Bullish action in semiconductors and retail helped lift the U.S. stock market Thursday. The Dow was up 0.4%, the S&P 500 added 0.5%, and the Nasdaq climbed 1.3%.
"Fast Money" recap, Jeff Macke said that stocks are bullish, because they persist in rising despite bad news. He said he's a buyer of
. Tim Seymour said he likes retail names here.
In tech, Guy Adami said he likes the valuation on
. Najarian said that he would buy
and Intel. He said he believes
will drift higher. Seymour said he likes Intel and Cisco for their international exposure.
3 Stocks I Saw on TV
var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1498093427; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);
Macke said that Yahoo! has been taken over by Bill Miller and shareholders who have found out the company's management is out of its league. He said the stock is dead on its feet and it's time to move on.
In agriculture, Adami recommended
. He said that after raising guidance on March 14, the company has done so once again. DuPont is a cheap, synthetic way to play the agriculture space.
, which he called the German version of DuPont or
Najarian said that options activity indicates that DuPont's rally will last longer than one day. He predicted the stock would push back to $53 or $54.
Adami noted bullish action in
. He said there are a lot of things going well for the company.
Najarain explained a downturn in
, saying the stock rose ahead of earnings. He would not be a buyer of Genentech, he said.
Adami said that Genentech's four major drugs missed. The quarter wasn't a disaster, he said, but when the company didn't raise guidance and failed to mention its balance sheet, investors reacted poorly. He said that Genentech is cheap on a valuation basis.
Macke said that Genentech has been trading within a range for a long time. He considers the stock a value trap, he said.
Najarian said that option activity indicates investors are anticipating a takeover for
. He said many institutional investors are making bullish bets on the stock.
Seymour said uranium names such as
Universal Security Instruments
are benefiting from consolidation in the nuclear space.
Adami said other energy names
are due to rise. He said the oil services names are a good place to play.
Seymour said the refiners still look like a seasonal trade. He said he's been wrong about this call but believes viewers should hang on to it.
Macke said it's hard to get an informational advantage on supply and demand for oil, so he recommended trading technical moves in the charts instead.
Airline names, including
, rallied today. Adami said it was a big volume day for the airlines and said he believes there is a short-term bottom in the space.
The traders played a "Dating Game," with Yahoo! after suitors
in pursuit of the company.
The traders noted that Steve Ballmer and Microsoft are offering $31 a share and sport a huge balance sheet. They said that Jeff Bewkes is offering Yahoo! control of AOL and the opportunity to be a part of the world's largest media company. News Corp., said the crew, is offering a three-way alliance with Microsoft and an opportunity to join up with MySpace, one of the Internet's greatest recent success stories.
Macke, pretending to be Yahoo!, said he would select Microsoft but that he's playing hard to get.
reports earnings tomorrow. It is the world's largest company.
Adami said that the report will be a good economic indicator. GE offers tells on the economy and on stocks like
, he said. If GE says good things, viewers can get long Honeywell "with impunity," he said.
Seymour said that GE is as much an infrastructure play as anything else. He said GE will offer valuable insight into how
Najarinan said that revenue will be the key metric on GE's earnings report. He said that the market doesn't react to GE's EPS figures. Macke said that GE rarely misses and often beats expectations by a penny a share. He said to listen to the conference call because it will indicate which spaces in the overall economy are performing well.
Seymour noted insider buying in GE, which he said should be a signal to investors. Adami said that the company is well diversified and should be able to weather a bearish economy.
auctioned off liquid assets today, and the financial sector didn't take full advantage.
economics reporter Steve Liesman joined the show to discuss what happened.
Liesman said that there are two means by which the Fed is trying to solve the liquidity crisis. He said the Fed either offers loans for illiquid assets or engages in swaps, where it exchanges liquid assets such as Treasuries for banks' illiquid ones.
Liesman said that financial companies took only $33 billion of $50 billion in paper offered by the Fed in an auction. Overall, he said, they don't need as much as the Fed has put on offer.
Seymour said that the purpose of the auctions is to get banks to lend to one another. He said that swap rates between banks have actually widened. Liesman has said that he doesn't know why that happened.
Najarian said he is close to buying the financials here, particularly
. He said the company has stealthily sold off $10. He said the broader financials market isn't as good as the Nasdaq lately, but if Goldman gets down to $165 he would buy the stock.
Macke recommended buying dips in the financials, because the environment where banks can go bankrupt overnight has been eliminated, and the stocks are down 40% to 50%.
Liesman said that
, which led the sector in writedowns, may be due to value some of its assets at a higher level soon.
The traders observed that the chips sector is showing signs of life. Adami said that Intel has sold off because it was sandbagging on revenue. He said he still thinks the stock is great. Macke called the company best of breed and said that
at $5 is "suicide."
Najarian said he would rather buy Intel than a semiconductors ETF.
Adami said that UBS lowered its estimates on Intel but kept a buy rating and left the price target unchanged.
traded lower on five times its average daily volume today.
In after-hours action, Genentech traded lower on its conference call.
As part of a series of "Triage Trades" in which the traders offer solutions for ailing companies, Seymour offered to help
. He said the company is his favorite foreign car play.
He offered a four-step program that would lead to GM's recovery. He said the company has to close a deal with the United Auto Workers to close the book on one of the biggest problems in its business. Next, he said, the company should abandon the U.S. market, because it is lagging the Japanese and the space is too competitive. Third, he said, the company should start making hybrids. Fourth, the company should continue to expand into emerging markets. He said the union costs are a large concern for the company.
Adami said that GM is not a fast-money trade. Macke said that the company needs to show resolve and initiative and solve the union problem so that it can get the cash needed to turn itself around. Najarian said he likes the hybrid play the most.
A viewer asked Adami about
. He said the company, along with
, forms the "ultimate oligopoly." He recommended owning both names for several years.
Another viewer asked Seymour why
, an Indian bank, has fallen so much. Seymour said that private banks in India are losing their margins to state banks. He said he likes India for the long term. He said that
Wisdom Tree India Earnings
was a good ETF play on India.
A third "Fast Money" fan asked Macke what he thought of
. He said he would buy it. The company isn't doing anything wrong, he said, but because of its good balance sheet and fundamentals, now is a good time to buy.
Another viewer asked Najarian about the prospects for gambling stocks. Najarian recommended
because of its Macau exposure. He predicted a comeback for Las Vegas in the fourth quarter of this year.
A final viewer asked the traders what would be a good gas or oil play. Seymour said he loves
. It's a great, diversified company, he said. Macke recommended the
U.S. Oil Fund
Macke suggested Wal-Mart on dips. Adami selected
. Seymour picked
. Najarian chose Cameco.