GO
Loading...

Lehman Shakes Up Stocks

Tuesday, 3 Jun 2008 | 5:34 PM ET

PLUNGING LEHMAN KNOCKS STOCKS

Lehman Bros. stock plummeted after the WSJ reported the bank is mulling a $3B to $4B capital raise, although Lehman denied the rumors.

Even after such a drastic pullback, the traders agree that Lehman is not a buy here. This could be the precursor of a “serious problem,” Jeff Macke said. While it’s unlikely Lehman is another Bear Stearns , Guy Adami thinks there’s more pain in the stock to come.

GM MAY SELL HUMMER BRAND

GM considers selling its Hummer unit as part of a restructuring effort forced on by record gas prices.

GM is not a buy, according to Guy Adami. You can’t turn a company of that size around overnight. Instead, buy BorgWarner , which makes emission controls and drive trains for environmentally friendly cars.

ICAHN SEEKING YANG’S OUSTER

Carl Icahn says he will seek to oust Yahoo chief Jerry Yang if the proxy fight is successful.

Jeff Macke believes Microsoft will still take over Yahoo, only this time it’s going to be a “mercy killing” far below Yahoo’s original asking price.

NATURAL HIGH

Natural gas jumps to its highest price since December 2005.

If you strongly believe natural gas is going higher, Pete Najarian recommends individual nat gas stocks like Petrohawk Energy , Devon and Chesapeake . If you’re less sure, you can always stick with the U.S. Natural Gas ETF .

YES, IT HAS GOTTEN THIS BAD

One San Diego housing developer is offering “buy one, get one free” deal on homes.

Sure, it’s bad out there, but some of the homebuilders are still higher for the year. Guy Adami thinks the bottom in names like Hovnanian and Toll Brothers could be around the corner.

TOPPING THE TAPE: STEEL & MATERIALS

Steel and material stocks hang strong in a rough tape, adding to a market-beating performance this year.

Guy’s steel picks: U.S. Steel first, Nucor a close second.

BEN BACKS THE BUCK

Bernanke strongly defends the dollar and suggests the Fed is unlikely to cut interest rates further.

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

This change in rhetoric from Bernanke is meanginful, said contributor Tim Seymour. It means he would be wary of weak-dollar-dependant trades, especially in the commodities space. However, he’s bullish on Chinese oil stocks Petrochina and China Petroleum & Chemical .


















  Price   Change %Change
BWA
---
CHK
---
DVN
---
GM
---
HK
---
HOV
---
MSFT
---
NUE
---
1857
---
28
---
TOL
---
UNG
---
X
---
YHOO
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report