Recap of CNBC's Fast Money, Tuesday April 15. Click on a stock ticker for more analysis.
Intel’s rise after earnings set the tone for the end of the trading day on Tuesday, and Pete Najarian said options gave a hint of Intel’s 7% jump. Jeff Macke said expectations were not very high for Intel and that margins and revenues were solid. However, AMD’s less than stellar report balanced INTCs strong results. Najarian said INTC’s buyback program is impressive and its earnings report will positively affect IBM. Guy Adami said $23 was the level of INTC when the stock broke down and thinks this level will offer resistance. He would take profits in INTC. On Intel’s comments about flash-memory being a slow business, Najarian commented competition is fierce and he would beware of Micron and Sandisk. IBM has risen 8% since January, and based on options activity, Najarian predicts a further 7% jump on earnings. Adami likes the fact that 75% of IBM’s business is overseas, and would take profits now and buy back the stock lower. Macke said IBM might have a decline on earnings since it has been up all year so far.
CSX beat estimates of 72 cents by an additional 13 cents. Najarian is bullish on NSC, which he says is cheap and also likes BNI. Macke says he likes fundamentals in rail stocks. On the success of rails, Najarian likes Mosaic, Potash, Monsanto and Adami is bullish on Joy Global and Bucyrus.
Airlines failed to rise on the news of a merger between DAL and NWA. Najarian would take a wait and see approach, while Macke is bearish on the sector.
REITs VTR and HCP are moving up, but Karen Finerman calls it overvaluation. Macke also said the stocks are going too far too fast.
Oil Price Rise
CNBC contributor Addison Armstrong expressed uncertainty over whether oil will hit $120 a barrel, but says the fuel is a proxy for the dollar. With supply problems, Armstrong would be long and said $115 is a reasonable expectation. If oil breaks $115, he g believes it will reach $120. Armstrong likes fundamentals in natural gas and says there is a resistance at $10.30. He thinks consumers will soon be paying $4 for gas at the pump.
Crocs remained down all day Tuesday, and Najarian warned investors to resist the temptation to bottom fish. Macke doesn’t have confidence in the company after the numbers it reported on Monday, and Finerman says management is clueless.
Consumer Price Index: Zack Karabell, President River Twice Research
With the CPI report on Wednesday comes concern about inflation, but Zack Karabell says the consumer will spend regardless of inflation. Macke says recession is a bigger worry.
Merrill Lynch (MER)
Many are waiting for MER’s report on Wednesday and believe it will have a huge impact on the market. Najarian reported heavy put activity and says volatility is now at 125%. Macke says the put-buying might be late because of well-known risk in the financial sector. He doesn’t believe MER will make a dramatic move.
Trader Radar: Pfizer (PFE) was one of the most actively traded stocks on the New York Stock Exchange on Tuesday.Final Trade: Macke: sell IBM ahead of earnings, Adami: Apple (AAPL), Finerman: Domtar (UFS), Najarian: Noble (NE)
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