You’ve read the headlines but do you know the whole story? Our guys tell you what traders are hearing on the floor – and how they’re making fast money on the news.
TRADING THE SELLOFF:
The news: After making a brief recovery, the Dow falls 1% this week on mortgage meltdown fears
The word: Jeff Macke says this is the end of the beginning. Stocks like H&R Block (HRB) started to get their sub-prime exposure factored into their price. He liked the turnaround. Eric Bolling says if the market the doesn’t make another new low then there could be a buying opportunity. Guy Adami thinks there will be another wash next week. Tim Stazzini thinks the market will be flat 5 to 6 weeks out.
TRADING THE ICE AGE:
The news: Market stock matchmaking continues after the Intercontinental Exchange (ICE) makes a bid for The Chicago Board of Trade (CBOT)
The Word: Eric Bolling says The Chicago Mercantile Exchange (CME) was completely caught off guard by ICE’s bid for CBOT. It cost the whole space billions of dollars. Eric thinks CME and CBOT are the play.
GOING FOR BROKE:
The news: Goldman (GS), and Lehman (LEH) earnings fail to dissuade investors from selling, as Morgan Stanley (MS) looms
The word: Guy Adami says GS numbers were great and it didn’t do anything for the stock. MS comes out with numbers next week, but it probably won’t lift their share price either. Guy thinks brokers are just dead right now. Jeff Macke says even though your desk did incredible things, it won’t be enough.
The news: New Century (NEWC) was de-listed from The NYSE, as home loan foreclosures reach record highs, and the sub-prime disaster drags on
The word: Tim Strazzini says you heard about this headline, but there have probably been a dozen or so bankruptcies of smaller mortgage lenders because of the sub-prime blowup. Next week Tim expects more stabilization and going forward, he says the mortgage business will be a much smaller business.
THE GRAIN TRADE:
The news: The promise of ethanol, an alternative to gas, leads soybean growers to shift to corn (ethanol is made from corn)
The Word: Eric Bolling says sell the corn, buy the soybean crush (the meal). Any farmer that has any shot of moving acreage from soybeans to corn is going to do it. That will send soybeans higher.
The headline: Aeropostale (ARO) share price hits 52-week high, Ann Taylor (ANN) surges on strong earnings
The word: Jeff Macke says this surprised him a lot. Specialty retailers such as Zumiez (ZUMZ) and Gymboree (GYMB) are up, too. And Pacific Sunwear (PSUN) who reported numbers that were pretty much a train-wreck, their stock was up 9% today. There’s optimism in the specialty retail space.
The news: Qualcomm (QCOM) stands out among chip makers as shares surge this week on forecast
The word: Tim Strazzini says if the market stabilizes the chips will move higher. He expects to see Broadcom (BRCM),National Semiconductor (NSM),Applied Materials (AMAT), Novellus (NVLS) and KLA-Tencor (KLAC) move higher.
HP BUYS BACK:
The news: Hewlett-Packard (HPQ), the world's #1 PC maker, plans and $8 billion stock buyback
The word: Guy Adami says HPQ is still best in breed. The competition from Eastman Kodak (EK)and Dell (DELL)will only help. And on a valuation basis it’s still 10% cheaper than Dell.
FIFTH GRADE TRADE
The news: News Corp's (NWS) new show "Are You Smarter Than a Fifth Grader" beats CBS NCAA Tournament Coverage
The word: Tim Strazzini says it’s telling to see this show standing on it’s own, although it does come on after American Idol.
The news: Iraq's Currency - The Dinar – is becoming hot property
The word: Eric Bolling says there are dealers who are selling Iraqi currency based on a stable Iraq government. This investment could take 10 – 15 years to pay-off. Eric says, don’t do it. And there’s counterfeit Iraqi currency out there, too.
On MAR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC's Fast Money were owned by the Fast Money traders. Bolling Owns (DIS), (ICE), (NMX), Gold, Silver, Soybeans, is Short S&P Futures, is Short Nasdaq Futures, is Short Corn: Strazzini Owns (JRT), (MER)