You've read the headlines, but what's behind the story? Our guys give you the trader’s perspective - the only other place to find this kind of information is smack in the middle of the floor.
CHIPS STILL FAST?
The news: Texas Instruments (TXN) shares pull back after hours as earnings forecast disappoints
The word: Tim Strazzini says TXN hasn’t been sensational, just okay and he thinks that will be a longer term trend. It’s hard for TXN to grow in the cell phone space. Tim says let it ride.
NEW CENTURY, NO CREDIT?
The news: Bankruptcy speculation is increasing for New Century (NEW), weighing on lending and housing shares.
The word: Guy Adami says Pulte Homes (PHM) and other home builders are quietly back to their lows. There’s going to be an entry point in this space, but it’s not now. Stay away from the housing sector
The news: Oil drops below $60 a barrel mark.
The word: Eric Bolling says crude oil is down because temperatures reached 63 degrees in Chicago and also there was a bearish comment from and OPEC minister. He says the trade remains gasoline refiners and gas retailers.
FORD & ASTON MARTIN
The news: Ford (F) agrees to sell most of its Aston Martin brand for $848 million, ending 6-month effort to unload the unit and free up cash. The buyer, as expected, is an investor group led by David Richards. Ford retains stake valued at $77 million.
The word: Jeff Macke says stay short for it, forever.
SCHERING PLOUGH EXPANDS
The news: Schering-Plough (SGP) agrees to buy human and animal health-care businesses of Akzo Nobel,(AKZOY) Organon BioSciences, for $14.4 billion in cash, expanding U.S. drug maker's health-care products for women. Akzo Nobel shares climb 15%.
The word: Tim Strazzini says this acquisition is not a huge deal. Most pharma companies have to buy pipelines.
*Note Guy Adami’s wife works for Organon and he did not comment on this news
BLOCKBUSTER GOES BLOCKBUSTER
The news: The Blockbuster (BBI) stock is performing well, seemingly inexplicably.
The word: Jeff Macke says it’s the because of the way they’re coming down on Blockbuster CEO. The Board is getting more involved. But Netflix (NFLX) is still at their heels.
SIERRA HEALTH SERVICES BUY-OUT
The news: Health insurer UnitedHealth Group Inc. (UNH) agreed to buy Sierra Health Services (SIE) for about $2.6 billion cash.
The word: Tim Strazzini says the acquisition is a little bit of a surprise to him. They basically bought a bunch of people on Medi-care.