'Fast Money' Recap: Callaway Swingin'
TSC Staff
06/16/08 - 07:18 PM EDT
The stock market had a mixed day Monday, as oil pulled back from a new high and the tech sector found some footing. The
Dow climbed 0.3%, the
S&P 500 gained fractionally and the
Nasdaq was up 0.8%.
Pete Najarian said that oil spiked in the early market session. He said oil at $140 "was not so great" but when it pulled back, "financials started to kick in" and rallied throughout the day. He said technology stocks
Dell (DELL Quote),
IBM (IBM Quote) and
Hewlett-Packerd (HPQ Quote) showed strength and voiced concern about the chip space.
Guy Adami said recent gains in
Lehman Brothers (LEH Quote) didn't offer much information as to the future course of the stock. "The stock could go up, could go down. But I wouldn't short it nor get in it either," he said. He also said, "The easy money has been made already" in Lehman.
The traders observed that
Goldman Sachs (GS Quote) has risen 7% since last Friday. Joe Terranova said he hopes the company's earnings report will lend momentum to the financials. Najarian said there has been heavy call activity in Goldman.
Of the dollar, Guy Adami predicted it would be higher by the end of the year. Macke predicted that it would draw back to support.
On the downward action in oil, Najarian said
Chesapeake Energy (CHK Quote) and American Airlines operator
AMR (AMR Quote) are good plays if oil continues to fall.
Callaway Golf (ELY Quote) shares climbed. Adami said the high ratings for the US Open faceoff between Rocco Mediate and Tiger Woods helped Callaway.
Macke said
Sirius (SIRI Quote) and
XM Satellite Radio (XMSR Quote) are "untouchable." The companies made headlines today on news that their merger may go through.
Back in tech, Najarian said he likes
Research In Motion (RIMM Quote). He said "everything is working for the BlackBerry" predicted that a touch device would be available soon. He also said he likes
Apple (AAPL Quote). Adami and Terranova agreed with Najarian on Apple.
Macke said
Anheuser-Busch (BUD Quote) should take InBev's buyout offer.
Najarian pointed out bullish activity in
Rambus (RMBS Quote). He said investors should keep an eye on the stock.
Adami said he is leery of the steel sector. He said he's bearish on
U.S. Steel (X Quote) and advised viewers to wait for a pullback.
Where's Goldman Goin'?
Jeffery Harte, an analyst for Sandler O'Neil joined the show to talk about Goldman Sachs' upcoming earnings statement. He said Goldman won't miss tomorrow. He praised the company's balance sheet. He said
Morgan Stanley (MS Quote) is more risky.
Harte said "it's not inconceivable" that Goldman buy a bank this year, but he said Goldman probably isn't pursuing that move aggressively.
"Commodities King" Dennis Gartman joined on the show to discuss the
Federal Reserve's next move. He said the Fed will not raise rates. Macke agreed. Adami said the Fed will probably raise rates by a quarter point sometime soon. Terranova also said rates will go up. Najarian agreed. Gartman said a strong dollar is in the best interest of the company but he says a rising dollar is not likely.
Power Plays
About $140-a-barrel oil, Gartman said today's action was "very poor." Adami recommended the
UltraShort Oil & Gas ProShares (DUG Quote).
Najarian said
SunPower (SPWR Quote) is a good play but he prefers
Energy Conversion Devices (ENER Quote), but said investors should wait for a dip.
Adami said he likes
MEMC Electronics (WFR Quote), but investors should close eye on the chart.
Najarian noted that Honda is coming out with a hydrogen fuel cell vehicle before
Toyota (TM Quote). He said Toyota will probably steal Honda's thunder, just as it did with the hybrid Prius.
Macke expressed skepticism about Honda's new vehicle.
Terranova said price action in corn has mirrored that of oil, rising this morning and then closing lower. He recommend that investors buy
Pilgrim's Pride (PPC Quote). Adami agreed, saying that Pilgrim's Pride is a good play on a top in corn prices. Najarian said he likes
DuPont (DD Quote) on a valuation basis.
Trader Radar
Hershey's (HSY Quote) traded on unusual volume today.
Inside the Consumer Mind
Macke discussed potential plays on a weak consumer. He said he likes
Disney (DIS Quote). He said the company offers consumers a cheap alternative for entertainment. He also said
Best Buy (BBY Quote) is going to say they reported a lousy quarter but that it sold a lot of TVs, proving that people are going for "cheap" entertainment.
Macke also recommended
Imax (IMAX Quote), although he said it has been a bit controversial stock. He also said he likes
DirecTV (DTV Quote). Terranova recommended
Wal-Mart (WMT Quote).
Carter Worth, chief market technician at Oppenheimer, joined the show to talk about the outlook for the financials. He said that Goldman Sachs and Morgan Stanley will break their lows. He said the financials are a value trap.
Najarian said there is upside potential of 5% or more for Goldman. Adami said the financials are trading vehicles and said they have not necessarily bottomed.
Final Trade
Macke picked Callaway and
Nike (NKE Quote). Adami chose the DUG for players in
CNBC's Million Dollar Portfolio Challenge. Terranova selected Starbucks. Najarian picked Rambus.
