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Banks Lead Market Fall

BANK STOCKS LEAD MARKET FALL

The Dow fell sharply on Monday after Standard & Poor's jolted three leading U.S. securities firms (Lehman, Merrill andMorgan Stanley) with downgrades and Wachoviaousted CEO Ken Thompson.

Less than a month after losing his chairman post, and more than two years after an ill-timed acquisition of California mortgage lender Golden West Financial Corp., Wachovia Corp. said Monday that board members have forced CEO Ken Thompson to retire from the nation's fourth-largest bank, explains Karen Finerman.

I think Wachovia has more room on the downside, says Guy Adami.

I’d make a list, adds Jeff Macke, and buy banks on the dip. I like Goldman if it slides to $150 and Citi at $20.

Also, the S&P couldn’t get over 1400 and it sold off, says Jeff Macke. That’s a worry on a technical basis.

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BANKING OPTIONS

Options volume is unusually high in two banks, explains Jon Najarian., KeyCorp and Bank Of New York Mellon.

Read how Jon Najarian recommends playing it in “Trading the Financials”


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CRUDE REVERSAL

All eyes are again on crude oil now that this year's Atlantic hurricane season began. Analysts have forecast an active storm season that could result in supply dislocations.

I like the refiners for a trade right now and my favorite in the space is Tesoro , says Guy Adami

I own Sunoco (SUN),Valero (VLO) and TSO, adds Karen Finerman.

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VICTORY IS 'MINE'

The coal stocks led the materials sector higher after Friedman, Billings, Ramsey boosted its coal price forecast.

Also, Morgan Stanley upgraded Alpha Natural Resources sending shares up nearly 5% Monday, explains Guy Adami. The stock now has a $100 price target.

Look at ANR as well as Massey , says Jon Najarian. They’re used in the production of steel and I think both should move higher.

Peabody (BTU) looks like it’s set up to go to $90, adds Guy Adami.

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APPLE LEADS TECH LOWER

Profit taking in technology shares sent the sector lower on Monday following a 5% gain in the Nasdaq last week.

Also, speculation is swirling in that the new iPhone will be launched sometime between June 15th and July 12th explains Jon Najarian, because AT&T reportedly asked staff not to vacation at that time.

I’d start building a position in Appleat current levels, says Jeff Macke.

Also look at Intel in the semiconductor space, adds Guy Adami. I like it on the pull back.

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AFTER HOURS ACTION: BUD

Anheuser-Busch hired Goldman Sachs and Citigroup as financial advisers as it braces for a potential takeover bid from Belgian brewing company InBev NV, sources familiar with the situation said on Monday.

I think BUD will go higher, counsels Jon Najarian.

I like Molson Coors better, says Jeff Macke

Or look at Boston Beer , adds Guy Adami

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AFTER HOURS ACTION: FEDEX

FedEx said on Monday it was changing the name of its struggling Kinko's printing and professional services unit to FedEx Office and would record a charge of nearly $900 million.

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BARRON'S DRIVES GM HIGHER

A positive article in Barron’s sent General Motors stock about 2% higher Monday. The article suggests that the stock could rally as high as $30 or $45 after cost reductions flow through to earnings in 2010.

I’d stay away from GM for now, says Guy Adami.

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BIOTECH'S BIG WEEKEND DOESN'T DISAPPOINT

Eli Lilly (LLY), Novartis (NVS), ImClone (IMCL), and Celgene (CELG) are among the big movers after this weekend’s ASCO conference.

Meanwhile, Genentech climbed after it released positive data on Avastin, explains Jon Najarian. I like this stock.

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LAKERS VS. CELTICS TRADE.

The highly-anticipated NBA finals may mean big business for ABC/ESPN owner Walt Disney.

The match-up between L.A. Lakers and the Boston Celtics will likely prove to be a huge draw, says UBS Analyst Michael Morris on “Fast Money”. In turn that would increase ad revenue and benefit Disney .

Morris also notes that live sports are worth a premium to advertisers because sports are 'DVR-resistant' and appeal to men in desirable demographics.

Morris rates DIS a Buy with a $38 price target.



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Trader disclosure: On June 2, 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 (INTC), (DIS), (MSFT), (WMT); Adami Owns (C), (AGU), (BTU), (NUE), (GS), (INTC), (MSFT); Finerman Owns (GS), (AAPL); Finerman's Firm Owns (GE), (MSFT), (NYX), (SBUX), (SUN), (TSO), (VLO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Jon Najarian Owns A Call Spread In (HOC), (MEE), (SBUX), (TSO), (VLO), (AAPL), (COP), (FTO); Jon Najarian Owns (ACI) Call Spreads And Calls; Jon Najarian Owns (ANR) Calls Spreads And Calls; Jon Najarian Owns (C) Preferred Shares; Jon Najarian Owns (KEY) Puts, (LEH) Puts; Jon Najarian Owns (SNM); GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC

Within The Past 12 Months, UBS Securities LLC Has Received Compensation From Walt Disney Co.; Walt Disney Co. Is, Or Within The Past 12 Months Has Been, A Client Of UBS Securities LLC, And Non-Securities Services Are Being, Or Have Been, Provided

Symbol
Price
 
Change
%Change
DJIA
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S&P 500
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ANR
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BK
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ABI
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C
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DIS
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FDX
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GM
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GS
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INTC
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KEY
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SAM
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T
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TAP
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TSO
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MS
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AAPL
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