One Week At A Time
ONE WEEK AT A TIME
The headline: The Dow Dropped Friday but ended the week up 1.3 percent.
Stocks ended mostly lower after a number of economic reports cast the outlook in a negative or lackluster light, explains Erin Burnett who’s in for Dylan Ratigan. Friday’s modest dip caps a positive week for the market, ahead of Monday's holiday.
It could have been horrible, but it wasn’t says Jeff Macke. It call came down to financials so read on…
The headline: Financials Rebound Friday on Bear Stearns Takeover Speculation
Speculation that Bear Stearns (BSC) is in talks with Citic Securities Co. to possibly expand or renegotiate their current relationship took financials higher. However, the rumors aren't true, according to CNBC's David Faber. "There are no plans (for Bear Stearns) to intensify or expand the relationship that already stands in place with Citic, nor are there any talks of any kind, as far as I am told, going on with Bear Stearns," he says, citing people familiar with the situation.
I certainly would not buy this stock hoping for a takeover, says Karen Finerman. Nor would I be short.
Walk away, counsels Jeff Macke.
Goldman (GS) was downgraded significantly this week, says Guy Adami. On a valuation basis I think GS is getting attractive.
The headline: Best Buy (BBY) Tumbles After Cutting 2008 Profit Outlook; Blames 'Challenging' Economic Climate For Slowing Sales.
Best Buy moved lower on Friday when it said shopper traffic dropped off after the Holidays, explains Erin Burnett. Also an index of consumer sentiment fell to a 16-year low dragging down retail, broadly.
It’s not great out there but the market has anticipated a lot of this, says Jeff Macke.
If Corning (GLW) gets sold off on the backs of BBY and Circuit City (CC), it’s probably a buy, adds Guy Adami.
I agree, says Karen Finerman.
BACK TO $100?
The headline: Crude Oil Finishes Week Up 4.1% To $95.50 After Paring Rally Friday.
U.S. crude oil futures ended higher on Friday after short covering ahead of a three-day holiday weekend erased earlier small losses, says Erin Burnett. Much earlier in the day, supply worries and a weaker dollar helped lift prices above $96. But continuing worries over the troubled U.S. economy triggered some selling.
OPEC says they’re potentially going to take some supply off the market, says Tim Seymour, and that drove prices.