#1 - THE PC PREAKNESS
Hewlett-Packard is the final Dow component to report earnings this week. How should you trade?
“The biggest announcement that HP probably has coming is their integration with EDS,” says FBR senior analyst Clay Sumner on Fast Money. “They haven’t closed that deal yet but we think they will close it shortly after they close the quarter.”
Sumner will be listening to hear more about plans to move a percentage of EDS employees off-shore. “I thinks HP will probably accelerate those plans.”
Also he’s looking for outlook for Q3 and the data point coming out of the Taiwan supply chain. “I would look for consumer printers to be a little soft… there’s some segment reorganization.”
What’s the trade?
I like HP a lot for the longer term, says Sumner. But for the balance of the year I like Dell , more. I think they will outperform.
Joe Terranova, Pete Najarian and Guy Adami all agree. Short term Dell; long term Hewlett Packard.
Hewlett-Packard looks a little more attractive to me, counters Karen Finerman.
What do you think? Answer the Charles Schwab Question of the Day!
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#2 - HAPPY ANNIVERSARY OIL BOTTOM!
How should you trade seasonal moves in oil and nat gas?
Oil tends to be cyclical, reminds Joe Terranova. Historically it bottoms in August and goes higher in Q3 and Q4. That bodes well for the overall energy sector.
Keep and eye on coal and natural gas.
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#3 – SOLAR TO OIL: IT'S YOU NOT ME!
Despite a sharp decline in crude, solar stocks are still rallying. Is this the start of something new?
Shares of SunPower soared as much as 20 percent to a three-month high on Friday, a day after the company announced a big deal to supply solar power to California utility PG&E Corp.
LDK also landed an important contract this week, explains Pete Najarian. There are companies in solar that work. But if the space is too volatile you can also get exposure through Hewlett-Packard , IBM and Intel . Big chip makers and technologies companies have jumped into this game.
My trade is Evergreen Solar, adds Guy Adami. Buy it now and when they announce a contract sell the rally.
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Trader disclosure: On Aug 15, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (AAPL) And Is Short (AAPL) Calls; Najarian Owns (CSCO) Calls, (NVDA) Calls: Najarian Owns (HCBK) Puts; Finerman Owns (GS); Finerman's Firm Owns (JCP), (MO), (NOK), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (GLNG); Finerman's Firm And Finerman Own (C) Leaps
Finerman's Firm Is Short British Pounds; Finerman's Firm Is Short (XLF), (BBT), (COF), (SPG), (IYR), (IJR), (MDY), (SPY), (IWM)
Terranova Owns (RIMM), (AAPL), (IYT), (XLF), (KOL), (VLO), (SA), (GS), (POT), (FCX), (NOV), (X), (EOG), (INTC), (GOOG), (CME), (BNI), (SA), (YHOO), (SU); Terranova Is Short Crude Oil Time Spread (Short Dec. 2008, Long Dec. 2012); Terranova is Long Crude Oil (Dec. 2012)
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
FBR Is A Market Maker In (DELL)
