CNBC's Fast Money Halftime Recap: Pops, Drops, UPS and FedEx

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Includes: FDX, LXK, RSH, SVU, UPS, WFM, X
by: David Alton Clark

Highlights of stocks discussed on CNBC’s Fast Money Halftime Report Program, Tuesday July 26.

FedEx Corporation (NYSE:FDX) - United Parcel Service, Inc. (NYSE:UPS) – The Fast Money traders were split on their views of the global growth story, but none would buy UPS or FDX here.

Simon Hobbs posed the question:

“UPS is tanking despite having a good report. The logistics giant is warning that its outlook is getting muddier. Is this a red flag for the global growth story?”

Joe Terranova was bullish on the global growth story and stated:

“No, they talk about the US specifically. You saw volumes increase only a tenth of a percent there. Internationally volumes were strong. They talked about Germany being strong. They talked about adding a flight to China. No I don’t think we should be concerned about global growth, and look at the rails. The rails are still telling you that growth is there. I would buy the rails.”

Brian Kelly was more skeptical and said:

“I would stay away from all these stocks. They did say that China was doing well but the rest of Asia was slowing and we know that the rest of Asia imports and exports goods into China. It starts from the outside and goes to the inside. So for me it was a bit of a concern and I would stay away from both UPS and FDX.”

Jon Najarian was bearish and said:

“Yeah Brian that exactly my feeling the same… I’m not going to short them here, but I was saying just a couple weeks back that I would sell into these reports. The Amazon issue with the states could have a negative impact as well. If they have to withhold state taxes for order they fulfill bad news for both.”

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. The company is trading significantly below analysts' estimates. UPS has a median price target of $89 by 22 brokers and a high target of $104. The last up / downgrade activity was on Aug 26, 2010, when Dahlman Rose initiated coverage on the company with a Hold rating.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company is trading below analysts' estimates. FedEx has a median price target of $115 by 25 brokers and a high target of $136. The last up / downgrade activity was on Feb 3, 2011, when Robert W. Baird upgraded the company from Neutral to Outperform.


Pops and Drops Highlights

Pops:

Lexmark International Inc. (NYSE:LXK) - Up 21% - Brian Kelly was bullish and stated:

“Big pop here on great earnings… why do you rob a bank, because that’s where the money is… LXK is showing you corporate spending is where the money is.“

Lexmark develops, manufactures, and supplies printing and imaging solutions for offices. The company is trading below analysts' estimates. Lexmark has a median price target of $34.50 by five brokers and a high target of $47. The last up / downgrade activity was on Apr 27, 2011, when Brean Murray downgraded the company from Buy to Hold.

Supervalu Inc. (NYSE:SVU) - Up 9% - Whole Foods Market, Inc. (NASDAQ:WFM) – Joe Terranova said to buy WFM based on SVU’s results and stated:

“SVU up 9% supermarket chan here in the US… but we’ve got to talk about Whole Foods … you have to trade your passion, that is what I like to do… Whole Foods approaching a 52 week high; stay long Whole Foods.”

Supervalu, together with its subsidiaries, operates retail food stores in the United States. The company is trading on par with analysts' estimates. Supervalu has a median price target of $9.50 by 11 brokers and a high target of $12. The last up / downgrade activity was on Jan 19, 2010, when Standpoint Research initiated coverage on the company with a Buy rating.

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company is trading below analysts' estimates. Whole Foods has a median price target of $69.15 by 14 brokers and a high target of $77. No Upgrades & Downgrades are available for WFM.

RadioShack Corp. (NYSE:RSH) – Up 19%. Zach Carabell was bearish on the name and stated:

“You know I really do not particularly like this company, they missed earning but are popping due to a deal with Verizon. If you are in this take your profits, if you are not… don’t be.”

RadioShack Corporation engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. The company is trading below analysts' estimates. RadioShack has a median price target of $17 by 14 brokers and a high target of $21. The last up / downgrade activity was on Mar 30, 2011, when Caris & Company initiated coverage on the company with an Average rating.


Drops:

United States Steel Corp. (X) - Down 8% - Jon Najarian was bearish on the name and stated:

“Yeah well Bank of America cut them to underperform and you had AK Steel (NYSE:AKS) just come out with horrible numbers today… excess supply of sheet steel is just one of the reasons here.”

United States Steel Corporation produces and sells steel mill products in North America and Central Europe. The company is trading below analysts' estimates. United States Steel has a median price target of $56 by 12 brokers and a high target of $66. The last up / downgrade activity was on Jan 19, 2011, when Deutsche Bank downgraded the company from Buy to Hold.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.