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Danaher, Starbucks At 52-Week Highs: What’s the Trade?

What should you make of Danaher and Starbucks as these stocks touch new 52-week highs?

Danaher

“Shares of Danaher hit an all-time high on Monday,” explains trader Mike Murphy. “It’s moved from the 40’s up into the high 50’s now.”

And Murphy thinks the action is very positive, not only for the company but for the economy as a whole.

“This is a big multi-industrial and (the price action) is a great read through for the entire US economy,” he says. “I read the move as sign that end industrial consumers are ordering and the US economy is in good shape.”

Starbucks

Starbucks also made a new high on Monday. “CEO Howard Schlutz knows what he’s doing,” says trade Joe Terranova.

With Starbucks planning a big push in China, Joe T. expects gains to continue.

“I’d trade it long against $54.62- last week’s low,” he says.

Retail

Elsewhere in the market, the traders were taking a look at retail after JPMorgan upgraded Kohls from Underweight to Neutral; also JPMorgan said near-term sales trends at J.C. Penney may be softer than expected.

Top trader Patty Edwards thinks JC Penney has potential but she sees it as a long-term play. She compares the new ‘everyday low pricing strategy’ underway at JC Penney to a strategy used by another retailer overseas. “When Walmart tried it in Japan it took 4 or 5 years to get that turned around in the consumer’s mind. Although I love what CEO Ron Johnson is doing, it’s not a quick fix. In the near term, I think Kohl’s will take advantage.”

In the space Joe Terranova likes TJX. "It continues to work and I see no reason to shift out of this," he says.

Mike Murphy suggests a pairs trade - Short JC Penney and long Macy's . "Macy's has a plan in place and it's executing."






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Trader disclosure: On Apr 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long NXPI; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long MSFT; Joe Terranova is long JOY; Joe Terranova is long OXY; Joe Terranova is long POT; Joe Terranova is long TCK; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long SBUX CALL SPREADS; Jon Najarian is long GLD CALL SPREADS; Jon Najarian is long SLV CALL SPREADS; Jon Najarian is long GDXJ CALL SPREADS; Jon Najarian is long CBOE; Jon Najarian is long CIGX; Jon Najarian is long CME; Patty Edwards is long AAPL; Patty Edwards is long GLD; Patty Edwards is long INTC; Patty Edwards is long JOY; Patty Edwards is long SBUX; Patty Edwards is long COP; Patty Edwards is long AMZN

For Jeff Hirsch
Nothing to disclose

For John Rutledge
Nothing to disclose

For Brian White
No disclosures

For Connie Maneaty
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

For Jordan Rohan
Stifel, Nicolaus & Company, Inc. makes a market in the securities of GRPN
Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from GRPN


CNBC.com with wires.

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