This morning on "Squawk on the Street" Mark Haines and Erin Burnett spoke to Jon Hilsenrath of The Wall Street Journal about his stocks of the week. This is part of our regular "Five for Five" segment, where we give you, the investor, a list of five stocks to keep your eye on.
Cisco Systems: "Cisco has had a very good run. [Chairman and CEO] John Chambers has been saying the past year or so that he wants Cisco to go beyond being a plumber for the internet and go into other areas. So they're creating things like teleconferencing systems -- and it looks like it's paying off." The thing to watch: Revenues are expected to jump 25%. If the company hits that, says Hilsenrath, it could get more momentum in the stock.
Sun Microsystems: " ... they have [CEO] Jonathan Schwartz coming in here and doing things that [former CEO Scott] McNeely would never do, tying up with companies like Intel ... he's creating some buzz. Their earnings numbers are up a bit, and the share price is up 40% or so in the last few months. Now we have to see if they actually deliver." The thing to watch: how analysts react after the summit meeting Sun is hosting with them this week.
Toll Brothers: "Toll might be a case where we'll see a little bit of a correction coming. Toll reports this week. The last time Toll reported, Robert Toll, the CEO, spoke a little optimistically that we may see a bottom [in housing] this year. There are a lot of reasons to be skeptical about whether we're seeing a bottom in housing ... so if he backtracks at all, it may be time for people to take some money off the table on the homebuilders in general."
UPS: "When we started out the year, one of the things to worry about was that the transports weren't confirming the Dow's record highs ... [UPS has] under performed the transports. Last week they came out and guided down a little bit. If UPS kind of shrugs that off and picks up some momentum, then you see the transports with momentum, and that helps to confirm that there's some real strength to the market."
Tribune Co.: "Nominees for the new board come up [this week]. You have to look at what the Chandler family does. You could have more tussles between management, the board and the Chandler family that wants to take the company private."