You've seen the headlines - the guys tell you what's behind these stories, and what traders are saying about the news to each other.
The news: Daimler Chrysler recalls 500,000 vehicles because they are catching on fire.
The word: Guy Adami says General Motors (GM) buying Daimler Chrysler (DCX) makes about as much sense as Jeff Macke buying a blow dryer. Stay away!
AT&T Hangs Up On Yahoo
The news: Shares of Yahoo (YHOO) fell 5% on unconfirmed reports of AT&T (T) partnership setback.
The word: Tim Strazzini says AT&T is one of Yahoo’s biggest clients. They pay $250 million in ad revenues. There could be a lot of downside if the deal gets derailed.
The news: Saks (SKS) and Target (TGT) were among the retail winners this week.
The word: Jeff Macke says the Saks number was incredible, but the stock is still below where they were in mid-February. It’s a tough time to get long these retailers. Saks is still one of the best names to be long, as is Guess (GES) and Zumiez (ZUMZ).
Striking Oil Trade
The news: Driller stocks are seeing unusual options activity.
The word: Jon Najarian says Pride Int’l (PDE) averages 1400 contract a day – but today traded over 40,000 contracts. Options traders are saying this company will be taken over. Same with Noble Energy (NE). Keep an eye one them.
The news: DR Horton (DHI) CEO made off-color comments about the state of the industry.
The word: Guy Adami says Hovnanian (HOV) spoke today and he said he sees stabilization, but not recovery and stabilization is not enough to make these stocks go higher. Guy still thinks homebuilders are going lower.
Jones Soda Pops
The news: Jones Soda (JSDA) jumps 23% after profit report and distribution deal.
The word: Jeff Macke says this rally was all about them gaining shelf space. They’re going into Krogers (KR), Safeway (SWY) and Wal-mart (WMT). Shelf space is how you sell soda, so buy them on a dip.
Let The Suntech Shine
The news: Solar energy firm, Suntech Power Holdings (STP) jumps ahead of earnings Monday. The company provides photovoltaic services in China.
The word: Jon Najarian says the trade is STP. They’ve got earnings coming next week. Jon thinks it will be 2 cents better than expectations and the stock will move higher.
The news: Buyout offers, upgrades and more send investors clamoring for hotel REIT’s.
The word: Guy Adami says Winston Hotels (WXH) was involved in a deal to be bought for $14.10 a share. Then last night another offer comes in from someone else willing to pay $15 a share. Also, Strategic Hotels & Resorts (BEE) was downgraded by Goldman a few days ago, and a lot of people got short these REIT’s.
Daylight Saving Trade
The news: Daylight Saving Time comes early this year.
The word: Jon Najarian says trouble might come either this week-end, or again on the first week-end in April (when Daylight Saving Time has started in past years). Computers and gadgets are vulnerable. The trade is the VIX, The Chicago Board of Exchange’s volatility index. You can isolate the fear factor, so if something hits the fan, you profit from it.