Disney Magic After Hours
In extended trade shares of Disney surged as much as 4% after the Mouse House topped Street forecasts.
The entertainment giant said it earned 46 cents a share excluding one-time items in its fiscal fourth quarter, compared with 43 cents a share this time last year. Sales for the most recent quarter reached $9.87 billion, up from $9.445 billion in the same period last year.
Analysts who follow the company projected Disney earning 41 cents a share on a topline of $9.285 billion.
Meanwhile, earlier in the day Disney announced its finance chief, Tom Staggs, and the head of its parks division, Jay Rasulo, will soon swap jobs.
What's the trade?
For me it comes down to the multiple – do they deserve a 16 P/E, says Guy Adami. Personally, I think the stock is rich but others will tell you it’s a momentum play. It also comes down to the consumer and I don’t think the consumer is out of the woods, yet.
I don’t own Disney, adds Karen Finerman. I also think it’s rich though I do think the worst in advertising is behind us.
STOCKS PEEL BACK FROM 13-MO-HIGHS
Both the Dow and S&P closed lower on Thursday dragged down by energy and natural resource shares. Dollar strength weighed down oil futures, which are denominated in dollars, and -- in turn -- caused energy shares to fall.
As the S&P 500 has gone above 1,100, it has had a hard time holding on to gains, remarks Quincy Krosby, market strategist at Prudential Financial.
What’s the trade?
I’m watching the energy space, says Guy Adami. I’d get short Apache which I think trades into the 80’s.
It seems to me investors are wondering if the market can’t go above 1100 how much will it pull back, muses Pete Najarian.
WALMART A LONE RETAIL WINNER
Shares of Walmart closed higher on Thursday after the retail giant posted a higher-than-expected quarterly profit.
However a tepid outlook from the nation's largest retailer triggered concerns about the strength of the consumer.
What’s the trade?
Walmart is doing everything right, muses Karen Finerman. The tepid guidance doesn’t worry me. I think it’s just management being conservative.
I like Walmart too, adds Tim Seymour. I especially like that they’re sniffing around Russia.
I’d play retail with Home Depot, says Guy Adami. It feels like it’s going to take out $28.
I’m bullish on Kohl’s, adds Pete Najarian. And if you’re looking at Amazon make sure to buy downside protection. It’s trading near a 52-week high.
AFTER HOURS ACTION: NORDSTROM
Shares of Nordstrom tumbled 5% in extended trade after the luxury department store released earnings that missed expectations by a penny.
However the company did beat on revenue, helped by better sales and higher merchandise margins.
What’s the retail trade?
At 16 times forward earnings and a big short interest, I can see the shorts leaning into this stock, says Guy Adami.
But a pullback might be an opportunity in this name, adds Pete Najarian. When the shorts put pressure on a stock it can get too cheap. I’d also put TJX on the radar.
> For complete coverage of Nordstrom earnings click here.
TOPPING THE TAPE: STARBUCKS HITS NEW 52-WK. HIGH
Shares of Starbucks hit a 52-week high on Thursday after CEO Howard Schultz said McDonald's emphasis on coffee products was actually benefiting Starbucks.
"McDonald's made us better," Schultz said explaining that the McDonald's McCafe advertising blitz prompted many coffee drinkers to compare products from the two companies. He said that benefited Starbucks.
What’s the food and drink trade?
I think the stock should continue to the upside, speculates Pete Najarian. Their growth story remains in tact.
If you’re looking for an overseas trade, I’d look at BUD , counsels Tim Seymour. It should go higher.
McDonald’s is nearing levels of resistance, reminds Guy Adami. I’m not sure if it bounces or breaks through.
TRADING BUFFETT & GATES
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Trader disclosure: On November 12th, 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), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (CSCO), (MCD), (MSFT), (WMT), (TGT), (M); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Is Short (USO); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Is Short (XRT), (IJR), (IWM), (MDY), (SPY), (UNG); Najarian Owns (GE) Calls; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (JWN) Calls; Najarian Owns (MCD), Is Short (MCD) Calls; Najarian Owns (QLGC) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (UUP) Calls; Najarian Owns (YHOO), (YHOO) Puts; Symour Owns (AAPL), (BAC), (EEM), (FXI), (POT); Seygem Asset Management Owns (BUD); Najarian owns (TXN), is short (TXN) calls
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