SEPTEMBER SWOON - RALLY BACK FROM VACATION
The headline: Dow Jumps 91 Points on First Trading Day of September... Despite September's Gloomy Past, Market Kicks off Month With Rally
Pete Najarian explains that broker, tech, and energy shares pushed the S&P 500 up 1.1% Tuesday. Pete adds that although the brokers showed strength they are still down for the year.
Jeff Macke tells the panel not to get giddy over the bounce.
Guy Adami tells the panel he likes the brokers going into earnings, especially Goldman Sachs (GS).
Brokers Bounce - % Change Tuesday
Bear Stearns (BSC) up 5%
Lehman (LEH) up 3%
Morgan Stanley (MS) up 3%
Merrill Lynch (MER) up 2%
Goldman Sachs (GS) up 3%
Karen Finerman tells the panel she’s cautious and selling the rally.
The headline: Tech Shares Lift Market After Industry Group Reports Strong July Global Chip Sales;
Pete Najarian explains that global chip sales jumped 3.2% in July, signaling strong consumer electronics growth. He likes IBM (IBM), Dell (DELL) and Hewlett Packard (HPQ).
Jeff Macke likes Intel (INTC) Cisco (CSCO) and Microsoft (MSFT) because he feels they are under-owned and away from the subprime mess.
Guy Adami prefers NVIDIA (NVDA).
YAHOO JUMPS 8%
The headline: Yahoo (YHOO) Soars After Bear Stearns Names It Top Pick For Next 12 - 16 Months
Dylan Ratigan explains that Bear Stearns said Yahoo may attract a Microsoft (MSFT) bid.
Jeff Macke says he doesn’t believe it and calls YHOO stock a sell.
Pete Najarian feels differently. He believes YHOO is a buy into January.
APPLE'S PIED PIPER
The headline: Apple (AAPL) Surges After Piper Jaffray Analyst Predicts Strong iPhone Sales This Quarter
Pete Najarian explains that The Street is excited to see new iPod models that are scheduled to premiere at a "special event" Wednesday.
FLASHPOINT FOR FED CUT
The headline: Exelon (EXC), Utility Stocks Jumping On Hopes For Fed Rate Cut September 18
Guy Adami tells the panel he prefers Public Service Enterprise Group (PEG) in this space.
NO DUTCH TREAT
The headline: Home Depot (HD) Slides On Disappointing "Dutch Auction" Tender Offer Results
Karen Finerman explains that HD offered to buy 14% of shares outstanding at a price between a price of $37 - $42 depending on where The Street tenders the stock. Karen adds that she likes the stock as a long-term hold.
OIL ABOVE $75
The headline: Crude Oil Tops $75 For 1st Time In A Month; Energy Select Sector SPDR (XLE) Surges Today As Crude Climbs
Pete Najarian explains he’s seeing heavy options activity in Pride International (PDE), Plains Exploration (PXP) and Suncor Energy (SU).
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Trader disclosure: On Sept, 4, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CREE), (HLTH), (PDE); Macke Owns (HAS), (INTC); Finerman Owns (GS), Finerman's Firm Owns (LTD), (WMT); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts