Calm Before Another Storm?
The markets were calm Thursday. The Dow ended little changed while Bank of America (BAC) took a stake in Countrywide Financial (CFC) which The Street considered encouraging news. Is a positive trend building or is this just the calm before another storm?
Carter Worth is Chief Market Technician for Oppenheimer & Co and he joins the panel. He feels the bottom is in this market because of recent activity at The Fed’s discount window.
Jeff Macke feels that banks going to the discount window to borrow money (which is more expensive that borrowing from one another) is not a sign of financial health.
WHAT'S KILLING COMMODITY STOCKS?
The headline:Freeport-McMoRan (FCX), Commodity Stocks Fall Again After Bouncing Back Yesterday
Pete Najarian says the volatility in the broad market is coming out. But in materials there’s still large fluctuation.
Carter Worth says the moves are attractive and he’s a buyer of this sector.
Jeff Macke feels the multiple is too high on many stocks in this space.
AFTER HOURS ACTION: GAP AFTER HOURS
The headline: Gap (GPS) Posts 19% Profit Jump, Authorizes Additional $1.5B Buyback GAP UP 2%
Jeff Macke tells the panel sell The Gap.
Carter Worth likes TJ Maxx (TJX) and thinks it will move higher.
DIAMONDS IN THE RETAIL ROUGH
The headline: GameStop (GME), Dick's (DKS), Target (TGT) Stand Out This Week In A Rough Tape For Retail;
Jeff Macke says GameStop soared 10% after trouncing Street estimates and raising guidance. He likes Dick’s Gamestop and Zumiez (ZUMZ).