With the market so unpredictable, Guy Adami recommends sticking with what’s working. He likes Hewlett-Packard (HPQ) and Dell (DELL) which have stood their ground even when it’s been shaky. Stacey Briere Gilbert, chief options strategist for Susquehanna Investment Group, is filling in for Jeff Macke tonight and she likes the large caps here. Eric Bolling reiterates that, with global tensions as they are, it’s a good time to have your money in oil and metals.
Built For the Road Ahead?:
The headline: Ford Shares Climbing on Possible Sale of Jaguar, Land Rover Brands
The word: Guy is positive on Ford (F). He thinks Alan Mulally, former CEO of Boeing, can help the stock in the short term. But if interest rates go up, automakers like Ford will be “dead money,” Eric says, because people won’t borrow to buy cars. Stacey thinks there are just better places to go. Even after rallying, Ford is still only an $8.50 stock.
ICE-ing on the Cake:
The headline:Intercontinental Exchange (ICE) Sweetens CBOT Offer in Order to Trump Chicago Merc
The word: Pete says it’s clear that ICE wants this deal done – but now it’s in the hands of the CBOT’s shareholders. And Eric, who works at and is a shareholder of the NYMEX (NMX), says he hears rumors that an acquisition – possible by the NYSE – could happen as soon as July 4. Guy thinks it won’t happen until Labor Day but either way, there’s a good chance the NYMEX gets taken out, they say.
Wall Street Earnings Parade:
The headline: Goldman, Bear Report Earnings Tomorrow as Wall Street Earnings Parade Continues
The word: Stacey thinks Goldman Sachs' (GS) earnings are already priced into the stock, but it’s a buy anyway on a long-term basis. Guy notes that Goldman is around its 52-week high, while Lehman Brothers (LEH) and Bear Stearns (BSC) are both off their 52-week highs. A short-term sell off in LEH is possible after the company reports, he says, and he thinks Bear’s earnings are priced into the stock.
If You Can’t Say Anything Nice:
The headline: Former Citigroup CEO Sandy Weil Fails to Compliment Successor Chuck Prince on “Squawk Box”
The word: Weil dodged the question, which is anything but a ringing endorsement of Prince. But what do you expect? Citigroup (C) stock hasn’t done anything for a long time, Guy says.
China Trade – Construction:
The headline: Caterpillar (CAT) Climbs After Reaffirming Outlook at Shareholders Meeting; Illinois Tool Works Surgues on Merrill Upgrade
The word: Caterpillar is “doing everything right,” Guy says. After not participating in last year’s rally, CAT is still playing catch up. Guy thinks there’s even more upside from here.