Wall Street Addict

On Wednesday the Dow closed up 76 points as the strength from the Fed rate cut continued to spill. Najarian: investors should look at the volatility in the S&P 500, which is moving back to normal. Reported unusual options activity on Cree (CREE). Could be being bought by General Electric (GE).Macke: market bears are instant messaging him with more short ideas than any other time in his most recent memory.Adami: Friday could be a funky day with options expiration on tap. He took a trip to the UPS Center in New York City to find out what is going on at the packaging giant. Adami likes United Parcel (UPS) for three reasons: international growth, energy hedging and union contracts. He also predicted that Fedex (FDX) will rally on Thursday and investors should sell into the strength.Emerging Markets Trade: The iShares MSCI Emerging Markets (EEM) hit a record high on Wednesday. Their stocks around the globe shot up after the Fed cut. Tim Seymour, of Red Star Asset Management suggests investors buy Tenaris (TS). Seymour recommended Vimpel-Communications (VIP), Mobile Telesystems (MBT) and Mechel OAO (MTL) as liquidity plays.Shoe Companies: Collective Brands (PSS) and Brown Shoe Company (BWS) have taken double digit hits. CEO of Payless and the company blamed the decline on weather and the increased demand for products out of competitor Crocs (CROX). Finerman hates when companies use weather as an excuse, but she thinks investors can buy PSS, BWS and Limited Brands (LTD).Goldman Sachs (GS): Dick Bove, an analyst for Punk Ziegel, is the only analyst on Wall Street who is telling investors to sell GS. GS holds are overvalued with $700 billion in securities. He thinks hedge fund trading business is declining.Word on the Street: TD Ameritrade (AMTD) and Najirian's pick: NASDAQ (NDAQ). Najarian sees no options activity in Oracle (ORCL) ahead of the quarter.Gartman: time to get out of Suncor (SU) and all his Canadian Tar Sands plays. Instead he would get into U.S. multi-nationals like ConocoPhillips (COP).Macke says you can buy Kellogg's (K), Kraft (KFT) and Safeway (SWY) off the strong General Mills (GIS) quarter.Pops & Drops:Pops: Countrywide Financial (CFC), Blackstone (BX), Fortress Investment Group, The Warnaco Group (WRNC)Drops- Carmax (KMX), Comcast (CMSCA), Sirius Satellite Radio (SIRI) and XM Radio (XMSR)Final TradeMacke-Oracle (ORCL)Adami- Goldman Sachs (GS)Najarian- Titanium Metals (TIE)Finerman- Play Victoria Secret with Limited Brands (LTD)

Labels: AMTD, CREE, CROX, EEM, fast money, FDX, GE, GS, KFT, MBT, PSS, TS, UPS, VIP, XMSR

Stocks Mixed In Sluggish Trade
1 The Nasdaq climbed 0.1% after falling as much as 0.8% and rising nearly 1%. The Dow and S&P 500 each fell 0.4%; the NYSE composite ceded 0.5%. Volume rose on the Nasdaq but fell on the NYSE. It was well below average on both. The 10-year T-note's yield fell 6 ticks to 4.51%, its lowest close since March, as investors chose Treasuries over corporate debt.
Jobless Claims Hit 4-Month High
2 New claims rose for a 5th straight week, up 9,000 in the Aug. 25 week to 334,000. The 4-week average climbed to 324,500, the highest since April. The 4-week average of continuing claims rose to 2.561 mil in the latest week, the highest since Jan. '06. The upswing comes as many lenders announce big job cuts amid a credit crunch and housing slump.
Findings Of Iraq Study Disputed
3 A GAO audit said only 5 of the 18 military and political goals in Iraq have been met. But the Pentagon said the study, which has not been publicly released, incorrectly judged some goals as unmet. The White House derided the study as unrealistic because it assigned grades, rather than assessing progress.
VimpelCom Profit, Revenue Top
4 Russia's No. 2 mobile operator's Q2 earnings per U.S. share soared 84% to 35 cents a share, the best gain in more than 3 years and beating views. Revenue rose 53% to $1.72 bil. Vimpel's (NYSE:VIP - News) active users grew 16% to 47.7 mil. Revenue at Ukrainian operations nearly quadrupled vs. a year ago. Vimpel shares rose 7% to a new high. Rival Mobile TeleSystems (NYSE:MBT - News) grew 3%.
Commercial Paper Keeps Falling
5 Short-term debt fell $62.8 bil in the Aug. 29 week, diving $244.1 bil in 3 weeks to $1.98 tril, the Fed said. Asset-backed paper fell $59.4 bil to $998 bil, an '07 low, as investors shun mortgage assets, hitting Countrywide and others. That suggests Fed moves to lift liquidity haven't restored normalcy to the paper market. Short-term T-bill yields fell for a 3rd straight day on safe-haven flows.
Bad News Continues For Lenders
6 Freddie Mac missed Q2 profit views on raised loan-loss provisions. Shares of the gov't-backed mortgage finance giant fell 4%. Credit Suisse slashed Countrywide's EPS and price targets, but shares fell just 1%. H&R Block suffered a Q2 loss on loan woes and said it's reworking the sale of its Option One Mortgage unit to Cerberus Capital. H&R Block rallied to close 2% higher.
IAEA: Iran Nuke Deal 'Significant'
7 Iran's decision to answer key questions on its nuclear program is "a significant step," the U.N. nuclear agency said. But the IAEA said uranium enrichment continues, albeit at a slower pace. The U.S. stressed that Tehran continues to defy the U.N. Security Council, but the accord may make it hard for Russia and China to agree to new sanctions.
Tiffany A Jewel Amid Retail Rough
8 The luxury jeweler's Q2 profit rose 55% to 45 cents a share ex items, smashing views. Sales rose 20% to $662.6 mil. Tiffany (NYSE:TIF - News) shares rose 3%. But Sears (NasdaqGS:SHLD - News) fell 3%. Its EPS fell 33%. Sales also fell and gross margins were weak. Wal-Mart (NYSE:WMT - News) slid 2% after Merrill Lynch cut the retail giant to sell as price cuts hurt margins. Women's clothiers Coldwater (NasdaqGS:CWTR - News) and Chico's (NYSE:CHS - News) dived on weak results.
Q2 GDP Revised To Robust 4%
9 That's the fastest growth in a year and is up from the initial 3.4% annual rate and Q1's anemic 0.6%. Stronger business investment, exports and inventories offset another sharp drop in home building and sluggish consumer spending. Core inflation was revised down slightly. But U.S. growth likely has slowed a lot in Q3. See Vital Signs on A2
Dell Beats EPS, Sales Estimates
10 The computer giant's Q2 profit grew 59% to 35 cents a share, as sales rose 5% to $14.77 bil. CEO Michael Dell (NasdaqGS:DELL - News) remains cautious as he manages the early stages of a turnaround. Citing varying operational results tied to its restructuring, Dell did not give a Q3 outlook. Shares edged up after hours after climbing 2% ahead of results.
Published by IBD

Labels: CHS, CWTR, MBT, SHLD, TIF, VIP, WMT