Strategy Session with the Fast Money traders
I bought more Bank of America calls on Wednesday, reveals Karen Finerman. I think it’s a great franchise.
I also like BofA on weakness, adds Joe Terranova. The investment banking contribution from Merrill is impressive.
I love Morgan Stanley, adds Pete Najarian. I think the stock still has a lot of upside. However, I’m also asking myself if there’s even more upside in BofA than MS.
I’m looking at Jefferies although I wouldn’t establish a new position at $27, adds Guy Adami. However I like the direction of the company.
Looking at the market broadly, I used the pullback to increase my position in a number of names including Freeport McMoRan, adds Terranova. But make no mistake; this is a stock pickers’ market.
AFTER HOURS ACTION: SEAGATE
In the after market shares of Seagate Technology gained 4.2 percent to $18.50 after the company reported better-than-expected results on cost cutting and increased demand for personal computers.
What’s the tech trade?
These results bode well for Western Digital, says Guy Adami. I think you can establish a new position right here.
In the space I also like Marvell , reminds Pete Najarian. I’m also playing Intel , he adds. Options action suggests to me this stock should make a sharp move higher.
I’m bullish on semis, adds Joe Terranova. And I like EMC.
AFTER HOURS ACTION: EBAY
In the after hours eBay traded higher after earnings beat Wall Street estimates, helped by growth in PayPal and its main online marketplaces unit.
The global e-commerce and payments company said on Wednesday that fourth-quarter net profit was $1.4 billion, or $1.02 per share, up from $367 million, or 29 cents per share, a year earlier.
On an adjusted basis, profit was $585.8 million, or 44 cents per share -- above analysts' average forecast for earnings of 40 cents per share, according to Thomson Reuters I/B/E/S.
What’s the tech trade?
On the results I'd play Akamai, says Pete Najarian.
AFTER HOURS ACTION: STARBUCKS
Starbucks moved higher in extended trade after the company whipped up a quarterly profit that topped Wall Street's estimates.
Perhaps most noteworthy, the java giant said sales at U.S. restaurants open at least 12 months rose 4 percent during the quarter ended Dec 27. The last time Starbucks posted a gain in U.S. same-store sales was the fiscal fourth quarter ended September 2007.
The Seattle-based chain, which slashed costs and shuttered more than 900 outlets in a broad-based restructuring, also raised its forecast -- calling for earnings per share in the range of $1.05 to $1.08, excluding about 3 cents per share in restructuring charges. It would be an increase of more than 30 percent from the previous year.
What's the trade?
I think Starbucks has a lot of upside leverage, muses Gary Kaminsky. These results make me bullish.