STOCKS REBOUND; OIL HITS $104
The headline: Crude Oil Surges 5% to New All-Time Record High After Report Shows U.S Supplies Drop Unexpectedly, OPEC Leaves Production Level Unchanged
The action was in the commodities and the dollar, according to Jeff Macke. Oil is breaking out and it’s the real deal. Commodities are going higher because the dollar can’t stop falling. He likes the oil (USO) and gold (GLD) ETFs although gold does have more trading risk associated with it, he said. ETFs work here because they are big, liquid and have good technicals.
Guy Adami recommended the USO as well but only for investors who can stomach these tremendous moves in either direction. The integrated oils – think ExxonMobil – are suffering from the collapsed crack spread and are no longer shoe-ins as great buys on high oil. Instead, buy the oil services. Guy likes Baker Hughes and Schlumberger .
AS THE WEB TURNS
The headline:Microsoft - Yahoo Drama Continues as Yahoo Talks to Time Warner (TWX), Delays Annual Meeting
The release from Yahoo was “weasel-y,” said Karen Finerman, a Yahoo shareholder. The company is just biding time but does it even hold any cards anymore? It’s delaying the inevitable as far as Karen is concerned.
Jeff Macke, another shareholder, urged Yahoo CEO Jerry Yang to get aggressive, drive Microsoft to a higher price and get out of the way. Either way, Jeff thinks he’s out within six months.
PFIZER NEEDS TO GO ON THE PROWL
The headline: Pfizer Falls Even After Reaffirming Outlook, Speeding Up Pipeline, Forming New Cancer Unit
Pfizer needs to make an acquisition. It’s that simple, said Guy Adami. It can’t win on earnings and the only way for it to increase its pipeline is to buy a company, especially as Lipitor’s patent is gearing up to expire.
Pete Najarian thinks the company’s naming of William Ringo as Senior VP of Strategy and Business Development is a good sign of things to come.
JOIN THE CLUB?
The headline:Costco (COST), BJ’s Wholesale (BJ), Club Stores Benefiting as Cash-Strapped Consumers Buy In Bulk
Jeff Macke prefers Costco to BJ’s and wouldn’t touch much else in the retail space. Read more here.
WHALE WATCHING: STEVE COHEN
The headline: Major Pharmion (PHRM) Shareholder SAC Capital Demanding Higher Offer From Celgene (CELG)
Steve Cohen will get his way this time, Guy Adami predicted. After Losing PhelpsDodge to Freeport-McMoRan (FCX), Cohen is going to do everything he can to push this deal through.
COWING THE COMPETITION
The headline: Smithfield Foods Selling Beef Unit to Brazil’s JBS For $565M
Stocks like Smithfield, Tyson Foods and Hormel are all tied to global growth and this food/agriculture boom. Don’t expect huge moves overnight, but they’re buys, according to Jeff Macke.
BREAKING NEWS ON MOTOROLA
The headline: Carl Icahn Raises Motorola (MOT) Stake To 6.3% From 5%
The traders are less than enthusiastic about this news. Unfortunately, according to Jeff Macke, Icahn is throwing good money after bad on this investment.
Find out more about Motorola and what Pete Najarian thinks of Icahn's move in the Web Extra.