FedEx Fails to Deliver - Fast Money (5/9/08)

Recap of CNBC's Fast Money, Friday May 9. Click on a stock ticker for more analysis.

Fed Ex (FDX), UPS (UPS)

Fed Ex's warning not only sent its own shares down, but has implications for UPS and retail, and will have a positive impact on rails, Guy Adami said. Najarian noted FDX's warning is consistent with the rising price of oil, and a decline in oil may be good for FDX. Macke says UPS might be a buying opportunity.

Citigroup (C), American Express (AXP), Visa (V) and Mastercard (MA)

Citi's shares plummeted on news that the bank needs to sell $400 million in assets. Karen Finerman says the news is not so shocking, and she believes Citi's strategy of making $3.50 to $4 per share next year may work. She thinks the stock is headed to $38 and is bullish. Najarian would look at AXP, V and MA on this news.

Circuit City (CC), Blockbuster (BBI)

Carl Icahn made an offer to buy CC if BBI won't. Macke can't understand the BBI/CC merger and Najarian doesn't understand why Icahn would want to buy CC. Adami noted Icahn raised his stake in MOT to 7.6%.

Yahoo (YHOO)

Yahoo declined last week, but Najarian doesn't think that Yahoo is finished, and says he owns calls in Yahoo. He feels a takeover might be possible, since the stock would be even lower if no one wanted to buy it.

CNBC's Addison Armstrong on Oil

Armstrong said investors should stay with oil until the end of the trend, but noted the Fed Ex news wasn't so good for oil demand. He would hedge by diversifying into other sectors. He sees a decline in demand, but thinks this is a long rather than a short-term trend, and thinks demand in China will taper off after the Olympics.

Hewlett-Packard (HPQ)

oth Najarian and Macke predict great earnings for HPQ, and Macke says the stock is a long-term buy. Najarian noted orders for HP's laptops hinges increased 26% and thinks the stock is cheap considering its price-to-earnings ratio. Macke noted competition from Dell and Apple is not hurting HPQ.

Wal-Mart (WMT)

Finerman predicts WMT's profit margins will narrow, while Macke is looking at WMT's guidance. Najarian likes WMT's strategy of cashing stimulus checks.

CNBC Senior Economics Reporter Steve Leisman

Leisman says the credit crisis is somewhat contained and noted equities are doing well in spite of bearish news from Citi, Fannie Mae (FNM) and Freddie Mac (FRE), which may announce that it will raise capital. Credit markets will recover if private capital plays a role instead of the Fed.

Zach Karabell, President of River Twice Research: Caterpillar (CAT), Manitowoc (MTW), IBM (IBM)

Aside from financials, earnings are improving and have increased overall an average of 10%. The economy may take an upturn in spite of a worried consumer, and he is bullish on weak dollar plays with global exposure, such as CAT and MTW. Adami likes IBM which gets 75% of its revenue from abroad.

Trader Radar: Priceline.com (PCLN) traded on unusual volume last week.

Final Trade: Macke: UPS on a decline, Adami: Tesoro (TSO), Valero (VLO), Najarian: H-P.

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