Jim says IBM had a great run into earnings and now it’s falling apart. He explains it was a good report –solid, but not enough to generate a lot of excitement.
Jeff Macke turns attention to Intel, which said positive things about their margins and positive things about their market share. Jeff explains The Street was looking for optimism on capex and Intel did not talk about that.
Eric Bolling says this is no surprise. He tells investors to expect Intel’s earnings to cook in 3 to 6 months, because companies need to switch from stock buy-backs to capex spending. He adds this isn’t fast money – it’s long term investing.
Dylan Ratigan asks Tim Strazzini why he likes Electronic Data (EDS) and SAP AG (SAP) right now.
Tim replies that he expects to see a return to corporate spending and these companies will benefit, as will IBM. He sees software and services driving revenue which are high margin businesses.
Jim Goldman adds that Yahoo! showed no optimism for Panama. Eventually Panama will pan out, says Jim but right now it’s not performing.
Eric Bolling says Google (GOOG) is going after the ad dollars and Google’s search engine is kicking the “you know what” out of Yahoo!. He tells investors to stick with GOOG.
Tim Strazzini disagrees. He thinks once Panama kicks in – Yahoo! will benefit. He remains bullish on YHOO for its valuation.
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On APR 17, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Strazzini Owns (CAH), (EWG), (IBM), (WMT), (YHOO) (USG); Bolling Owns (NMX), Gold, Silver, Corn, Bolling Is Short Soybeans