tv Fast Money CNBC April 21, 2010 5:00pm-6:00pm EDT
ear. okay. breaking news. >> there it is right now. scott cohn is back on this breaking news. >> hi. this is really interesting. the administration now, as you heard president obama telling john harwood, there was no coordination. now mary schapiro in a very forceful and unusual statement, the s.e.c. is an independent law enforcement agency. "we do not coordinate our enforcement actions with the white house." this of course in response to timing that the -- or criticism i should say that the goldman sachs suit was politically timed. "we do not time our cases around political events or the legislative calendar. on a personal level," she says, "i'm disappointed by the rhetoric. in all my years as a commissioner and chair at the s.e.c. and cftc, having been nominated in this post by presidents of both political parties, i cannot think of any instance where politics was a consideration in bringing an enforcement action, nor should it ever be." she notes that regulatory reform has been on the agenda for a year and they brought a lot of enforcement cases since then and suggesting here that the timing is purely coincidental. very interesting, guys. >> all right. scott cohn, thank you very much.
of course we'll remain on the after-hours action, but we do want to go to this goldman story because it is interesting that she would even borlth -- >> yeah. i'm going to -- >> why bother to say that it's a coincidence? >> i'm going to raise my hand here. >> whoever denies -- i won't say it. >> you do not have to come out and -- >> right. >> -- say this. >> credit defend yourself if it's not even grounded? >> because you know what? they know, i'm telling you they know there's going to be some discovery here in the litigation process that's going to be conversation, there's going to be e-mails so, they're trying to get in front of this. i said since friday, and i'll still say again, this is a weak case, and i think the s.e.c. looks very weak. >> but the s.e.c. -- sorry, joe. the s.e.c. really in this situation, what do they literally expect from the markets, first of all? what do they expect from miss schapiro, who both times has been independent but seems to be ruling in these last couple cases with the white house? so she's i'm sure independent. and i'm sure absolutely this reaffirmation of that makes her feel better. but the reality is that the timing doesn't play well with
financial reform that is barreling down the pike. so this is what the markets think and this is the reaction you're going to get. >> and i think the reality is you asked at the beginning of the show did apple ring the top on the market? i think last week with goldman sachs, the events surrounding goldman sachs, you have to just think about what the effect is on the market. in the market you lost some confidence, you lost some trust, and you lost the return of the retail investor. and i think that is very important. i don't think the retail investor's coming back. you now tie that in to getting some earnings that i look at as earnings exhaustion exuberance, basically. and basically, right now the market is in an inflection point that i i believe risk will be taken off the table because of the events of goldman sachs and because some of these earnings are so priced in already. >> and of course we had today steve liesman, our senior economics reporter, working the story very hard in reporting essentially that the case against goldman is in fact falling apart. but the fact that mary schapiro's coming out and talking about the fact that this is not politically motivated seems like basically investors
will think that it's politically motivated. i mean, it sort of resets the whole issue. >> you know what? if it was not politically motivated, you don't say anything. you just basically carry on what you're doing. you just run the case. i wanted to say one thing. we were talking about ebay, we kind of lost that train of thought with the breaking news. and it does float into regulation. what i was saying was reg fd was designed so if a company's going to have that big of a miss given what the consensus is, my understanding is you want to kind of prerelease it. you don't want to wait and have the surprise. and i think the reaction in the after-market here is symptomatic of the fact this was such a big miss based on what was out there. reg fd was supposed to prevent that type of thinking. >> back to the trade on goldman sachs, i think the volatility on goldman sachs obviously has increased significantly. i think the trade right here and everything you see going on keeps goldman sachs in this range between 150 and 170. sow go to pete's neck of the woods here and you play that volatility. that's probably the best trade out there. >> and the people that are willing to take on the risk toshls tolerance. we talked about this last night. volatility's come in significantly, but it's still way above what's been the norm
over the last xwul of weeks, couple of months. so if the people have that risk ability or at least the tolerance to do so, this is a great opportunity to use the options to get paid for being willing to own something like a goldman sachs around 160. >> let's bring in anthony scaramucci of skybridge capital. he joins us from new york city. anthony, you heard the headlines, mary schapiro saying no, this was not politically motivated. what's first your take of these headlines? >> i actually think shows like "fast money" are inside the melon now of the s.e.c. and they're watching you guys and watching shows like this and they feel they have to respond. because the market sentiment is such where people think these things are tied together. i've said consistently, and i do believe this, there's law school classmates of mine that are working at the s.e.c. i do not think this was politically motivated in terms of that syncage. it looks obvious that it was politically motivated, but these people are apolitical bureaucrats. i am very surprised -- >> then why was it a 3-2 vote in if they're apolitical, then it
wouldn't be along party lines, would it? >> wishlgs think -- >> that's just another big coincidence. >> no, i think the attorneys are apolitical. they put it up to that board, and that board split it along party lines. these attorneys in the enforcement agency and the enforcement division want to bring the case. they had to get approval from that committee. so you just have to think about the process. okay? i don't think this was set up to be politically motivated -- >> anthony. anthony. >> people who are saying that i think are driving them crazy, though. you guys are inside their melon. >> anthony, you're a harvard law guy. you're a lawyer -- >> don't hold that against me, gare. >> you don't practice law but you're a harvard law guy and you know the way these things should play out. you did say you're surprised that schapiro even had to make a comment. if you're at goldman sachs right now, where you spent a long time, what's your thinking? is this sort of playing out and crumbling in front of your face from the s.e.c. standpoint the last 24 hours? >> you know, i would be very worried if i was inside of goldman sachs. you cannot be in litigation with your regulator.
