Following are Wednesday's Pops & Drops.
Find out what’s going up, what’s going down and whether our traders would double down, fade or run in the other direction!
General Mills
The catalyst:General Mills forecast full-year earnings below Wall Street estimates as it boosts investment in emerging markets and its North American Yoplait yogurt business.
The trade: I’m cautious, says trader Stephen Weiss. They’re also talking about pension costs increasing due to low returns.
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Harley Davidson
The catalyst: UBS lowered its 2012 profit targets on Harley Davidson to $2.77 from $2.91, and trimmed 2013 estimates to $3.31 from $3.47, following a meeting between analysts and company executives Monday.
The trade: I don’t think the analyst community got what they wanted to hear, says Dan Nathan. I’d go to the sidelines.
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O’Reilly
The catalyst:O’Reilly said sales growth was slower than expected and second-quarter profit would be on the lower end of the company’s forecast range.
The trade: The stock had been a monster, says trader Guy Adami. But there are no one day events; it probably moves even lower.
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Tiffany
The catalyst: Although investors had been hammering this stock as signs suggested the high-end was starting to crack, this decline may be technical. TIF traded down to a 52-week low.
The trade: Around $50 Tiffany is trading at 13 times earnings. This stock doesn’t normally trade at that kind of multiple. It’s starting to get attractive, says Karen Finerman.
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United Health
The catalyst: Investors are likely betting that this stock stands to gain after the Supreme Court rules on Obamacare.
The trade: We have a buy on the stock with a $72 price target, says Mike Khouw.
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AK Steel
The catalyst: Although the catalyst was unclear perhaps the move was in part technical - AK Steel ended north of its 10-day and 20-day moving averages for the first time since early May.
The trade: I’m seeing a lot of call buying in AK Steel, says Jon Najarian.
