What’s the trade?
I think the time to buy this stock was March 10th, counsels Guy Adami, when Goldman took it off the Conviction Buy list. At these levels the stock scares me. But I would get long around $34.
I thought the H-P numbers were decent, adds Tim Seymour. However in the space I like IBM a little more because they have greater global exposure.
I agree that IBM works here, echoes Adami. Hewlett-Packard – not at this price.
FINANCIALS FALL IN FINAL HOUR
Financial shares dragged down stocks on Tuesday after the Senate passed a bill to curb sudden credit card interest rate increases and hidden fees. The move sent both the Dow and S&P 500 lower in late trade after being higher for much of the day.
"Anyway you look at it, it's less favorable for banks," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
Meanwhile, JP Morgan kicked off its annual meeting in New York Tuesday, with CEO Jamie Dimon telling shareholders he expects TARP re-payments to begin in a couple of weeks. But Dimon said he has no details on when JP Morgan can actually start paying back the money.
But don’t expect that news to move stocks. “The market expects JPMorgan, Goldman and Morgan Stanley to pay back the TARP,” explains FXP analyst David Trone. “That’s probably priced in.”
The thing I found interesting is that JPMorgan CEO Jamie Dimon said he expects to lose money in credit cards through the end of the year, muses Karen Finerman.
OIL GRINDING TOWARD $60
U.S. crude oil futures continued their march higher, largely due to anticipated supply disruptions stemming from a refinery fire in Texas.
Although they typically trade in tandem, on Tuesday nat gas futures dropped more than 5%.
After hours the API numbers looked bullish to me, muses Tim Seymour. I think they will follow through on Wednesday. And if you’re looking for a trade, look at Devon , and XTO Energy . I think both companies have probably never been more profitable.
OBAMA TACKLES GAS GUZZLERS
On Tuesday, President Obama announced the most aggressive proposal for increasing auto fuel economy standards ever and the first plan for regulating emissions, the White House said.
The proposal requires the U.S. passenger vehicle fleet to average 35.5 miles per gallon by 2016, saving 1.8 billion barrels of oil. It would also instruct the Environmental Protection Agency to regulate tailpipe emissions.
If you’re looking for a trade, look at Borg Warner, counsels Guy Adami. That’s where I think you want to be. Or you can look at Honeywell , Adami adds. And I like Eaton , but they have a tendency to miss.
I think you can look at Toyota and Honda , adds Tim Seymour. Both are way ahead of the US on emissions standards.
PALM ‘PRE’ MAKES IT OFFICIAL
It’s official. Sprint will sell Palm’s long-awaited Pre smartphone starting on June 6 for $199.99 with a two-year service agreement; that’s the same price as the iPhone.
Shares in Palm fell 5 percent as some investors were disappointed that the price would match rather than beat iPhone's price and Sprint's chief executive said on Tuesday he expects Pre shortages around the launch.
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Trader disclosure: On May 19th, 2009, 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 (AAPL), (WFC), (AGU), (SKF), (SDS), (F); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (BBY), (BX), (FCX), (EEM), (INFY), (PBR), (RIO), (TTM); Finerman Owns (RIG); Finerman's Firm Owns (PBR), (RIG), (WMT); Finerman's Firm Owns (BAC) Preferred, (WFC) Preferred; Finerman's Firm Is Short (WFC), (BAC)
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