Fast Money Recap: Mister Softee No More? (6/16/09)

Recap of CNBC's Fast Money Program, Tuesday June 16

Mister Softee No More? Microsoft (MSFT), Yahoo (YHOO)

Microsoft climbed for the 6th consecutive day after Jeffries raised its price target from $22 to $26 and declared Microsoft a buy. Joe Terranova thinks the Microsoft play is far from over; "I’m long Microsoft. I think the launch of Windows 7 will line up with an economic recovery. And personally I love the Bing." Tim Seymour thinks the good news is all priced on, and Pete Najarian says the trade is all about Yahoo.

Double Dip Recession,

With the Dow falling a total of 300 points in the last two days, it is clear that bearish sentiment has invaded the market once again. Tim Seymour expressed concern about increased government interference and Joe Terranova is worried about a double-dip or a "W" recession, increase in the deficit and slowing industrial production; "If we go below 905 (in the S&P 500), we're going to have a much deeper correction than we anticipated," he said.

Best Buy (BBY), Wal-Mart (WMT)

Grim consumer numbers are having a huge impact on retail; consumer credit is down 34% for the year so far and there has been a 22% reduction in household net worth. Best Buy reported worse-than-expected numbers and said the rest of the year would be slow. Brian Kelly of Kanundrum Research wondered why Best Buy didn't perform better, given Circuit City's bankruptcy. Pete Najarian sees the decline as a buying opportunity and is also interested in Wal-Mart.

Research in Motion (RIMM), Verizon (VZ), Sprint (S), Palm (PALM)

Excitement is building over Research in Motion's Blackberry Tour which will have Verizon and Sprint as its carriers. Melissa Lee noted Research in Motion's double-digit moves after earnings and would keep an eye on the stock. Joe Terranova would buy RIMM if it pulls back to $75 and is also interested in Palm, but he is leery of the valuations.

Healthcare: Amgen (AMGN), XBI (XBI), GSK (GSK), Genzyme (GENZ)

An upgrade for Amgen brought up healthcare stocks. Joe Terranova thinks the upgrade was because of its new cancer drug and he would also take a look XBI. Tim Seymour thought GSK performed well and Melissa Lee asked if Genzyme's pullback is a buying opportunity. Najarian says GENZ has pulled back to that level many times.

American Airlines (AMR), United (UAUA), Southwest (LUV), Continental (CAL), Delta (DAL)

Airlines have been nervous lately and their stock prices have been vulnerable to bad news and the price of oil. The industry is expected to lose $9 billion this year with rising costs and falling demand, but one analyst is bullish. Stifel Nicolaus airline analyst Hunter Keay has a hold rating on AMR, UAUA and LUV but a buy rating on Continental and Delta; "Those two are the blue chip of the large carriers in the United States," he says. If the economic downturn persists, Keay says these two have enough cash to be insulated and to benefit from the failure of the other airlines.

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