'Fast Money' Recap: Waiting for Wal-Mart
The U.S. stock market closed Wednesday to the downside. The Dow lost 1.6%, while the S&P 500 and the Nasdaq both stumbled 1.8%.
On
CNBC's
"Fast Money" TV show, the traders discussed the
Securities and Exchange Commission's
press conference announcing it would require more disclosure from investment banks about their assets. Karen Finerman said she thought that the news from the SEC was an excuse for the market to sell off.
Macke agreed, saying that the financial stocks had run out of gas and were looking for an excuse to go down. Adami said that the S&P 500 had traded right around 1410, which has proved to be a resistance point.
Najarian had similar comments about the
Financial Select Sector SPDR
(XLF) - Get Financial Select Sector SPDR Fund Report
, which reached $27, and then sold off. As
Fannie Mae
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and
Freddie Mac
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TheStreet Recommends
gave back yesterday's gains today, they took the rest of the group down with them, he said.
3 Stocks I Saw on TV |
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Finerman said she'd wait a day before getting back into the stock market. Adami said that he thought the market would be down for the rest of the week. He said that by Wednesday of next week the market would begin rallying. Macke agreed, urging viewers to let the market go down here. Buy dips, but don't get short, he said.
Cisco's Not So Bad
Cisco
(CSCO) - Get Cisco Systems Inc. Report
led tech stocks lower today. Adami said the traders had predicted that Cisco's first-quarter results would be fine and the conference call would be iffy, and both predictions were true. He said he thinks the stock is fine and recommended buying on a dip.
Najarian agreed, saying that wireless buildout will feed Cisco's earnings in the future.
Macke said Cisco looks bullish, because the tech buildout story remains intact. Corporate America and industrial America still have money to spend, he said.
Oil surged past $123 a barrel today. The traders noted that natural gas is catching up to oil, also rising. Finerman said she was kicking herself a little bit for selling some natural gas positions early. She said she wouldn't short natural gas here, but she wouldn't chase it either.
Najarian observed strong earnings from
Apache
(APA) - Get APA Corporation Report
,
Anadarko
(APC) - Get Anadarko Petroleum Corporation Report
and
Devon
(DVN) - Get Devon Energy Corporation Report
. He said that today's selloff in the broad market had to do with some profit-taking in natural gas names.
Disney
(DIS) - Get The Walt Disney Company Report
shares performed well today on a bad tape. Macke said he would put money in the name at these levels. He said Disney is a long-term investment. He called the company best of breed and recommended buying dips.
Adami said that he thinks the next several percentage points in Disney will be lower. He recommended buying the stock on a dip as well.
Take-Two's
(TTWO) - Get Take-Two Interactive Software Inc. Report
Grand Theft Auto 4
sales were very strong, prompting the traders to discuss the stock. Najarian said he believes the video game's success is already priced in, but he still likes the name.
Oil Power
The traders then turned to
Gartman Letter
author Dennis Gartman to discuss commodities and the U.S. dollar. Gartman said oil is strong and continues to go higher. He said the price increase is driven by demand, particularly in China and India, which compensate for weakness in the U.S. He said the oil market is a bull market.
Gartman also said the dollar is strong. He said the strength in the dollar may owe to the
Fed's
probable decision to finish cutting rates and the European Central Bank's probable decision to begin cutting. He said that gold will go down from here.
The traders then turned to Piper Jaffray Senior Research Analyst Gene Munster to talk about
(GOOG) - Get Alphabet Inc. Report
. Munster said the Internet company's stock should go up from here. He said the company's foothold in the search market offers considerable upside. He said that as Google finds a way to monetize YouTube, which has 130 million viewers, the company will continue to make money.
Solar Plays
The traders observed that solar stocks don't appear to be responding to the runup in oil. For example,
First Solar
(FSLR) - Get First Solar Inc. Report
shares climbed 840% in 2007 but are up 3.5% so far in 2008. Najarian said the stocks were ahead of themselves and reminded viewers that the traders urged investors to take profits at the end of 2007. He said coal stocks have been working, but he thinks
MEMC
(WFR)
is a good solar play.
Adami said viewers should get long MEMC with a stop at $62.90. He said the stock is going into the $70s.
Wal-Mart Approaches
Retailer
Wal-Mart
(WMR)
will announce April sales figures tomorrow. Jon Najarian joined the show to discuss the stock. He said Wal-Mart is the best in the space. He predicted that tax rebate checks will go into Wal-Mart. He also said he likes
Aeropostale
(ARO)
because it's well managed.
Macke said he loves Wal-Mart but he can't get long specialty retailers like Aeropostale. Adami said he likes Wal-Mart. Finerman said her fund sold out of its position but she wouldn't short the name. Jon Najarian also predicted an earnings miss from
Costco
(COST) - Get Costco Wholesale Corporation Report
.
The WiMAX Mix
The traders then examined the potential for the WiMax revolution. Google,
Intel
(INTC) - Get Intel Corporation Report
,
Time Warner Cable
(TWC)
and
Comcast
(CMCSA) - Get Comcast Corporation Class A Common Stock Report
are all interested in building the high-speed, far-reaching Internet infrastructure.
Pete Najarian said there are many ways to play this. He recommended Intel, because it's the largest independent investor into the project. Finerman said her fund sold
Clearwire
(CLWR)
shares, because she thinks it's tied to the WiMax story.
Macke said that
Sprint
(S) - Get SentinelOne Inc. Class A Report
is a sell on this development. He agreed with Najarian that Intel is the company that will get paid from this project.
From Russia, With Love
Tim Seymour joined the show to talk about investment prospects in Russia after the election of new President Dmitry Medvedev. He rated the country's political climate a B-minus, its macroeconomics an A-plus, its valuation an A-minus and its investability, or how easy it is for U.S. investors to put their money there, at a C. He said there are only a couple ways to play Russia available to Americans, including
Market Vectors Russia
(RSX) - Get VanEck Russia ETF Report
,
Vimpel-Communications
(VIP)
and
Mobile Telesystems
(MBT) - Get Mobile TeleSystems Public Joint Stock Company American Depositary Shares (Each representing 2 Shares of) Report
.
Final Trade
Macke said to trim from a
U.S. Oil Fund
(USO) - Get United States Oil Fund LP Report
position. Adami chose the
Short Dow30 ProShares
(DOG) - Get ProShares Short Dow30 Report
. Finerman selected
Yahoo!
(YHOO)
for the next three days. Najarian picked
U.S. Natural Gas
(UNG) - Get United States Natural Gas Fund LP Report
.
