trv

TheStreet.com's Jim Cramer says that as long as we're trapped in a commoditized stock market, use the futures to go bargain-hunting.

What if individual stocks want to go up, but the market wants to go down? Don't laugh. In 1982, when The Kansas City Board of Trade started trading Value Line futures (before there were S&P futures), we used to kick around in securities classes what would happen if eventually stocks became so commoditized that individual companies couldn't be removed from the gravitational pull.

For example, we know today looks like a terrible day, with Europe down horribly and our futures real soggy. But then we look and see that J. Crew (NYSE: JCG) (Cramer's Take), one of the best retailers, is not just saying that the fall season is good; it is saying it is blowout beyond imagination. The big Dow stock 3M (NYSE: MMM) (Cramer's Take) is not just saying that things are getting better; it is showing that business is very strong. The monster insurer and fellow Dow stock Travelers (NYSE: TRV) (Cramer's Take) is boosting the dividend and showing you how a responsible financial can behave.

Last week, Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) reported stellar quarterly results. Lots more third quarter reports from the big banks are due this week.

However, analysts surveyed by Thomson Reuters anticipate year-over-year earnings declines from Bank of New York Mellon (NYSE: BK), BB&T Corp. (NYSE: BBT), M&T Bank Corp. (NYSE: MTB), Northern Trust Corp. (NASDAQ: NTRS), PNC Financial Services Group Inc. (NYSE: PNC), State Street Corp. (NYSE: STT), US Bancorp (NYSE: USB), and Wells Fargo & Co. (NYSE: WFC).

I'm reiterating my Buy rating for The Travelers Companies (NYSE: TRV), first recommended on April 24, 2009 at a price of $39.50. If you purchased TRV at that time, you're up a decent 20%.

Simply, look for The Travelers to continue to improve underwriting results and to capitalize on the flight-to-quality in property-casualty insurance market. Further, TRV's P/E of 9 gives those who didn't purchase shares in April an opportunity to do so now at an attractive price.

TheStreet.com's Jim Cramer says that it's the most conservative player in an industry filled with gunslingers.

The keepers of the Dow Jones Industrial Average must have felt insurance-less after the defrocking of AIG (NYSE: AIG) (Cramer's Take), so it's fitting that they added Travelers (NYSE: TRV) (Cramer's Take) to the list, even as I would have preferred Ford (NYSE: F) (Cramer's Take) or Apple (NASDAQ: AAPL) (Cramer's Take).

They needed a financial that wasn't a bank and there aren't many out there that still trade at anything but desperate levels or weren't saved by the government.

Today was one of those magical days where no bad news could get in the way and all good news was viewed as the leader. Despite there now having already been 1 million foreclosures in 2009, the direction of personal income and spending was in the right direction while a revival was seen in manufacturing and construction. The DJIA was also challenging its 200-Day Moving Average, but that is after the S&P 500 Index crossed its 200-Day Moving Average. Here were today's unofficial closing bell levels:

Dow 8,721.36 +221.03 (2.60%)
S&P 500 942.87 +23.73 (2.58%)
Nasdaq 1,828.68 +54.35 (3.06%)

Top Analyst Upgrades
Top Analyst Downgrades

Cisco (NASDAQ: CSCO) is recently up 67 cents to $19.88 in pre-open trading. CSCO will replace General Motors (GM) in the Dow Jones Industrial Averages -- DJIA. CSCO June option implied volatility of 36 is below its 26-week average of 47, according to Track Data, suggesting decreasing price movement.

Travelers (NYSE: TRV) is recently trading at $41.87 in pre-open trading, above its close of $40.66. TRV will replace Citigroup (NYSE: C) in the DJIA. TRV June and July option implied volatility of 37 is below its 26-week average of 54, according to Track Data, indicating decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com