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Halftime Pt. 2: Revised Estimates For Goldman, Morgan

Tuesday, 13 Jul 2010 | 1:31 PM ET

An analyst at Wells Fargo lowered estimates for Goldman and Morgan Stanley Tuesday, the 8th analyst to do so since June 4th.

Why so long, asked host Melissa Lee on the Halftime Report?

Largely because what Wells saw in June was more troubling than previous months, explains analyst Matthew Burnell, the analyst who made the call.

"Trading conditions across both debt and equity markets were very challenging in June, more challenging than in May - and May was better than April," he explains.

(Also) "we saw a fairly sizable decline in underwriting volume," he adds. "That's what really caused us to lower estimates."

Should you expect those deteriorating trends to continue?

No, according to Burnell.

Although he doesn't anticipate a robust rebound, he's modestly optimistic. "Investors are (now) more willing to put on risk and we have greater clarity from Europe's banks and financial reform."

So what's the trade?

Burnell tells the desk his top pick in the space is PNC . "We like their mix of income businesses and we think their performance will be solid."

POLL OF THE DAY: APPLE

Apple came under pressure again Tuesday with the stock sliding more than 8% since the release of it’s iPhone 4.

As we first told you yesterday, jitters are growing about this stock after Consumer Reports said it will not recommend the new iPhone 4 to buyers after testing the device.

The latest chatter on the Apple blogs suggests Apple may have to recall the new gadget though most analysts say a recall is highly unlikely.

What do you think? Tell us now!











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CALL TO THE FLOOR: WINDOW INTO WALL STREET

Call to the Floor: SS&C Technologies
SS&C Technologies, which sells software enabling fund managers and brokers to trade securities, is up 20% since its March debut. The company's CEO, William Stone, discusses its success with the Fast Money traders.

Called the "backbone of Wall Street you haven't heard about" and one of the year's most successful IPO's, SS&C Technologies is up 20% since its March debut.

The company sells software enabling fund managers and brokers to trade stocks, bonds, futures and options. Its clients include Morgan Stanley , JPMorgan Chase and MetLife .

Chairman and CEO Bill Stone stopped by the Fast Money studios to talk about the financial services provider.

Watch the videoto see how it went.

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CALL THE CLOSE

"At this point, I don't like the market," says Patty Edwards of Storehouse Investment Partners. "We're sitting at right about the 50-day moving average. I want it to move up through that before I get too long."

She would buy some "quality" names and is looking at Kraft Foods.

Brian Kelly of Kanundrum Capital says use the opportunity to take profits now.

Jon Najarian of optionMONSTER.com thinks the catalyst for moving forward could come from Intel'searnings report after the closing bell.

Joe Terranova of Vitrus Investment Partners agrees with Edwards about finding quality names. He likes Hewlett-Packard .

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Trader disclosure: On July 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: Jon Najarian Owns (SCHN), Is Short (SCHN) Calls; Jon Najarian Owns (STLD), Is Short (STLD) Calls; Jon Najarian Owns (BP), Is Short (BP) Calls; Kelly Owns (BP) Puts; Kelly Is Short (GS);Terranova Owns (GOOG), (APC), (GMCR), (MYL), (BAC), (ABT), (AXP), (HES), (AMZN), (SUN), (SMH), (MRVL), (ADI), (EMC), (CVS), (AKAM), (ADBE), (MON), (KCE); Terranova Owns (FCX) July Calls

For Patty Edwards
Edwards Owns (FCX) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (BA) For Clients
Edwards Owns (C) For Clients
Edwards Owns (MS) For Clients
Edwards Owns (JPM) For Clients
Edwards Owns (WFC) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (YHOO) For Clients
Edwards Owns (DO) For Clients
Edwards Owns (XOM) For Clients
Edwards Owns (F) For Clients
Edwards Owns S&P 500 For Clients
Edwards Owns Nasdaq 100 For Clients
Edwards Owns Gold For Clients
Edwards Owns Silver For Clients

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (NWL)
Accounts Managed By Kanundrum Capital Own (BIG)
Accounts Managed By Kanundrum Capital Own (GME)
Accounts Managed By Kanundrum Capital Are Long U.S. Dollar
Accounts Managed By Kanundrum Capital Are Short (FXI)
Accounts Managed By Kanundrum Capital Are Short (EWA)
Accounts Managed By Kanundrum Capital Are Short (EWI)
Accounts Managed By Kanundrum Capital Are Short (NATI)
Accounts Managed By Kanundrum Capital Are Short (KMX)
Accounts Managed By Kanundrum Capital Are Short (WYNN)
Accounts Managed By Kanundrum Capital Are Short (RSX)
Accounts Managed By Kanundrum Capital Are Short (AMZN)
Accounts Managed By Kanundrum Capital Are Short (FCX)
Accounts Managed By Kanundrum Capital Are Short (HIG)
Accounts Managed By Kanundrum Capital Are Short (MET)
Accounts Managed By Kanundrum Capital Are Short (CLF)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Matt Burnell
Wells Fargo Securities Or Affiliates Managed Or Co-Managed A Public Offering For (MS), (GS) In Past 12 Months
Wells Fargo Securities Or Affiliates Received Investment Banking Compensation From (MS), (GS) In Past 12 Months
(MS), (GS) Is Or In Past 12 Months Was An Investment Banking Client Of Wells Fargo Securities
(MS), (GS), Is Or In Past 12 Months Was A Client of Wells Fargo Securities (Non-Investment Banking, Securities-Related Services)
Wells Fargo Securities Received Non-Investment Banking Compensation From (MS), (GS) In Past 12 Months
Wells Fargo Securities Or Affiliates May Have A Significant Financial Interest In (MS), (GS)




CNBC.com with wires

  Price   Change %Change
GS
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HPQ
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INTC
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JPM MLP ETN
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MDLZ
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MET
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MS
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PNC
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AAPL
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SSC TECH HOLD
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