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Fast Money HomeFast Money Rapid RecapAbout Fast MoneyFast Money BiosFast Money Web ExtraFast Money Disclaimer
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May.12
6:15 PM ET
Monday, 12 May 2008
Stocks Rebound From Last Week's Drop
Posted By:Lee Brodie
Sectors:Oil and Gas

STOCKS REBOUND FROM LAST WEEK'S DROP

The headline: Tech, Consumer, Bank Stocks Lead Bounce; Nasdaq jumps 1.8%

Stocks got off to a good start on this first trading day of the week with the Dow [.DJIA  Loading...      ()   ] making triple digit gains for the week.

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APPLE, EDS LEAD TECH HIGHER & H-P MAY BUY EDS

The headline: Apple Climbs on Anticipation of New 3G iPhone Next Month; Meanwhile H-P Confirms Advanced Talks With EDS on Possible Combination

Big-cap technology shares led the broader market's advance as investors bet the U.S. economy may not be in as poor shape as previously feared, and expectations that exports will underpin profits.

Also Research In Motion [RIMM  Loading...      ()   ] was buoyed by the launch of a new high-end version of its BlackBerry e-mail/networking device and Apple [AAPL  Loading...      ()   ] signed a deal to bring the iPhone to four Asian countries later this year, which should help the company surpass its sales goal of 10 million units by the end of 2008.

I think you can look at Microsoft [MSFT  Loading...      ()   ], Intel [INTC  Loading...      ()   ] and Cisco [CSCO  Loading...      ()   ], says Guy Adami.

I prefer AAPL exclaims Pete Najarian.

Meanwhile, Hewlett-Packard [HPQ  Loading...      ()   ], the world's largest personal-computer maker, confirmed it is in advanced talks to acquire Electronic Data Systems [EDS  Loading...      ()   ] in an apparent bid to boost its presence in the lucrative business of tech consulting and support.

If Hewlett Packard feels they need to buy EDS to compete with IBM [IBM  Loading...      ()   ] then it’s bullish for IBM, says Guy Adami. I think IBM is the play.

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AN END TO OIL FEVER?

The headline: Oil Falls For 1st Time In 7 Sessions, Closing Down 1.4% To $124.23;

Light, sweet crude for June delivery jumped to a new all-time trading record of $126.40 a barrel in light trading on the New York Mercantile Exchange before falling back to settle at $124.23, down $1.73 from Friday's closing record of $125.96. It was the first time oil has closed lower in six sessions.

Monday's price fluctuation underscored the uncertainty over oil's future direction. Many analysts believe the weak dollar has driven oil prices to levels that defy fundamental supply and demand economics. But other investors see continued strong demand for oil and fuel from China and India as a sign that oil prices have further room to rise.

Moreover, growing concerns about declining crude production in Mexico, Russia and elsewhere are keeping prices in record territory, analysts say. Goldman Sachs said in a report last week that crude prices could rise to $150 to $200 within two years.

I think the refiners were the story of the day. Tesoro [TSO  Loading...      ()   ] and Valero [VLO  Loading...      ()   ] finally started to move, says Pete Najarian.

If you’re wondering what the options market is watching, keep an eye on Pride International [PDE  Loading...      ()   ] as well as the Energy Select Sector SPDR [XLE  Loading...      ()   ].

I expect oil to trade down 25% from here, counters Jon Merriman of Merriman, Curhan & Ford. But even if oil slides to $80, the big trade is alternative energy. I like Energy Conversion Devices [ENER  Loading...      ()   ] which I think could go to $80 by the end of the year. Also I like EMCORE Corp. [EMKR  Loading...      ()   ].

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BULLISH ON THE BUCK

The headline: Futures Traders Bullish On The Dollar For 1st Time Since December 2005.

The dollar furthered a modest