It was a mediocre Monday for the U.S. stock market. Tech companies had good news to offer, while the financials made investors squeamish. The Dow and the S&P 500 each lost about 0.2%, while the Nasdaq climbed 0.2%.On CNBC's "Fast Money" TV show, the traders discussed an in-line quarter and a lowered second-quarter forecast from Texas Instruments (TXN) - Get Report.
Pete Najarian said Texas Instruments looks terrible. He said the chip sector has had too much competition. He said that as
say they're looking for other suppliers for their phones, and Texas Instruments might have to go back to calculators.
3 Stocks I Saw on TV
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Macke said that Texas Instruments is not very exciting, either from the long or short side. This earnings report is specific to Texas Instruments and doesn't say much about the rest of the market, he said.
Macke said that Texas Instruments has learned to lose in every business that it undertakes. There are better plays in almost any space Texas Instruments is in, he said.
In the financial services sector,
Bank of America
reported a 70% drop in profit and produced writedowns on its assets.
Karen Finerman said it was nice that the company was holding on to its dividend. At 6.8%, the stock's yield isn't bad, she said.
Adami said he would be looking at
after Bank of America's earnings. Ameriprise had a pretty good fourth quarter, he said. He said he thought the company might surprise when it reports earnings tomorrow.
Macke said the financial stocks were due for a break from bullish activity. He recommended buying the dips in the space.
. He said the company's transaction fees are working great. He also said to keep an eye on
. There won't be a pullback in Visa, he said -- the stock is on fire.
announced today that it was raising capital. Adami said that of the regional banks, he recommends
, which he said is very conservative. When the banks rally, USBancorp should rise too, he said. Macke said he wouldn't recommend the regionals.
Pharma's Ups and Downs
In the pharmaceutical space,
offered disappointing profit and outlooks for the first quarter, while
beat analyst expectations.
reports later this week.
Najarian said Novartis
has a good pipeline. Adami compared
in September of 2004. Other than
, he said, GlaxoSmithKline is the play.
shares jumped higher in after-hours action on earnings. Adami said he'd like to hear what the company says on its conference call on the stent business. That news would be relevant to
Johnson & Johnson
, he said.
Crude oil closed at a record high today. Addison Armstrong, director of market research at Tradition Energy, joined the show to talk about commodities. He said it's hard to fight the tape, and he believes oil will continue to rise. He pointed to supply information, including supply disruptions in Nigeria and a strike at a refinery in Scotland.
Armstrong said the trade is to remain long. He said every pullback is a buying opportunity. Najarian pointed out that the
Oil Services HOLDRS
hit $210 today. He said that the price-to-earnings ratios in names like
made the sector look bullish.
Armstrong said the oil services names look poised to go higher. He said, though, that a potential slowdown isn't quite priced in to the stocks. He recommended looking at demand from Asia after the Olympics.
For the Chart of the Day, the traders looked at the continued rise in oil prices, which appeared directly related to the decline in airline shares. Najarian said that the rails were a better transport play, noting bullish action in
Burlington Northern Santa Fe
hit a 52-week high today. Najarian recommended looking at
, which reports earnings Wednesday. He said the company is one of the largest producers of metallurgic coal, an ingredient in steel. He also noted bullish call activity in the stock.
Adami said that the Arch Coal story is great. He also pointed viewers toward
. Investors should embrace the coal story, he said.
A Media Matchup
On news that
would be teaming up with MGM and
to offer a pay cable channel, Macke said he'd rather be in
. He said the entertainment sector is a very competitive field.
reports earnings tomorrow. The traders observed that a beat from the Internet company could embolden its board to look for a sweeter deal than a current takeout bid from
Finerman said her fund is long Yahoo!. She said the company has to come out with an unbelievable quarter. She predicted the company would put everything it could into revenue and bottom-line numbers.
Adami said that the Yahoo! buyout has always been about Microsoft, whose last two quarters have been "historic," he said. Macke said he's long both names, and agreed with Finerman's prediction that Yahoo! would try to make its earnings look strong. He said that Microsoft may raise its bid "a little to be polite," but it won't be fooled by Yahoo!'s earnings. Najarian said the deal between the two companies will get done, and said he owns both names.
The traders took time to discuss several rumors on the Street, including a potential buyout of the
New York Times
by New York Mayor Michael Bloomberg. Macke was dismissive of that idea.
In other speculative news, Najarian pointed out bullish call activity in
. He said people may be speculating that the company can partner with somebody. He said
shares were also up today on no news, and noted that
has a 52% short interest and a high valuation, making it look like Under Armour and
at the end of last year.
Macke cautioned investors against chasing Radio Shack or other names on rumors.
reported very positive earnings today. The traders welcomed CEO Al Verrecchia to the show to discuss his business. Verrecchia said that the same brands that drove business in 2007 continue strong in 2008. The recession doesn't appear to affect the business to a great degree, he said.
Macke said Hasbro is the best player in an adequate industry. Sometimes, he said, adequate is good enough and he's still long the name. Adami urged investors to avoid rushing into the stock and advised waiting for dips. Najarian agreed.
traded on extraordinary volume today.
In honor of an upcoming Earth Day, Najarian donned his Commander Planet superhero persona to discuss natural gas. The energy source is cheaper than fuel and oil, and thanks to surging demand, its price is up 400% in the past decade, he said. He said the trade on the trend is
. The company's CEO, Aubrey K. McClendon, continues to buy shares of his own company, he said.
Najarian also said he likes
. He also said that drilling companies
are worth a look.1
Quint Tatro of Tatro Capital offered a technical look at the market. He said that a trend line that had offered support for the S&P 500 is now a resistance line. He said that the current environment is a stock picker's market.
For individual stocks, he recommended
, which has been in a downtrend since late 2007 and only recently broke out of its trendline. He also recommended
, which has traded sideways for two years and could double if it breaks out, he said.
Adami said he loves Corning. He pointed out that the company controls 57% of the LCD market and makes a lot of the glass that goes into cell phones. He called DryShips a risk-reward trades. He said he'd be interested if the company showed a turnaround in its business.
Macke said DryShips is a laggard, and he'd rather play the rails.
Macke chose Hasbro. Adami picked Intel. Finerman said she's short the
CurrencyShares British Pound Sterling
. Najarian said to get long Baker Hughes.