The Fast Money traders are always looking for opportunity and on Friday they had a few names on the radar.
How are they gaming these market movers?
The catalyst: The latest results showed rival AT&T had trumped Verizon in the number of iPhones on its network. Specifically AT&T started 3.6 million iPhones while Verizon added 2.3 million.
The trade: Stephen Weiss thinks the pullback presents opportunity. “I own it – it has a good yield – I’m staying with it,” he says.
The catalyst: Unless investors were spooked by gains in the price of oil, the stock moved sharply lower for no clear reason. However the slide sent shares to 2009 levels.
The trade: Some investors may be tempted to pick the bottom here, says Steve Grasso, “but I wouldn’t recommend it.”
The catalyst: Wells Fargo issued a note of caution about the space, broadly – essentially saying rates remain pressured.
The trade: The entire sector is struggling to perform, says Pete Najarian.
The catalyst: The restaurant chain posted weaker than expected results citing higher expenses.
“The fourth quarter was especially challenging given the aggressive competitive promotional environment and very heavy advertising levels,” said Chairman and CEO Sandy Beall.
The trade: Trader Stephen Weiss calls the stock a value trap. “The country doesn’t want expensive burgers, they want cheap burgers sold by McDonald’s,” he says.
The catalyst: The company said quarterly profit fell short of Wall Street expectations as it lost cigarette market share to Altria Group.
The trade: Zach Karabell says the moves should be a lesson to investors who rotate into tobacco makers as a defensive move. “When it misses it goes down too,” he says.
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