The Word on Wal-Mart, Dow Jones and more...
The headline: S&P 500 Shrugs At China Blow-Up, Sets Fresh Record Today On Tame Inflation, Strong Employment Data
The word: Karen Finerman and Guy Adami both say this market seems to look at any news as good news. Guy thinks stocks are even a bit cheap here – particularly Flowserve (FLS) and Tyco (TYC). Pete Najarian still likes this market on all the great earnings. But Jeff Macke thinks we’re coming to the end phase of this rally. He would take some gains here – not much – but just enough to provide protection over the long haul.
Back From the Dead:
The headline: Sluggish Stocks Dell (DELL), USG (USG), Caterpillar (CAT) Rise From The Dead This Week
The word: Pete notices a resurrection in the chip companies, too. Micron (MU) was left for dead and now its moving on Blackstone’s interest in the company, he says. Jeff adds Intel (INTC) and Microsoft (MSFT) to the list of tech companies that seem to be rising from the grave.
Meet the Murdochs:
The headline: Dow Jones (DJ) Shares Soar 15%, Topping News Corp. (NWS) Bid, After Bancrofts Agree To Meet with Murdoch
The word: Now at $61, Karen says DJ stock could go higher because she thinks News Corp. will raise its bid, but Pete and Jeff say this meeting is just pandering to DJ shareholders.
J-Lo Sings, Wal-Mart Surgues:
The headline: Wal-Mart’s (WMT) Annual Meeting Featuring J-Lo, $15b Buyback Sends Shares Up The Most In 4 Years
The word: Jeff urges caution. The buyback isn’t going to solve the core problems that plague Wal-Mart, he says, and there doesn’t seem to be anything else in the pipeline. Guy thinks if CEO Lee Scott leaves the company, then the stock would shoot to $57, but Karen doesn’t think he’s the problem.
Gas Prices Jump:
The headline: Gasoline Prices Surge 2% Today, Bringing 2007 Surge To 40%
The word: Pete thinks coal is the new energy play – particularly, liquid coal. He recommends Peabody (BTU), which has the biggest coal mines in Australia (where China gets most of its coal) and its also building liquid coal plants in the U.S.
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Trader disclosure: On June 1, 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 (MU), (BTU), (AAPL),(KR), (SWY) Macke Owns (SWY) Finerman Owns (AAPL), (CAT), (HOV) Finerman's Firm Owns (DJ), (TOL), (USG), (WMT), (BJ); S&P Puts, Finerman's Firm & Finerman Own (TYC), (HD), (FLS); CNBC Is A Service Of NBC Universal And Dow Jones