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The Word On: CBS, Walmart, Ford

How should you trade CBS earnings, a big Walmart downgrade and the latest sales data from Ford. Get the word on the Street, here!

Eye On CBS Earnings


The Word: Shares of CBS spiked in extended trade after the company said its quarterly profit and revenue rose sharply, due to new distribution deals and higher spending by advertisers on national television campaigns.

CBS, whose namesake broadcast network is home to hit shows such as "The Big Bang Theory" and "NCIS," said its second-quarter profit rose to $395 million, or 58 cents a share. A year ago, it reported profit of $150 million, or 22 cents a share.

The Trades: Guy Adami and Brian Kelly thinks the earnings are a green light to go long “I’d go long against $26,” says Adami. “For me the stop is $25.50,” adds Kelly. Joe Terranova thinks the results are a positive 'tell' for Viacom and Disney .

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Walmart Rollback

The Word: The traders put retail on the radar after analysts at Jefferies downgraded Walmart saying its customers are "trading down" on their purchases at Walmart stores, opting for cheaper cuts of meat and buying store brands over name brands.

Also they say customers have shifted some of their spending to dollar stores, which can be more conveniently located than big-box Walmart stores.

By the numbers, Jefferies dropped Walmart to "Hold" from "Buy" and cut its price target on the company's stock to $56 from $61.

The Trades: Joe Terranova thinks the trade is long Costco . He’s a buyer on the pullback. In the retail space Brian Kelly likes Whole Foods. “The chart looks pretty good, “ he says.

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Driving Ford

The Word: Ford landed on the trader radar after the automaker said its new-vehicle sales increased by 8.9 percent. Meanwhile rival GM said sales were up 7.8 percent. Despite the seemingly positive results, investors ran for the exits in both of these names.

The Trades: Anthony Scaramucci says, “If you can buy a basket of auto makers and sit on them for 18 months, you should do well. But there’s no catalyst in the short term.”

”If you can buy and hold into 2012, I’m a buyer of Ford,” says Joe Terranova. “If you’re a trader, I’m a buyer of Toyota because I think the yen is going to get weaker.”

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The Luxe Crowd

Economic headwinds have been a drag on many consumers. but, so far the luxury segment has held in pretty well.

How long can that last?

Find out from Dana Telsey of Telsey Advisory Group. Watch the video now!





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Trader disclosure: On Aug 2nd 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Scaramucci owns (C); Scaramucci owns (GOOG); Scaramucci owns (MS); Scaramucci owns (WMT); Scaramucci is long the U.S. Dollar; Weiss Owns (TBT); Weiss Owns (JPM); Weiss Owns (QCOM); Weiss Owns (DVN); Weiss Owns (COP); Weiss Owns (KO); Weiss Owns (MDRX); Weiss Owns (SLV); Weiss Owns (VZ); Weiss Owns (NS); Weiss Owns (ETP); Weiss Owns (SDS); Weiss Owns (TWM); Weiss Is Short (X); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of Building Materials Holdings
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (RLI)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of Domino's Pizza UK & IRL PLC

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (TLT) calls
Accounts Managed By Brian Kelly Capital Own (GLD) calls
Accounts Managed By Brian Kelly Capital Own (SLV) calls
Accounts Managed By Brian Kelly Capital Own (FCX) calls
Accounts Managed By Brian Kelly Capital Own (NLY
Accounts Managed By Brian Kelly Capital Own Australian Dollar
Accounts Managed By Brian Kelly Capital are short the U.S. Dollar

For Anthony Scaramucci
SkyBridge Capital Is A Fund Of Funds Manager
Funds Held May Or May Not Own The Recommended Securities
Scaramucci Is One Of 8 National Finance Chairs For Mitt Romney Campaign
Scaramucci held a fundraiser for Mitt Romney

For Alexandra Lebenthal
** No disclosures

For Dana Telsey
** No disclosures



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