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Big Merger Monday

Monday, 28 Apr 2008 | 6:18 PM ET

BIG MERGER MONDAY

The headline: Stocks Sitting At 3-Month High; S&P 500 At Highest Since January

The Dowended lower after a largely directionless session. A measure of indecision comes ahead of some important news events for the market this week, including a two-day Federal Reserve meeting that begins Tuesday. The government reports Wednesday on first quarter GDP, and releases the monthly employment report on Friday, explains Dylan Ratigan

Ford was the most active issue on the NYSE, after Kirk Kerkorian's Tracinda Corporation said it sees signs that the automaker's turnaround is gaining traction.

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CAPTAIN KIRK'S NEW RIDE

The headline: Ford Surges 9% After Kirk Kerkorian's Tracinda Reports 4.7% Stake.

Billionaire Kirk Kerkorian, a veteran investor in the troubled U.S. auto industry, has taken aim at Ford , looking to acquire a stake of 5.6 percent stake through his investment vehicle Tracinda. Kerkorian, 90, who previously held a nearly 10 percent stake in General Motors began amassing shares of Ford, the No. 2 U.S. automaker, on April 2, Dylan Ratigan explains.

I think you can trade in his wake, says Jeff Macke. Get long Ford on any dip!

I’d be long General Motors (GM), counters Tim Seymour, for their international exposure.

I like auto part supplier Borg Warner , adds Guy Adami.

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BUFFETT, MARS CHEW UP WRIGLEY

The headline: M&M Maker Mars Teams Up With Warren Buffett To Buy Wrigley For $23B.

M&M's candy maker Mars has teamed up with billionaire Warren Buffett to buy No. 1 chewing gum manufacturer Wm Wrigley Jr for $23 billion, creating the world's largest confectionery company, explains Dylan Ratigan.

I think Berkshire Hathaway is buy off the deal.

And avoid Tootsie Roll , counsels Guy Adami.

If you were lucky enough to be a Wrigley shareholder sell the news and go home, counsels Karen Finerman.

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AFTER HOURS ACTION: VISA

The headline: Visa Quarterly Results Rise

Visa , the world's largest credit card network, said on Monday that quarterly earnings rose, helped by declining tax expense. Visa went public in March and these results are its first as a public company.

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AFTER HOURS ACTION: FLOWSERVE
The headline: Flowserve Boosts Full Year Outlook

Flowserve which provides fluid motion and control products, raised its full-year profit guidance Monday, following a strong first quarter.

The company expects profit between $5.90 and $6.20 in 2008, compared with prior guidance of between $5.10 and $5.40.

Analysts polled by Thomson Financial expect profit of $5.39 per share.

I’ve liked this stock for a while, says Karen Finerman.

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BIGGEST TECH BATTLE EVER?

The headline: Will Microsoft Launch the Largest Hostile Takeover Battle in Tech-Industry History?

Microsoft is no closer to buying Yahoo than when it first made its $44.6 billion bid , leaving the software maker in a quandary over whether the deal is still worth pursuing. Although a deadline expired Saturday, Microsoft has indicated it probably won't reveal its next move until early this week.

I expect Microsoft to do something aggressive, says Karen Finerman.

Why should they, counters Jeff Macke. Yahoo! isn’t going anywhere.

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CONTINENTAL DRIFT

The headline: Continental Airlines Nixes Merger With United, Saying Its Financial Health Would Be At Risk.

Continental Airlines said it would not pursue a combination with another carrier right away, a surprising move after weeks of growing speculation that it would join with United Airlines to create the world's biggest airline. Continental Chairman and Chief Executive Lawrence Kellner said in a message to employees that the Houston-based airline was better off alone than merging.

I think there’s room for some deal somewhere in the sector, says Guy Adami, but I wouldn’t get involved as a trader.

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CAN YOU HEAR IT NOW?

The headline: Verizon Profit Climbs Nearly 10% On Strong Growth In Wireless, Video Subscribers.

Verizon on Monday reported steady earnings in a stormy economy. The country's second-largest telecommunications company said first-quarter earnings rose 9.8 percent as its wireless division signed up more new customers than rival carriers did.

I think it’s okay to buy VZ on any dip, counsels Jeff Macke.

Or look at America Movil , counsels Tim Seymour.

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OPTIONS ACTION: PHONES & FAUCETS

The headline: Jon Najarian Seeing Unusual Options Activity In Tesoro, Motorola, Home-Improvement Company Masco

I’m seeing heavy call buying in Tesoro , reveals Jon Najarian. It suggests to me the stock could soon make a big move.

Also options action in Motorola and Mascosuggests to me that both stocks could go higher.

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TAKE THAT, ELECTRONIC ARTS?

The headline: Take-Two CEO Expects 'Grand Theft Auto IV' Sales To Top Projections.

Sales of Take-Two criminal action video game "Grand Theft Auto 4" could be higher than Wall Street expectations, Chief Executive Ben Feder said on Monday. "Our expectations are very high, higher than analysts give the game credit for," Feder told Reuters

Word on the Street
The Fast Money traders take a look at today's top business stories.

I’m not surprised, says Jeff Macke.



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Trader disclosure: On Apr. 28, 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 (MSFT), (DIS), (INTC), (ATVI); Seymour Owns (AAPL), (EEM), (F), (HAL), (INTC), (MSFT), (TSO), (DUG); Seygem Asset Management Owns (GFA), (PBR); Finerman's Firm And Finerman Own (FLS), (HD), (KALU); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (VLO); Finerman's Firm Owns A Bullish Call Spread In (YHOO) And Owns (YHOO) Stock; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (COF); Finerman's Firm Is Short The British Pound; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC

Jon Najarian Owns (MAS), (MOT), (CHS), (TSO)

  Price   Change %Change
DJIA
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AMXL
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BWA
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CPT
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F
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FLS
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GM
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MAS
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MSFT
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TR
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TSO
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TTWO
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V
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VZ
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YHOO
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