The stock market traded mixed to flat on Wednesday with the Dow closing down 25 points and the Nasdaq finishing up 5 points. The team at CNBC's "Fast Money" reviewed Oracle's headline news, gave a preview of Research in Motion's earnings and covered Morgan Stanley's cash infusion.
reported earnings after the bell that blew away Wall Street estimates. The software maker posted a 35% increase in second-quarter profits. Pete Najarian remarked that the numbers out of Oracle were outstanding. He thinks the business going forward looks very good and he disclosed he bought some stock 10 minutes before the close. Guy Adami called Oracle the best M&A firm in the United States. Tim Seymour expects to see upgrades in the morning for Oracle.
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Research In Motion Earnings Trade
Research In Motion
is set to report earnings Thursday after the close.
Silicon Valley Bureau Chief Jim Goldman joined the "Fast Money" crew to discuss his take on the BlackBerry maker. Goldman mentioned that most people are expecting a "beat and raise" quarter out of Research In Motion. He feels that if RIMM beats expectations, the stock will make a significant move to the upside.
Some investors have been speculating that RIMM might have to restate earnings, but Goldman doesn't believe that will happen. Chief Market Technician Carter Worth thinks it is highly probable that RIMM will gap lower on earnings based on what he is seeing in the chart. Najarian thinks there is nothing but upside for RIMM here. Macke thinks the numbers will be strong and he recommended going long RIMM with a stop at $95.
Morgan Orders Chinese
posted a worse-than-expected loss, but the investment bank received a $5 billion cash infusion from the investment arm of the Chinese Government.
Charlie Gasparino joined the "Fast Money" crew to discuss his take on Morgan. Gasparino reminded viewers that Morgan sold 10% of their company to the communists. He went on to predict that Morgan CEO John Mack is now at 3-1 odds of being fired by next year of things don't get better.
Najarian loves what China did and he disclosed he bought Morgan on Wednesday. Macke disagreed with Gasparino he thinks that Mack is more secure in his job now than a month ago. Gasparino finished by saying that
CEO Jimmy Cayne will be the next one to go.
Tesco CEO Interview
Tim Mason, Chief Executive of Tesco's Fresh & Easy Neighborhood Market joined the "Fast Money" crew to discuss the prospect for his firm. Mason thinks Tesco can compete with
Whole Foods Market
by opening up smaller stores with good prices and quality products. The new trend is limiting assortment and selecting the right products that consumers really desire.
Distribution is the key point and Tesco has built a central distribution system in Riverside California which will service Phoenix, Nevada and Southern California. He explained his model is also different because he is centralizing their kitchen, floral vendor, produce vender and meat and poultry vendor. Macke thinks Tesco could be a problem for Safeway, Whole Foods Market and 7-Eleven.
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Hollywood Writers Strike
The Hollywood writers strike is now in its 7th week. TV and film producer Gavin Palone joined the "Fast Money" crew to discuss his take on the strike. Palone expects the strike will come to an end in the spring. He thinks that
will be fine because they own a big radio company, a billboard company and TV stations that will benefit from the up coming presidential election.
Word on the Street
falls 20% after CEO Albert Lord made some very hostile comments on an investors conference call. Adami recommended that for a trade investors should buy the stock on Thursday with a very tight stop. Najarian doesn't like Sallie Mae he prefers
Activist investor Nelson Peltz disclosed a 10% stake in
. Macke thinks this was a great opportunity to sell this stock into strength. He explained that
trended much lower after Peltz took a stake and this could also happen at CAKE.
posted a 10% rise in second-quarter profits off of strong demand from China and Europe. Macke thinks Nike's results were incredible, but the market might sell the good news. He suggests adding Nike on a pullback if it happens. Najarian also thinks that Nike should be bought on a pullback off this strong quarter. Adami mentioned he likes Nike.
fell 3% Wednesday after the railroad firm cut its fourth-quarter forecast. Could the weakness in Union Pacific mean that the economy is heading for trouble? Adami explained that UNP guided lower off of higher diesel prices. He recommended that if investors want to be in rails go with
Burlington Northern Santa Fe
with a stop at $80. Adami doesn't like the space, but some investors may want to buy BNI for a trade because Warren Buffett is long the stock. Seymour mentioned he is bullish on the rails for an infrastructure play. Najarian likes the rails because of the strong demand for coal.
traded up 2% after the video game maker raised its third-quarter outlook. Macke advises viewers to own all the videogame makers.
traded up 5%. Adami continues to like MA.
traded up 22% after the voice data provider announced plans for a $250 million telecom cable system to Europe. Seymour would stay with VSL for the growth.
Take Two Interactive
traded up 4% after the video game maker said their 2008 forecast would be above Wall Street estimates. Macke says don't short the videogame makers.
traded up 1% on no news. Adami thinks Dell is cheap and going higher.
traded up 6% on no news. Najarian explained this is the exact opposite of PLAM.
traded up 10% after the company said it would consider strategic alternatives. Seymour predicted they're looking at a takeover.
fell 7% off a disappointing earnings report. Najarian warned investors that PALM is getting closer and closer to zero.
fell 3% as options traders saw some unusual activity. Seymour cautioned shareholders to get out of VMED.
fell 5% after the chipmaker lowered its fourth-quarter outlook. Najarian thinks there is too much competition in the space.
fell 2% on a bearish note from a Bank of America analyst. Macke would get out he sees nothing good happening for Coach.
The team hands out their best trade ideas to close the show.
- Macke picked Walt Disney (DIS) - Get Walt Disney Company Report.
- Adami likes Sallie Mae (SLM) - Get SLM Corp Report.
- Seymour recommends Cameco (CCJ) - Get Cameco Corporation Report.
- Najarian prefers Morgan Stanley (MS) - Get Morgan Stanley Report.
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