FIRST 3-WEEK ADVANCE SINCE OCTOBER
The headline: Jobs Report Completes A Great Week For The Economy And The Fed.
The Dow finished a strong week only marginally higher as enthusiasm over a stronger-than-expected jobs report dissipated. Some investors cashed in gains Friday after a strong run-up early in the session. The market had rallied on news from the Labor Department that just 20,000 jobs were lost last month. Analysts expected 75,000 to be cut.
Who cares, exclaims Jeff Macke, it was a great week!
We’re still losing jobs, reminds Tim Seymour. I don’t think the numbers were that good. I think the S&P is looking at a big hurdle at 1430.
I lean toward taking profits, Guy Adami says. But buy the dips.
In which stocks does Karen Finerman think you should take profits? Find out in “Protecting Profits.”
MICROSOFT-YAHOO HEATS UP
The headline: Yahoo! & Microsoft Reportedly in Active Talks to Get Deal Done Before Week is Out
Microsoft and Yahoo! , which were on the brink of a hostile takeover battle earlier this week, are now discussing a friendly merger that would involve more money for Yahoo shareholders. The new offer is about $33, though Yahoo is holding out for $37, sources have told CNBC, making the current bid worth about $42.4 billion.
The discussions have heated up despite Microsoft Chief Executive Steve Ballmer's comment on Thursday that walking away from a deal with Yahoo was one of three options the company is weighing.
It’s impossible to predict with 100% certainty but with Yahoo! relatively defenseless I think it’s all but a foregone conclusion how it’s going to end, says Karen Finerman.
Any outcome seems positive for Microsoft, observes Guy Adami.
This whole thing has deteriorated into a slap fight, exclaims Jeff Macke. Just get it done!
OIL BACK ABOVE $116
The headline: Crude Oil Snaps 3-Day Losing Streak Today, Surging 3.4% To $116.32;
Commodities were up on Friday as better-than-expected U.S. jobs data boosted investor confidence in the world's largest economy, helping oil, metals and grains prices rise from three straight days of losses.
Oil prices rose partly due to recent output disruptions in Nigeria and Britain's Grangemouth refinery, which had briefly shut 700,000 barrels per day of North Sea oil, amid resistance by producer group OPEC to turn out more crude.
I’m bullish oil, says Tim Seymour. I would be taking a downside shot with the DB Multi-Sector Commodity Master Trust . Or you could long Conoco and short Exxon .
I think Exxon is going to $84, adds Guy Adami.
THE WEEK: APPLE LEADS TECH TAKEOFF
The headline: Apple, Google Pare Gains Today Following Strong Run This Week.
Apple powered the entire tech sector higher this week on news it will sell movies on iTunes the same day they are available on DVD, giving further momentum to the company's lucrative iPod franchise.
I think Apple is going higher, says Jeff Macke, perhaps to $200.
Look at Western Digital , it’s trading in a range, reveals Guy Adami. I think it’s a buy at $27 and a sell at $31.
RUN FOR THE BANKS
The headline: Citigroup, Banks Break Out This Week As Credit Crisis Begins to Clear.
Citigroup jumped this week, a few days after it raised $4.5 billion via a common stock sale, explains Dylan Ratigan.
Dick Bove, Ladenburg Thalmann & Co. Banking Analyst joins the panel for this conversation. Following is a summary of his main points.
I happen to think Citigroup will double from its current price, he says. My target is $55 a share.
Why is that?
It’s margins have increased, loan volumes are up and it’s brought in a lot of new capital, Bove says. I think the future for this company is extremely bright and in my book it’s a buy.
I also think Citi is a buy at current levels, says Karen Finerman.
I’m skeptical, counters Tim Seymour. I want to know where they’re going to make money in the future.
GRAND THEFT WEEK
The headline: Will 'Grand Theft Auto IV' Sales Help Take-Two Justify Higher Electronic Arts Bid?
Take-Two’s Grand Theft Auto 4" went on sale this week, with fans lining up at midnight to grab the first copies of the criminal action game hailed as a brutal and satirical masterpiece equal to films like "The Godfather." The launch of this video game is expected to be the biggest entertainment event of the year, with first-week sales forecast to be up to $400 million, beating those of last year's "Halo 3" from Microsoft .
I think the video game trade is largely over, says Jeff Macke.
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Trader disclosure: On May 2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (ATVI), (DIS), (MSFT), (HAS), (INTC); Adami Owns (AGU), (NUE), (BTU), (C), (GS), (INTC), (MSFT); Seymour Owns (AAPL), (CSCO), (INTC), (MER), (MSFT); Seygem Asset Management Owns (EEM), (INFY); Finerman Owns (GS), (C); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (NYX), (MO), (MSFT), (PLCE), (PM),(YHOO) and (YHOO) Call Spreads, S&P 500 Puts, Finerman's Firm Is Short (WWY), (IYR), (IJR), (MDY), (IWM), (SPY), (COF); Finerman's Firm And Finerman Own (C) And (C) Leaps; GE Is The Parent Company Of CNBC