Pops & Drops: Honda, Apple...
Following are the day’s biggest winners and losers. Find out why shares of National City and Constellation Energy popped while Honda and Apple dropped.
POPS (stocks that jumped higher)
National City Corp (NCC) popped 9%. Ohio’s biggest bank bounced after the Senate passed a revised bailout plan. – I think regional banks will be the one’s to prosper, says Pete Najarian.
Constellation Energy (CEG) popped 14%. Shares of the wholesale power producer rose on a report that a French nuclear company is nearing a deal with a private equity company that could top Buffett's bid.
Regions Financial (RF) popped 13%. Sandler O’Neil trimmed profit estimates but maintained a “Hold” rating and a $10 price target on this stock.
DROPS (stocks that slid lower)
Honda (HMC) dropped 7%. September sales fell 24% largely due to the fact that credit was harder to come by. – Not so good, says Pete Najarian.
Apple (AAPL) dropped 8%. Nokia unveiled a new product to rival iTunes and the iPhone. – Apple’s not such a good place to put your money right now, says Jeff Macke.
Marriott (MAR) dropped 5%. The world’s largest hotel chain reported lower profits and cut its 2008 earnings estimate. – They’re not going to buy back stock for a while, adds Guy Adami. If they don’t think it’s cheap neither should you.
Schlumberger (SLB) dropped 6%. Merrill cuts their forecast for the industry citing reduced demand for oil. – If oil goes down less will be spent on exploration, says Tim Seymour.
eBay (EBAY) dropped 8%. Morgan Stanley downgraded the auction site to “equal weight” from “overweight.”- They were a wreck before, says Jeff Macke.
Con-way (CNW) dropped 20%. The company reduced its full-year outlook on lower freight demand. – I’d look at Burlington Northern around $80, says Guy Adami.
iShares FTSE/ Xinhua China 25 Index ETF (FXI) dropped 5%. Markets in China and worldwide are suffering from the ongoing credit crunch. – I think you’d do better in China than other places, says Tim Seymour.
MEMC Electronic Materials (WFR) dropped 13%. Analysts reduced their earnings estimates. – There are no words for this stock, exclaims Pete Najarian.
Las Vegas Sands (LVS) dropped 15%. Morgan Stanley downgraded the casino from “overweight” to “equal weight” due to new visa restrictions in Macau. – Gambling seems safer than the market, says Jeff Macke sarcastically.
Constellation Brands (STZ) dropped 9%. The beverage company disappointed investors when it said sales climbed less than expected.
Fluor Corp (FLR) dropped 14%. Concerns about a global slowdown dragged this engineering company lower.
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Trader disclosure: On Oct.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 (UUP), (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (BAC), (MER), (MS); Seygem Asset Management Owns (FXI); Pete Najarian Owns (AAPL) And (AAPL) Puts; Pete Najarian Owns (GS) Call Spread; Pete Najarian Owns (MS) And (MS) Put Spread; Pete Najarian Owns (NCC) Call Spread; Pete Najarian Owns (RF) And Is Short (RF) Calls; Pete Najarian Owns (SPLS) Put Spread; Pete Najarian Owns (WB) Call Spread; Pete Najarian Owns (XLF) Call Spread; Finerman's Firm Owns (MSFT), (PM)