CNBC's Fast Money Recap Oct. 15th
Louise Yamada, who has been ranked the #1 technical analyst on Wall Street, joined the show to discuss the stock market. She likes Broadcom (BRCM). The charts tell her that technology is the best place to be right now. Najarian thinks Broadcom looks great because it was tearing higher in a negative tape on Monday. He also thinks that the market is starting to digest the fact that oil at $85 is probably not a great thing. He highlighted the strength in Exxon Mobil (XOM) and Oil Service HOLDRs (OIH). He also advised investors to keep an eye on coal stocks like Peabody Energy (BTU) and Massey Energy (MEE).
Technology: IBM (IBM), Yahoo! (YHOO) and Intel (INTC) are set to report earnings after the bell Tuesday. Macke: IBM will be the least surprising. Najarian: IBM options are pricing in a big move. Najarian favors Intel and deems them in the sweet spot. Macke: look at Yahoo! and any signs of the company breaking up will send the stock 10% higher.
Coca-Cola (KO) and Altria (MO) are set to report earnings on Wednesday. Finerman currently owns Altria. Adami: likes the dividend and agrees with Finerman on the valuation on Altria. Macke: Coca-Cola will benefit from a weak dollar and global growth. Najarian proposes Coca-Cola as a play on the growth in energy drinks.
Word on the Street
Chinese stocks continued to go higher Monday with the Hang Seng hitting record highs. PetroChina (PTR) passed up General Electric (GE) as the world's 2nd-largest company. Genentech (DNA) beat earnings estimates, but revenues fell short of Wall Street estimates. The former CEO of Children's Place (PLCE) has hired Bear Stearns to look at alternative options for the company. Macke would rather play Build-A-Bear Workshop (BBW) for a takeover play. SiRF Technology (SIRF) saw unusual options activity on Monday. Najarian participated by buying some SIRF call options Monday and feels the stock could move higher.
Pops & Drops
Pops- U.S. Steel (X) traded up 2.5%
Saks (SKS) traded up 4%. Macke advises investors to get out of Saks.
Drops- Level 3 (LVLT) dropped 11%. They're looking for a new CFO.
Medtronic (MDT) fell 11%. Najarian counsels viewers to stay away.
Sallie Mae (SLM) dropped 4% on news that buyout firms are getting cold feet
Eaton (ETN) fell 4% after cutting its 4th quarter outlook. Adami considers keeping an eye on Honeywell (HON) to see if the sector is in trouble.
Regional Bank ETF (KRE) dropped 3%. Adami feels positive about U.S. Bancorp (USB) into earnings, but the KRE drop has him concerned.
Mattel (MAT) fell 1% on poor earnings due to the Chinese toy recalls. Macke prefers Hasbro (HAS), which he is long.
Macke would buy NRG Energy (NRG)
Adami prefers Short Dow30 PROSHARES (DOG) for a short the Dow play.
Finerman is sticking with Flowserve (FLS).
Najarian recommends Cypress (CY).
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