Word On The Street
WORD VIDEO HERE
Dennis Gartman
The traders spoke with Dennis Gartman, author of The Gartman Letter, about the future of oil prices. Gartman said the longs are throwing up and the shorts are feeling like kings. He doesn’t think that trend is about to change for crude oil. He said gold looks awful and didn’t trade up when it should have. Gartman thinks gold and the dollar are changing their major trends. He disclosed he is short crude oil here and would look to buy the dollar.
Consumer Trade
The traders traders discussed some consumer stock picks after the Consumer Confidence Index reading came in a touch higher than expected and Colgate-Palmolive (CL) said it would have double-digit earnings growth for 2009. Najarian said watch the Consumer Discretionary SPDR (XLY), which he saw unusual call options trading in on Tuesday. Macke said play the space with boring cacooning names like Hasbro (HAS), Costco (COST) and Wal-Mart (WMT).
Biotech Trade
The traders discussed some biotech stocks plays off the news that Roche will most likely have to raise its bid for Genentech (DNA) to $100 or even possibly $120. Robert W. Baird analyst Christopher Raymond recommended shares of Genzyme (GENZ). He said the stock hasn’t moved much year-to-date and it’s cheap. Najarian likes Gilead (GILD) and Adami picked Celgene (CELG).
POPS&DROPS
POPS- Colgate-Palmolive (CL) traded up 8% off strong second-quarter profits. Finerman said the quarter was impressive. Masco (MAS) jumped 8% after the company beat earnings and reaffirmed full-year guidance. Adami advised investor to sell into any upside. Energy Conversion Devices (ENER) ripped higher by 5% after Credit Suisse started coverage on the name with an outperform rating. Najarian said he favors this stock. Lennar (LEN) soared 11%. Under Armour (UA) surged 7% after the athletic clothing maker beat Wall Street expectations. Najarian seemed skeptical about UA’s success.
DROPS- Sony (SNE) plunged 6% after the electronics company said profits will more below their previous forecast. Macke wants to see the CEO of Sony leave. Fresh Del Monte (FDP) plunged 14% off a disappointing profit report. Macke explained that the company keeps missing estimates. Manitowoc (MTW) fell 5%. Dineeuity (DIN) dropped 3% after second-quarter earnings missed analyst estimates. Finerman explained that Applebee’s is the problem. Rent-A-Center (RCII) slid 8% after the home appliance rental firm missed estimates. Macke said short it.
Whale Watching – Carl Icahn
The traders talked about one of the biggest whales on Wall Street, Carl Icahn. Icahn is famous for attacking companies through the press and breaking up struggling firms to unlock value. Finerman said this year isn’t his best year. Icahn’s top 5 holdings are Biogen (BIIB), Blockbuster (BBI), Imclone (IMCL), Motorola (MOT) and Yahoo! (YHOO).
Face2Face
Jerry from Georgia writes, “How do you feel about Visa (V) and MasterCard (MA) heading into earnings. Adami said he likes MasterCard better than Visa. Chuck from Florida writes, “Should I buy Apple Computer (AAPL) on the recent pull back?” Najarian said he likes the stock as long as Steven Jobs’ health is okay. Sean from Hawaii writes, Is the ag run over? Agrium is off almost 30 points. Is the story dead with the demand destruction that’s been reported. Finerman thinks its valuations not demand destruction taking the ag stocks down.
Trader Radar
Shares of VISA (V) were among the most actively traded stocks in the NYSE Tuesday.
Fast&Furious
Disney (DIS) is set to report earnings after-hours on Wednesday. Macke thinks the company will report a great quarter but the stock will sell off. Corning (GLW) reports earnings after the bell Wednesday. Adami thinks the quarter will be good and the stock looks cheap. Starbucks (SBUX) also reports after the bell. Finerman disclosed she sold her stake in SBUX because it’s too hard to figure out. The crude oil inventory report is set to be released at 10:35. Najarian said the chart says oil is going lower. Visa (V) reports earning after the close on Wednesday. Adami said avoid Visa and look at MasterCard (MA). Allergan (AGN) is set to report earnings before the bell. Najarian said the stock has been beaten-up lately. Comcast (CMCSA) will also report earnings before the bell Wednesday. Macke said short the stock.
Final Trade
Macke said take profits on the Financial Select Sector SPDR (XLF). Adami picked U.S. Bancorp (UBS). Finerman said short the iShares Dow Jones US Real Estate (IYR). Najarian selected Wells Fargo (WFC). 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!