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BMY and AMZNBy Jim Cramer
6:32 a.m. EDT Both Bristol-Myers Squibb ( BMY) and Amazon ( AMZN) made great, additive acquisitions last night. If you have never been on Zappos, I'll tell you that it is the ultimate virtual department store. BMY needed growth and had cash that was doing nothing; this Medarex acquisition makes a growth change for them. Positions: Long BMY
F5 Networks Cup and HandleBy Alan Farley
7:34 a.m. EDT F5 Networks ( FFIV) is trading near $37 this morning, after a positive response to last night's earnings release. The stock has been hovering near its August 2008 high for the last six weeks and has now completed a bullish-looking cup-and-handle breakout pattern. The top of the recent range is near $37.25, so it's still hard to tell if this morning's open will trigger a notable breakout or a range swing. Initial reward after a breakout is limited to $40 because a 2007 unfilled gap at that level is likely to attract selling pressure. Longer-term, the stock could finally test its all-time high, posted at $46.94 in July 2007. Annotated chart here. Positions: None
Double Dip?By Robert Marcin
9:03 a.m. EDT Joe Stiglitz highlighted the possibility of a double dip yesterday. I have talked about this for a while. The bulls think we have a normal recovery ahead, while the bears already count on another economic fade. I would rather bet on the bearish case, but I am not sure. We do know that the economy is fragile. We also know that the consumer is getting slammed by declining wealth and rising employment insecurity. Therefore, we remain susceptible to any kind of negative surprise or shock. The S&P has clawed its way back to 950, the October level of Warren Buffett's "Buy American" call. The next move depends on the fundamentals and how they break. Financials have been a tell for two years now, and they have rolled over on June earnings reports. The bank cheerleaders have put away their pom-poms. The bulls should be somewhat concerned by this. If the economy continues to recover in a normal fashion, shares could grind higher. But if the economy continues to struggle, good chunks of the commodity and stock market might be ahead of things.
On FertilizerBy Sham Gad
9:35 a.m. EDT Potash ( POT) just released an earnings report that was below expectations. In addition, earnings forecasts for the remainder of the year have been lowered to between $4 and $5 a share for 2009, significantly below management's earlier guidance of $7 a share. The reaction of shares today could reveal a lot about whether the market still has a confident long-term view of fertilizer companies. Personally, I am still bullish on the long-term fundamentals of fertilizer. I wrote a column earlier this week on urbanization and its long-term trends -- trends that look very favorable for fertilizer. It's a matter of when fertilizer comes back, not if. Besides the rumored $25 billion buyout of Mosaic ( MOS) last week, which got zero attention, Mosaic management reveals that today's prices are way too cheap. Those who are willing to accept the short-term volatility will likely benefit exceedingly well in 2010 and 2011. The July 10 issue of Grants Interest Rate Observer contained a very bullish article on Mosaic, citing the balance sheet. Positions: Long MOS and POT
Bond Trading in FinancialsBy Tom Graff
10:05 a.m. EDT In financials, PNC ( PNC), Fifth-Third ( FITB) and Huntington ( HBAN) all missed this morning. Only PNC has heavily traded debt among that group and is unchanged this morning. Other financials are 3 to 5 basis points tighter. Capital One ( COF) is a big one to watch after the bell. After three regionals missed today, pressure on cards has to be on everyone's mind. Positions: None
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