STOCKS REBOUND..TECH, WAL-MART PUSH MARKET HIGHER
The headline: Tech Stocks --First Quarter's Worst Performers--Rebound on Wall Street Recommendations.
The Dow rose Thursday after a brokerage upgrade of the semiconductor sector lifted technology shares across the board, explains Dylan Ratigan. Also the market was cheered by discount retailers such as Wal-Mart and Costco who said sales rose in March, and they expect bargain-hunting consumers will continue to drive sales higher.
I also think the market rallied because of positive comments from Goldman Chief Executive Lloyd Blankfein, adds Jon Najarian.
The headline: Wal-Mart, Costco, Target Shares Rise as Investors Bet on a Nation of Discount Shoppers
While most retailers reported dismal numbers for March on Thursday, Wal-Mart raised its first-quarter earnings forecast and Costco climbed on better-than-expected sales, explains Dylan Ratigan.
I think the bad news is already in the stocks, says Jeff Macke.
You can also look at Wal-Mex which is Wal-Mart in Mexico, adds Tim Seymour. (This stock trades in Mexico)
YAHOO, INTEL & CISCO LEAD TECH
The headline: Yahoo Shares Jump As News Corp., Time Warner Join Microsoft Merger Drama.
Yahoo announced on Wednesday it was going to test outsourcing Web search advertising to Google , which sources say is part of a three-way alliance that could combine Yahoo with Time Warner .
But hours later, Microsoft (MSFT) appeared to trump Yahoo's announcement as The New York Times reported that Rupert Murdoch's News Corp (NWS) was in talks to join Microsoft's $42.4 billion bid for the Web pioneer.
In the tech space (outside the merger drama companies), I like Intel (INTC) and Cisco (CSCO), adds Jon Najarian.
LOVE ME DU
The headline: DuPont Climbs After Raising 1st-Quarter Earnings Estimate.
DuPont raised its profit outlook Thursday, saying strong growth in its agriculture businesses and emerging markets should help offset weakness in U.S. housing and automotive markets, explains Dylan Ratigan.
I think it’s a cheap synthetic way to play the ag space, says Guy Adami. I love it! Or look at Eastman Chemical (EMN).
Options action suggests to me that DD is going to $53, adds Jon Najarian.
Another name to watch is Syngenta (SYT), adds Tim Seymour.
AFTER HOURS ACTION: DNA
The headline: Genetech Beats On Earnings, But Misses On Sales As All Four Drugs Miss On Sales.
Genentech reported a 12 percent rise in first-quarter earnings on Thursday, driven by higher sales of cancer drugs Avastin and Rituxan, explains Dylan Ratigan. The 13 percent rise in sales of Avastin was less than many analysts and investors had expected, causing the stock to fall initially after the results in extended trade.
I would not be a buyer at current levels, says Jon Najarian.
I like this stock as a trading vehicle, counters Guy Adami.
It’s a value trap, exclaims Jeff Macke.
OPTIONS ACTION: CAMECO
The headline: Jon Seeing Bullish Options Activity In Uranium Producer Cameco.
Options action suggests to me that this stock could go significantly higher, says Jon Najarian. Cameco might be a takeover target, he speculates.
You can also look at Uranium One and Eurasian Minerals as consolidation plays, adds Tim Seymour.
OIL RETREATS FROM RECORD
The headline: Crude Oil Slips 0.7% To $110.11 After Hitting Record Intraday High Of $112.21 Wednesday.
Oil prices retreated on Thursday while gold slid to $931.80 and the dollar made gains against the euro, explains Dylan Ratigan. Meanwhile shares of Halliburton , and Schlumberger jumped after Goldman cited significant growth potential.
I think the only way to play the space is with oil services, says Guy Adami. The refiners have been toxic and I don’t know when that will change.
The refiners still look like they have a seasonal trade in them, counters Tim Seymour.
I think you can play crude with a stop at $107, adds Jeff Macke.
NO PLANES, BIG GAINS
The headline: Airline Shares Soar Despite New Round Of Cancellations.
American Airlines said it canceled 933 flights on Thursday as it continued to reinspect wiring on MD-80 aircraft, raising the number of flights scratched since Tuesday to nearly 2,500.
I don’t love AMR, says Guy Adami, but it may have hit a short term bottom.