Halftime Report: Will Intel, CSX, JPMorgan Breathe Life Into Bulls?
The S&P gave back gains on Tuesday after Alcoa kicked off earnings season with weaker-than expected revenues.
Considering Alcoa almost always disappoints – will upcoming earnings from Intel , CSX , JPMorgan and other key companies breathe new life back into the bulls?
Instant Insights with the Fast Money Trader
Of all the companies due to report this week I think Intel is the bellwether, says Pete Najarian. They’re the global leader in the chip space and because their chips are used in so many computers and gadgets what they say about demand will likely be interpreted as a broader ‘tell’ on the economy.
However, if you’re looking for a trade in this space, Intel stock tends to be dull. If you’re bullish I’d play it long Marvel or TXN because I think both have more potential upside.
I don’t have a particular view on Intel stock only to say it has been lagging it’s own sector, says Steve Cortes of Veracruz. If you’re looking for upside in chips I’d also play it with Intel rivals such as TXN or AMAT on a pullback.
If Intel says good things, I’d get long Teradyne , Marvell Technology and Lam Research , says Joe Terranova on Monday's Fast Money.
Derivative trades on wireless devices and derivate trades on the iPad are the place where I anticipate a lot more upside, says Zach Karabell of RiverTwice.
Fast Money’s Intel Earnings Preview
CSX REPORTS AFTER THE BELL
As we mentioned above, railroad CSX reports on Tuesday after the close.
How should you game it?
Volatility is moving to the upside in this name, explains Pete Najarian, but it seems options investors are not pricing in a major move.
ON DECK: JPMORGAN
Tuesday is your last chance to trade JPMorgan ahead of its earnings release Wednesday morning.
The stock traded relatively flat ahead of the report but has seen a nice 7% run up in the last month.
What’s the trade?
I’m long JPMorgan, reveals Patty Edwards. JPM is one of the few names in financials that I like. But I’ll be listening to hear about non-performing loans and reserves and see how they’re trending.
I’m concerned about JPMorgan because of lingering home equity loan exposure, says Steve Cortes. In this space, I’m a much bigger fan of the brokers especially with the explosion of deal making.
I disagree with Steve, counters Pete Najarian. I think brokers such as Goldman and Morgan Stanley have a ceiling on them because of the threat of regulation. I think the torque comes from JPMorgan or BofA .
JPMorgan Results To Shape Bank Trade
VIX RALLIES OVER 5% TUESDAY
The Fast Money gang is keeping a close eye on the Vix . After falling considerably the fear index rallied on Tuesday. What should you make of it?
This says to me that the market is climbing a wall of worry and that we’re through the worst of it, says Patty Edwards of Storehouse.
CASINO NAMES CONTINUE TO OUTPERFORM
Casino names continued their run higher Tuesday after JPMorgan raised its targets for Las Vegas Sands to $29 from $23 citing better occupancy rates.
What’s the trade?
I think JPMorgan has a very aggressive price target on LVS, says Guy Adami. I find it hard to get long in LVS at these levels.
UNUSUAL ACTIVITY: PG
Pete Najarian has spotted unusual options action in Procter & Gamble.
The large volume of May 65 calls traded recently leads him to speculate that the stock could make a sharp move higher.
TRADE TO GO: NVDA
Patty Edwards recommends putting NVIDIA on your radar.
It’s all about the 3-D, she says. They have chips that allow 2-D games to become 3-D.
CALL THE CLOSE:
Pete Najarian: I think the market closes flat; Intel will be the ‘tell’
Patty Edwards: I’m a buyer of individual stocks but not crazy about the market broadly.
Steve Cortes: I’m bearish; Europe is still a problem.
Zach Karabell: It’s hard to argue with this market.
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Trader disclosure: On April 13, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CSX) call spread; Najarian Owns (LVS) call spread; Najarian Owns (JPM) call spread; Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CSX) Call spread; Najarian Owns (LVS) Call spread; Najarian Owns (JPM) Calls; Najarian Owns (PCX); Najarian Owns (TXN) Calls; Najarian Owns (VLO) Calls; Najarian Owns (YUM) Call Spread; Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM) ; Finerman Owns (BAC); Finerman's Firm Owns (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Finerman Owns (YUM); Seymour Owns (CHL), (DRYS), (GE), (BAC), (EEM), (F), (INTC), (LVS), (SBUX); Seymour's Firm Owns (POT)
For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients|
Edwards Owns (GS) for Clients
For Citi analyst Donald Fandetti, Citi Owns (AXP)
Citi Owns (COF)
Citi Has Provided Baking Services To (AXP)
Citi Has Provided Baking Services To (MA)
Citi Has Provided Baking Services To (COF)
Citi Expects To Receive Compensation from (AXP), (V), (MA)
Citi Has Acted As Manager or Co-Manager Of Offering of (AXP), (COF)
Citi has Managed a Securities Offering of (YUM)
Citi Has Received Compensation from (YUM)
(YUM) is an investment banking client of Citi
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