stanley sporkin would say that to you. the goldman sachs people have to figure out a way to settle this case and also not make the s.e.c. look
bad. i hear what you're saying, gary. you think it's a weak case. one thing i learned in law school, and perhaps the only thing, is avoid lawsuits. particularly one with your regulator. >> anthony, again, back with your legal cap, the fact that goldman is basically throwing mr. fabrice out to the wolves, isn't this their way of saying okay, we're playing ball and we think this is the best way to get ourselves out of this? >> okay. i say again, i'm not inside goldman, but i think the standard operating procedure is when someone's been fingered by the s.e.c. you give them a paid leave of absence. they're probably not throwing him under the bus as much as you think. it's just they're getting legal advice from their litigation staff. as to how to properly handle this case. subpoena and that's standard operating procedure, to put the guy on the sidelines and give him a paid leave of absence. >> all right, anthony, we're going to leave it there. thank you very much. anthony scaramucci of skybridge capital. let's take a quick check on
shares of goldman sachs in the after-hours action to see if they are in fact moving. it's interesting that anthony said he didn't think -- that goldman would be
essentially worried still even though the s.e.c. came out with this statement. but if i were inside goldman sachs, i'd be pretty psyched. it makes it look like the government's a little desperate in defending their case. >> shakespeare. >> and again, i still say for a trade it makes goldman sachs basically go nowhere. it keeps them in a range until financial regulation gets passed. then you buy goldman sachs. >> and the action in today's stock was not motivated in terms of the trading based on the legal stuff. again, the noise, the chatter continues to be that the business is being impacted as a result of what's going on. that's what i continue to hear today. i continue to think that's the -- that the opposite is what's actually happening. but that's what's pushing the stock down right now. the concern that this is a major distraction like dennis gartman said last night, and that clients are not actively trading. and i think that is not right. >> i hear you. but back to reality, which is that stocks were in trouble before this goldman news.
i mean, we were ringing the bell on a number of stocks. the reality is this market is exhausted. the earnings are fantastic. there's no reason to run for cover. there's reason to take chips off the table. we're all traders. this is what you do. but again, 80% of the s&p is beating. this is better than the fourth quarter. these numbers are beating on the top line and the bottom. the market's -- >> but what you're seeing is shifting. people are taking money off the table and they're shifting to somewhere else. they're shifting out of the financials. even goldman sachs the following day after their earnings that stock was 167. 2 was up $7 and then it pulled back after that. jpmorgan. all these financials. i think people want to get out of knows only because of the performance. >> even the best trade for the last six weeks. so why wouldn't they want to get out? you look at morgan stanley, in fact those numbers were fantastic. that's a place to probably -- >> especially with the political overhang why not get out of the outperformers? let's bring it back to some of the stories we're following in the after-hours session? check on ebay, which gary sid should have prereleased these results, taking down its second quarter guidance. and you see the stock here at
after-market session lows. joe, what do you make of this move? >> across the board you have some earnings here. whether it be ebay or whether it be qualcomm. that clearly the exuberance that was in these stocks is coming out. it's basically exhausted. if you look specifically at ebay, you have to wonder if craigslist is beginning to present a little bit of a challenge. they're definitely going to be the currency headwind with the euro and british pound declining. so ebay right now is a trade that's breaking down. qualcomm's another name that after-hours is trading on the down side. clearly, the iphone is taking away some of the revenue from qualcomm. samsu samsung, lg. that's the phones that the chips that qualcomm makes goes into. they get the licensing there. qualcomm again, this is the second consecutive quarter that they have had a miss. now it's below $40. and i think overall tomorrow you walk in with a market that is clearly on the defensive. >> it's not all bad, though. take a look at sandisk's numbers. they had a record first quarter. a billion dollars. never done that before. look at the numbers in some of the stocks. if you perform, you're rewarded.
if you don't perform, if you just give people what they expected, that's not enough because of what the market's done. >> or in the case of an ebay or in the case of a qualcomm, if you simply miss the mark entirely, then you're being punished and you're being pummeled in the after-hours session. >> they guided down. qualcomm basically told you it was not going to be as good as analysts expected. and as joe said, their margins are coming down. the real handsets are the cheap ones, and this hurts nokia, too which will probably be trading down in the after-hours and tomorrow because the implication as cross the sector are very large. >> so as a low-end trade on the smartphone-s that dead at this point? just because there's so much competition the average selling prices are coming down and the margins are razor thin at this point-s that low-end dead and you only go to the higher end of the likes of an apple? >> the business is changing dramatically and for people like nokia the reality for them is their business is still the cheap handsets, not the smartphones. they're going to continue to dominate that landscape. but again, the margins are getting squeezed everywhere. and pap'll apple is exactly whe are pointing to with qualcomm. >> and it's one of the reasons i'm bearish on rimm.
