GO
Loading...

Is Manufacturing Data Telling You Play Defense?

Wednesday, 2 May 2012 | 7:24 PM ET

On Wednesday, the Fast Money pros took a hard look at the latest market catalysts and whether they signaled it’s time to play defense.

One day after the Dow traded up to a 4-year high, it slipped after the latest overseas headlines renewed concerns about the region's fiscal health.

New economic data showed euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to now manifest in France and Germany.

More Downside for Chesapeake?
The FMHR traders discuss how the markets are faring since disappointing jobs data. Robert Morris, Citigroup analyst and Dan Dicker, MercBloc president, also discuss the drama surrounding Chesapeake Energy's CEO Aubrey McClendon and the trade on natural gas.

“Now it becomes very important to hear what the ECB has to say later this week,” explains trader Steve Cortes. “Chatter suggests they will do more accommodation. If that’s the case, I expect the euro to trade much lower.”

Domestic economic data was much better.

A report by payrolls processor Automatic Data Processing showed U.S. private employers added 119,000 jobs in April, well short of expectations.

Adding to the negative tone, new orders for U.S. factory goods in March recorded their biggest decline in three years, even though the numbers came in slightly above expectations.

How should you position?

As a 'tell', trader Josh Brown points to the technology sector – which finished April down almost 3%. He thinks if the rally had legs, tech would be stronger.

He concedes that the ISM data released Tuesday was strong – but adds that it was just one data point.

“We’re seeing a trend in softer housing numbers and possibly softer employment. You have to ask yourself if we’re seeing a little bit of a slowdown, and then position accordingly?”

Trader Joe Terranova agrees - he's already getting a little defensive. “I just added to my position in McDonald’s,” he says, "a stock that I consider defensive. Also, I’m holing the LQD and I’m looking at Apple.”

What do you think? We want to know!

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On May 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 JOY; Joe Terranova is long JNPR; Joe Terranova is long NXPI; Joe Terranova is long HPQ; Joe Terranova is long LQD; Joe Terranova is long JPM; Joe Terranova is long MCD; Josh Brown is long XBI; Josh Brown is long V; Josh Brown is long COP; Josh Brown is long JPM; Josh Brown is long XLU

For Moshe Orenbuch
The subject company (MA) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse: MA
Credit Suisse provided investment banking services to the subject company (MA) within the past 12 months: MA
Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (MA) within the next 3 months: MA

For Robert Morris
Robert S Morris, Analyst, holds a long position in the securities of CHK
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 CHK
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from CHK
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Chesapeake Energy Corp in the past 12 months: CHK
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): CHK
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: CHK
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: CHK
Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from CHK

For Robin Farley
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): WYNN
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: LVS
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: MGM
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: WYNN
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: LVS
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: MGM
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: WYNN



CNBC.com with wires.

  Price   Change %Change
DJIA
---
ILF
---
SPDR TEC SEL
---
AAPL
---
MCD
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report