Recap of CNBC's Fast Money, Monday April 14. Click on a stock ticker for more analysis.
Wachovia Bank (NASDAQ:WB), Citigroup (NYSE:C), Financial Select Sector SPDR (NYSEARCA:XLF), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), USBancorp (NYSE:USB), Merrill Lynch (MER), JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS), Capital One (NYSE:COF), Comerica (NYSE:CMA)
Guy Adami commented CEOs of financial institutions are not to be trusted completely when WB cut its dividend after a previous statement that there was no reason to reduce its yield. However, he would consider being long WB and other financials with a clear exit. While Karen Finerman said, if given the choice, she would be long rather than short financials, she prefers to stay away. Jeff Macke would take a look at C or XLF. Because XLF reached $24.50, Pete Najarian is rotating back into calls, and he notes the ETF has been trading in the $24 to 27 range. He was unsure about BAC and WFC but likes USB.
Jon Merriman, chief executive of Merriman Curhan Ford was asked to discuss the financial sector going into MER, C and JPM earnings and he said he is long banks, which are bottoming and short brokers, which face increasing capital requirements. Adami says WB is starting to look like a trade with a stop at its 52-week low. Najarian would short MER and LEH but would be long GS at $165. Merriman disagreed, saying GS is overvalued. Finerman remarked she would be long banks before she would be short brokers, and said COF is a good short. Najarian would buy USB on a pullback, while Merriman’s favorite bank stock is CMA, and he would short GS. Macke would rather LEH.
Energy: Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), Baker Hughes (NYSE:BHI), Transocean (NYSE:RIG), Diamond Offshore (NYSE:DO), Encana (NYSE:ECA), Chesapeake Energy (NYSE:CHK), Devon (NYSE:DVN), Suncor (NYSE:SU), U.S. Oil Fund (NYSEARCA:USO), Massey (NYSE:MEE), Peabody (BTU), Alpha Natural Resources (ANR), Patriot Coal (PCX), Arch Coal (ACI)
Oil is strong and Adami picks HAL, SLB and BHI while Najarian prefers RIG and DO. Encana was picked as the chart of the day, and Adami says ECA and natural gas in general keeps reaching new highs. His natural gas picks include CHK and DVN, and he especially likes SU which has a natural gas and oil. Macke would hold onto half of USO because he thinks it will go higher from its 52-week high. Najaraian would buy coal stocks such as MEE, BTU, ANR and PCX on pullbacks. Adami likes ACI.
Crocs’ shares fell after the shoe company slashed its outlook and Macke declared the company was indeed broken. Finerman thinks there might be some hope for CROX overseas. Macke is confused by the proposed merger between BBI and CC and Najarian would sell the stocks.
Northwest (NWA), Delta (NYSE:DAL), UAL (UAUA), Continental (NYSE:CAL), Kaiser Aluminum (NASDAQ:KALU) Najarian predicts a merger between NWA and DAL as well as UAUA and CAL. Adami recommended KALU on an upgrade cycle in the airlines.
On INTC’s earnings report on Tuesday, Macke said to watch margins and revenue and said AMD’s lowered outlook is not good for INTC, which doesn’t need fantastic earnings, but just needs a solid report. Najarian is bullish INTC.
Trader Radar: News Corp. (NASDAQ:NWS) traded on unusual volume on Monday.
Final Trade:Macke: Citibank on a decline, Adami Wachovia with a tight stop, Finerman (NASDAQ:MSFT), Najarian Halliburton
Seeking Alpha is not affiliated with CNBC, or Fast Money