BIGGEST DROP IN FOUR MONTHS: FACTOR #1
The headline: Dow Gets Pummeled 226 Points on Fear Easy Money From Credit Market Drying Up... As Borrowing for Corporations Get More Expensive, Will the Stock Market Suffer?
Eric Bolling tells the panel, don’t worry yet. He likes the long term chart of the S&P.
BIGGEST DROP IN FOUR MONTHS: FACTOR #2
The headline: Small-Cap Benchmark Russell 2000 Drops Almost 3% as Smaller Companies Most Vulnerable to Higher Rates...
Pete Najarian says iShares Russell 2000 Index (IWM) has had a huge run. He feels if you own IWM it’s time to take money off the table.
BIGGEST DROP IN FOUR MONTHS: FACTOR #3
The headline: Can Strong Global Growth Overcome More Expensive Borrowing?
Pete Najarian says global growth isn’t over and long-term he’s positive. He also thinks investors should stay out of financials such as Lehman Brothers (LEH) and Goldman Sachs (GS). He doesn’t like Blackstone (BX), either.
Guy Adami says he believes in global expansion and expects what he calls a few more days of nonsense. In the end he says this market is just fine.
Jeff Macke tells the panel GS is a sell at $200. (It’s worth noting on Tuesday July 24th GS closed at $198.15)
Eric Bolling doesn’t agree with Macke. He says GS is a buy below $200. Guy Adami echoes that.
BIGGEST DROP IN FOUR MONTHS: FACTOR #4
The headline: Countrywide Financial (CFC) Says More Mortgage Borrowers Falling Behind on Payments
Eric Bolling says The Street expected negative news from CFC Tuesday however, the more they talked the more their stock moved lower.
Jeff Macke says credit fears will likely take a pillar of support out of this market. However, he thinks eventually there will be buying opportunities.
AFTER HOURS ACTION: BEZOS BUCKS TREND:
The headline: Amazon.com (AMZN) Soars 12% After Hours On Blowout Profit
Jeff Macke says AMZN did well in North America which he says was a surprise. Jeff tells the panel not to chase this stock, instead he prefers Blue Nile (NILE) on a dip.
He also tells the panel a smart way to trade this trend is to buy Fedex (FDX).
Pete Najarian says AMZN is also exploding in China and the stock is a big win.
WHAT AT&T MEANS FOR TELECOM TRADE:
The headline: AT&T (T) Profit Soars 61% On Wireless Growth, But iPhone Figures Disappoint;
Eric Bolling says AT&T is the best of breed in a sector that’s on fire. Eric says own this stock.
Pete Najarian likes America Movil (AMX) and believes wireless stocks are still moving higher.
Jeff Macke adds that he doesn’t think AT&T is an iPhone story, specifically. However, he doesn’t recommend buying this company, yet.
WHAT BP MEANS FOR ENERGY TRADE:
The headline:BP (BP) Profit Tumbles Nearly 13% On Lower Production
Eric Bolling says there could be big problems at BP. He cautions the panel to wait and hear about production from Conoco (COP), Chevron (CVX) and other big oil companies, before drawing conclusions. However, he concedes oil could be losing ground.
WHAT LILLY & BIOGEN MEAN FOR PHARMA TRADE:
The headline: Eli Lilly (LLY) Earnings Top Estimates On Cymbalta, Cialis Sales;
Pete Najarian says this isn’t an earnings play it’s a diabetes play. He also recommends staying long Amylin (AMLN).
WHAT BIOGEN MEANS FOR PHARMA / BIOTECH TRADE:
The headline: Biogen Idec (BIIB) Hits 52-Week High On Better-Than-Expected Earnings, Forecast;
Guy Adami says Biogen is not the typical biotech name because it has 4 major drugs in its pipeline.
Pete Najarian says keep an eye on this stock. He also recommends keeping an eye on Teva Pharmaceuticals (TEVA) and Barr Pharma (BRL).
WHAT PEPSI & MCDONALD’S MEAN FOR CONSUMER TRADE:
- The headline: PepsiCo (PEP) Profit Jumps 13% On Global Growth, But Gatorade, Tropicana Sales Disappoint;
- The headline: McDonald's (MCD) Meets Expectations Excluding 1-Time Charge;
Jeff Macke says he prefers to own PEP and take profits in MCD.
Guy Adami adds that MCD is doing double digits overseas and he likes this stock long-term.
TAKE YOUR POSITION: BAIDU.COM:
The headline: Baidu.com (BIDU) Investors Searching For Answers Ahead of Earnings Tomorrow
Pete Najarian tells the panel he got out of the stock at $195. He says “if you’re not in it, stay away.”
The headline: Corn Products International (CPO) Surges On 68% Jump In Quarterly Profit; San Antonio TV Station: Tequila Shortage May Result From Surge In Corn Plantings
Eric Bolling says there's corn sweetener or corn starch is in most everything people consume. He likes this stock.
** At this point in the conversation Guy Adami wants to tell Dylan a story about corn and the Levi’s girl he knew in college, but he says the story is too hot for TV. He promises to tell all in the Web.Extra.
> Web.Extra: Too Hot For TV
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Trader disclosure: On July 24th 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 (JWN) Bolling Owns (BP), (T), (XOM), Gold, Silver, Copper, Platinum