AFTER HOURS ACTION: GOOGLE DOWN AS MUCH AS $35:
The headline: Google Plunges In Extended Trading After Earnings Miss Estimates; Google Earnings Miss Estimates For Just 2nd Time In 12 Quarters
“I think we’re in a pretty good place,” Tim Seymour says about this market. Google (GOOG), which missed estimates for just the second time in 12 quarters, may end up tainting the Nasdaq, Pete Najarian says, but the bar is set so high to begin with that the guys generally don’t think GOOG will suffer a long-term hit. Jeff Macke says “let it chill for a bit” and “the financials have more concern to me than Google.” After Goldman Sachs (GS) rolled over today, Eric thinks investors should be prepared for the other investment banks to follow. Pete thinks the Bear Stearns (BSC) subprime mess was not an isolated incident, and other banks could easily fall into the same trap.
AFTER HOURS ACTION: Microsoft Volatile After Hours:
The headline: Microsoft Shares Rise, Then Fall After Hours As Revenue Beats Estimates
Let Microsoft (MSFT) settle down a bit, Jeff Macke says, but he’s still bullish overall. MSFT’s deferred revenues were up much higher than expectations and the company seems to be hitting on all cylinders, he says.
AFTER HOURS ACTION: SanDisk Crushes Estimates:
The headline: SanDisk Soars After Hours On Blowout Earnings
SanDisk (SNDK) was a $42 stock on June 1, Pete says. Now it’s trading at $59 after hours. Not bad. The suppliers for mobile devices are all on fire, but it might be a good time to take profits in SNDK after this kind of run, Pete says. He wouldn’t buy it this high, either.
Something’s Brewing:
The headline: Starbucks Soars On Virtually No News; Najarian Seeing Suspicious Options Activity In Starbucks
Over 100,000 options traded hands today in Starbucks (SBUX), and they weren’t foreshadowing its earnings on Aug. 1. There’s speculation out there that Pepsi (PEP) is taking a long, hard look at Starbucks, Pete says. This would be a great time for SBUX to sell, Jeff says, as “nothing is working operationally.”
Over 100,000 options traded hands today in Starbucks (SBUX), and they weren’t foreshadowing its earnings on Aug. 1. There’s speculation out there that Pepsi (PEP) is taking a long, hard look at Starbucks, Pete says. This would be a great time for SBUX to sell, Jeff says, as “nothing is working operationally.”
’Daq Attack:
The headline: Nasdaq Shares Jump On Better-Than-Expected Earnings, Higher Forecast
Nasdaq (NDAQ) shares went from $29 to $34 in a hurry. Pete likes the exchange right here and thinks CEO Robert Greifeld is doing a great job.
Beijing Burning Up:
The headline: China Economy Grows 11.9% in 2nd Quarter, Fastest Pace In 12 years
China is the story of today even more so than tech, Tim says. The world rallied on the Chinese growth story, he says. And why shouldn’t it? Twelve percent growth with 4% inflation? “I’ll take that,” Eric says. As far as he’s concerned, Chinese stocks are still cheap.
First-Place Metals:
The headline: Copper Rises Most In More Than a Month, While Gold Hits Highest In More Than 2 Months
The metals are breaking out to the upside in part because of the huge demand from China and India, Eric says. But in addition, mining-related M&A continues to be in the news, keeping the rally alive in many of the metal stocks. “You gotta stay long these names,” Eric says, and “put them away.”
Ow! Jones:
The headline: Should Rupert Be Worried By 27% Drop In Dow Jones Profit?
News Corp.’s (NWS) acquisition is all but done at $5 billion, Jeff says, but investors “can still sell Dow Jones (DJ).”
Daddy, You’re Embarrassing Me:
The headline: WSJ: Shair Redstone To Leave Viacom Board After Falling-Out With Dad Sumner
The heir apparent is apparently leaving ... and that’s driving the stock up on the hope – the sheer hope – that Sumner Redstone will one day leave Viacom (VIA) and “they will get someone from the outside to inject some management experience” into the company, Jeff says.
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Trader disclosure: On July 19th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC); Bolling Owns (NMX), Copper, Gold, Silver, Platinum; Bolling Is Short (FXI) And Owns (FXI) Puts; Seymour Owns (ABV), (AAPL), (GLD), (INTC), (MSFT), (SBUX), (TIE), Macke Writes For Financial Education Website Minyanville.com, CNBC Is A Service Of NBC Universal And Dow Jones