DOW JUMPS 94...NASDAQ JUMPS 1.5%
The headline: Intel, Tech Push Market Higher
The Dowmade double digit gains Thursday as a battle to control Internet media company Yahoo boosted the technology sector and a pullback in oil eased concerns about inflation.
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SHAKING THE SPECULATORS OUT
The headline: Oil Falls More Than $1 After Congress Approves New Oversight of Electronic Energy Trading
Federal regulators could have more authority to monitor electronic energy markets and guard against market manipulation under legislation approved Thursday as part of the congressional farm bill.
The regulator for commodities is limiting speculation in some contracts, adds Tim Seymour. But I expect oil will slide on weaker demand, not this legislation.
Crudetraded under $121 for two minutes, exclaims Jeff Macke. Don’t overthink it!
Don’t forget that oil isn’t only a commodity it’s also being used as a currency, adds Pete Najarian. And as for the congressional farm bill, if aid is extended it should be bullish for the ag names.
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THE MAN WHO MOVED THE MARKET
The headline: Energy Stocks Help Lift Market on UBS Call Today Even After Oil Dip
On Thursday UBS initiated coverage on U.S. offshore drillers giving 6 companies a “Buy” rating. They are Atwood (ATW), Diamond Offshore (DO), Ensco (ESV), Noble (NE), Rowan (RDC), and Transocean (RIG).
UBS also upgraded its outlook on oil to $115 for 2008, $120 for 2009 and $156 in 2012.
The important take-away is that in 2012 we have a $156 price target on oil, says David Anderson, UBS Securities LLC Oilfield Services and Equipment Analyst. The fundamentals suggest crude oil will go higher.
And in terms of the off-shore drillers, we see them sucking up demand for off-shore rigs which should lift the rest of the markets. And new "build rigs for floaters" continue to get delayed which is also bullish for drillers.
What your best name?
The Man Who Moved The Market
Transocean, replies Anderson.
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WHALTE WATCHING
The headline: Buffett Boosts Stakes In Kraft; Sells Ameriprise
Berkshire Hathaway (BRK) billionaire Warren Buffett's investment company no longer holds any Ameriprise Financial (AMP) stock, according to a U.S. regulatory filing on Thursday. Berkshire previously owned 661,742 Ameriprise shares.
In addition Berkshire increased stakes in the following at the end of the first quarter: Burlington Northern (BNI), Ingersoll-Rand (IR), Kraft (KFT) US Bancorp (USB), Wells Fargo (WFC) and WellPoint (WLP). And it lowered its holdings slightly in Iron Mountain Inc (IRM).
Whale Watching
I think BNI is still a buy, says Guy Adami.
Meanwhile, billionaire investor Carl Icahn reported a new stake in Amylin Pharmaceuticals(AMLN) but no longer owned shares of department store chain Macy's (M) and railroad operator CSX Corp. (CSX), according to a quarterly regulatory filing Thursday.
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DEAR YAHOO: YOU'RE FOOLS
The headline: Carl Icahn Proceeds With Proxy Fight Plans, Writing Harsh Letter To Yahoo Chairman.
Carl Icahn launched a proxy battle to force Yahoo to reopen buyout talks with Microsoft, the billionaire investor said in a letter to the internet company Thursday. He writes, "The board of directors of Yahoo has acted irrationally...It is quite obvious that Microsoft's bid of $33 per share is a superior alternative..."
“I sincerely hope you heed the wishes of your shareholders and move expeditiously to negotiate a merger with Microsoft, thereby making a proxy fight unnecessary.”
Icahn has formed a 10-member rival slate for Yahoo's board to push the company to accept a $33-per-share, or $47.5 billion, offer from Microsoft.
This is the corporate equivalent of waking up with a severed horses head in your bed, exclaims Jeff Macke. However, I think it’s late in the game to get long Yahoo!
I’ve taken my position off the table, says Pete Najarian. Options action suggests to me the stock isn’t going higher.
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TOUCHBERRY
The headline: Research In Motion To Take On Apple's iPhone With Touch-Screen BlackBerry Thunder: WSJ
Research in Motion plans to introduce a touch-screen version of its BlackBerry device in the third quarter which could go toe-to-toe with Apple’s iPhone, reports the Wall Street Journal.
Don’t buy the hype buy the companies because they’re both consistent, says Jeff Macke.
I think two phones can survive, says Pete Najarian. But Apple and RIMM could be a little bit ahead of themselves. I prefer Ciscoand AT&T stocks.
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J.C. PENNEY, TIFFANY'S JUMP
The headline: Short-Term Retail Trade Working As J.C. Penney, Tiffany Surge Thursday.
JC Penney said on Thursday its first-quarter profit dropped 50 percent as the retailer cut prices to clear unsold merchandise, and it forecast a similar profit drop for its current quarter. But its stock rose 4 percent to its highest level in four months because the decline was less than expected.
Meanwhile high-end jeweler Tiffany & Co raised its dividend by 13 percent on Thursday, saying the year had gotten off to a better-than-expected start
The catalysts are over, says Jeff Macke, take these trades off the table.
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AFTER HOURS ACTION: NORDSTROM
The headline: Nordstrom Posts Lower Net Income In Q1
Upscale department store Nordstrom reported a lower quarterly net profit on Thursday due to lower sales in what the company called a "challenging retail environment."
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AFTER HOURS ACTION: KOHL’S
The headline: Kohl’s Profit Down; Sales Outlook Conservative
Kohl's, a mid-priced retailer of apparel and home goods, reported lower first-quarter profit on Thursday, and said its sales outlook remained conservative for the year.
The parade has gone by in retail, says Jeff Macke. Adios.
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OPTIONS ACTION
The headline: Pete Seeing Unusual Activity In CVS Caremark, Temple-Inland Ahead Of Options Expiration Friday
Options action in the June 45 calls suggests to me that CVScould soon move higher. Temple-Inlandcould be a similar story with traders showing a great deal of interest in the November 20 calls.
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Trader disclosure: On May 15, 2008, 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 (INTC), (EMC), (DIS), (MSFT); Adami Owns (BTU), (C), (GS), (INTC), (MSFT), (NUE), (AGU); Najarian Owns (AAPL), (HPQ), (NOK), (TSO), (XLF); Najarian Owns (C) Calls, (MSFT) Calls, ; Seymour Owns (AAPL), (BX), (CSCO), (INTC), (MER), (TSO); Seygem Asset Management Owns (PKX), (FMX), (NIHD), (SSL), Gazprom; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC
UBS Securities LLC Has Received Compensation From (HERO), (RIG) Within The Past 12 Months; (HERO) And (RIG) Are, Or Within The Past 12 Months Have Been, Investment Banking Clients Of UBS Securities LLC ; (RIG) Is, Or Within The Past 12 Months Has Been, A Client Of UBS Securities LLC (Non-Investment Banking Securities-Related Services); (RIG) Is, Or Within The Past 12 Months Has Been, A Client Of UBS Securities LLC (Non-Securities Services)