Pops & Drops: Foot Locker, Coca-Cola...
Following are the week’s biggest winners and losers. Find out why shares of Foot Locker and Coca-Cola popped while Home Depot and Moody's dropped.
POPS (stocks that jumped higher)
Foot Locker (FL) popped 13%. The sneaker retailer's CEO said he expects improving profitability over the next year. – I think he stuck his foot in his mouth, says Jeff Macke.
Coca-Cola (KO) popped 3%. Beverage stocks - both alcoholic and non-alcoholic - outperformed the market this week. – I like it as a Memorial Day weekend play, says Tim Seymour.
Stamps. Bill Gross, the founder of Pimco, also happens to be one of the world's most accomplished stamp collectors. The billionaire has been selling off items from his collection - some worth more than $2.5 Million - at auction, and donating the proceeds to charity. To get a closer look at some of Gross's million dollar stamps, check out High Net Worth at 8:30 and 11:30PM Friday.
Exelon (EXC) popped 4%. The nation's biggest nuclear power plant operator got a pair of upgrades from Credit Suisse & Deutsche Bank.
DROPS (stocks that slid lower)
Airlines (.XAL) dropped 20%. Investors wondered how the airlines will survive in a $130 oil environment. – You could buy it for a quick play on oil but then get out, says Jon Najarian.
Home Depot (HD) dropped 8%. The home improvement retailer started the week on a down note with profits that were off 66%. – I like it on a dip, says Guy Adami.
Moody's (MCO) dropped 24%. The Wall Street Journal reported that the ratings service switched analysts assigned to rate bonds after receiving requests to do so from bond issuers or their bankers. – I think they need to justify their existence, says Jeff Macke.
China Mobile (CHL) dropped 9%. A restructuring forced the company to take over a slow-growing fixed-line carrier. – It’s not a good deal for CHL, says Tim Seymour.
Chesapeake (CHK) dropped 11%. Despite a 7% jump in natural gas over the week, Chesapeake shares slumped. – They’re diluting the stock with some debt they’re putting out there, explains Jon Najarian.
J.P. Morgan (JPM) dropped 9%. The bank traded lower ahead of the closing of the Bear Stearns takeover which is expected next week. – I like this stock around $41, says Guy Adami.
Pacific Sunwear (PSUN) dropped 18%. The Anaheim-based teen retailer posted a loss of $37 million and a same store sales drop of 1% for the quarter.
Dick's Sporting Goods (DKS) dropped 23%. The chain had its biggest drop ever after a disappointing profit forecast.
Popcorn. Ethanol claimed its next victim. AMC Theatres announced Friday it would increase the price of a bag of popcorn by 25-cents at all of its 290 locations nationwide. Although they did not point to a specific cause for the increase it is believed rising commodity costs are behind the move.
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Trader disclosure: On May 23, 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 (HAS), (MSFT), (INTC), (WMT); Jon Najarian Owns (AAPL), (AMR), (BHI), (BUD), (DELL), (FTO), (VLO), (OII), (CPX); Jon Najarian Is Short (LEH); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (TSO); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE)