IS AMERICA COMPETITIVE?:
The news: Warren Buffett and Alan Greenspan headline a conference hosted by Treasury Secretary Paulson to examine U.S. capital markets competitiveness.
Guy Adami says of course we’re competitive. However, US corporations have spent $6 billion to comply with Sarbanes-Oxley. He says although it’s important, Sarbanes-Oxley has to be downsized.
RETAIL BAGS INVESTORS:
The news: February retail sales come in below expectations, fueling market slide.
The word: Jeff Macke says this number was expected. If subprime does affect retailers it’s will show up bigger and later in the year. Today’s number was a weather thing (February was cold, dragging down sales on spring clothing). Don’t sweat today’s number.
WHAT'S WORKING - REFINERS:
The news: Tesoro (TSO) and other refiners are surging.
The word: Eric Bolling says the best retailers on the street are the refiners. He likes BLO and TSO. Both are cranking. It’s an up-trend. Stay with it because this is the beginning of the driving season.
SEMI'S STRONG FORECAST:
The news: Chipmaker Qualcomm (QCOM) is the market's lone bright-spot after raising its forecast
The word: Tim Strazzini says when the market was flat this morning, the semis were up. Broadcom (BRCM), SanDisk (SNDK) and Texas Instruments (TXN) held up, but when things rolled over these stocks capitulated. Tim says Broadcom is a great buy because of HDTV and WiFi technology which Broadcom will benefit from. He expects to see Broadcom at $45 before June.
SUPER MARKET MAKER:
The news: Share of Kroger (KR), the largest U.S. supermarket chain, surge as earnings beat estimates
The word: Jeff Macke says KR beat estimates and he still likes that stock. Safeway (SWY) sees acquisition opportunities and he agrees. The grocers are the place to be long.
NEW SUBPRIME LAWS:
The news: Today on Fast Money, U.S. Rep. Barney Frank said he wanted stricter laws to provide greater oversight of subprime lenders.
The word: Tim Strazzini says Congress doesn’t come in until the space blows up, and that’s the wrong way to approach it. Eric Bolling says let the markets correct themselves.