AFTER BERNANKE'S WORDS RESCUED STOCKS, WALL STREET LOOKS AHEAD TO AUTO SALES AND THE BIG EMPLOYMENT REPORT. ALSO, WHY I LIKE NORDSTROM AND AN UNDERVALUED WATER COMPANY.

12/01/2007 7 PM CT

By Dave Harris

We are nearing a bottom. Now is the time to do some bargain hunting as the bulls take charge again.

We ended last week on a positive note, as investors took comfort in Ben Bernanke's words at the chamber of commerce Thursday. He remarked the Fed must be "flexible" in response to the current market concerns, such as the credit crunch and higher oil. What this really means is that an interest rate cut is likely when the central bank next meets on December 11^th. A rate cut makes it cheaper for companies to borrow money and become more profitable. It also will allow for stronger economic growth. Donald Kohn, a Fed vice chairman, also hinted a key interest rate hike was in the works this month. I believe equities are hitting bottom here. The financials are turning around. Citigroup (C) just got a 7.5 billion dollar injection from the Abu Dhabi investment group. That's calmed some fears about the recent mortgage mess. I don't think they're going to cut their dividend now. Citigroup is looking pretty attractive here. The stock rose 1.01 at Friday's close to finish at $33.30 per share. Wells-Fargo (WFC), JP Morgan (JPM) and Citigroup have all been trending higher lately.

Still, November proved to be hard on stocks. The DOW lost 4 percent. The tech-heavy NASDAQ gave back nearly 7 percent. December is going to be different. I maintain that holiday sales will come out better than expected. You want to buy some of the retailers BEFORE results are announced. Look at some of the high-enders like Nordstrom (JWN). The stock dipped a bit after Sears (SHLD) reported their dismal earnings. Sears is a sell, by the way. Anyway, Nordstrom is buying back their own stock big time, and increased their program by $1 billion! The company recently beat expectations with EPS at .68 and revenue up by 5 percent. At a P/E of 11, this stock is pretty cheap. I think it’s going to $40 and I would buy it.

Agua America (WTR) is a utility company that offers waste and water services around the country. The company just reported 3^rd quarter EPS at .22 cents vs. .21 last year. Revenue came in at over $165 million vs. last year's $147 million. I especially like the 9 percent dividend increase. Consider that Aqua is an acquisition machine. The recent New York and Florida water operations and Aqua's Sea Cliff continue to generate profitability for the company. Their customer base has grown despite the housing slowdown. I would buy the stock here. Friday the stock closed down .06 at $22.14. It's going to $30.

On Monday, investors will get more on the consumer with data on automobile and truck sales from the Commerce Department. Thursday, it's initial jobless claims. Friday could be the big market mover when the granddaddy of news, the jobs report for November is due.

It's a light week ahead on the earnings front. Wall Street will hear from retailers Guess (GES) on Monday and Chico's (CHS) Tuesday. Toll Brothers (TOL) the homebuilder is Thursday.