This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'Fast Money' Recap: A Tale of Two Tech Giants

Friday's "Top Trades" on the show included the industrials plus Chipotle Mexican Grill (CMG) and Assured Guaranty (AGO), with the traders breaking down how to play them.

Representing the industrial names was General Electric (GE), Honeywell (HON) and Whirlpool (WHR), all three of which beat earnings estimates on Friday.

Seymour was really liking General Electric's earnings report, saying that margins were looking really strong and management expects them to do well for the remainder of the year. He also said GE is going to downsize GE Capital, while aerospace and gas and oil are doing well. He thinks investors should ride this one out for the rest of the year.

Chipotle Mexican Grill beat on both top- and bottom-line estimates and as a result, popped 7% higher on Friday, while hitting a new 52-week high. Brown noted that a lot of fund managers were caught short because they thought the shift from Chipotle to Yum! Brands' (YUM) Taco Bell was on. Clearly it is not, he added.

Many people thought that Assured Guaranty would be hurt a lot more by the bankruptcy announcement from the city of Detroit. Kelly said the company isn't on the hook for as much as most had originally thought and that any further weakness will be a buying opportunity.

Sherwin Williams (SHW) dropped 7% this week and Brown says it's only because it's been so good, for so long that analysts had gotten ahead of themselves. He will be a buyer if it presents a little more weakness.

Kelly is a buyer of Yahoo! (YHOO) if it can pull back to the $28 level and hold. He added that the Alibaba IPO will add to Yahoo!'s valuation.

FedEx (FDX) advanced 5% over the previous five trading sessions and Adami said the stock woes from the third quarter are gone and he thinks it will continue higher. He added that he is looking for $110 on the stock.

American Express (AXP) reported earnings this week, and as a result had its biggest one-day drop in over a year. However, Seymour said that he liked the company and its fundamentals and was a buyer on the weakness.

Looking ahead, Adami said that he was not a buyer of McDonald's (MCD), which reports earnings on Monday before the open. He added that he thinks the company, which is up 13% year to date, will disappoint and possibly miss earnings per share estimates. As a result, he said to look at McDonald's at $97 and not before then.

For their final trades, Brown said to buy Google on the dip. Seymour said he is a buyer of Brazil via Tim Participaes (TSU). Moving around the globe, Kelly is a seller of Australia via the MSCI Australia Index Fund (EWA) and Adami likes the iShares 20+ Year Treasury Bond ETF (TLT).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs