Pops & Drops: Citigroup, Best Buy...
Following are the day’s biggest winners and losers. Find out why shares of Citigroup and Best Buy popped while Philip Morris and Smith & Wesson dropped.
POPS (stocks that jumped higher)
IShares Dow Jones US Real Estate ETF (IYR) popped 12%. The real estate index popped on the belief that Fed action will translate into lower mortgage rates and new life in the real estate market. – I’d short into that, says Karen Finerman.
General Electric (GE) popped 6%. CNBC’s parent company won a $3 billion order to provide electricity-generating equipment and services to Iraq. – I like Honeywell, says Guy Adami.
iShares MSCI Emerging Markets ETF (EEM) popped 8%. A weaker dollar makes the risk of emerging markets more appealing to investors. – If commodities go higher, emerging market should go higher, speculates Tim Seymour.
Citigroup (C) popped 11%. Lower interest rates provided a tailwind not only for this bank, but the entire financial services sector. – And all it took was this Fed policy of zero percent, chuckles Karen Finerman.
Best Buy (BBY) popped 18%. The electronics retailer said it will offer voluntary severance packages to almost all its corporate workers and slash capital spending in an effort to reduce costs. – That’s nice, says Jeff Macke.
Intel (INTC) popped 7%. A trends report suggested that global semiconductor sales will drop 16% next year, however worse news was already baked in. – The weaker dollar has investors flooding into tech, reveals Guy Adami.
China Mobile Limited (CHL) popped 7%. This company as well as other consumer names based in China bounced after that nation’s central bank hinted at an interest rates cut. – I think CHL is a great way to play emerging markets, says Tim Seymour.
Gilead Sciences (GILD) popped 8%. Merrill Lynch upgraded the drug maker to “buy” from “neutral”.
Baidu.Com (BIDU) popped 12%. Goldman upgraded the firm to “conviction” from “neutral”, saying that search spending is likely to grow.
DROPS (stocks that slid lower)
Powershares DB US Dollar Index (UUP) dropped 2%. The Fed cut makes the dollar the lowest-yielding currency among industrialized nations. – For now the dollar is busted, says Jeff Macke.
Philip Morris (PM) dropped 1%. The US Supreme Court ruled that smokers can sue over the marketing of “light” cigarettes, a victory for consumers, but not so good for tobacco companies. – That’s interesting, says Karen Finerman.
Smith & Wesson (SWHC) dropped 13%. The gun maker reported earnings for the second quarter were worse than expected. – You’d think gun sales would be up in this economy, scoffs Jeff Macke.
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Trader disclosure: On Dec. 16th, 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 (MSFT), (DIS), (MCD); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (MSFT), (PM), (MO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (BAC), (EEM), (F), (GE), (INTC), (MER), (SSL); Seygem Asset Management Owns (CHL)
GE Is The Parent Company Of CNBC