Traders Confused
TRADERS CONFUSED
The headline: Dow Rises, But S&P 500 Falls as Traders Weigh The Fed's Moves Last Week
Dylan Ratigan reports that news broke late Monday that Senator Christopher Dodd will meet with Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson Tuesday in a closed door meeting to discuss financials. On the news, The Dow moved higher.
Jeff Macke explains that the meeting suggests to The Street that government intervention can hold up the tape, at least for a while.
1110364
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .SPX | S&P 500 Index | 5,267.84 | -39.17 | -0.74% |
DON'T BANK ON THEM YET
The headline: JPMorgan (JPM), Bank Stocks Showing Weakness After Solid Performance Last Week
Jeff Macke tells the panel that the financial sector gives him pause.
Guy Adami likes Berkshire Hathaway (BRK) in this tape. Also, Guy recommends buying what Warren Buffett is buying; names such as Bank of America (BAC),US Bancorp (USB) and Johnson & Johnson (JNJ).
Pete Najarian tells the panel to be careful of the financials. He doesn’t think they’ve reached a bottom. He also recommends keeping an eye on rail stocks. He says Union Pacific (UNP), Burlington Northern (BNI) and other names were all running Monday.
1113237
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| -- | -- | -- | -- | -- |
| JNJ | Johnson & Johnson | 149.70 | -3.80 | -2.48% |
| UNP | Union Pacific Corp | 232.71 | -2.00 | -0.85% |
| USB | US Bancorp | 40.02 | -0.75 | -1.84% |
CHIP, CHIP HURRAY
The headline: Tech names uniquely strong in this tape.
Stacey Briere Gilbert says traders like tech stocks and many see them as a safe haven until they can figure out what’s going on with the market.
1113238
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| -- | -- | -- | -- | -- |
AFTER HOURS ACTION: NOT IN WALLET ANYMORE
The headline: Capital One (COF) Plummets After Hours On Plans To Close Alt-A Mortgage Unit;
Dylan Ratigan explains that “Alt-A mortgages” are essentially loans to borrowers who don't fully document their income or assets.
Stacey Briere Gilbert says this is not just a Capital One problem. The unknowns are a broader issue, she says.
1113239
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| COF | Capital One Financial Corp | 137.49 | -1.94 | -1.39% |
LOWE AND BEHOLD
The headline:Lowe's (LOW) Shocks Housing-Wary Street With Stronger-Than-Expected Earnings;
Jeff Macke doesn’t feel that results from LOW were particularly strong; he feels they just weren’t as bad as results from Home Depot (HD) and that was good for a bounce.
1112458
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| HD | Home Depot Inc | 326.89 | -3.70 | -1.12% |
| LOW | Lowe's Companies Inc | 217.48 | -3.65 | -1.65% |
HOT COMMODITY STOCKS
The headline: Freeport-McMoRan (FCX), Commodity Stocks Bounce Back From Last Week's Rout
Guy Adami says the copper story isn’t over. He recommends owning this stock on the correction.
Stacey Briere Gilbert completely agrees.
Sector Trade
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| FCX | Freeport-McMoRan Inc | 51.20 | -0.03 | -0.06% |
FLUOR FLOORS IT
The headline: Fluor (FLR) Jumping On Report It May Win $2B Kuwaiti Refinery Contract;
Guy Adami explains that Fluor won a nuclear reactor contract and he recommends owning FLR on the current dip.
1113240
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| FLR | Fluor Corp | 40.25 | -0.50 | -1.23% |
TAKE YOUR POSITION: MEDTRONIC
The headline:Medtronic (MDT) To Report Earnings Tomorrow After The Bell
Pete Najarian says medical device units have been strong. He expects MDT to have a good report.
1113241
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| MDT | Medtronic PLC | 81.38 | -4.38 | -5.11% |
TAKE YOUR POSITION: GAMESTOP
The headline: GameStop (GME) To Report Earnings Thursday Before The Bell
Stacey Briere Gilbert says guidance will be the key information from GME. She recommends selling the Sept. 45 calls. Otherwise, she says wait until the stock pulls back a little before buying.
1110312
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| GME | GameStop Corp | 18.32 | -2.80 | -13.26% |
TAKE YOUR POSITION: PETROCHINA
The headline: PetroChina (PTR), China's Largest Energy Firm, Reports Earnings Wednesday
Guy Adami says he likes this stock and sees room on the upside. He recommends owning it as a trade.
1113242
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| 1857-SZ | PetroChina Co Ltd | 10.00 | +0.09 | +0.91% |
OPTIONS ACTION:
The headline: Gilbert Seeing Unusual Call Option Patterns In Goldman Sachs (GS),MasterCard (MA)
Stacey Briere Gilbert explains that she’s started to see traders buying “in the money” calls and selling twice as many “out of the money” calls. She says the trade provides upside exposure without the downside risk.
:
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| GS | Goldman Sachs Group Inc | 458.15 | -4.23 | -0.91% |
| MA | Mastercard Inc | 451.21 | -5.31 | -1.16% |
THE BOURSE ULTIMATUM:
The headline: NASDAQ To Sell Entire London Stock Exchange (LSE) Stake As It Pursues Bid For Swedish Exchange OMX; Borse Dubai Announced Higher Offer Friday For OMX
Pete Najarian thinks the NASDAQ will use the money from its LSE stakes to buy back stock.
Jeff Macke adds that in this volatile market the exchanges win in the near term, however he adds in a bear market volume will dry up.
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Trader disclosure: On Aug 20 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money; Macke Owns (DIS), (JWN); Najarian Owns (ATML); Najarian Is Short (GS) Najarian Owns S&P Puts; Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies
Susquehanna Financial Group Is A Market Maker In (ATML), (BIDU), (CROX), (DNDN) (FSLR), (FXI) (GYMB), (GRMN), (GOOG), (INTC), (JKHY), (LEND), (MSFT), (NDAQ), (PSUN), (PALM), (Rost, (RIMM), (SPLS), (SSCC), (TRMB), (YHOO), (ZUMZ), (QQQQ); Susquehanna Financial Group And/Or Its Affiliates Together Own More Than 1% Of The Shares Of (BSC), (BIDU),(CROX), (CME), (DNDN), (LEND), (NMX),(PALM), (RIMM), (MA), (FCX); Susquehanna Financial Group Has Provided Advisory Services To (AEO); Susquehanna Financial Group Has Provided Advisory Services To (GYMB)