Friday left the U.S. stock market with mixed results and moves of small magnitude in the major indices. The Dow lost 0.1%, the S&P 500 gained 0.1%, and the Nasdaq gave up 0.2%.
"Fast Money" TV show, the traders went to Chicago to talk about agriculture and local companies
Oil surged toward $130 a barrel today. Jeff Macke said to trade oil by buying it every time it pulls back to its trend line. He says that as long as the trend is intact, it's safe to play oil.
Adami said people who are afraid to play oil directly should get long the oil services names. He recommended
Meanwhile, Back at Yahoo!
On the ongoing feud between billionaire investor Carl Icahn and
, Karen Finerman said Icahn has an excellent shot of winning. Icahn can win even if
doesn't return to negotiate a Yahoo! buyout, she said.
Macke said the trade on the news is to get long Microsoft, because Yahoo! would win this fight by destroying itself.
Pete Najarian said the options market indicates that a Yahoo! acquisition won't get done for more than $33 a share. He said $29 a share is what Yahoo! can hope for if it's lucky.
Guy Adami said that
lines up much better than Yahoo! at these levels. He said Google is cheaper on a valuation basis.
Elsewhere in Tech
On broader action in the tech sector, Najarian said
is still the big winner. He said the stock rose this week on news from
Research In Motion
of its new BlackBerry Bold phone. He said the true winners on new phones are carriers and infrastructure plays like
Adami said investors should take profits in
, but on a pullback it's another way to play the tech market.
Look, Up in the Sky
In aerospace, Adami said he believes the worst news for Boeing is over. He said the stock is compelling on a valuation basis. The best names in the sector are
, he said.
Najarian pointed out that Raytheon pulled back today and said that with a price-to-earnings ratio of 10, it's cheap.
Warren Has Left the Building
Billionaire investor Warren Buffett pulled out of
this week. Najarian said this means investors should be asking themselves about their positions in regional banks.
Adami said that
sets up for an easy trade right here. He suggested that viewers get long the banking titan with a stop out below $22.50. Finerman pointed out that Citigroup is a proxy for the financial services sector and has an attractive dividend.
CEO Terry Duffy joined the traders to talk about running an exchange. He said his company is buying stakes in exchanges across the globe. CME's growth rate is solid, he said.
Adami said that with a 21 forward price-to-earnings ratio and 27% annual growth, CME is a buy. Macke cautioned that the government may begin to intervene in exchanges, which could cause headwinds for the company.
Najarian said that there's nothing but upside in the exchanges.
contributor Rick Santelli discussed government intervention in the mercantile exchanges. He said that the government is misguided in its attempts to control a global demand problem with domestic regulatory efforts.
Adami agreed that blaming speculators for the rise in commodity prices is wrong. The markets will self-correct -- leave them alone, he said. Santelli said food prices carry a moral issue. He said he doesn't know how to resolve the morality issue surrounding food trading while preserving the capitalist system that works very well.
Najarian said that the bull market in agriculture is still real. He said
had a great quarter but showed weakness in forestry and construction. He said the company is too diversified to be a direct play on ag. He also said that
have had their run.
As an alternative, he recommended shipping names
, because they're needed to move grain.
is a good synthetic ag play and is cheap.
Finerman warned that one tweak in the market could dramatically cause names in this sector to experience big moves in earnings power. She said she doesn't play the sector.
Macke said the best way to trade these names are to buy dips. He said
is the best trade in food. He said
is a great company but the story is "juiced."
Najarian said both Burger King and McDonald's can succeed. He noted that Burger King is cheaper on a valuation and has more upside, but both stocks will rise. Finerman predicted casual dining would experience pressure on oil's price increase.
Adami said he still likes McDonald's for its execution in international markets.
Other Ways to Trade
Jon Najarian joined the show to talk about trading options. He said investors who are new to the options markets should pick a stock they like and watch an at-the-money call to see how it performs. He said he likes options pit because it's a way to create a big market and there's a great deal of transparency. He said he believes floor trading will continue as it is for that reason.
Personal finance expert Suze Orman joined the show. She recommended ETFs for "normal investors." She sadi the
iShares S&P Global Materials
is a good bet on the rise in commodity prices.
CEO Christie Hefner also joined the traders to talk about her company. She said media industries generally are going through heavy transformations. She pointed to Playboy's profitability in its new-media business. She said Playboy shares are cheap at these levels.
. Adami picked Citigroup. Macke picked Microsoft.