Bank Ire Benefits Wal-Mart, Plus Other Trading Floor Chatter
In this feature, the Fast pros breakdown chatter in the market. What's on their radar and should it be on yours?
Bank Ire Benefits Walmart?
The chatter: An unexpected catalyst might light a fire under otherwise sluggish Walmart stock after the New York Times said Money Centers at Wal-Mart may be a surprise beneficiary of bank fees.
According to the paper, Walmart is becoming a force among the unbanked and “unhappily banked” through its Money Centers and their related services, as some bank patrons ditch their checking accounts and rely instead on Wal-Mart financial services.
Trader Steve Cortes not only thinks developments are a catalyst he’s hoping they’re a catalyst. “I’m long,” he says.
But his trade isn't simply a bet on bank ire benefiting the retailer. “I love the dividend yield and in this era of frugality, I think they’re in a sweet spot.”
McDermott in Play?
The chatter: A large volume of calls traded in McDermott, which renewed speculation that the company would make an attractive takeover candidate.
Looking at the options action, McDermott November 12 and 13 calls were active on total call volume of 10,500 contracts (328 puts). The November call option implied volatility is at 87, December is at 77; above its 26-week average of 54 according to Track Data, suggesting option traders are expecting large price movement.
Strategic investor Dennis Gartman thinks this is a case of - where there’s smoke there may be fire. In fact, he thinks a strategic acquisition now, ahead of a sustained recovery, would be shrewd.
“And as a maker of oil well drilling equipment, the company is well positioned for the future, it should be a big beneficiary of global growth. The chatter isn’t surprising at all.”
* You can find our conversation about these stocks approximately 4 minutes into this video clip.
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Trader disclosure: On November 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Gartman’s fund is long JRCC; Gartman’s fund is long AAPL; Gartman’s fund is long SU; Gartman’s fund is short MFLY; Gartman is short S&P futures; Gartman is short Euro; Gartman is long gold futures; Dicker owns RIG; Dicker owns GLD; Dicker owns HP
For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long GLD
Trutina Financial is long INTC
Trutina Financial is long AMZN
Trutina Financial is long MSFT
Trutina Financial is long GOOG
Trutina Financial is long MCD
Trutina Financial is long DIS
For David Palmer
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of the following companies' common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recent month`s end): McDonalds
For Mark Mahaney
Steven J Fullerton, Associate, holds a long position in the securities of Google Inc.
Neil A Doshi, Associate, holds a long position in the securities of Google Inc.
A member of the household of Andy J. Wu, Associate, holds a long position in the securities of Google Inc.
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of Netflix Inc, eBay Inc. This position reflects information available as of the prior business day.
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Google Inc.
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from Google Inc, Orbitz Worldwide Inc, eBay Inc.
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from eBay Inc.
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Priceline.Com Inc, Amazon.com Inc, Expedia Inc, Google Inc, Orbitz Worldwide Inc, eBay Inc in the past 12 months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Google Inc, Orbitz Worldwide Inc, eBay Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Priceline.Com Inc, Amazon.com Inc, Expedia Inc, Google Inc, Orbitz Worldwide Inc, eBay Inc.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Priceline.Com Inc, Amazon.com Inc, Expedia Inc, Google Inc, Orbitz Worldwide Inc, eBay Inc.
Analysts' compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates ("the Firm"). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues.
The Firm is a market maker in the publicly traded equity securities of Priceline.Com Inc, Amazon.com Inc, Expedia Inc, Google Inc, Netflix Inc, eBay Inc.
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For David Miller
CNBC.com with wires.