On Wednesday night, Dylan Ratigan started the
program by stating how oil has been trending downward as financials continue their upward momentum.
Joe Terranova said he was proud to say he is long on
Financial Select Sector SPDR
, since he feels crude oil will continue with its current weakness. He then pointed out a chart showing that oil and financials have an inverse relationship.
Pete Najarian added to Terranova's point by saying, "Financials works when oil goes down."
Jeff Macke said, "It would be a little cute to be short on financials," stating it would be a risky move, since the sector is rising essentially every day. He also said that he sold
. He said he could not find a reason to continue holding the company after a "40 point rise" since he bought it.
Najarian said he is very bullish on
. He said the company showed tremendous strength in the wireless sector that "beat everyone's estimates." He also mentioned that he sees more strength coming from the
iPhone -- it sold 1 million units in one weekend. He said the iPhone "is where they are going to see their growth." He ended by saying "landline business is down, but wireless will continue to rise."
Macke did not agree with Najarian and said he is quite bearish on AT&T.
Ratigan said that
is up 11% to $49.50 after it announced it is postponing its earnings.
Ratigan then brought up
, which was down about 3% to $68.64 after hours upon reporting its second-quarter profit rose to $158 million, or 37 cents a share, from $78 million, or 19 cents a share, it earned in the same quarter last year, beating analysts' estimates by 11 cents.
Macke mentioned that Amazon.com had a great quarter but said, "When you double earnings, people expect a great guidance." He said the drop in the stock was the result of the tepid guidance of raising its revenue forecast from 20.0 billion to 20.1 million
Ratigan said that
announced it is postponing its third-quarter earnings report.
Finerman said, "I was surprised on
" when it lowered its earnings forecast today after saying inflationary costs will eat into the company's profits.
Macke said what the warnings from Costco are nothing new, stating it is something that will affect all retailers. That is why he said he is sticking with best of breed,
Najarian said the rally in
has nothing to do with its prospects getting better but the fact oil has been trending downward.
Addison Armstrong, director of market research for Tradition Energy, said he believes oil will continue to trend downward, and that the price per barrel could fall as low as $105 by October. He said he sees serious demand destruction in China in the foreseeable future.
Katie Stockton, chief market technician MKM Partners, came on the show to give her expertise from a technical standpoint. She said that on a technical basis she is bearish on crude oil but is bullish on gold. A specific gold play she likes is
, saying "I would take advantage on any pullbacks." She is also bullish on
will be reporting its earnings tomorrow. He said he does not believe any casino is right to own, especially those levered to Las Vegas, since travel will be down for the rest of the year.
The Options Option
Bill Brodsky, chairman and CEO of Chicago Board of Options Exchange, spoke about the advantages of using options as a part of investors' everyday strategies to boost returns.
Najarian and Finerman stated how they agree that using options can boost returns and, most of all, offer protection to the downside.
Macke recommends investors practice with fake portfolio accounts before going to the options, stating, "You have to know what you are doing."
Ratigan mentioned breaking news that Robert K. Steel, CEO of
, bought a million shares of his company at $15 yesterday.
Ratigan brought up more news regarding Amazon.com, stating that it had reversed in the after-hours trading and is now in positive territory. Ratigan also said that
was up about 13% to $325.00 after reporting its earnings surged 87%to $38.6 million -- analysts had expected $35.5 million.
panelists said this move makes them wonder about
, which are seeing weakness in advertising space.
as a good solar play. He said the sector will continue to grow and that Applied Materials will benefit greatly.
Finerman said he is bearish on all ethanol stocks, citing it as a sector that investors should avoid.
This article was written by a staff member of TheStreet.com.