Word On The Street
Apple Inc. (
NASDAQ: AAPL) announced on Thursday plans to give a $100 credit to iPhone buyers who aren't happy about the company's recent price cut of the popular device. Macke says the company is in uncharted territory and he would be selling the stock. Finerman agreed. Najarian believes Apple is a great company and the iMac is screaming.
National Semiconductor Corporation (
NSM) reported better-then expected earnings on Thursday. Adami likes the stock and Najarian advises buying it on weakness. UBS issued a buy recommendation on China saying the Olympics will keep the rally going through 2009. Finerman says this is ridiculous and asks how the analysts could have clarity in the market through '09. Macke says this is a terrible upgrade and investors should use it to sell. Najarian says the China telecom stocks are on fire. Adami likes
China Mobile Limited (
CHL).
Smith & Wesson Holding Corporation (
SWHC) traded higher after hours on a strong earnings report. Adami says don't chase it but buy it on a pullback.
Juniper Networks Inc. (
JNPR) hit a new high after a positive analyst day. Najarian says he loves Juniper,
SAP AG (
SAP) and
Cisco Systems Inc. (
CSCO).
WATCH THE WORD ON THE STREET VIDEO HERE
Under Armour CEO Interview
WATCH THE CEO INTERVIEW VIDEO HERE
Is the Consumer Dead?
August sales numbers from retailers beat expectations and have many bulls on Wall Street thinking the subprime-mortgage issues and housing problems aren't killing the great American consumer.
CNBC retail reporter Margaret Brennan joined the crew to discuss the current state of the American consumer. Brennan says the rumors of the death of consumer are exaggerated. She says the CEOs she's talking with are more bullish about their outlook than Wall Street is on the consumer.
Traffic might be slower, but people are spending more when they do buy. Adami says he likes Tiffany & CO. (TIF), Saks Incorporated (SKS) and Sotheby's (BID). Finerman disagreed with Adami on Sotheby's. Macke says the retail numbers were good, but the jobs number is a more important indicator to watch.
WATCH THE CONSUMER VIDEO HERE
Is the Commodity Bull Market Dead?
Commodities continued to rip higher on Thursday with gold trading above $700, oil closing above $76 a barrel and wheat continuing its fantastic price run. What is the trade as global demand strengths for commodities? Adami says the reason the commodity stocks sold off so aggressively is because hedge funds had to liquidate positions. He believes
Freeport McMoRan Copper & Gold Inc. (
FCX
) will go to $115 and he also likes
Exxon Mobil Corporation (
XOM
). Najarian says steel and energy stocks will continue to go higher as the global growth story continues. He likes
Posco Incorporated (
PKX) and
BJ Services Company (
BJS), which had monster call-buying on Thursday. Adami believes oil has the most momentum here, and gold scares him because if there is no rate cut on Sept. 18 it will get crushed. Macke believes gold wants to break higher more than oil.
WATCH THE COMMODITY VIDEO HERE
Is Dealmaking Dead?
The credit market blow up took private equity out of the dealmaking equation for the time being. Now, dealmaking is looking to make a comeback from the corporate side with deals like
Yahoo! Inc. (
YHOO
) buying Bluelithium on Tuesday. Is dealmaking back? Finerman says that with a weak dollar foreign buyers could come in and the corporate buyers still have strong balance sheets to make deals. Her play is
Meriden Gold Inc. (
MDG
). Najarian suggest taking a look at the device makers. He believes the
Biomet Inc. (
BMET) deal will get done and he is watching
Dade Behring Holdings Inc. (
DADE),
Ventana Medical Systems Inc. (
VMSI) and
Roche (
ROG). Macke says the big deals are gone and if this is the best we can do the equity traders have no opportunity.
WATCH THE DEALMAKING VIDEO HERE
BEAR WEEK
WATCH THE BEAR VIDEO HERE
Pops & Drops
Pops -
Anhueser-Busch Companies Inc. (
BUD) traded up 2% after raising its full year forecast. Finerman says it popped on the back-to-school keg trend.
Biogen Idec Inc. (
BIIB) popped 2% after reaffirming 2007 guidance. Adami still likes it and so does Najarian.
Ann Taylor Stores Corporation (ANN) moved up 4%. Macke says sell it into the strength. Aeropostale Inc. (ARO) popped 5% after beating expectations. Najarian says that was no surprise after he highlighted the options activity in the name on Wednesday.
Nokia Corporation (
NOK) traded up 3%. Najarian says it's not too late to buy the stock.
ADC Telecommunications Inc. (
ADCT) popped 4% after raising its 2007 outlook. Finerman says that with any hope this is just the beginning.
Drops -
The GAP Inc. (
GPS) fell 4% after same-store sales fell 1%. Macke advises buying this dip.
Office Depot Inc. (
ODP) fell 6% after cutting back expansion plans.
POPS&DROPS VIDEO HERE
Final Trade
Finerman recommends
Under Armour Inc. (
UA). Najarian likes
Dick's Sporting Goods Inc. (
DKS). Macke says short the SPDRs going into tomorrow's number with a tight stop at 1500. Adami is with Macke and he says buy
Short Dow30 ProShares (
DOG), which is a bet against the Dow.
FINAL TRADE VIDEO HERE
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