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Long-Term Positives

Two names in the portfolio have made announcements that you need to build into your analysis.
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NYSE Euronext (NYX) and Hewlett-Packard (HPQ) are out with news this morning that's moving the stocks. I want to clue you in to what's going on and whether it affects my long-term strategy even though it's not forcing my hand on a trade.

As I said Tuesday to expect, NYSE Euronext announced pro- forma first-quarter results this morning for the combined entity. Net income amounts to $161 million, on revenue of $1.12 billion.

Remember, each company reported results separately; what this morning's numbers reflect is the earnings as if NYSE and Euronext had been combined on Jan. 1 of this year. The results don't reflect any cost savings or potential synergies from the deal, which I expect to be substantial going forward.

This shouldn't have an immediate impact on the stock, which is trading up 62 cents to $87.03 as I write this. But I believe it will prove useful going forward as investors start to judge how well the company is cutting costs.

Hewlett-Packard announced a seven-year contract with NASA that could be worth up to $5.6 billion. Under the deal, H-P will supply NASA with desktops, personal computers, workstations and printers. For a $100 billion-a-year company, the incremental revenue from this arrangement isn't likely to have a huge impact on the bottom line.

But I believe the deal further cements H-P's new standing as the premier technology company. Despite the recent move in the stock I still believe it is very inexpensive, and see shares moving north of $50 by the end of the year. As I write this, shares are up 33 cents to $45.91.

Regards,

Jim Cramer

DISCLOSURE: At the time of publication, Cramer was long NYSE Euronext and Hewlett-Packard.

Send email to james.cramer@thestreet.com.