Recap of CNBC's Fast Money, Monday June 9. Click on a stock ticker for more analysis.
Lehman’s Lemmings (LEH), McDonald’s (NYSE:MCD), Wal-Mart (NYSE:WMT), Fannie Mae (FNM), Ambac (ABK), MBIA (NYSE:MBI)
While the Dow recovered slightly with the relaxation of oil prices, Lehman brothers dealt stocks, particularly financials, a blow when it announced its first quarterly loss since its 1994 spinoff and said it is going to raise capital. Pete Najarian noted unusual put-buying and says banks are getting punished. Macke says the misery spread to FNM and Seymour says downgrades in ABK and MBI may mean writedowns. Concerning the Fed, Seymour expects “heavy inflation talk” by Ben Bernanke, and Jeff Macke thinks interest rates might actually be raised. Karen Finerman thinks the Fed is trying to rescue the dollar, which is linked to high oil prices. Macke observed MCD and WMT performed well on Monday and Najarian is bullish on these stocks.
Underwhelmed by Apple (NASDAQ:AAPL)
Apple unveiled information about the company’s new iPhone, but investors seemed unimpressed as the stock fell. However, Pete Najarian is still long AAPL and said a drop was not unexpected after a rise following the developer’s conference. He thinks the stock will rise over a longer time frame. Piper Jaffray analyst Gene Munster still thinks the new iPhone is still big news and could triple demand.
On Treasury Secretary Henry Paulson’s comments about oil regulation and a statement by the Saudis that they will try to find a solution to high prices, oil dropped $4 after its historic $16 move on Friday. Seymour thinks the dollar’s recovery had a powerful effect and Macke commented a 4% drop is not such a big deal after such a big gain. Najarian is still bullish on oil service plays even if oil drops, and he likes consolidation in HAL and Smith International.
McDonald’s reported its overseas sales were up 7.7% and its shares rose 4%. Macke commented domestic same-store sales are also solid on the company’s promotion of its Dollar Menu. Seymour sees strong growth for Yum! In China and although DRI and BKC have had substantial runs, Najarian would keep an eye on them.
Flooded by Food Prices: Monsanto (NYSE:MON)
Midwestern floods brought corn futures up for the third consecutive session. Heavy rains will cause low yields, further aggravating food inflation. On this news, Najarian would buy Monsanto.
Flying High on Titanium: Titanium Metals (TIE)
Najarian says unusual options activity in Titanium Metals could indicate a jump in the stock. Seymour predicts titanium will be more in demand with the need for lighter-weight planes.
Icahn Strikes Again: Yahoo (NASDAQ:YHOO)
On news Carl Icahn sent yet another harsh letter to Yahoo’s board, Macke says the situation is starting to look ugly and he would stay away.
Playing Gamestop (NYSE:GME)
Najarian says options expiration in GME means the stock will rise, but Macke would get out of GME because he thinks the story is played out.
Jon Najarian joined Fast Money to discuss whether or not financials have hit bottom, and noted options volatility has decreased along with the price of puts. However, he is still short MBIA and expects more downside from WM and WB. However, he thinks Lehman Brothers may have bottomed. Karen Finerman recommended XLF and Macke is bullish on GS, but would wait to buy at $150.
According to Goldman Sachs’s data, multinationals have jumped 22% while domestic companies have gained only 2%. It is clear that exports are driving the U.S. economy, and on this news, Macke likes NKE even at a 52-week high, Seymour discussed PG and Boeing and Najarian is bullish on Hewlett-Packard and IBM, both of which generate 60% of their revenues overseas. Finerman likes Wal-Mart.
Amylin’s stock dropped 10% on news that its diabetes drug Byetta, which it sells with Eli Lilly, is facing competition from a treatment developed by Novo Nordisk, Liraglutide, which beat Byetta in a clinical trial. Najarian is still long Amylin, because it is developing a diabetes drug that needs to be taken only once a week.
Trader Radar: Vodafone (NASDAQ:VOD) traded on unusual volume today.
Kenya’s biggest IPO, Safaricom, saw a 60% jump in its shares, as the company has the widest shareholder base of any Kenyan company. While it is not possible to trade the stock directly in the U.S., Tim Seymour notes Vodafone has a 40% stake in Safaricom, and would choose TRAMX and GAF for broader exposure. He added, "Frontier markets are the next wave, but investors should know going in that the volatility is going to be huge."
Managing director at Piper Jaffray, Gene Munster discussed the big news about Apple’s iPhone and notes the device has jumped over the two biggest hurdles: price and 3G technology. AT&T has a lot of pressure to increase sales, but Munster says the iPhone is good for the stock. The group said it is possible the iPhone is old news, and there is a rumor that, in the next 6 months, Nokia will be releasing a device that will give the iPhone a run for its money. Munster thinks Apple is a threat to Nokia but not vice-versa, since Apple is selling a lifestyle and not just phones, but Macke disagrees. Finerman thinks the iPhone’s GPS technology is bad news for Garmin.
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