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Dollar Climbs To 3-Month High; Oil Loses $3

DOLLAR CLIMBS TO 3-MONTH HIGH...OIL LOSES $3

The Dowclosed modestly higher but overall Wall Street sagged Tuesday as traders mulled over comments by Federal Reserve Chairman Ben Bernanke who said on Monday evening that he would strongly resist rising inflation. Investors took his comments to mean the Fed would lift rates sending the dollar to 3-month highs.

I’ve said it before but I expect the dollar to go higher in the second half of the year, says Guy Adami.

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IS OIL'S RUN OVER?

Energy stocks were a drag on the S&P 500 as U.S. crude oil futures fell $3 a barrel on fears of an economic slowdown. In sharp contrast, Russia's Gazprom announced Tuesday that they expect the price of crude oil to reach $250 as the decade draws to a close.

Keep an eye on the Asian markets, they could start to roll over, says Tim Seymour. And they’ve been very important to the global growth machine.

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BUY APPLE ON `MAINSTREAM' IPHONE?

Several brokerages raised their price target on Apple shares, citing the new 3G iPhone at a discounted price and new market opportunities.

Citigroup, which has a "buy" rating on the stock, raised its price target to $287 from $248, while Lehman Brothers raised its price target to $234 from $202 and kept its "overweight" rating.

I'm not quite that bullish, says Guy Adami but I still see upside in Apple. I think it could go to $200.

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HAVE BANKS FOUND A BOTTOM?

Several brokerages slashed their 2008 estimates on Lehman Brothers on Tuesday, a day after Wall Street's smallest major investment bank projected a worse-than-expected quarterly loss of $2.77 billion and raised $6 billion in capital.

"The sheer size of such a dilutive capital raise will put serious pressure on the bank's ability to deliver on meaningful earnings-per-share growth over the near to medium term," Oppenheimer & Co's Meredith Whitney said in a research note.

Wachovia and Credit Suisse also called Monday's announcement disappointing and disconcerting.

If you wan to play financials, I’d look at Wachovia with a stop below $18.20, counsels Guy Adami.

Wait for Goldman at $150, counters Jeff Macke.

Options action suggests that investors expect Goldman and Citi to cut dividends substantially, reveals Tim Seymour.

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IS NAT GAS BEST ENERGY TRADE?

XTO Energy announced a deal to buy crude oil and natural gas producer Hunt Petroleum for $4.2 billion.

They’re buying exploration and reserves, explains Guy Adami. I think it’s a nice deal. The stocks is a buy on a pull back.

Or check out Gazprom, adds Tim Seymour.

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TOPPING THE TAPE: ALCOA

For the second day in a row aluminum producer Alcoa led the Dow and is up 9% in only 5 days.

I like this stock, says Guy Adami. And there’s speculation that CVRD is looking for a takeover taraget.

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WE WANT OUT

Investors, reflecting pessimism over Ford’s near term prospects, responded to billionaire Kirk Kerkorian's offer to buy their shares at $8.50, a large premium, by tendering nearly half of the automaker's stock.

Unless your last name is Ford you jumped on this one, exclaims Jeff Macke.

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HAS THE AG TRADE TOPPED?

Shares of Monsanto fell on Tuesday despite bullish comments from Morgan Stanley leaving some investors to wonder if the ag run is done. Meanwhile record rainfall in the corn belt could cause the corn crop to drop as much as 10% this year.

I think Monsanto will continue to be a monster stock, says Guy Adami.

In this space I like companies that are making genetically modified seeds, says Tim Seymour, because the world needs more of it to make planting more efficient.

If you want to play ag then make sure you have an exit plan, exclaims Jeff Macke.


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BIG MOVER OF THE DAY: PEP BOYSPep Boys, the automotive parts and service chain, posted a first-quarter profit that beat market expectations, sending its shares up as much as 10 percent.

Could the stock benefit as consumers hold onto cars longer, needing more repairs?

“We think that we’re well positioned,” says Pep Boys interim CEO Mike Odell, "because we serve the value oriented customer.. and there’s a lot more people looking for value.”

"We’re really focused on getting right with our customers and how we treat them,” he adds. “And we’re getting better and better at taking care of them.”

Have you noticed any trends with gas a record levels?

“We’re seeing that people are interested in maintaining their vehicles to improve their gas mileage,” replies Odell. “So they’re taking care of their tires, getting oil changes, new air filters etc. Its the repair side that’s been softer because people are holding on to those dollars as long as they can.”






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Trader disclosure: On June 10, 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), (MSFT), (DIS), (WMT); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (AAPL); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (XME) Puts; Finerman's Firm Is Short British Pound; Finerman's Firm Is Short (GLD), (IYR), (IJR), (MDY), (SPY), (IWM); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (TSO), (EEV); Seygem Asset Management Owns Gazprom, (HAL), (TUR; Gazprom Trades Over The Counter In The U.S. But Trades On The Exchange In London

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