Dow Jumps, Overcoming Record Oil
The Dow Jones Industrial Average put in its best day of the month Tuesday surging 180 points and overcoming a record close in oil. The Dow is now just 5% from its record reached in July. How do you trade?
The headline:Juniper (JNPR) Networks, Tech Stocks Continue 2-Day Breakout; Hewlett-Packard (HPQ) Gains 2%, While IBM (IBM) Climbs 1%.
Pete Najarian says the growth is real and sustainable because these companies benefit from the global economy. He also likes SAP (SAP) and Nokia (NOK) because they, too have global exposure.
OIL RECORD CLOSE
The headline: Oil Jumps 1% To $78.23 As OPEC Ups Production Less Than Feared.
Dylan Ratigan explains that OPEC increased production by 500,000 barrels a day; still Exxon Mobil (XOM) rose 3% as crude continues its upward climb.
Jeff Macke feels OPEC doesn’t matter to the market anymore. On a related note, he feels that barring anything catastrophic market fundamentals will remain strong.
Karen Finerman says that as long as the global economy grows she feels investors can count on an increased demand for oil.
AFTER HOURS ACTION: TEXAS INSTRUMENTS AFTER HOURS
The headline:Texas Instruments (TXN) Falls After Hours On Tightened Revenue Forecast.
Guy Adami recommends owning TXN long term, but doesn’t like the stock for a trade.
HIGH POINT FOR HIGH FINANCE
The headline:Lehman (LEH), Financials Among Today's Stronger Performers; Countrywide (CFC) Sinks After NY Post Says It Is Seeking Multibillion-Dollar Cash Infusion.
Jeff Macke says the financials haven’t blown up as a whole, but Tuesday’s rally wasn’t financially led. He still considers the sector a liability for the bulls.
Karen Finerman agrees with Jeff Macke.
Once again, Pete Najarian reminds the panel he likes Goldman Sachs (GS) and thinks they’re going to “blow out earnings.”