HEDGE FUND BLOW-UP?
The headline: Dow Drops 146 Points on Fear of Blow-Up at Bear Stearns-Run Hedge Funds... Will the Undoing of this Bull Market Be Excessive Risk Taking by Hedge Funds? Two Big Bear Stearns (BSC) Hedge Funds Containing Mostly Mortgage Debt Close To Being Shut Down.
From A Report Filed By CNBC's Charles Gasparino: JPMorgan Chase (JPM) Has Deal With Bear To Unwind Position in Troubled Hedge Fund; Merrill Auctioning Bear Stearns Hedge Fund Assets.
CNBC Reporter Charles Gasparino joins the guys for this conversation.
He says this is a story about one fund that is essentially imploding. He adds it’s too early to tell if the trouble is spreading.
Bill Fleckenstein, President of Fleckenstein Capital also joins the conversation. He doesn’t think the problem is isolated. He says the risk is leveragethat’s now piled up. If those assets decline in value, explains Fleckstein, they have to be sold-off.
Dylan Ratigan asks if events make any of the traders worried about the US stock market?
Guy Adami says “Yes in the short term,” because the mania will feed into itself. However long term, no.
Pete Najarian says there is a bit of panic in the market– and major problems could be ahead.
Eric Bolling doesn’t think there’s too much to worry about – he says Amaranth was much worse.
HAS MURDOCH'S LUCK TURNED?:
The headline:Dow Jones (DJ) Board To Take Over News Corp. (NWS) Negotiations From Bancroft Family
Pete Najarian says with the Board taking over negotiations, the deal could get done.
Guy Adami agrees.
Eric Bolling says if the Bancroft family didn’t want the deal- they would fight.
Jeff Macke disagrees. He thinks the Dow Jones Board doesn’t have enough votes to get the deal done.
TRADE UPDATE: MORGAN'S MONSTER EARNINGS:
The headline:Morgan Stanley (MS) Tops Goldman (GS) And Bear (BSC) As Earnings Surge 40%
Pete Najarian reminds the panel he said to sell MS after earnings. Guy Adami likes Morgan Stanley for its CEO, John Mack. He tells investors to buy this stock on a dip.
A TOP FOR OIL?
The headline: Oil Prices Tumble As Stockpiles Increase... Still Fewer Refineries Are Working
Eric Bolling says there’s a buildup in oil, but refineries are not at capacity. Consequently Eric sees higher gas prices and recommends buying the dip.
Pete Najarian says it seems to him traders are buying and selling airlines as surrogates for oil.
TRADE UPDATE: FAR FROM GRAND:
The headline:MGM (MGM) Shares Plummet After Kirk Kerkorian Ends Bellagio, CityCenter Talks
Pete Najarian and Guy Adami both think Kerkorian is looking for other companies in the space such as Boyd Gaming (BYD).
Eric Bolling recommends owning all the Las Vegas properties.
TRADE UPDATE: BETTER TIMES FOR USEC:
The headline: Uranium Enricher USEC (USU) Rebounding After Last Week's Negative New York Times Article
Eric Bolling explains right now USEC is the only “enricher” of uranium in the country and they have new technology which, Eric says, makes this company a buy.
The headline:La-Z-Boy (LZB) Reclines After Lowering Sales Forecast
Jeff Macke says LZB is a fine long-term investment and says buy the stock on the dip. However, he’s worried about the consumer.
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Trader disclosure: On June 20 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke Owns (ATVI); Najarian Has Closed Out Of His Long (MS) Trade; Bolling Owns (NMX); Gold; Sugar: WWE Programs Air On Networks Of NBC Universal: NBC Universal Is The Parent Company Of CNBC: CNBC Is A Service Of NBC Universal And Dow Jones