Yesterday's "pleasant" storm turned into today's "perfect" storm as stocks got rocked. "It was the worst of all worlds with slowing growth and higher inflation reflected in today's data," Aaron Task, co-executive editor of TheStreet.com, told
"RealMoney" radio show listeners Tuesday. Task is filling in for Cramer this week. "People are focusing on the negatives as well as Google's ( GOOG - Get Report) CFO's announcement about slower growth." Task was referring to the three major economic reports released today -- existing home sales, Chicago PMI and consumer confidence, which were all weaker than expected. Jonathan Berr, who covers Google for TheStreet.com, joined Task to comment on Google's stumble. He said that the CFO's comments were significant because Google does not normally offer financial guidance. "It's the closest Wall Street is going to get to guidance," said Berr about the stock, which dropped as low as $338 a share today from yesterday's close of $392.65. Task pointed out that the bullish case was that Google was still growing rapidly, but it was maturing, which is a natural occurrence. The bearish case, as defined by Task, was that the best days for Google are behind it. Berr said that the rush of Wall Street analysts to defend their expensive price targets is not helping. "Google gets loads of press based on just conjecture, so there is lots of hype in the stock. And that's being deflated right now," said Berr.
Layfield said we have no capacity right now when it comes to oil, so any hurricane or geopolitical problem will drive oil higher again. He does not see it falling below $50 and believes it will most probably stay above $60 for the rest of the year. Layfield recommended Bronco Drilling ( BRNC, saying it is a good pick because it's domestic, which means Bronco isn't susceptible to attacks like the one in Saudi Arabia last week. He also liked Patterson-Uti Energy ( PTEN - Get Report) for similar reasons. Layfield believes that the majority of problems for natural gas producers have ended. "If you've owned it up till now, then just hold on because the worst is over when it comes to natural gas prices," he said, adding that prices have fallen into the $6 range. Elsewhere in the oil patch, Layfield said he likes Apache ( APA - Get Report) more than Ultra Petroleum ( UPL, which he called expensive at 25 times forward earnings. On the subject of the strength of the consumer, Layfield said to go for American Express ( AXP instead of the retailers, because if we have a recession, it will affect wealthy individuals less. Layfield dumped his Vodafone ( VOD this week, saying that the company is not well run and that the stock is dead money. On the whole though, Layfield said that investors will dump their real estate and move back into the market in 2006. "The average investor will come back into the market and the new liquidity will drive stocks higher," he said. Finally, a caller asked Task about steel company and aerospace provider Dynamic Materials ( BOOM - Get Report), which has sustained a great run. Task advised taking some profits for those that have been in the stock for a while. And, for those thinking about getting into the stock now, well, the best may be behind this stock, he said.