'Fast Money' Recap: Oil Gushes
The Dow closed up 117 points on Tuesday as energy, financials and technology stocks were strong. The crew at CNBC's "Fast Money" took a look at these sectors and where investors could make some profits.
Crude oil closed in on the magic $100 mark, after hitting another record high at $97.10 finally finishing Tuesday at $96.70. Adami tells viewers they can play
Valero
(VLO) - Get Valero Energy Corporation Report
on valuation or go with
Tesoro
(TSO)
, which is more expensive, but has Wall Street whale sponsorship. Finerman discloses that she is long TSO.
Let the Sun Shine
With oil near $100, investors continue to look towards alternative energy stocks for ideas. Finerman offers
EnergySolutions
(ES) - Get Eversource Energy (D/B/A) Report
as an idea since it is scheduled to IPO next week. She would also consider
Cameco
(CCJ) - Get Cameco Corporation Report
, but only with options. Najarian continues to favor
Cypress Semiconductor
TheStreet Recommends
(CY) - Get Cypress Semiconductor Corporation Report
.
(Take a look at a portfolio based on solar ideas on Stockpickr.com,
.)
Auto Stock Trade
General Motors
(GM) - Get General Motors Company Report
is set to report earnings Wednesday morning before the bell and
Ford Motor
(F) - Get Ford Motor Company Report
is set to report earnings on Friday before the bell. Adami likes Ford Motor and he believes any news will be good news. He also mentioned that Ford is looking to sell Land Rover and Jaguar and they're close to making a deal with the U.A.W. Adami sees the stock trading up to $9.75.
Additionally,
General Motors
traded down 3% after hours on news that the company will take a $39 billion non-cash charge on financial assets in the mortgage arm. Adami declares General Motors a widow maker. E.K. Riley analyst Robert Toomey predicts the stock will not go much lower on Wednesday, because the charge shouldn't impact cash flow.
Finerman mentions that her hedge fund has no exposure in the auto sector right now because of issues with the U.S. consumer. In Macke's opinion,
Toyota Motor
(TM) - Get Toyota Motor Corporation Report
,
Honda Motor
(HMC) - Get Honda Motor Company Ltd. Report
and
Hertz Global Holdings
(HTZ) - Get Hertz Global Holdings Inc Report
all lose from the continued improvements at Ford and General Motors He advocates being long Ford here.
Financials Fumbling
Jeff Macke says we saw a counter trend rally on Tuesday and everything worked accept
Citigroup
(C) - Get Citigroup Inc. Report
and the retailers. He feels that investors can still be long volatility in this market. Pete Najarian says the mortgage insurers had a nice bounce Tuesday and he cautioned investors to not buy into the hype. He feels the sector has a problem and he mentioned that Doug Kass might be dead right on his bearish take of the group.
Goldman Sachs
(GS) - Get Goldman Sachs Group Inc. (The) Report
denies write-down speculation for the fourth time on Tuesday. Finerman believes Goldman Sachs and she thinks they'll do a better job at managing risk then the rest of the investment banks. Najarian says this is a stock pickers market and you have to pick your spots carefully in the financial sector.
Trade off Google
(GOOG) - Get Alphabet Inc. Report
continues to surprise investors with news like the recent entry into the mobile handset market. Is there another way to trade the mobile space if you've missed the move in Google? Najarian claims the trade is
Focus Media Holding
( FMCN), which is a China play that sells advertising space on mobile handsets. He mentions that the options activity in Focus Media is suggesting to him the stock is poised to move higher. Adami also reminds investors that Focus Media is set to report earnings on or around November 21st and the stock has doubled on the year. Najarian continues to believe that China isn't dead yet.
,
Apple
(AAPL) - Get Apple Inc. Report
,
Intel
(INTC) - Get Intel Corporation Report
,
Cisco
(CSCO) - Get Cisco Systems Inc. Report
and
Research In Motion
( RIMM) all hit 52-week highs Tuesday. Najarian likes the way these technology names are moving. He loves the price action in Google and Intel but he didn't like the action in
Badiu.com
(BIDU) - Get Baidu Inc. 百度 Report
. Adami and Macke both like Intel here.
Yahoo
(YHOO)
shares took a hit Tuesday after U.S. lawmakers slammed the company for their role in helping to identify a Chinese dissident who was later imprisoned. Macke concedes this is headline risk, but is certain it will go away.
Cisco Trade
Cisco Systems
(CSCO) - Get Cisco Systems Inc. Report
is set to report earnings Wednesday.
CNBC's
Jim Goldman explains that Cisco Systems has been on a tear since June as the popularity of video content has expanded on the Internet. Goldman says Cisco Systems just has to meet earnings expectations for the momentum to continue. Najarian currently holds a long position in Cisco and he plans on buying a little more Wednesday morning. Macke says they'll come in and beat earnings so don't bet against these guys.
Dim Power
Utilities stocks struggled on Tuesday coming in as the worst performing sector of the day. For Adami, if the Fed is done cutting rates then
Public Service Enterprise Group
(PEG) - Get Public Service Enterprise Group Incorporated Report
will go lower and you can buy it in the low $80's.
(If you like utility stocks, take a look at this fund on Stockpickr.com
.)
Pops & Drops
Pops -
Archer Daniels Midland
(ADM) - Get Archer-Daniels-Midland Company Report
traded up 7% on a strong profits report. Najarian points out what a great opportunity to sell ADM.
Jacobs Engineering Group
(JEC) - Get Jacobs Engineering Group Inc. (J) Report
traded up 5% after profits rose 43%. Adami declares the infrastructure build out story is still real.
XM Satellite Radio
( XMSR) traded up 12% on speculation that the merger with Sirius could get done by year end. Macke still likes
Sirius Satellite Radio
(SIRI) - Get Sirius XM Holdings Inc. Report
more.
IndyMac Bancorp
( IMB) traded up 10% after the CEO said the company would survive the mortgage blowup. Finerman reminds viewers they don't know what they are getting with IMB, so stay away.
Church & Dwight
(CHD) - Get Church & Dwight Company Inc. Report
traded up 9% after posting a 34% jump in profits. Adami suggests it's a bit rich on valuation after the move, so it's best to wait for a pullback in order to buy it.
MasterCard
(MA) - Get Mastercard Incorporated Report
traded up 7% after Deutsche Bank upgraded the stock and slapped a $250 price target on the credit card name. Finerman predicts MA has more to go on the upside.
Beazer Homes USA
(BZH) - Get Beazer Homes USA Inc. Report
trades up 10% after shareholders demand the CEO be fired. Even after that, Finerman wouldn't be long BZH.
Tenet Healthcare
(THC) - Get Tenet Healthcare Corporation Report
popped 22% as revenues per patient rose 8%. Najarian reminded investors that THC was at $8 not long ago.
Drops-
NBTY
( NTY) fell 5%. Macke maintains these guys are suffering.
Cooper Tire & Rubber
(CTB) - Get Cooper Tire & Rubber Company Report
fell 14% as sales and profits missed estimates. Adami congratulates CRT Capital who issued a sell on the stock on October 19th.
Molson Coors Brewing
(TAP) - Get Molson Coors Beverage Company Class B Report
fell 2% after third quarter profits fell amid charges. Macke buys the dip on TAP.
Final Trade
The team declares their best ideas at the end of the show.
- Najarian recommends shorting MBIA (MBI) - Get MBIA Inc. Report.
- Macke grabs buy tickets for Intel (INTC) - Get Intel Corporation Report.
- Adami picked Ford Motor (F) - Get Ford Motor Company Report.
- Finerman advises shorting Lehman Brothers Holdings( LEH).
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