Blue chip stocks led the way on Thursday for equities as the Dow traded up 133 points, while the dollar slid lower on speculation that the Federal Reserve will cut rates at the September 18th meeting. Oil closed above $80 for the first time in history and commodities were foremost on the mind of the team at CNBC's "Fast Money."
The crew brought out the CEO of
, Richard Adkerson, for his thoughts on the subject. Adkerson believes that the future of the industry is in China and third world countries. He is bullish on the price of copper based on his feelings that the global growth story is still intact. Adkerson says that the price of copper is driven by fundamentals, but it is prone to volatility from market speculators.
As far as the Freeport stock is concerned, Adami sees it going to $120. Macke worries about the stock because of all the hedge fund money that trades in and out of the name. Najarian would buy on pullbacks. (
Take: Jim Cramer said recently, "Or we will get a Fed lackey -- maybe Andrew Lackey? -- to say the wrong thing and we will ask ourselves, "What were we thinking when we bought that Freeport." To read more on what Cramer said,
Guy Adami ventures that it's not a supply issue with oil, but is instead demand driven from the strong global economies. So while commodity prices caught fire, the dollar continued to fall to new lows. Jeff Macke believes the idea that a weak dollar kills stocks is wrong, of course unless the dollar collapses. Karen Finerman thinks it's because the Fed is ignoring inflation and the market is punishing the dollar in retaliation.
With oil closing above $80 for the first time in history, what is the best trade in the alternative energy sector? Najarian is bullish on
and his favorite of the bunch,
for the nuclear exposure. Macke favors
Boardwalk Real Estate Trust
for a play on Canadian oil sands. (
Take: Jim Cramer said recently, "Fluor does every kind of infrastructure and building the proxy for the group." To read more on what Cramer said,
Word on the Street
leads the market higher again as the brokers set up to report the most widely anticipated earnings in recent memory. Pete Najarian says the market is taking comfort in the financials after
reported another massive cash infusion.
Adami says he doesn't feel as bullish on
at $190. Finerman would love to buy GS and she wants to see it get cheaper before she enters. Najarian points out that the options market is pricing in double digit moves on LEH and GS for when they report earnings.
exploded up 10% on a Citigroup buy rating and on speculation of union concessions. Adami says if GM doesn't get concessions it will sell off. (
Take: Rev Shark said recently, "It was a few select big-caps, particularly General Motors and McDonald's that drove things today, and with the thin trading and the focus on an upcoming rate cut, the bears just didn't exert much pressure." To read more on what Rev said,
traded up 6% after the firm announced the largest dividend increase in its history. Macke called MCD a tremendous company and you can buy the stock even at current prices.
falls after a board member resigned. Finerman is shorting this stock because first the CFO left after it received a takeover offer, secondly the third largest owner of the stock left, and finally a $1 million block trade went through on Thursday.
saw unusual options activity after a Buckingham Research analyst suggested the company is going to sell itself. However, Najarian thinks the options are saying the company will get taken over at much higher prices.
might be the next stock to fall on concerns with subprime. Macke believes that KMX, which finances the cars it sells, is in trouble. He would short this stock into earnings and he doesn't believe a Fed rate cut will save it.
Chuck Prince has been the CEO of
for around four years and since he has been at the helm of the financial giant the stock has done nothing.
Charlie Gasparino joined the show to discuss how the street is thinking about Citi. Gasparino says Citi is not a well-run company. Citi traders tell him that the only way to get the stock moving is to get rid of Prince and break up the company.
Gasparino says that the investors need to get board members and Bob Rubin on their side to pressure Prince out. Gasparino floated the rumor that John Thain, CEO of
could be a candidate to take Prince's position. (
Take: Jim Cramer said recently, "It's kind of like NYSE Euronext , which is beginning to be the worst pick I have ever made." To read more on what Cramer said,
None of the "Fast Money" crew would invest in this stock, although Finerman would be a buyer if Prince left. (
Take: Jim Cramer said recently, "Someone, anyone please fire Citigroup's Chuck Prince! This whole episode with the hedge funds, his big move into them at the absolute top, is just so embarrassing that even Citi's board has to wake up -- and it is the board that always sleeps." To read more on what Cramer said,
"Fast Money" takes mail from its viewers as Jacke and Lou from New York write, "We bought the
Short Dow30 ETF
a few days ago. Do you think that this trade is done or will we see another quick dip or two so we can make some fast money?" Macke likes the play with a stop at resistance.
Sue from Florida writes, "I need another
. Any suggestions?" Najarian says take a look at
and if that isn't your taste look at the casino stocks. (
Take: Dan Fitzpatrick said recently, "Baidu has been deadly strong since April, with the stock up almost 130%. But notice how the stock had been butting up against resistance right at the $220 level. Some said it might be a double top; others saw a triple top brewing. But both of those prognostications appear to have been disproven by Tuesday's breakout. I'd still be a buyer here -- but with a protective stop just below the breakout level." To read more on what Fitzpatrick said,
Steve from Montana writes, "With the dollar dropping like a lead balloon, are there large-cap stocks out there that get most of their earnings overseas?" Najarian says look at stocks like
. Adami recommends
Take: Dan Fitzpatrick said recently, "Hewlett-Packard has been a steady performer. But with the stock a couple of bucks above the uptrending support line, I'd be patient." To read more on what Fitzpatrick said,
Pops & Drops
popped 5%. Adami likes the auctioneer.
traded up 5% after bullish comments from Citigroup. Macke says get out.
traded up 8%. Macke loves the stock and suggests you can get long in it right now.
popped 3%. Macke declares if you're bullish on the homebuilders then this is the "go to" stock.
The Limited Brands
traded up 3%. Macke wouldn't get long this stock right here.
fell 9% after issuing a warning on their yearly outlook. Najarian says stay away from this one.
dropped 4%. Finerman likes it and was buying it on Tuesday.
dropped 9% after missing estimates. Finerman points out there is a huge short interest in this one and she wouldn't touch it.
fell 4%. Adami still doesn't like this stock. (
Take: Tero Kuittinen said recently, "ALU is a pretty badly managed company." To read more on what Kuittinen said,
The crew fired off their last trade ideas for the program.
- Adami would short the Dow by buying Short Dow30 ETF (DOG) - Get Report.
- Macke says sell General Motors (GM) - Get Report.
- Finerman says buy ConocoPhillips (COP) - Get Report.
- Najarian recommends Sun Microsystems (JAVA)
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