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Jul.05

10:49 AM ET

Saturday, 5 Jul 2008

The Week: Pickers Focus on Steel, Financials, Tech & International Stocks

Posted By:Brooke Sopelsa,

Topics:Nasdaq | NYSE | Stock Market | Stock Options | Stock Picks

The week was a mixed bag of economic and market news, most of it on the negative side. Oil prices continued to hit record highs, the market officially entered bear territory and the European Central Bank socked it to the U.S. by raising rates a quarter-point. Despite all of this, CNBC guests found bright spots in steel, financials, tech and international stocks.

Monday:

Monday ended the market’s worst monthly decline in nearly six years, with financials leading the plummet. Shares of Lehman Brothers [LEH Loading... () ] tumbled more than 10 percent on speculation that the bank could be forced to sell itself. Oil prices topped $143 a barrel for the first time.

Mark Parr, of Keybanc Capital Markets, said steel stocks are a very fertile place for solid capital gains over the next 12 months. He liked U.S. Steel [X Loading... () ], Nucor [NUE Loading... () ], Steel Dynamics [STLD Loading... () ], Reliance Steel [RS Loading... () ] and Olympic Steel [ZEUS Loading... () ].

Richard Drew / AP
Traders work on the floor of the New York Stock Exchange.
Darren Chervitz, of the Jacob Internet Fund, recommended small-cap Internet stocks. He liked Rediff.com India [REDF Loading... () ], a leading independent portal in India, which he thinks could be an attractive acquisition opportunity for a larger media company looking to gain some share in the Indian market. He also likes SourceForge [LNUX Loading... () ], which operates a network of media Web sites.

Scott Kessler, of Standard & Poor’s, said there is value in large-cap tech stocks. He liked EMC Corp. [EMC Loading... () ], Hewlett-Packard [HPQ Loading... () ], IBM [IBM Loading... () ] and Oracle [ORCL Loading... () ].

Tuesday:

Stocks made their third quarter debut with modest gains. GM’s [GM Loading... () ]sales fell 8.3 percent in June, but that was much better than the 19 percent drop the Street was expecting. The Institute for Supply Management's June manufacturing index popped above the key 50 mark, which indicates growth.

Randy Bateman, of Huntington Funds, said regional banks could be the leaders of a market recovery. One regional bank he likes is Cullen/Frost Bankers [CFR Loading... () ]. He also recommended GPS-maker Trimble Navigation [TRMB Loading... () ].

Scott Snyder, of Icon International Funds, pointed overseas to Petrobras [PBR Loading... () ], Allianz SE [AZ Loading... () ] and K+S AG [SDF Loading... () ].

Dan Genter, of RNC Genter Capital Management, recommended bottom fishing in the financial sector. He liked JPMorgan [JPM Loading... () ], US Bancorp [USB Loading... () ] and Lincoln National [LNC Loading... () ].

Wednesday:

Oil prices and GM shares helped drag the market into bear territory. The ADP employment report showed a loss of 79,000 private-sector jobs in June. The Mortgage Bankers Associates says applications for new home loans rose 3.6 percent last week.

Joe Rodriguez, of the AIM Global Real Estate Fund, shared his favorite global real estate plays. Among his favorites were SL Green Realty [SLG Loading... () ], Simon Property Group [SPG Loading... () ], Equity Residential [EQR Loading... () ] and Essex Property Trust [ESS Loading... () ].

Brent Wilsey, of Wilsey Asset Management, went with feel-good stock picks. His favorites were Regis Corp. [RGS Loading... () ], Cynosure [CYNO Loading... () ], USANA Health Sciences [USNA Loading... () ], Palomar Medical Tech. [PMTI Loading... () ] and Life Time Fitness [LTM Loading... () ].

Paul Noglows, of Lazard Capital Markets, recommended Bare Escentuals [BARE Loading... () ], Intuitive Surgical [ISRG Loading... () ], Seaspan [SSW Loading... () ] and gaming company Activision [ATVI Loading... () ], which he said will form a digital media powerhouse after its pending merger with Vivendi’s gaming unit.

Thursday:

The European Central Bank raised its key monetary policy rate by a quarter point to fight rising inflation. The Labor Department said U.S. employers cut 62,000 jobs from nonfarm payrolls in June.

William Fries, of Thornburg Investment Management, pointed overseas to Telefonica SA [TEF Loading... () ], Canadian Natural Resources [CNQ Loading... () ] and SAP AG [SAP Loading... () ].

Warren Meyers, of Walter J. Dowd, said he likes tech in this market environment. He recommended buying IBM [IBM Loading... () ] on a dip.

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