MARKET BRACING FOR EARNINGS
The headline: S&P 500 Stalls As Analysts Expect 1st Quarter Of Negative Earnings Growth In 5 Years.
The S&P 500 quarterly earnings have a "good chance" of dropping for the 1st time since 2002, says Dylan Ratigan. Goldman Sachs (GS), Bear Stearns (BSC) and JPMorgan (JPM) all posted losses Wednesday.
Pete Najarian reminds the panel that NASDAQ made 6-year highs on Wednesday. If you watch the show regularly you know that Najarian is very bullish on tech and tells the panel Google could become a $700 stock.
Tim Seymour feels differently. On Wednesday he sold steel and aluminum stocks because he’s worried about forthcoming inflation data and weak retail sales.
The headline: Chrysler Hit By UAW Strike For 1st Time Since 1997.
Dylan Ratigan explains that, for the first time, the UAW must bargain with an automaker that’s owned by private equity firm, Cerberus.
Jeff Macke recommends trading the auto supply names on this news. He likes Johnson Controls (JCI) and American Axle (AXL).
Tim Seymour prefers Magna (MGA) which is based in Canada.
THE NIGHTMARE LINER
The headline:Boeing (BA) To Delay Delivery Of New 787 Dreamliners By At Least 6 Months.
Karen Finerman says she’s not surprised or worried. They build lots of other planes, she says, and the supply chain is long.
Tim Seymour explains that he sold BA short and bought it back Wednesday. He expected the market to be disappointed on this news.
COSTCO SURGES BEFORE RETAIL THURSDAY
The headline:Costco (COST) Surges On Stronger-Than-Expected Earnings, Same-Store Sales.
Target (TGT) and most major retailers are due to report September same-store sales on Thursday, says Jeff Macke. He reminds the panel numbers are expected to be weak and risk is to the upside. He recommends getting long TheGap (GPS) and Children’s Place (PLCE).
Pete Najarian likes Kohl’s (KSS) over Target.
Karen Finerman is intrigued by American Eagle (AEO).
I'M A PEPPER SHAREHOLDER
The headline:Cadbury Schweppes (CSG) To Spin Off Snapple, 7 Up, Dr. Pepper, U.S. Drinks Unit.
Cadbury expects to list new company on NYSE in 2008 says Karen Finerman. She adds CSG has been under pressure from activist investor Nelson Peltz to split and current speculation suggests that Cadbury may be looking to merge with Hershey (HSY). She likes Cadbury as a trade.
On a related note, Pete Najarian likes Procter & Gamble (PG) and Siemens (SI).
OIL TURNS HIGHER
The headline: Oil Climbs 1.3% to $81.30 in a Midday Rally
Dylan Ratigan explains that both Chevron (CVX) and Valero (VLO) issued Q3 profit warnings.
Tim Seymour thinks the stock market already priced in the fact that oil companies might report weaker profits because crack spreads had contracted. He adds inventory numbers come out Thursday and fundamentally nothing has changed in the space. He likes refiners such as Conoco Phillips (COP) as a long term play.
Karen Finerman tells the panel she’s been selling COP because she doesn’t feel that most of their business comes from refining.
THE BAD SEED?
The headline: Seed Giant Monsanto (MON) Falls On Worse-Than-Expected Loss.
Both fertilizer company Mosaic (MOS) as well as Deere & Co (DE) performed well Wednesday in a tough tape, says Dylan Ratigan.
Pete Najarian reveals that he bought the October 90 calls Wednesday and sold the 95. And he thinks MON still has more upside.
Dylan Ratigan explains that Pete sold the next strike up to subsidize the purchase of the 90 call.
Trader disclosure: On Oct 10, 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 (DIS), (INTC); Pete Najarian Owns (LXK), (ZMH), (VCLK), (GOOG); Finerman's Firm And Finerman Own (TEL), (TYC); Finerman's Firm Owns (COP), (DAI), (MSFT), (NVT), (TGT), (WMT), (YHOO): Finerman's Firm Owns S&P 500 Puts: Finerman's Firm Owns Russell 2000 Puts; Seygem Asset Management Owns (AA), (F), (GLD), (IRBT), (MSFT), (SBUX), (SSL): Seygem Asset Management Is Short (TKC); Lukoil Trades Over The Counter In The U.S. But Trades On The Exchange In London; Jon Najarian Owns (GOOG), (YHOO), (BHI)
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