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Gloomy Investors Send Stocks Lower

Thursday, 24 Jun 2010 | 5:48 PM ET

The S&P 500 fell for the fourth straight day on Thursday as fresh signs of economic weakness sent investors packing.

Retail stocks were among the most punished after discouraging outlooks from Bed Bath & Beyond and Nike triggered new fears about the health of the consumer.

Word on the Street
The Fast Money traders take a look at today's top business stories.

Also banks also dragged down the market, as investors feared Congress would pass stringent new financial regulations and crimp bank profits.

What should you be watching?

Instant Insights with the Fast Money traders

I’m watching the G20, says Tim Seymour. I think we’re going to learn from their week-end meeting that the world is not unified in its fiscal policies and it’s entirely possible we come in on Monday morning to trouble.

I’m watching the action in the S&P into quarter's end; we're not seeing any run-up, adds Steve Grasso. It seems like investors are in wait-and-see mode.

I’m watching retail and in the space I like Best Buy, says Karen Finerman. I think we’ve already seen a sharp discounting in this sector. My research suggests many if not most companies in the space have strong balance sheets.

Speaking of retail, the only retail name I like is BJ's, says Barry Ritzholtz of Fusion IQ, because it’s a softer economy play. And I’d also say that although the S&P is falling it’s falling on light volume.

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AFTER HOURS ACTION: RESEARCH IN MOTION

Shares of RIM slipped in extended trade, after the BlackBerry maker issued profits that beat forecasts but shipments and subscriber growth fell short of expectations.

By the numbers, the company earned $1.38 a share in its first quarter on sales of $4.24 billion, compared with a gain of 98 cents a share on sales of $3.42 billion in the same period last year.

Analysts who follow RIM expected the company to turn in a profit of $1.34 a share on sales of $4.36 billion, according to a consensus from Thomson Reuters.

And perhaps even more important – RIM also issued forward guidance – they’re estimating between $4.4 billion to $4.6 billion. Analysts' consensus stood at $4.5 billion.

The BlackBerry maker expects to add between 4.9 million and 5.2 million new subscribers in the current quarter.

What should you make of it?

I don’t love the chart but I wouldn’t throw out the stock, says Tim Seymour.

I don’t love that RIM seems to be losing momentum, says Karen Finerman. I’m concerned that Apple is stealing their market share with the iPhone.

I've noticed that my clients are starting to use the iPhone for business, adds Steve Grasso. I agree that’s a huge headwind for RIM going forward.

Barclays says that iPhone will be available on the Verizon network by the first quarter of next year. If business people can get an iPhone on a network that's more reliable than AT&T -- that’s a huge headwind for RIM, adds Jon Najarian.

Find out what Barry Ritzholtz of Fusion IQ has to say about RIM earnings. Watch the video now.

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LATEST ON HOW MANY APPLE PHONES DID WE SELL?

The launch of a new Apple product is starting to look a bit like the premiere of a Harry Potter movie.

From Tokyo to San Francisco, the faithful lined up – sometimes around the block – hoping to snag a new iPhone 4 which went on sale Thursday.

It seems even Apple was surprised by the number of people who wanted to snap up the fourth version of the iPhone with Apple spokeswoman Natalie Harrison describing demand as "off the charts," and adding that the company was working hard to get phones into customers' hands as quickly as possible.

Some stores sold out completely within hours. Brian Marshall, an analyst for Gleacher & Co., said certain Apple stores likely had enough iPhones to last into Friday before selling out. A new shipment could be in stores as early as Saturday, he said, but more likely won't arrive until early next week.

It may also be the case that Apple correctly anticipated opening-day demand but sent too many phones to some of its 200-plus U.S. stores and not enough to others, said Kaufman Bros. analyst Shaw Wu.

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AFTER HOURS ACTION: ORACLE

Shares of Oracle climbed almost 3% in extended trade after the company reported a profit that jumped from a year ago and easily outstripped what Wall Street was expecting on stronger sales of database and other business software and a bump from the acquisition of Sun Microsystems.

After Hours Action: Oracle
A check on how Oracle is faring after hours.

Taking a closer look at the numbers, the business software giant reported earnings of 60 cents a share in its fiscal fourth quarter, excluding one-time items, up from 46 cents a share a year ago.

Revenue for the most recent period, also reported on a non-GAAP basis, rose 14 percent to $9.6 billion, compared with sales of $6.881 billion last year.

What must you know?

Oracle tends to always beat, explains Tim Seymour. But the chart is terrible. I’d stay away.

> For complete coverage of Oracle earnings click here

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BP BREAKS $29

BP shares broke below the crucial $29 level on Thursday as investors remained wary about the Gulf of Mexico debacle and strength of the economy.

BP Breaks
Why investors are still cautious on BP, with Pavel Molchanov, Raymond James analyst.

Are shares due for a bounce?

Market sentiment seems to be extremely negative and until the relief wells are completed I don’t see a catalyst to move the stock higher, says Raymond James Pavel Molchanov.




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Trader disclosure: On June 24, 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 (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman and Finerman’s Firm owns (AAPL); Finerman’s Firm owns (AEO); Finermans’ Firm owns (ANF); Finerman’s Firm owns (BAC) stock and calls; Finerman and Finerman’s Firm own (BAC) preferred; Finerman and Finerman’s Firm owns (BBY); Finerman owns (BP) calls; Finerman and Finerman’s Firm owns (C); Finerman and Finerman’s Firm own (CVS); Finerman owns (GLW); Finerman & Finerman’s Firm owns (GOOG); Finerman & Finerman’s Firm owns (HPQ); Finerman & Finerman’s Firm owns (IBM); Finerman & Finerman’s Firm owns (JPM) stock & calls; Finerman’s firm owns (PM); Finerman’s Firm owns (RIG); Finerman’s Firm owns (TGT); Finerman’s Firm owns (WMT); Finerman’s Firm is short (IJR); Finerman’s Firm is short (IWM); Finerman’s Firm is short (MOY); Finerman’s Firm is short (SPY); Jon Najarian owns (TGT) and short calls; Jon Najarian owns (WMT) and short calls; Jon Najarian owns (AAPL) call spreads; Jon Najarian owns (ODP) call spreads; Grasso owns (ASTM), (ABK), (BAC), (BGP), (C), (DYN), (JPM), (LPX), (NDAQ), (PRST); Seymour Owns (AAPL), (BAC), (GOOG)

For Tim Seymour:
Seygem Asset Management Owns (WBD)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)|
Stuart Frankel & Co and it’s partners own (SYMC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)

Barry Ritholtz
Funds managed by Fusion IQ own (BJ)

Pavel Malvhanov|
***No Disclosures**

Colin Gillis
***No Disclosures**


Christopher Whalen
***No Disclosures**

James Paulson
Paulson owns (SPY)





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S&P 500
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BBBY
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BP.
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NKE
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ORCL
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BB
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VZ
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SPDR FIN SEL
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AAPL
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