* Hear more from Joe LaVorgna. Watch the video now
I'll be watching the dollar, adds Tim Seymour. It's been trading against the 200-day to the downside. I think it's oversold and likely goes higher.
The action in the Vix suggests to me that the market wants to go higher, says Guy Adami. However, if I see the Vix back near 24 I’ll feel differently.
GOLDMAN REDUCES ESTIMATES
Meanwhile, Goldman Sachs lowered its year-end forecast for the S&P to 1,200 from 1,250 and reduced its 2011 earnings projection, citing weakening economic forecasts, reminds host Melissa Lee. And they emphasized putting money to work in dividend paying stocks.
What’s the trade?
I’m not typically a dividend investors but I have been looking at dividend yield plays such as Intel, says Brian Kelly.
The one thing I’m concerned about with dividend paying stocks is the Bush tax cuts and whether they're extended to any or all of us after they expire on December 31st, says Karen Finerman. Dividends could have very different implications six months from now.
TOPPING THE TAPE: RESEARCH IN MOTION
Shares of RIM were the big winners on Monday after published reports suggested Saudi Arabia was close to reversing a proposed ban on BlackBerry services.
According to AP, RIM agreed to place BlackBerry servers inside Saudi Arabia and allow the government to monitor messages. Saudi security officials claim the move is critical so the service isn't used by militant groups, however critics argue the government is only trying to further curb freedom of expression.
Meanwhile, the latest web chatter suggests that other nations which have expressed similar concerns including India, Indonesia and the United Arab Emirates may also agree to similar resolutions.
What's the trade?
I think the valuation makes RIM compelling, says Karen Finerman.
RIM was likely oversold on the news, says Pete Najarian on the Halftime Report. With a 10 P/E I like this name. RIM should reach much higher levels. And I can't help but wonder if some larger company would ever have an interest in Research In Motion?
I agree that from a P/E ratio standpoint it seems like an attractive value play, adds Jared Levy but the BlackBerry just isn’t sexy. I was expecting a work of art in the new BlackBerry Torch but it wasn't there. With Android and iPhone making gains, I'm concerned about being long RIM outright. However, I see some potential so I’d buy the stock and sell calls against it.
At a 10 P/E I’d also give RIM some grace, adds Patty Edwards. There are a lot of other names they could kill - such as Nokia .
I like RIM for technical reasons, says Steve Cortes. It appears to be basing. At the same time Apple spacer seems to be topping out.
I’d be taking profits on Apple and putting that money to work in RIM.
* Hear from Baird analyst Will Power. Watch the video now!
TOPPING THE TAPE: MCDONALD’S
Shares of McDonald’s hit an all time high on Monday after the fast food giant said global sales at restaurants open at least 13 months rose 7 percent in July, compared with analysts' expectations for an increase closer to 5 percent.
The company added that new summer drinks in the United States and longer hours in Europe were largely behind the performance.
The strong sales show McDonald's is succeeding in reinventing its menu and image, winning new diners in a weak economy that has hurt rivals, analysts say.
"Over the last several years, they've been very successful at improving the quality of their food," said Stifel Nicolaus & Co analyst Steve West. "They've really invested in their brand."
What’s the trade?
Jim Skinner is just a great CEO, says Guy Adami. But it’s hard to pile in at these levels.
At 16 times I don’t think it’s terribly expensive, says Karen Finerman. I own it.
Months ago I said smoothies would drive sales, says Pete Najarian. But I took profits. However around $70 I’d start nibbling again.
ANALYZE THIS: TRADING THE BUMPER CROP
These are wild times in the wheat pits. It's a bull market for grains and a boon for the Midwest.
But how much longer can the trend continue?