FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our
"Question of the Day" right now.
TRADER RADAR Which stock should be on your screen? Follow the clues to solve this puzzle.
TRADE SCHOOLGrab a pencil because school is in session and the Fast Money traders are teaching class.
EMERGING MONEY TOP 20
Fast Money's index for the world.
FAST MONEY PODCASTSDownload Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY PHOTOS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up and receive a recap email every Friday after the show!
FAST MONEY MOBILE ALERTSGet advanced information about the next Fast Money.
 |
The headline: First Weekly Drop In A Month; Dow Drops 2.4% This Week
The Dow [.DJIA
Loading...
(%)
]faded under the weight of crude oil which surged past $125 per barrel Friday. Light, sweet crude for June delivery rose as high as $125.12 a barrel in electronic trading on the New York Mercantile Exchange at midday before falling back to $124.86 by early afternoon in Europe.
When will oil's record run end?
We’re starting to see some energy headwinds, reveals Tradition Energy Director of Market Research Addison Armstrong. This could be the end of the beginning.
We’re really starting to see a turndown in equities over concerns that high oil is going to cramp the global economy, he adds. That is going to be what turns the oil market around. High prices will cure high prices.
What does that mean, high prices will cure high prices?
I think over time you’re going to start to see erosion. Already in the US demand for gasoline is flat to lower year on year. And I’m looking for things to slow down in China after the Olympics.
What’s the trade?
Stay with the trend for the short-term, Armstrong replies. It’s too early to short oil. But if you have profits, you might want to take them.
I agree, says Jeff Macke. It's time to take some money off the table.
--------------------------------
AFTER HOURS ACTION: FEDEX
The headline: FedEx cuts profit forecast citing fuel prices
U.S. package delivery company FedEx [FDX
Loading...
(%)
] slashed its quarterly earnings forecast on Friday, blaming surging fuel prices.
FedEx said it now expects to report a profit of $1.45 to $1.50 per share for its fourth fiscal quarter ending May 31, lower than its prior forecast of $1.60 to $1.80 per share.
The company, based in Memphis, Tennessee, said that since it made its fourth-quarter profit forecast in March its estimated fuel costs for the period have risen by $100 million, or 7 percent.
Again, it’s oil making the headlines, observes Jeff Macke. It seems the cost of fuel sets us up for a bumpy ride next week.
I was wrong about this stock, concedes Guy Adami. I’ve been recommending it. And these results don’t bode well for UPS [UPS
Loading...
(%)
].
--------------------------------
CITI DROOP
The headline: Citigroup Falls Even After CEO Pandit Unveils Plan To Eliminate $400B In Assets Over Next 3 Years.
Citigroup [C
Loading...
(%)
], the largest U.S. bank, said on Friday it plans to shed $400 billion of assets within three years and boost revenue by up to 10 percent annually in a bid to restore profitability after huge losses tied to flagging mortgage and credit markets.
Vikram Pandit, who became chief executive in December, announced the plans at a much-awaited presentation to investors and analysts. He has faced growing demands from investors to slash costs, shed poor-performing businesses, and reinvigorate a stock price that has fallen more than half in the last year.
It’s not possible to turn around Citigroup in only a few months, says Karen Finerman. However, in about two years I wouldn’t be surprised to see this stock at $38.
Forget Citigroup, says Pete Najarian. If you’re looking for a "financials" play check out Visa [V
Loading...
(%)
], Mastercard [MA
Loading...
(%)
] or American Express [AXP
Loading...
(%)
].
--------------------------------
WHALE WATCHING: CARL'S CURIOUS CRUSADE
The headline: Carl Icahn And Associates 'Ready' To Purchase Circuit City If Blockbuster Fails In Effort.
Circuit City [CC
Loading...
(%)
] gave into pressure from activist shareholders and essentially put itself up for sale. The electronics retailer gave Blockbuster [BBI
Loading...
(%)
] and its largest shareholder Carl Icahn, access to its books. Icahn then defused concerns over whether Blockbuster could finance the deal by saying he's prepared to buy the company if all else fails
I’m not sure it makes sense to marry Blockbuster’s fortunes, which seem grim to me, to those of Circuit city which seem equally grim, exclaims Jeff Macke.
If you want to throw caution to the wind you could buy Circuit City – but I’d only do it in CNBC’s Million Dollar Portfolio Challenge so you’re not playing with real money.
--------------------------------
LONELY YAHOO LEADS TECH LOWER
The headline: Yahoo Ends Week Down 10% As Investors Mourn Withdrawn Microsoft Offer.
Yahoo! [YHOO
Loading...
(%)
]could be on the brink of sealing the deal to form a potentially lucrative advertising partnership with Google.— a deal that would lower the odds of Microsoft [MSFT
Loading...
(%)
] renewing its attempts to buy Yahoo.
Because Google's [GOOG
Loading...
(%)
] technology proved it could select more profitable ads, the alliance could help Yahoo snap out of a prolonged slump that made it vulnerable to Microsoft's unsolicited buyout bid. Microsoft raised the bid to $47.5 billion, or $33 per share, before pulling it off the table last weekend.
Microsoft cited Yahoo's willingness to subordinate its own ad system to Google's as a major reason for dropping its bid.
I like Yahoo and maintain a position, reveals Pete Najarian.
I’m delighted to be out of Yahoo!, counters Jeff Macke.
--------------------------------
GOLDMAN'S WHOPPER FREAKOUT
The headline: Goldman Sachs Adds Burger King To Americas Conviction Buy List.
It’s good to be the king. Goldman Sachs added Burger King [BKC
Loading...
(%)
] to its “Conviction Buy List” and removed McDonald’s [MCD
Loading...
(%)
] the world's largest fast-food chain.
It’s ironic, but the "Fast Money" traders recommended that very play on Thursday’s show!
Check Out These Other Posts |
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On May 9, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (BTU), (NUE); Najarian Owns (AAPL), (BKC), (TSO), (XLF); Najarian Owns (AA) Calls, (BID) Calls, (BUD) Calls, (C) Calls, (MSFT) Calls, (YHOO) Calls; Macke Owns (ATVI), (MSFT), (INTC); Finerman Owns (GS); Finerman's Firm And Finerman Own (KALU), (HD); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (MSFT), (TSO), (VLO), (PLCE); Finerman's Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC
Armstrong Owns (NE), (FTK)
Del.icio.us
Digg It