CLANK OF AMERICA
The headline: Bank Of America Shares Slide On Weaker-Than-Expected Profit; Profit Drops 77% On Write-Downs.
The Dowpulled back Monday after a weaker-than-expected profit report from Bank of America. stirred concerns about the health of corporate earnings, explains Erin Burnett in for Dylan Ratigan. Bank of America's first-quarter earnings fell 77 percent on write-downs and widening credit losses.
In financials I’m keeping my eye on Ameriprise Financials , says Guy Adami. And I also like US Bancorp .
I think the way to play it is with Visa , adds Pete Najarian.
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AFTER HOURS ACTION: TEXAS INSTRUMENTS
The headline: Texas Instruments Posts Higher Quarterly Profit
Texas Instruments Inc said on Monday its quarterly profit rose from a year ago after it lowered its guidance for the quarter.
The chipmaker's shares fell nearly 2 percent in extended trading after it also cited weaker sales of chips for cell phones, particularly high-end models. "We have become more conservative with our outlook for the second quarter," Texas Instruments Chief Executive Rich Templeton said in a statement.
I think the numbers are awful, Pete Najarian says. I don’t like the chip space right now.
If you’re looking to play PC growth look at Intel , counsels Guy Adami.
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AFTER HOURS ACTION BOSTON SCIENTIFIC
The headline: Boston Scientific Net Rises On Cost Cuts
Medical device maker Boston Scientific Corp said on Monday quarterly net earnings more than doubled, boosted by cost-reduction measures and a tax benefit.
The Massachusetts-based company said worldwide sales of its drug-releasing heart stents declined to $428 million in the first quarter from $468 million a year ago. U.S. sales of drug-eluting stents were $218 million, down from $293 million.
What they say about their stents business could also be true for Johnson & Johnson , explains Guy Adami.
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LILLY OF THE VALLEY
The headline: Eli Lilly Leads Decline In Drug Stocks After Profit, Sales Miss Estimates.
Eli Lilly on Monday posted lower-than-expected quarterly earnings, as disappointing sales of its Byetta diabetes drug overshadowed growing demand for its other medicines, sending shares 3.4 percent lower, explains Erin Burnett.
I think Novartis is the best name out there right now, says Pete Najarian. And keep an eye on Imclone as well as Cellgene .
I prefer GlaxoSmithKline on a technical basis, counters Guy Adami. I think that’s the play with a stop below $40.
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CRUDE CROSSES $117
The headline: Oil Rises 0.7% To A Record $117.48 After Climbing As High As $117.60.
Supply concerns took U.S. crude oil to a new record close above $117 a barrel on Monday, sending gold prices up a notch, while most other commodities ended down, explains Erin Burnett. Analysts said a re-energized bull market in crude oil could be keeping other natural resource markets from a sharper correction expected after new signs of weakness in the U.S. economy in recent weeks.
Addison Armstrong, Director of Market Research, Tradition Energy joins the panel for this conversation. Following is a summary of his main points.
There’s no fighting this tape, Armstrong says. I’m afraid the next stop for crude is higher. There are real supply concerns in this market.
How are you playing it?
The trend is your friend, he replies. Every time there’s a pullback there’s a big wave of buying. I wouldn’t be short.
Find out how Pete Najarian recommends trading oil in Drilling for Dollars.
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LOSING ALTITUDE
The headline: UAL, AMR, Airline Shares Tumble As Crude Oil Hits New Record High
The executive vice president of operations for AMR Corp., which is the parent of American Airlines, sold 25,184 shares of common stock, according to a Securities and Exchange Commission filing Friday. Meanwhile, United Airlinessaid on Sunday it was hiking the fee it charges passengers to change tickets from $100 to $150 in an effort to combat high fuel costs.
If the market is open it’s an outstanding opportunity to short the airlines, exclaims Jeff Macke.
I’m hopeful that consolidation in the sector will help make these companies profitable, adds Pete Najarian.
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WORKING IN A COAL MINE
The headline: Arch Coal Shares Surge To All-Time High On Stronger-Than-Expected Profit.
Electricity shortages are likely in the United States in two or three years unless more coal-fired power plants are built, the head of coal producer Arch Coal said on Monday. "We are heading toward serious shortfalls," Chairman and Chief Executive Steven Leer said during a conference call with analysts to discuss the company's first-quarter financial results. "Much of the United States will fall below the 15 percent reserve level in '09," he said.
I love Arch Coal, says Guy Adami. Or you can play the space with Bucyrus or Joy Global . People don’t want to embrace the coal story but I think they should.
I like International Coal , explains Pete Najarian,, Options activity suggests to me this stock could go higher.
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CHANNEL CHANGER
The headline: Viacom, Major Studios Launching Premium TV Channel.
Sumner Redstone's Viacom Incwill launch a premium TV and movie channel with Lionsgate and Metro-Goldwyn-Mayer, aiming a direct volley at Time Warner Inc's HBO as well as Redstone's own Showtime networks owned by CBS Corp.
