Trading Apple Ahead of Wednesday's Mystery Event
Shrouded in mystery, Apple won't say what it plans to announce at a press conference Wednesday, but the technology giant is rumored to unveil a new iPod or a successor to Apple TV.
How should you trade it?
In a market where almost everything is struggling, Apple's stock continues to do great, said Pete Najarian, co-founder of optionMONSTER.com. Mac sales were up and growth last quarter was incredible.
The Cupertino, Calif.-based company, however, needs to provide catalysts for the stock because it's been stuck trading at around $240 for some time. He thinks a new iPod or Apple TV could move the needle.
It's theiPhone or iPad that typically moves the needle, countered Joe Terranova, chief market strategist of Virtus Investment Partners. Terranova expects demand for both devices in the fourth-quarter.
In the options market, Najarian has spotted strong volumes in Apple 250 calls, even though they expire Friday. That activity illustrates how excited people are in anticipation of the announcement and the upside it could bring, he said.
Meanwhile, BGC Partners recently gave Apple a price target that's 44 percent higher from current levels, noted CNBC's Simon Hobbs.
Terranova thinks the tech giant will reach that target and added that he's long the stock. Although he warned that if the equities market declines significantly, Apple will likely be one of the first names people sell because they'll want to take profits.
Last week on "Fast Money," Gene Munster of Piper Jaffary, a widely followed analyst provided his insight on what to expect from Apple's press conference. Click here for his full thoughts on what could happen at Wednesday's event.
CALL OF THE DAY: ABERCROMBIE UPGRADED
Teen retailer Abercrombie & Fitch caught an upgrade from BMO Capital Markets, who gave the New Albany, Ohio-based company a price target of $43, which is a 21 percent upside from current levels.
The bad news is already baked into the stock, explained analyst John Morris on Tuesday's "Fast Money Halftime Report." In addition, CEO Michael Jeffries is now focusing on women's clothing and back-to-school, which has been to the company's benefit.
Issues with inventory that was once a problem for the department store chain is now to their benefit, Morris added, due to labor strikes in China and floods in Pakistan.
One of the most significant tailwinds for the company, Morris said, is international expansion. Twenty percent of its business in international and that will only benefit the company, as it expands in Canada, Europe and Asia.
Watch the full video to see Morris' full comments—it starts at 2:30.
CALL TO THE FLOOR: CINEMARK
It seems the movie industry is spinning a confusing plot with box office receipts up, but attendance down. By some reports, noted CNBC's Simon Hobbs, attendance is at the lowest levels in five years.
For insight into this trend, a top executive at the world's second-largest movie exhibitor spoke with Hobbs on Tuesday's "Fast Money Halftime Report." Alan Stock, CEO of Cinemark , noted that July was a record month for attendance. To keep people coming back, Stock said they'll continue to provide movie-goers with an exceptional experience and enjoyable films.
Steve Cortes, founder of Veracruz, asked for Stock's comments on piracy, which the Motion Picture Association said is a growing problem that costs the industry billions. Stock said the Plano, Texas-based company looks for theater-goers, who might try and video tape the content.
Asked by Hobbs if an influx of films in 3D might take away from its luster, Stock said some people prefer certain films over others, just like with 2D pictures. He said certain people will gravitate toward those films regardless. Still, he wished every 3D movie did as well as James Cameron's "Avatar" did.
Watch the video for the full interview with Stock.
CALL THE CLOSE
"The stock market's not going to be [dragged] out of this hole by the consumer this time," said Scott Nations, president and CIO of NationsShares. "It's about growth now, so I'm a seller."
Joe Terranova, chief market strategist of Virtus Investment Partners, said the price of gold futures could go to 1300 in the near-term. He recommends looking at the Market Vectors Gold Miners or SPRD Gold Shares exchange-traded funds.
"One of the worst sectors in recent months, housing has at least stopped going down," said Steve Cortes, founder of Veracruz. "That at least makes me constructive generally."
"I love the commodities space right now," said Pete Najarian, co-founder of optionMONSTER.com, adding that he's watching Joy Global .
The financials, however, are "very concerning." Najarian is being cautious going into the close.
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CNBC.com with wires.