Pops & Drops: Texas Instruments, Hershey
Following are the day’s biggest winners and losers. Find out why shares of Texas Instruments and Hershey popped while Valero and McGraw-Hill dropped.
POPS (stocks that jumped higher)
The Travelers Companies (TRV) popped 6%. The firm reported better-than-expected earnings and Travelers said its investment portfolio had no direct investments with Madoff. - I like this name but I'd pair it with a consumer finance short, explains Joe Terranova.
Peabody Energy (BTU) popped 12%. The firm posted an eight-fold jump in quarterly profits and said it is pursuing a venture to provide coal to China. - They look good for next quarter, speculates Tim Seymour.
Texas Instruments (TXN) popped 4%. The firm posted a smaller-than-expected drop in quarterly profit, and analysts predicted the results could signal that TI is positioned for growth when demand recovers. - Nice pop, exclaims Pete Najarian.
Hershey (HSY) popped 6%. The chocolate maker reported a 51% increase in revenue due to lower costs. Hershey also increased advertising to gain market share against rivals. - And they're passing along their prices, adds Tim Seymour.
St. Jude Medical (STJ) popped 11%. The firm posted a higher-than-expected quarterly profit on solid demand for its devices to treat heart rhythm disorders and chronic pain.
Crucell (CRXL) popped 10%. The Dutch vaccine maker jumped on hopes that a new buyer would emerge after Wyeth pulled out due to its merger with Pfizer.
McGraw-Hill (MHP) popped 4%. Although profit fell 18 percent and 2009 earnings may miss analyst forecasts the results nevertheless topped forecasts.
UnitedHealth (UNH) popped 3%. This firm and other managed care companies popped as Obama lobbied for the immediate passage of the economic stimulus, which could greatly benefit the healthcare sector.
DROPS (stocks that slid lower)
Delta Air Lines (DAL) dropped 20%. The airline reported a quarterly loss due in part to bad fuel hedging. - That fuel hedging really hurt them, says Pete Najarian.
Proshares Ultrashort Lehman 20+ Yr ETF (TBT) dropped 4%. The ETF that bets against treasuries, dropped after a successful auction sent the government bonds higher. - I'm long but it's very volatile, warns Karen Finerman.
Valero (VLO) dropped 6%. The oil refiner posted its first loss in six years due to write-downs and the drop in oil prices. - Keep in mind it's still up 11% for the year, says Joe Terranova. I wouldn't short it.
AK Steel (AKS) dropped 8%. The steelmaker said it expects prices to be down about 10 percent in the fourth quarter, with shipments also lower.
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Trader disclosure: On Jan. 27th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (F), (FXI), (VIP); Seymour Is Short (SNE); Seymour's Firm Owns (MBT), (TRC); Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Owns (MSFT), (UNH); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (ANF), (COF), (USO), (TBT); Terranova Works For (VRTS); Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Terranova Owns (XBI), (DIS), (AMGN), (FCX); Terranova Owns (IBM) & (IBM) Call Spread; Najarian Owns (EEM) Call Spread; Najarian Owns (BMY) CAll Spread; Najarian Owns (FCX) & (FCX) Short Calls; Najarian Owns (GE) Put Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls/Put Spread; Najarian Owns (YHOO) Call Spread