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Part 1 - The Word On China's 8% Plunge, Hotel Takeover Candidates

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NO SHANGHAI SWOON:

The headline:
U.S. Stocks Close Slightly Higher to New Records Despite 8.3% Plunge In China Market

The word: Eric Bolling says investors are shrugging off the China A-share sell-off. (A-shares can only be bought by Chinese nationals) Eric tells investors to keep an eye on stocks tied to US financial liquidity such as Home Inns & Hotels Management (HMIN) and Ctrip.com International (CTRP). Pete Najarian likes Baidu.com (BIDU) and China Mobile (CHL). Guy Adami adds investors can buy stateside stocks that have China exposure such as Joy Global (JOYG) which makes mining equipment.

WALL STREET LOVES WAL-MART

The headline:
Six Analysts Upgrade Wal-Mart (WMT) Following Buyback and Store Cuts From the World's Largest Retailer

The word: Jeff Macke says he’s a buyer because all the bad news is in the company. And the key, he adds, is the management using cash to buy back shares. Guy Adami adds he thinks either CEO Lee Scott will get shares higher or he will get bounced which, Guy says, would add $10 to share price.



ARE YOU TRYING TO SEDUCE US?

The headline:
Mr. Murdoch Tries To Seduce Dow Jones-Controlling Bancroft Family With Editorial Pledge... Dow Jones (DJ) Shares Decline Today on Speculation Bancroft Family May Accept $60 Bid

The word: Jeff Macke believes Murdoch’s next offer will be his last. Pete Najarian adds the stock will either move higher or lower, but it won’t stay where it is. Both Guy Adami and Eric Bolling believe the Bancroft family will sell. In addition, Eric recommends shorting the stock right now, rather than buying puts.

CHECKING IN TO HOTEL STOCKS

The headline:
Starwood (HOT) Leads Hotel Rally as UBS Says It May Be Takeover Candidate

The word: Pete Najarian explains he’s seeing unusual activity in both the stock and options trading in HOT as well as Wyndham (WYN) and Marriott (MAR). He adds ”something is going on in the industry.” Guy Adami agrees. Jeff Macke prefers Hilton (HLT) in the hotel space because they’ve signed a new deal in foreign markets. Eric adds Wyndham is his favorite China play because they have many hotels in Beijing

CHARTING COMMODITIES

The headline: Commodities Responding Better to Charts Than Stocks

The word: Eric says the coffee chart is working but the trade may have run its course. The natural gas chart, he says, shows an inverted head and shoulders (which is a bullish sign) and Eric says investors can still buy into the trade. He adds although the Mastercard (MA) charts were bearish, the stock did not drop as he anticipated.

Symbol
Price
 
Change
%Change
BIDU
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APRM
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CTRP
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HMIN
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HOT
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MA
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MAR
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WYND
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Trader disclosure: On June 1, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AAPL), (DNDN), (HOT), (MAR), (ONXX); Bolling Owns (ICE), (DIS), (T), (NMX), Sugar, Natural Gas Futures, Bolling Has Closed Out Of His Coffee Trade: CNBC Is A Service Of NBC Universal And Dow Jones