THE ROAD TO 13,000:
The headline: Dow Soars 153 Points To 12,961 On Strong Earnings; Bank and Drug Shares Lead The Way
The word: Eric Bolling says in this environment investors should ask themselves what’s working. He says precious metals and base metals are working and recommends Companhia Vale do Rio Doce (RIO) and BHP Billiton (BHP) as two good names.
Dylan asks if buying in the financial sector will continue into next week.
Pete Najarian says it will. He explains the momentum started with Citigroup (C), then it kept going with Bank of America (BAC), and JP Morgan (JPM). Friday American Express (AXP) released incredible earnings. Then, Pete tells investors a lesser known name in the space that he likes is ICICI Bank (IBN)
Jeff Macke adds investors should not fight a market where the financials are performing this well.
LOW DOLLAR, HIGH PROFITS:
The headline: McDonald's (MCD); Multinationals Booming As Dollar Weakens
The word: Eric Bolling says investors should stay with companies that have large international exposure such as McDonalds, Coca-Cola (KO), Altria (MO) and Hewlett Packard (HPQ). He reminds when these companies repatriate profits they get more dollars.
Guy Adami adds that investors shouldn't worry so much that growth in the US is slowing. He explains Caterpillar (CAT) sales are up 44% in the MidEast and Africa, and they’re up 19% in Latin America. He says this illustrates the stock can go higher with slowing growth in North America.
The headline: SPDR S&P Homebuilders ETF (XHB) Jumps 7% This Week As Rising Home Starts Signal Potential Rebound
The word: Guy Adami explains that he’s not saying the housing market has turned – he’s saying investors can buy some of the home builders because they’re at or near their bottom.
IS WAL-MART A BARGAIN?
The headline: Wal-Mart (WMT) Shares, Down 30% This Decade Vs Dow Jones Wilshire Retail Index (DWRRT), Speculation Suggests WMT May Be Undervalued
The word: Jeff Macke says WMT could be a bargain, but the company hasn’t shown any real evidence that they’re going to address operational difficulties and until they do, the stock probably won’t go higher.
The headline: Following Coke's (KO) Popping Earnings this Week, Pepsi (PEP) To Report Wednesday
The word: Pete Najarian expects PEP earnings to be very strong. Eric Bolling agrees but adds only 38% of PEP’s sales come from overseas.
The headline: Research In Motion (RIMM) Says Software Update Caused Blackberry Outage Earlier This Week
The word: Eric Bolling still likes the stock and says the outage earlier in the week is just a blip on the radar.
BOLLING'S POWER PLAYS:
The headline: Demand For Power Presents Opportunity In Electricity Business
The word: Eric Bolling likes American Electric Power (AEP),and The AES Corp (AES). He also recommends Utilities SPDR (XLU).
THROW MONEY FROM THE TRAIN?:
The headline: Is It Time To Take Profits In Rails After Buffett-Fueled Rally?
The word: Guy Adami says investors are “Buffet” drunk with rails. CSX Corp. (CSX) is up 32% since January yet they missed EPS by 6%. Union Pacific (UNP) lowered revenue growth for the year, but the stock is up 46% since October.
Pete Najarian expects these names to see some selling pressure.
MAN POWERS UP:
The headline: Staffing Agency Manpower (MAN), Benefiting From Weak Dollar, Jumps On Quarterly Earnings
The word: Manpower Inc. Chief Executive Jeffrey Joerres joins the conversation on The Fast Line.
Mr. Jorres explains that Manpower Inc. reported better-than-expected quarterly profits on Friday, driven by international demand and a weaker U.S. dollar. He explains 75% of the company’s business is outside the U.S.
Which nations, asks Dylan?
Italy, Sweeden, Norway, the UK, Netherlands and more says Mr. Joerres. He explains “There’s real secular and cyclical growth in Europe.”
What types of people are you placing, says Dylan.
Mr. Joerres says it’s a broad range from IT programmers to people in factories.
After the interview Dylan asks the guys what they think of MAN.
Jeff Macke says it’s a compelling story. Pete Najairan says he loves it. Guy Adami adds Manpower is best in breed. Eric Bolling thinks growth in Europe is fantastic.