Pete Najarian: Rumored Sprint iPhone Potential Game Changer
On Wednesday the Fast gang put Sprint back on the radar with chatter on the trading floor suggesting the beleaguered company's fortunes might be about to change - finally.
The unusually bullish and noteworthy outlook largely stemmed from a Citadel Securities client note that effectively said "a Sprint iPhone seemed likely in the near future."
And according to trader Pete Najarian, inking a deal with Apple for a Sprint iPhone could really be a game changer for Sprint. “It could really open things up for them,” he says.
That's because Sprint is one of the few carriers to offer unlimited data plans. Rivals Verizon and AT&T only offer tiered data plans.
According to Citadel, a Sprint iPhone could be more attractive to cash strapped consumers.
They say, "Although Sprint is unlikely to price the device lower than its peers, its smartphone service plans are lower priced (than rivals)... As such we believe a Sprint iPhone could offer an attractive proposition for more price-conscious users."
If Citidel is right, Najarian thinks the Sprint iPhone will be an important catalyst not only for Sprint stock -- but for Apple as well.
That's because it could help Apple reach "a demographic that we think is increasingly important to Apple," writes Citadel. They also say, the Sprint iPhone could hit stores before the end of the year.
RALLY IN THE FACE OF BAD NEWS
On Wednesday the Fast Money traders were also very focused on the market’s buoyancy with both the Dow and the S&P trading in positive territory despite a string of negative headlines.
There were plenty of reasons for the market to sell off:
- Moody’s downgraded Portugal’s debt to ‘junk’ casting new doubt on the financial woes of Europe.
- China’s central banks increased interest rates for the 3rd time this year reminding markets that taming inflation is Beijing’s top priority.
- The latest ISM data showed the pace of growth in the service sector slowed in June.
Yet despite these catalysts, stocks marched higher.
What should you make of the market action?
”If the market can hold and continue to rally I think that’s an extremely telling sign,” says trader Brian Kelly. "When news is bad and the stock market goes up – that’s bullish!”
Trader Patty Edwards says much the same. “Since we didn’t see a sell-off (after the rally into quarter’s end) buy the building blocks of the economy,” she says. Edwards particularly likes Lincoln Electric.
Brian Kelly suggests looking at Intel which he thinks should benefit as the economy starts to improve.
Trader Stephen Weiss sees value in Deere , as well as Navistar, Cummins , and PACCAR .
NO THANKS, UNCLE SAM
It appears investors are finally running away from low rates. A new JPMorgan survey shows none of their clients are long Treasurys. That hasn't happened in 6 years.
What should you make of it?
Pete Najarian isn’t surprised. He thinks investors are rotating out of Treasurys and into stocks that pay dividends and/or precious metals.
If you’re among those investors looking for better return, Stephen Weiss suggests looking at Verizon or MLPs such as NS.
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Trader disclosure: On July 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (AKAM); Weiss owns (COP); Weiss owns (HBAN); Weiss owns (CMA); Weiss owns (KEY); Weiss owns (JPM); Weiss owns (TEVA); Weiss owns (QCOM); Weiss owns (VZ); Weiss owns (WFT); Weiss owns (PZN); Weiss owns (DE); Weiss owns (EMC); Weiss owns (ETP); Weiss owns (NS); Weiss owns (MDRX); Weiss owns (MSFT); Pete Najarian owns (AAPL); Pete Najarian owns (AKAM); Pete Najarian owns (C); Pete Najarian owns (MS); Pete Najarian owns (MOS); Pete Najarian owns (MRVL); Pete Najarian owns (RSX); Pete Najarian owns (TCK); Pete Najarian owns (VLO); Pete Najarian owns (GE); Pete Najarian owns (PEP); Pete Najarian owns (PFE); Pete Najarian owns (MRK); Pete Najarian owns (TEVA); Pete Najarian is long (F) bonds; Pete Najarian owns (SLV) calls; Pete Najarian owns (V) calls;Pete Najarian owns (HAL) calls
For David Riedel
For Brian Kelly
Accounts Managed by Brian Kelly Capital are long Australian Dollars
Accounts Managed by Brian Kelly Capital are long New Zealand Dollars
Accounts Managed by Brian Kelly Capital are long euros
Accounts Managed by Brian Kelly Capital own (TBT)
Accounts Managed by Brian Kelly Capital own (WFC)
Accounts Managed by Brian Kelly Capital own (KRE)
Accounts Managed by Brian Kelly Capital own (MOS)
Accounts Managed by Brian Kelly Capital own (IPI)
Accounts Managed by Brian Kelly Capital own (XLK)
Accounts Managed by Brian Kelly Capital are short U.S. Dollars
CNBC.com with wires.