Market Steadies, Oil Passes $100
OIL PASSES $100 FOR FIRST TIME
The headline: Crude Oil Slips 0.4% to $99.18 After Hitting Record Intraday High of $100.09
Jon Najarian said oil is performing a “head fake.” He expects the price to continue to run up and then stop – leaving the oil bulls high and dry.
A CHIP OFF THE OLD STOCK
The headline: Intel Slides For Second Day After Banc of America Downgrade
Not only was Intel down. Its biggest competitor, Advanced Micro took a hit too – falling 5% Thursday to Intel’s 3% decline. AMD’s weakness should have been good for Intel but it wasn’t. And Guy Adami - longtime Intel bull - cannot seem to figure out why.
GOLD HITS NEW 28-YEAR HIGH
The headline: Gold Reaches New High of $869.10 as Dollar Slides
Gold’s move higher should mean more M&A activity for the miners, Tim Seymour said, since gold is their currency. He recommended Harmony Gold Mining and Gold Fields as plays on that potential consolidation.
Jeff Macke had a different take: buy the Gold ETF (GLD) and sell the mining stocks.
Guy Adami would continue sticking with mining behemoth Freeport-McMoRan (FCX), which he called the most diverse mining stock out there.
ABOVE THE FRUITED GAINS
The headline: Ag Trade Still Red Hot as Monsanto Quarterly Profit Nearly Triples
Guy Adami recommended staying with this trade as it likely will pull back soon.
Tim Seymour and Jon Najarian both agreed. Agriculture stocks are a flight to safety right now as their growth continues to seem unstoppable.
But don’t be a pig with these, Jeff Macke warned. The ag complex is seeing mighty big gains that may call for some profit taking.
The headline: Gaming Stocks Decline on Concerns Over Macau Growth
Jeff Macke, taking the other side of this headline, would advise investors to build up positions as stocks like MGM and Las Vegas Sands decline. They’re trading like there’s a recession, he said, but Macau is not likely to stop growing anytime soon.
STATE OF GRACE
The headline:State Street Soars on Profit Forecast, Forceful Response to Subprime Problems
Guy Adami remains “interested” in State Street, despite its rich valuation, mostly because it’s raising non-dilutive capital to contend with subprime concerns.
Tim Seymour reminded the panel that State Street continues to have some stigma attached to its reputation as its money markets funds took a beating in the last six months.
Despite all that, the stock is up simply because the company is showing that its being proactive and is interesting in getting in front of the problem instead of behind it, Jeff Macke said.
AFTER HOURS ACTION: BED BATH & BEYOND
The headline: Bed Bath & Beyond Shares Tumble After Hours on Lower-Than-Expected Guidance
Specialty retail – and BBBY in particular – is nothing short of a “trainwreck,” according to Jeff Macke. He urged investors to stay away from BBBY at all costs and not give into the urge to buy the dip on this, or any specialty retailers. These stocks are where “love goes to die,” he said.
WHALE WATCHING … PRICE TARGET, INDEED
The headline: Activist Investor Bill Ackman Sees Target Hitting $120 in Next 3 Years
Jeff Macke remains bullish on Target over the long term but is skeptical the stock will go anywhere close to Ackman’s target soon.
LENOVO’S BIG IDEA
The headline: Lenovo Takes Aim at Dell, Hewlett-Packard With ‘IdeaPad’ Low-Price Laptops
China, where Lenovo is based, accounts for about 5% of the global PC market, Tim Seymour said. That’s expected to be 10% in just a couple of years. This small company taking on the huge PC makers of the U.S. could be a sign of things to come.
Jon Najarian would use this news to short Dell . Hewlett-Packard is far stronger and better equipped to take on Lenovo’s challenges.
TEMPERATURES IN THE LOW BILLIONS
The headline: Weather Channel Owner Landmark Exploring a Sale of Its Business
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Trader disclosure: On Jan 3, 2008, 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 (INTC), (YHOO); Seymour Owns (F), (MER), (MSFT), (MBI), (INTC); Seygem Asset Managemetn Owns (SSL), (TTM), (CTCM), Gazprom; Gazprom Is On Pink Sheets In The U.S. But Trades On The Exchange in London; Jon Najarian Owns (AGU), (C), (DE), (GS), (MON), (MOS), (MRO), (POT), (GOOG), (YHOO), (VCLK), (DRIV), (SLB), (UBS), (USB), (IM), (N), (NEM), (MOO), (AG), (NYX), (NDAQ); Jon Najarian Is Short (PNRA), (SFLY), (TSO), (VLO), (YRCW); NBC Universal Is The Parent Company Of CNBC