What's the Trade as Big Banks, Big Drugs and Big Internet Earnings Hit the Street Next Week?
Next week will bring a huge pile of earnings, but the guys want you to ignore most of them. Keep your eyes on the regional banks, which will help paint the bigger picture of the subprime story, and internet names like Yahoo.
Jon wants to watch Washington Mutual (WM), which reports Tuesday. WaMu has 10% of its portfolio in subprime and its earnings will shed some light on whether subprime is over - or just getting worse, he says.
Tim is looking to reports from Sovereign Bank (SOV), US Bancorp (USB), Bank of New York (BK), and BB&T (BBT). It isn’t all about the mortgage space, he says, it’s about the consumer credit space. How much did these banks lose related to the yield curve, and what are we seeing from the consumer in terms of increased credit?
Financials have not led the market, Jeff says, and a market that isn’t led by the financials typically cannot go higher. As for Yahoo (YHOO), Jeff recommends owning it if you don’t already. It doesn’t have the bullseye on it that Google (GOOG) has, and he thinks they are finally on the cusp of a comeback.
“This is the biggest earnings release for Yahoo since they’ve been public,” Guy says.
Questions? Comments? firstname.lastname@example.org
On APR 13 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Najarian Owns (AAPL), (BRCM), (BNI), (EBAY), (EMC), (FAST), (MRK), (MON), (MOS), (NDAQ), (POT), (STM), (STP), (WFT), (PKI), (HAL), (TRA), (T)
Strazzini Owns (SNDK), (STM), (USG), (WMT), (YHOO)
For the record:
Najarian Owned (STP) On 3/9/07
GE Is The Parent Company Of CNBC