The headline: Crude Oil, Gold Fall Sharply After Record-Setting Runs
The commodities trade is not over as far as Tim Seymour is concerned. It’s just crowded. The dip could last a few days – maybe longer – but the ultimate trade is still overall long, he said. The demand for all these commodities, from oil to gold to wheat, should endure.
Pete Najarian believes the only reason the commodities are falling is because profit takers are naturally coming in since prices are so high. This is a great opportunity to buy, he said.
As an aside, Guy Adami mentioned that Joy Global (JOYG), a stock he had been behind for months, just announced its CEO has resigned. Since the stock is up precipitously, he would take profit before it reports earnings.
APPLIED MATERIALS’ DAY IN THE SUN
The headline: Applied Materials Soars on $1.9B Solar Power Deal
Pete Najarian would buy AMAT on what he thinks are its smart solar acquisitions.
MEMORY CHIP MAKER MASSACRE
The headline: Micron (MU), SanDisk (SNDK), Memory-Chip Makers Have Fallen Sharply Over Last 6 Months
This is a crowded group of stocks that are “dicing each other up” Pete Najarian said. Only Intel is even close to a buy.
Guy Adami has a targeted chip trade: Micron on its 52-week low on 50 million shares of volume. If those pieces come together, he would buy MU for a trade even though he’s not a fan of the company.
The headline:Exelon (EXC), Utilities Among Few Stocks Higher Tuesday
If you believe a Fed cut is coming, the utilities will work, said Karen Finerman.
Guy Adami recommended his longtime favorite Public Service Enterprise Group .
Tim Seymour would rather dabble in Dynegy – a “great place to play” as money earmarked for utility infrastructure increases worldwide.
OPTIONS ACTION: HOTELS
The headline: Starwood Hotels (HOT), Marriott (MAR) Higher on Takeover Speculation
A ton of options traded on this rumored takeover, according to Pete Najarian, but he doesn’t think much will come of it. The space is “frothy” now, he said. Stay away.
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