No.1 - Mother Nature Moves Markets
Oil and gas prices surged Thursday ahead of the crucial summer driving season. Meanwhile, parts of the Northeast were cleaning up after violent thunderstorms.
They may have more to fear. Hurricane experts are forecasting an especially active season in the Atlantic this year.
Whether it's the red hot summer or the gale force winds of a hurricane, how should you trade mother nature?
Eric likes Home Depot (HD), Chevron (CVX), and Foster Wheeler (FWLT) as hurricane plays because HD sells generators, plywood, mops and tarps; CVX has west coast refineries and FW would rebuild refineries at any price.
Jeff Macke says Home Depot benefits when the power goes out for 30 minutes, let alone in a catastrophe. He feels HD will be the go-to place for any summer storm.
Tim Strazzini says it’s hard to buy a stock routing for a hurricane. However Tim likes HD, for its management and new CEO.
Guy Adami recommends The Shaw Group (SGR) as a hurricane play. However the stock is up 80% since July, so Guy advises to wait for the company to report earnings on June 1st and if they miss, buy the stock on a dip.
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Trader disclosure: On May 17, 2007, 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 (JWN); Strazzini Owns (GOOG), (JBLU), (IBM), (EDS), (WMT), (YHOO); Strazzini Is Short (GOOG) Bolling Owns Gold, Silver, Coffee, Sugar; Bolling Is Short S&P Futures; Bolling Is Short S&P Options