Fast & Furious Trades For Wednesday
Following are the “Fast & Furious” trades - hot ways to play Wednesday's market moving events.
MCDONALDS VS. STARBUCKS: McDonald's might be ramping up its attempt to win market share from java giant Starbucks. In an interview earlier, McDonald’s US President told us, “(coffee) is a huge market and has huge market potential for us.”
I own McDonald's stock becuase of their coffee play, reveals Pedte Najarian.
PRUDENTAIL PROFITS: Prudential reports earnings Wednesday; a profits of 83 cents is expected, a loss of 50% year over year.
The stock moved 191% since March, explains Guy Adami. Whenever a stock moves like that you'd better take profits.
VALE UPDATE: Metals and mining giant Vale (formerly CVRD) is getting a new ticker to match its new name.
I love this company but I'm not sure I love it here, says Tim Seymour.
CISCO EARNINGS PREVIEW:Cisco Systems, the world's largest maker of computer networking gear, reports its fiscal third-quarter results on Wednesday. Analysts polled by Thomson Reuters expect Cisco to post earnings of 25 cents per share on $8.1 billion in revenue.
I think they will miss slightly on revenue and guide flat, speculates Dan Niles Of Alpha One Capital Partners. However, they've also done a great job of controlling costs and I expect them to say business bottomed out in February. A little for the bulls and a little for the bears, but bottom line -- it's not my favorite stock in the space.
BIGGER KINDLE:Amazon is scheduled to unveil a bigger version of its popular Kindle Wednesday; should you buy ahead of the release?
I think the Kindle will be bigger than people expect, but I'd wait for a pull back in this stock, says Jeff Macke.
UTILITIES TRADE:PG&E reports earnings Wednesday, a profits of 72 cents is expected; an increase of 16% year over year.
I think it's a name you might want to own, counsels Guy Adami.
THE MULTINATIONALS: Barrack Obama’s tax crackdown could send ripples through the stock market. On Monday the President called for curbing offshore tax havens and eliminating tax breaks for companies that generate income over seas.
According to the New York Times, "the proposals would especially hit pharmaceutical, technology, financial and consumer goods companies — among them Goldman Sachs, Microsoft, Pfizer and Procter & Gamble — that have major overseas operations or subsidiaries in tax havens like the Cayman Islands."
The devil's in the details, says Tim Seymour. I need to know more before I can offer a trading thesis.
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Trader disclosure: On May 5th, 2009, 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 (AAPL), (PCLN), (LVS), (SDS), (GE), (NFLX), (IMAX), (GS); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (BX), (RIO), (SBUX); Najarian Owns (BX) Call Spread; Najarian Owns (DFS) Calls; Najarian Owns (ERTS) Calls; Najarian Owns (FIG); Najarian Owns (MCD) And Is Short (MCD) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (PALM) And Is Short (PALM) Calls; Najarian Owns (XLI) Call Spread; Najarian Owns (XHB) Call Spread
For Dan Niles
Niles Has A Position In (CSCO) Through An Investment In AlphaOne Satori Funds
Niles Is The Portfolio Manager For AlphaOne Satori Funds
AlphaOne Satori Funds Invest In (CSCO)