Pops & Drops: Coach, Freeport McMoRan...
Following are the day’s biggest winners and losers. Find out why shares of Coach and 3M popped while Western Union and Freeport McMoRan dropped.
POPS (stocks that jumped higher)
Coach (COH) popped 9%. The luxury retailer met earnings estimates and beat on sales. Also the CEO revealed future plans to attract customers on CNBC. – Expectations were quite low, reminds Karen Finerman.
3M (MMM) popped 4%. They make things that everyone needs from Post-It notes to chemicals used in aircraft and as a result earnings increased by 3%. – Valuations look rich, counsels Guy Adami.
UAL Corp (UAUA) popped 9%. Although the airline reported a loss, the weakness was largely due to the high price of oil which has come down in recent days. – I think airlines will work better than casinos or automakers simply because they get away with charging higher prices for a worse experience, exclaims Jeff Macke.
American Express (AXP) popped 8%. Although third quarter earnings fell more than 20% they weren’t as bad as many had feared and in fact, beat analysts' estimates. – I’m a little skeptical of their numbers, says Karen Finerman.
DROPS (stocks that slid lower)
Western Union (WU) dropped 17%. The world's biggest money-transfer business reduced guidance due to uncertain global markets. – It seems like they have some long term troubles, warns Pete Najarian.
Freeport McMoRan (FCX) dropped 11%. The company posted a sharp decline in third-quarter profit and said it would curtail a planned mine expansion because of weaker metals prices. – If it holds $30.03 it’s okay to trade, says Guy Adami.
Netflix (NFLX) dropped 12%. The DVD rental company cut its current-quarter subscriber and revenue outlook for the second time in two weeks because of the weakening economy. – I’m not sure how to play this stock but I think obsolesce is inevitable, says Jeff Macke.
Sun Microsystems (JAVA) dropped 17%. The hardware giant issued an outlook that was below Wall Street's forecast and said it could take a charge for its biggest acquisition. – Not good, says Pete Najarian.
Lockheed Martin (LMT) dropped 9%. The world's largest defense contractor forecast earnings well below Wall Street estimates for next year, reflecting concern that growth in U.S. military spending will slow.
CME GROUP (CME) dropped 9%. A Raymond James analyst cut his rating on the firm to "Market Perform" from "Outperform" because macroeconomic problems are likely to be a drag on the company's volume growth in the coming quarter.
Trader disclosure: On Oct. 27, 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)(BTU)(C)(GS)(INTC)(MSFT)(NUE) -- Macke Owns (MCD)(WMT)(MSFT)(SDS)(UUP) -- Pete Najarian Owns (INTC) And Is Short (INTC) Calls, (MGM) And Is Short (MGM) Calls, (MS) Put Spread -- Jon Najarian Owns (UBS)(FCX) Calls, (SU) Calls -- Finerman's Firm Is Short (IYR)(IJR)(MDY)(SPY)(IWM)(BBT)(COF) -- Finerman Owns (GS) -- Finerman's Firm Owns (JNJ)(MRK)(MSFT)(SUN) -- Finerman's Firm Is Short (USO) -- Gartman Owns (FXE) And Is Short (FXY) -- CIBC Gartman Index Is Long The Australian Dollar And Is Short The Euro -- Pado does not have disclosures on: S&P 500, RTH, QQQQ, GS
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