What’s the bank trade?
I thought the rally in JPMorgan on this news was kind of ridiculous, says Karen Finerman. We knew that JPMorgan was going to restore dividends in 2011.
With BofA down about 20% in such as short period of time, it could be due for a bounce, says Steve Cortes. But it’s a trade.
EAR TO THE WALL: WHY IS BANK OF AMERICA SELLING BLACKROCK SHARES?
Fast Money trader Brian Kelly is taking a hard look at Bank of America's sale of a portion of its BlackRock shares.
What does he make of it?
Kelly thinks BofA needs to raise cash for put-backs that could total as much as $50 billion. “I just think the analysts only looked at the private label exposure and there’s a lot more exposure out there."
Kelly crunched the numbers himself. What did he find? Watch the Word on the Street video and find out now!
AFTER HOURS ACTION: STARBUCKS
Shares of Starbucks popped in extended trade after the company ported earnings and sales well ahead of Wall Street expectations Thursday.
Looking at the numbers the java giant reported fiscal fourth-quarter earnings of 37 cents a share, excluding one-time items. Starbucks earned 24 cents a share during the same period a year ago.
Sales for the most recent quarter rose to $2.84 billion, up from $2.42 billion last year.
The company was seen earning 32 cents a share on revenue of $2.77 billion, according to a consensus estimate from Thomson Reuters.
The chain raised its earnings target for the current 2011 fiscal year to a range of $1.41 to $1.47 per share from its prior range of $1.36 to $1.41.
What’s the trade?
With the stock north of $30 and at a 52-week high I think the valuation is stretched, says Guy Adami. But that doesn’t mean it couldn’t go up tomorrow.
> Click here for more coverage of Starbucks earnings
Will Ben Bernanke soon realize that his $600 billion QE2 plan is not enough? Paul Ashworth of Capital Economics thinks QE3 and QE4 could easily be in the cards.
Not only that he thinks it could all happen before the end of next year! Intrigued? Check out our conversation with Ashworth. Watch the video now!
HIGH END EFFECT
As you might expect, we’re seeing signs that the affluent are first experiencing the benefit of Bernanke’s wealth effect.
High end retailers were among the group that surprised the Street to the upside with stronger than expected results. Take a look:
Retail Winners - October Same-Store Sales
What's the trade?
Hain may be a derivative trade from all this, says Karen Finerman.
YOUR MONEY: TAX CUT EXTENSION?
President Obama extended the olive branch Thursday, saying his administration is open to extending the Bush tax cuts to everyone.
In the wake of the GOP sweep, the President appears willing to okay a one or even two-year extension of the cuts for the highest earners, though he still opposes making them permanent.
However, the President does favor making them permanent for families that earn less that $250,000.