Oil Opinions - Fast Money Recap (7/30/08)

Recap of CNBC's Fast Money, Wednesday July 30.

 

Oil Opinion: Schlumberger (SLB), Halliburton (HAL), National Oilwell Varco (NOV), Transocean (RIG), Suncor (SU), Petroleo Brasileiro (PBR), Exxon Mobil (XOM)

Guy Adami said “Schlumberger had an impressive run today.” However, he said he likes Halliburton better.  Najarian said to take a look at National Oilwell Varco. He said that today, it participated “like they should,” and that “some of these numbers are unreal right now.” Macke disagreed and said that “anything rallying 6%, you sell.” Countering this, Najarian said that “when these things move ... you got to take something off.” He expects Exxon and ConocoPhillips to generate big orders and that will be positive for the oil service sector. Finerman owns Transocean on valuation. Terranova said that today oil “rallied on a snapback,” and he feels it is a “great thing for the broader market.” Terranova said to look at Suncor, Petroleo Brasileiro and Exxon Mobil. He said that in the “next four to six weeks I do not think we go anywhere.”

Financials Today: Merrill Lynch (MER), US Bancorp (USB), BB&T (BBT)

Speaking on the financials, Dylan Ratigan said that Merrill Lynch was “up down, up down, up down, all day.” Adami said to look at US Bancorp at 31 and a half. Karen Finerman said that today's action was good for Merrill but it is “not so good for everyone else.” Finerman continued by saying to short BB&T, which is involved with commercial real estate.

Earnings Effects: Walt Disney (DIS), Visa (V), MasterCard (MA)

Walt Disney is getting pummeled after beating earnings. Macke said that he “sold this ahead of earnings,” and that the “beef of the argument is that if they are not sending planes to Las Vegas, they aren't sending them to Disney.”

Visa was moving higher after hours because earnings were better than expected. Adami said that its earnings per share were good, as was its revenue. He did note that he would rather own MasterCard because it is not as volatile as Visa.

Moving Names: Harsco (HSC), Arcelar Mittal (MT)

Adami said “I want you to buy Harsco.” The stock was upgraded today and it had a capitulation bottom yesterday.

Najarian said that he likes Arcelar Mittal because the firm is “becoming more and more self sufficient,” and it is “looking to acquire more and more.” He warned to keep an eye on the coal stocks and that investors may want to “take some off,” after today's huge run.

Is the Recession Wimpy?

Next, the traders brought on David Kelly of JP Morgan. Speaking about the gross domestic product numbers due out tomorrow, Kelly said that these numbers will show if this recession is “wimpy,” or not. He said that the economy “is in better condition than Wall Street suggests,” however, he does not believe the problem has been overestimated. Kelly predicts that when the consumer stops spending, “housing will hit a bottom.” Wrapping up with the dollar and oil, he said that when “oil comes down, the dollar goes up.”

Commercial Real Estate: Simon Property (SPG), Kimco Realty (KIM)

Moving onto the “mall massacre,” as Ratigan put it, the traders discussed commercial real estate. Finerman said that she advises shorting Simon Property and Kimco Realty. She said that they both have reasonable downside and that they have high occupancy rates and there is “not a lot of room to grow.” She wrapped up saying that there is “only on way to go: down.”  

Retailer Weakness: Wal-Mart (WMT), Costco (COST)

Macke agreed completely, saying that weak consumer numbers are coming through in the retailers. He said this shows the economy is weak and that there are only two retailers in his world, Wal-Mart and Costco.

Hot Option Action: EMC (EMC)

Steaming forward onto hot option action, the traders discussed EMC. Najarian said that “volatility is through the roof,” and that EMC beat last quarter and are continually beating competitors. Adami agreed saying that there is a “great opportunity here in EMC.”  Macke followed up saying that he felt EMC was the “stock of the day.”

Looking East: China Mobile (CHL)

Discussing Olympic trades, Melissa Lee of CNBC came on to talk about her recent trip to Beijing. Lately investors have been disheartened by China’s power shortages, logistical nightmares, and factory closures in a bid for blue skies. But an Olympics honeymoon for stocks could be just around the corner, explains CNBC’s Melissa Lee. The traders voiced their opinions with Adami saying that he thinks that the “best stock in the whole space,” is China Mobile. Najarian agreed saying that “China Mobile is a good name,” and that they have more subscribers than the United States' population. “Chinese leadership wants to make sure the economy and stock market prosper.” I think all hell could break loose after the Beijing Olympics, adds Fast Money's Karen Finerman. They’re trying to hold it together but I’m not sure they can.

 

Final Trade – Your First Move on Thursday

Macke continues to recommend selling the Financial Select Sector SPDR (XLF).

Adami recommends Harsco (HSC).

Finerman says to buy EMC Corp. (EMC).

Najarian thinks that Wells Fargo (WFC) is a buy.

 

Seeking Alpha is not affiliated with CNBC, or Fast Money

 

Comments

[mrbill for V:]

Joan, do we really need a recap of what "Fast Money" has to say? If these people were really good at what they do, would they really have time to do a show every day?

2008 Jul 31 07:30 AM

[MistaWhite:]

mrbill for V - are you serious? take a look at their track record and take a look at cramers....this is a solid show and remember, do your own homework. I would like to see your gains vs their averaged gains. Market closes at 4pm. Their show is on at 5pm and they are constantly on their laptops between talking.

2008 Jul 31 08:13 AM