Canadian grocery stores such as A&P, Loblaws, Safeway and Wal-Mart. Eight different blends are offered including House Blend, Sumatra, French and Espresso Roast. I still like Starbucks here. I expect the stock to hit well over $40.

That's all for today's podcast. I'll talk to you again soon with another show. I'm Dave Harris. Email me with any questions at the "contact us" link on this page. My website is www.daveonstocks.com. This is Dave On Stocks.