The FM traders are keeping a close eye on three big catalysts for the market: GE and BofA earnings and Citi breaking above $5. What’s the play?
What’s the play?
Shares of Citi broke above $5 on Thursday. Is this level merely psychological or will it attract new money?
What’s the trade?
Citi is a long term hold for me, says Steve Grasso of Stuart Frankel on the Halftime Report. I’m holding it for a couple years. And I think breaking above the $5 level makes longer term investors feel safer and it could generate inflows.
Looking at the options, I see a lot of activity in the May 5 calls in Citi, says JJ Kinahan of TD Ameritrade. I interpret that as a bet that the price will remain at these levels for the next month.
Bank of America
Before the bell Friday, BofA releases quarterly results. On average, Analysts polled by Thomson Reuters expect Bank of America to post first-quarter earnings of 9 cents per share.
On top of those numbers, the Fast Money traders also want to hear about loan loss provisions – especially in the wake of JPMorgan results – which showed improvement.
Rochdale Securities analyst Dick Bove says he expects BofA loan losses "will remain quite high in residential real estate,” but adds he does not think that they will jump meaningfully.
What’s the trade?
I love this stock long term, says Karen Finerman, but it’s important to note the stock tends to trade lower after earnings. I think you may get an opportunity to buy lower.
General Electric, the parent company of CNBC, reports earnings on Friday. The stock has seen a nice rebound in the last year rallying 30%.
What’s the trade?
I’m seeing a large volume of buying in the April 20 calls, says Pete Najarian. I think options investors expect good results.
GE shares have been on a run, reminds Guy Adami on the Halftime Report. I’d rather be in Honeywell , he counsels. I just think it’s a better run business. I think it could trade up to the high 60’s.
In the space I like UTX , adds Eugene Profit of Profit Funds.
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Trader disclosure: On Apr 15, 2010, 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 (C), (INTC), (MSFT); Grasso Owns (C), (AAPL), (BAC); Terranova Owns (AXP), (HES), (TER), (APA), (YHOO), (MOS); Terranova Is Short (LCC); Terranova Is Short (BRE); Terranova Owns (C) Calls; Terranova Owns (GOOG) Calls; Terranova Owns (SONC) Puts; Seymour Owns (BAC), (AAPL), (EEM), (INTC), (MON), (MGM), (MGM); Seymour's Firm Owns (POT); Seymour's Firm Is Short (X); Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (GOOG) May Calls, Short April Calls; Najarian Owns (GE) Calls; Najarian Owns (PCX) Call Spread; Najarian Owns (MOS) Call Spread; Najarian Owns (SUN); Najarian Owns (YHOO) Call Spread; Najarian Owns (TCK); Najarian Owns (F); Finerman Owns (GOOG), (AAPL), (RRI), (BAC), (YUM); Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR), (SPY); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM); Finerman's Firm Owns (GLW); Finerman's Firm Owns (BAC); Finerman's Firm Oww (BAC) Preferred; Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Cortes is Short (LVS) & (WYNN); Cortes Owns (GS); Cortes Owns (MS); Cortes Is Short S&P Futures ; Kinahan Owns (C); Kianahan Owns (GE)
GE is the parent company of CNBC
For Steve Grasso
Stuart Frankel And Its Partners Are Short (AAPL)
Stuart Frankel And Its Partners Own (PDE)
For Eugene Profit:
Profit's Fund Owns (GE)
Profit's Fund Owns (GOOG)
Profit's Fund Owns (UPS)
Profit's Fund Owns (INTC)
Profit's Fund Owns (MRO)
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