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The Word On P&G, Hewlett Packard And More

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THE ODD COUPLE:

The headline: Dow Surges To Record Levels While Economy Grows At Slowest Rate In 4 Years

Dylan Ratigan reveals that some Fast Money viewers are skeptical about this market.

Greg for Illinois writes “The exuberance I’ve seen this week on all the CNBC shows reminds me of 1999. I am still licking my wounds from then, and it seems everyone has forgotten about that time...I don't hear anyone talking about the spot price of gas...And how about inflation? I am missing something here because in the Midwest, wages keep falling, yet prices keep rising....”

Jeff Macke explains that although there is a correlation between the stock market and the economy, regional weakness in the economy doesn’t necessarily lead to a weakness in stocks.



RECORD EURO:

Multinationals Booming As Dollar Hits Record Low Against The Euro; Procter & Gamble (PG) To Report 3rd Quarter Earnings Tuesday Before The Bell

Dylan asks if US investors should be worried about Europe’s lack of worry about the currency issue.

Tim Strazzini says the European companies are worried (because it makes their goods more expensive in America.)

Meanwhile, the panel is bullish on PG and Guy is also bullish on Hewlett Packard (HPQ) and McDonalds (MCD).

AMAZON BOLDLY GOES:

The headline: Amazon.com (AMZN) Led By Aspiring Astronaut Jeff Bezos, Sees Shares Soar 38% On Blowout Earnings

Tim Strazzini says the jump is illogical and believes the stock is overvalued. Jeff Macke agrees that the stock is ahead of itself. Eric Bolling adds that Google (GOOG) had the same earnings and they’re only up 8%.

EARNINGS SIZZLE:

The headline: Burger King (BKC) Shares Surge 3% As Earnings Rise On New Menu Items

Burger King Chief Executive John Chidsey joins the guys on the fast line to discuss the company's strong earnings.

Dylan asks why BKC has been so profitable without so-called “healthy” products.

Chidsey says the company tailors products to their “super-fans” which are people 18-49 and they want indulgent items. He adds Burger King also has a veggie burger and salads on their menu.

Jeff Macke asks how long can the company keep turning great earnings results.

Chidsey believes they can keep earnings strong for the next 5-7 years.

Jeff Macke says the challenge BKC faces is the consistency of the Burger King experience from store to store – because most stores are franchised. He asks if that’s improving?

Chidsey says yes – it’s improving dramatically. He adds outside the US (which is where 80% of new restaurants are being built) that’s far less of an issue.

Dylan asks about the company’s international ambitions.

Chidsey says outside the US, BKC has about 4,000 restaurants while McDonald’s has 20,000– so he sees plenty of growth potential.

Dylan asks the guys what they think of BKC.

Jeff Macke says he likes it more and more. Tim Strazzini is far less excited and thinks all fast food stocks are ahead of themselves.

Symbol
Price
 
Change
%Change
GOOGL
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HPQ
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MCD
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PG
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Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 27, 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 (IBM), (JBLU), (MPEL), (PG), (T), (WMT) Bolling Owns (MPEL), (BP), (XOM) Gold, Silver, Corn Bolling Is Short Soybeans; GE Is The Parent Company Of CNBC