SEPTEMBER SWOON - RALLY BACK FROM VACATION
The headline: Dow Jumps 91 Points on First Trading Day of September... Despite September's Gloomy Past, Market Kicks off Month With Rally
Pete Najarian explains that broker, tech, and energy shares pushed the S&P 500 up 1.1% Tuesday. Pete adds that although the brokers showed strength they are still down for the year.
Jeff Macke tells the panel not to get giddy over the bounce.
Guy Adami tells the panel he likes the brokers going into earnings, especially Goldman Sachs (GS).
Brokers Bounce - % Change Tuesday
Bear Stearns (BSC) up 5%
Lehman (LEH) up 3%
Morgan Stanley (MS) up 3%
Merrill Lynch (MER) up 2%
Goldman Sachs (GS) up 3%
Karen Finerman tells the panel she’s cautious and selling the rally.
The headline: Tech Shares Lift Market After Industry Group Reports Strong July Global Chip Sales;
Pete Najarian explains that global chip sales jumped 3.2% in July, signaling strong consumer electronics growth. He likes IBM (IBM), Dell (DELL) and Hewlett Packard (HPQ).
Jeff Macke likes Intel (INTC) Cisco (CSCO) and Microsoft (MSFT) because he feels they are under-owned and away from the subprime mess.
Guy Adami prefers NVIDIA (NVDA).
YAHOO JUMPS 8%
The headline: Yahoo (YHOO) Soars After Bear Stearns Names It Top Pick For Next 12 - 16 Months
Dylan Ratigan explains that Bear Stearns said Yahoo may attract a Microsoft (MSFT) bid.
Jeff Macke says he doesn’t believe it and calls YHOO stock a sell.
Pete Najarian feels differently. He believes YHOO is a buy into January.