Word On The Street
The markets were hit with selling on Monday after a analyst issued a bearish not on the banking sector. The Dow fell 41.74 points, or 0.52%, to 7,975.85, while the S&P 500 dropped 7.02 points, or 0.93, to 835.48. The Nasdaq lost 15.16 points, or 0.93%, to 1,606.71.
Rising Star – Chipotle
During the “Rising Star” segment, the traders highlight Chipotle Mexican Grill (CMG), an operator of a fast casual chain of Mexican restaurants that is known for its tasty burritos and tacos. Macke said the stock is a former cult stock that has plunged 40% and is starting to comeback. “Cult stocks either go to zero or they find a bottom and it looks like a case of the latter,” Macke said.
POPS&DROPS
POPS- Research In Motion (RIMM) added 8%. Terranova explained that investors want back into this stock. Dendreon (DNDN) jumped 10% ahead of data on its prostate cancer drug Provenge. Seymour thinks DNDN will get fast track approval for the drug. General Motors (GM) popped 8% after the car-maker said its sales in Brazil were up 45%. Macke said the stock is going lower.
DROPS- Rio Tinto (RTP) fell 11% off of rumors of a share sale. Seymour said there’s concern the company could do a new rights offering. The Gap (GPS) dropped 5% ahead of same-store sales set for Thursday. Macke said the only retailer worth owning is Wal-Mart (WMT). Agrium (AGU) slipped 2%. Karabell thinks the long-term story at AGU is great. Cisco Systems (CSCO) dropped 3% after Goldman downgraded the stock to neutral from buy. Terranova said they have 29 billion in cash and love to buy companies. Eastman Kodak (EK) fell 6%. Karabell told viewers the company isn’t doing well.
Trader Radar
Shares of DreamWorks (DWA) was among the most active names on the NYSE Monday.
Final Trade
Macke said get long Goldman Sachs Group (GS) with a stop at $110. Seymour likes Unilever (UN). Karabell recommends getting long NVIDIA (NVDA). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!