Stocks in New York got smacked on Monday as the financials languished. The Dow and the S&P 500 both lost 1.1%, and the Nasdaq fell 1.2%.
"Fast Money" TV show, Jeff Macke said that the S&P 500 couldn't get over 1400 and sold off. Financials reacted poorly to credit ratings today, he said. Investors can buy the dip in that sector, he said.
Karen Finerman said she's going to wait a little longer before she adds to her fund's
Jon Najarian said that
may move lower. He said the company's acquisition of Golden West happened a long time ago. He said that if the reason CEO Ken Thompson was shown the door today wasn't just that acquisition, there may be other problems ahead for the stock.
3 Stocks I Saw on TV
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He also observed September put activity in
. He said that stock will probably grind lower from here. He was also bearish on
Bank of New York Mellon
Guy Adami agreed that KeyCorp looks like it has room on the downside. He also warned that there wasn't enough volume on Wachovia's downward trade today to show capitulation in the stock. He said investors should wait for a bigger-volume day before getting long Wachovia.
Macke said that
( LEH) also failed to show capitulation today. He said he'd rather buy
In the energy sector, Adami said it may be time to buy the refiners. He pointed out bullish action in
and observed that crack spreads may begin to work in those companies' favor. He said viewers can also play
( HOC) and
, but Tesoro remains his favorite.
Jon Najarian recommended taking profits in
( FTO), which is up 30% in the past month. In coal, he said that
( MEE) and
Alpha Natural Resources
could move up quickly because they are a play on steel.
Adami said that
sets up for an "easy" trade on the long side. He cautioned, however, that there's downside risk of 9% for investors.
and other tech stocks traded lower today. Macke pointed out that
had an OK day. He said Apple was due for a pullback, but he is concerned about
Adami said investors can buy Intel on this pullback.
All Hands on the Switchboard
Finerman pointed out that
has told staffers not to take vacation between mid-June and mid-July. She said this might indicate the date for the debut of the new iPhone.
Najarian agreed. He said investors should hold Apple until the release of the iPhone.
FedEx Still on Time
announced it was taking a writedown related to its acquisition of Kinko's. Macke said that the impairment amounts to $2.22 a share. He said the writedown doesn't affect FedEx on a fundamental basis and the company should be fine.
hired bankers to help analyze the company's prospects. Reports of a potential buyout by Belgian beer giant
emerged last week.
Finerman said that Anheuser-Busch's decision can't be bad news for a merger. She said she's intrigued by this development. Najarian said that he believes the stock will go higher.
Macke said that the buyout is a good catalyst and there's no expiration date. He said he likes
Adami said that with heavy short interest,
is an interesting trade.
The traders debated about the prospect of
shares. Adami said he wasn't sure about the stock.
( DNA) traded up today. Najarian said the stock can go higher, particularly on the strength of the company's cancer drug Avastin.
Adami said that
is best in breed and is becoming attractive.
The traders then welcomed Michael Morris, media and entertainment analyst at UBS, to talk about the prospects for
in the face of an exciting NBA finals.
Morris said that the playoffs will probably not move the needle, but investors should watch for any finals that go beyond four games or ratings above the double digits.
Najarian recommended that investors also look at
Hedgehogs on the Run
"Commodities King" Dennis Gartman joined the show to talk about news that hedge funds may be fleeing oil. He said sometimes this phenomenon impacts oil prices and sometimes it doesn't, but when big money is buying oil, investors want to be on the same side of the trade.
The exchange stocks have been beaten this year. Macke said that business is good, but the stocks are abysmal. He said he likes the conservative exchanges, such as
. He said that
( NMX) and
are having more trouble.
Finerman said she likes NYSE Euronext at these levels. She pointed out that the stock has high beta but is good to own at these levels. Adami said NYSE Euronext is the cheapest in the space.
The traders then talked with
Dan Fitzpatrick about the technical outlook for some construction names. Fitzpatrick said that
is trading above its 50-day moving average and making higher lows. He said investors should watch for a breakout. He said
has also put in a series of higher lows and advised buying on any move above $62. He also indicated a support line in
, saying it's safe to stay in the stock as long as shares remain above support.
Adami said Fluor has had a monster run. He said he wouldn't get in here. Macke agreed. Najarian said he'd wait for a pullback.
Warner Music Group
( WMG) traded on extraordinary volume today.
The traders discussed the possibility of making a play off natural disasters, specifically hurricanes. Macke said he would take the other side of any trade that reacted to the elements. Finerman agreed.
Addison Armstrong of Tradition Energy joined the show to discuss the idea. He said that there might be a long-side trade in companies that repair oil drillers' equipment in the Gulf of Mexico.
Stephen Roach, chairman at Morgan Stanley Asia, spoke about the future of the Asian markets. He said that China has a cushion to help it absorb downside, but Japan causes him concern. He said he's on recession watch for Japan.
Roach said the American consumer will have to start saving more money and that the overall economy remains very soft. He recommended buying bonds at these levels.
Macke chose the
Short Dow30 ProShares
. Adami selected
. Finerman recommended
for the "Million-Dollar Portfolio Challenge." Najarian picked