FINANCIALS KEEP RALLYING
Financials continued their march higher after Calyon Securities upgraded Goldman Sachs today from Underperform to Outperform and raised their price target on the stock to $230 from $194.
Adding to the positive tailwind, Buckingham upgraded JPMorgan and BofA to ‘Strong Buy.’
What’s the bank trade?
At these level, I can’t get excited about Goldman, says Brian Kelly. I’d look further down the chain at something like Federated Investors . If this market does takes off I think retail investors will come in, and Federated should capture all that retail flow.
I’m seeing a lot of put action in the XLF, says Pete Najarian. But there is no panic. I think it’s protective buying.
Retailers charged higher on Tuesday after Goldman added TJ Maxx to it’s prestigious conviction buy list with a $43 price target saying the stock is too cheap to ignore.
Also, Citigroup initiated coverage of Tiffany with a "buy" rating and a $50 price target, citing an expected return to sustained positive same-store sales in the fourth quarter.
However, on a bearish note, a new report from the National Retail Federation suggests retailers will likely experience a 1 percent drop in sales during the holidays -- albeit an improvement from last year's dismal season, but far below the 10-year average of 3.39 percent growth.
What’s the retail trade?
I agree with Goldman. For me the play in the space is TJMaxx, says Pete Najarian. I think this stock has a lot of catalysts that could take it higher.
Looking at the RTH, I think recent gains stem from optimism about the comp numbers that are coming out Thursday, muses Patty Edwards.
I’m not a buyer of retailers, counters Brian Kelly. I think consumers are still trapped for cash.
FAST & FURIOUS: THE KEY QUESTIONS INTO THE CLOSE
BUY YUM? With Yum Brands reporting after the bell today, should you buy?
The stock may be ahead of itself, but I think it still has upside, says Pete Najarian.
BUY FDO? Considering BMO upgraded Family Dollar to outperform; should you buy?
I am a buyer, says Patty Edwards. I think Family Dollar is a place where consumers who are strapped for cash will shop for the holidays.
BUY GOLD MINERS? With gold hitting new highs today, should you buy the miners?
I’d wait 3 days, says Brian Kelly. If they hold the gap then I’m a buyer.
BUY COST?Costo reports earnings before the bell tomorrow, should you buy today?
I’m a buyer but I’d also put a stop about $3 lower, counsels Greg Troccoli.
CALL THE CLOSE
Pete Najarian: Goldman turned negative so I’d sell the close.
Patricia Edwards: I’m a buyer, she says to the panel's surprise. (Typically Edwards is bearish)
Brian Kelly: If the dollar stays weak I’m a buyer.
Greg Troccoli: I’m short as a technical play. I’d only buy if my buy stop is selected.
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Trader disclosure: On Oct. 6th, 2009, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (NOV), (MOS), (JPM); Terranova Owns Dec. Gold Futures; Terranova Owns March Sugar Futures; Terranova Owns Crude Futures; Terranova Is Short (CCL), (WYNN), (GRMN); Seymour Owns (AAPL), (STD), (EEM), (RIMM), (BAC), (MSFT), (SBUX), (VIP), (RTP); Najarian Owns (C) Calls; Najarian Owns (BRCD) Call Spread; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) & Short (JPM) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls & Long (LAZ) Put Spread; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (MYL) Calls; Najarian Owns (TEVA); Najarian Owns (ORCL) & Short (ORCL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (WFC) Puts; Najarian Owns (YHOO) Call Spread ; Najarian Short (AA) Calls
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