Recap of Fast Money, Monday May 12. Click on a stock ticker for more analysis.
MER and Apple rose and took the financial and tech sectors with them. A break in oil's incessant rise also triggered a rally and Adami says he believes in large-cap tech and noted action in MSFT, CSCO and INTC. Najarian discussed new developments for RIMM and thinks Apple was driven up by RIMM. He added Apple is cheap, according to its price-to-earnings ratio. There are rumors that HPQ may buy EDS for $12-$13 billion. Najarian says this is a high price for HPQ and thinks IBM looks good on this news. He also discussed the call activity in EDS. Macke observed a decline in HPQ's stock on the takeover news but notes that the company will give its earnings report this week. Macke thinks the deal is not necessarily bullish for the entire tech sector.
After Friday's warning, FDX moved up on Monday along with UPS and airlines. Adami thinks FDX is good for the second half of the year, and Macke noticed there was no buying opportunity in UPS, as some predicted.
Najarian discussed a rally in VLO and TSO and says PDE is worth looking at. Adami thinks VLO is still inexpensive in spite of the jump and Seymour predicts demand in China will weaken and will provide an excuse for the bearishness.
Adami thinks the U.S dollar seems to be recovering and would short gold. The Fed's decision to stop rate cuts is partly responsible for the strengthening the dollar, and Macke said it might be time to sell weak dollar trades. Seymour suggested shorting FXY and FXY.
One CVC's announcement it is buying Newsday, Macke doesn't like the deal and said the Dolans, who run CVC, are cheating shareholders by spending their money on "vanity projects that don't make sense."
Jon Merriman of Merriman Curhan Ford says oil prices are headed for a decline and solar will be strong even if oil falls to $70. He recommends ENER and EMKR.
Macke is confident about WMT's earnings report and noted the company's expectations are set low and valuation is right. Seymour is impressed with the fact 24% of sales are international, something which is a difficult task for retailers. Najarian, however, said WMT, like MCD, is ahead of itself and while Adami thinks TGT is cheaper than WMT on a valuation basis, he thinks WMT will go higher.
On oil's drop, John Roque suggested commodity plays rather than early-cycle stocks. He recommended DRYS, OII, and GNK. Adami says while he likes DRYS on a valuation basis, he warned it is volatile.
Trader Radar: Ann Taylor (ANN) was up on Monday on unusual volume.
Seeking Alpha is not affiliated with CNBC, or Fast Money