JPMorgan Grins and Bears It
JPMORGAN GRINS AND BEARS IT
The headline:JPMorgan Raises Bear Stearns Bid to $10 Per Share From $2 Per Share In Hopes of Satisfying Angry Shareholders
It is too late to short the financials, Jeff Macke has been saying, and this drives that point home even further. As for Bear, it’s still a Fed-sponsored bailout, now it will just cost a little more, Macke said.
The Bear news as it fits into the broader happenings in the credit markets gives Karen a little bit of optimism that a “foundation is building” in the financials.
Tim Seymour thinks the rally will continue and the market has room for another 5-6% upswing. Investors aren’t out of the woods yet, Seymour said, but a strengthening dollar, lower Treasurys and a drop in commodities makes for one powerful quarter-end rally.
HOW FAR WILL THE FED GO?
The headline: Speculation Swirling That Fed Will Ultimately Buy Troubled Mortgage-Backed Securities
Could the Fed actually be overstepping its bounds as lender of last resort? Could it now be too comfy with Wall Street firms, willing to bail out anyone who shows up with illiquid paper on their books? Watch the videoto see the traders engage in a spirited debate on the Fed’s role in the credit crisis.
NASDAQ SURGES 3%
The headline:Google (GOOG), Apple (AAPL), Cisco (CSCO), Oracle (ORCL) Lead Big Nasdaq Rally
Oracle should handily beat numbers when it reports Wednesday, Jeff Macke is convinced. ORCL is a buy going into earnings – so is Apple – but Google is a sell, he said.
And as Google jumped on news that it plans to use TV airwaves to provide wireless Internet, Jon Najarian voiced his skepticism that the plan could work or be a boon for shareholders.
LITTLE BLUE BOUNCE
The headline: ‘Little Blue Box” Purveyor Tiffany Skyrockets on Strong Earnings, Outlook
Tiffany rose on outstanding international sales, according to Jeff Macke. The stock is one of the few U.S. retailers that has a huge foreign currency benefit in that it works when the dollar is cheap because so many foreigners come to the U.S. to shop at stores like Tiffany. A stronger dollar actually hurts TIF in the big picture, Macke said.
GREEN ACRES IS THE PLACE TO BE
The headline:Monsanto (MON), Potash (POT), Agricultural Stocks Surge on Upgrades
Ag plays like iron ore and fertilizers still work because they have longer lead times and still rely on demand, Tim Seymour said. Wheat and corn, on the other hand, are more likely to lag.
GOLD SLAUGHTER CONTINUES
The headline: Gold Falls $1.30 to $918.70 After Losing Nearly $80 Last Week
When gold has pulled back 2.5% at the same time the S&P rallied 1% - an occurrence that has happened 23 times in history – a rally tends to follow. That little factoid came from Jon Najarian, who believes the gold plunge is a bullish indicator for stocks.
WHALE WATCHING: CARL ICAHN
The headline: Activist Investor Carl Icahn Sues Motorola for Documents Relating to Mobile Device Unit, Urges Shareholders to Vote For Alternative Slate of Directors
Karen Finerman, as much as she’s a fan of Icahn, is skeptical that he can really turn the page at Motorola. Even if MOT has some hidden value that Icahn sees, none of the traders would go near it.
OPTIONS ACTION: KODAK
The headline: Jon Najarian Sees Unusual Options Activity In Eastman Kodak
There was active buying in the name, which traded about five times its normal volume Monday, Najarian said. Volume and volatility were both up as takeover rumors persisted. The stock is dirt cheap, he said. Maybe it’s something worth looking into.
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Trader disclosure: On Mar. 24, 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 (YHOO), (INTC), (ATVI); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (SBUX), (TOL), (TSO), Seygem Asset Management owns (EEM), (CHT), (EWT), (TSM); Finerman Owns (GS), Finerman’s Firm Owns (PM-WI), (PLCE), (AAPL), (FLS), (MSFT), (SUN), (TSO), (VLO), (WMT), (YHOO), Is Short ( IYR), (IJR), (MDY), (SPY), (IWM), (GLD); Jon Najarian Owns (AAPL), (ACI), (AG), (AGU), (GOOG), (GS), (MON), (MOS), (POT), (USB), (IDCC), (EK), Is Short (BVF), (TGT)