>> let's continue on, discuss netflix. this is a curious after-market mover after they released their earnings. they traded, as you see there, sharply lower, and then reversed. brian kelly is on the prop desk. he's been on the case. brian, why the reversal? >> well, you know, what's happened here is exactly what you guys just talked about, is that people out there have itchy trigger fingers. and what happened was netflix had good earnings. they had good metrics. but they guided their second quarter a little lower than what the street expected. then when you run down a little further in the release, full-year guidance was higher than expected. so that's what you saw in the market. it tanked and started to come right back once people actually read the full release. >> and i'm going to go back to something that pete said. that is a sign in portfolio manager's mind of a healthy market. it's very good -- you feel better allocating capital and buying stocks when you get this sort of dispersion between companies that produce and beat and companies that don't. that's a good sign. you know, if you're going to put money into stocks and you see
everything going up and you've got this kind of meltup and anything goes up or the opposite, it does not make you feel great. this is very healthy. i think this is a good sign. >> this is a place where people -- portfolio managers can really add alpha to this, because you can pick out that one or two names that are really going to soar. and today was a great day for that. >> and everyone seems to want to jump on this. oh, the market looks terrible. we're at 1205 on the s&p. look what seagate put up. look what sandisk put up. not every number out there is awful. it seems like this desk right now is on this oh, boy, you'd better get out, this is the top -- >> i'm not, pete. >> it feels that way. >> i'm right here, buddy. >> everybody's going after qualcomm and all these other names. qualcomm didn't produce last quarter either. these are names that just aren't produceing when they're supposed to. and when you look at the ipad and when you look at everything that apple put up, there's a lot of names out there that are probably worth looking at. nvidia comes to mind. they're going to be in the new
macs. it when you look across the space it is all about the haves and have notes. and the have that's are doing things right they're getting rewarded. >> what made you such a great linebacker? it was not your athletic ability. >> that's true. >> it was knowing where the play is going. and if you look at things right now, globally what's going on in my world-n commodities, what am i seeing? i'm seeing inventories build, i'm seeing contango come back in again. we're seeing europe shut down. i'm looking at where the market is going. in a pullback and in my estimation is what i see. not a deep dive, not a massive sell-off, but a pullback. >> you want to talk about shifting for one second p morgan stanley two days ago, they were all over it on the materials conference. you saw the coal stocks take off. the material names just absolutely scorched from march 1st on after that conference. they talked about it. they talked about the growth. they got the growth. what did they do just the other day? they flipped out of it. they said it's time to go neutral on the material stocks, let's go long on the energy, let's make those the attractive. they talked about some of the big namds, the bps, the totals. they went to those names joe
talked-b the integrated names. i like those names particularly because you're getting paid money to hold on to these things. look at the dividend yields. i still like exxon. that's about ready to break out. but all these names in the integrated space look strong. >> you notice the desk is clearly divided. this obviously is a side that we're looking at risk being taken off the table and that's a side that's comfortable. but you have to look at today, my friend, look at freeport-mcmoran. >> it makes sense, though. it's part of the materials -- >> basically, that's a copper etf in essence. i mean, that clearly is what it is. look at how that stock was punished today. raised the dividend -- >> their production. >> earnings look phenomenal. >> but he addressed all these questions with erin today on her show, erin burnett, he talked about. production levels. they've got to ramp up production. they're talking about copper at 3.30 to 3.50. there's better names than freeport. freeport's made its run. that's the problem p everybody's looking at them, they're trading ten times. that's probably about right for freeport right now. but if they can sustain growth-f copper can sustain these levels, then freeport's cheap, but --
>> it's got a great dividend. >> i don't think the problem is anything with valuation. i think the div is great. i think production can grow. i think there are limitations, there's bottlenecks in copper. but what what he said that bothered everybody is the china stockpiles are high and there's a potential that demand can come off the table. totally consistent with what we heard from china on friday and over the weekend about what they're doing to their housing market. this is a problem with freeport because it's a very popular trade. pete and i yelled on the phone today copper's still at 3.50. at 3.50 you're at the highs of the peak of the market back in 2007, when freeport was 100 bucks. >> which is why i think the materials -- but material names have paid you already is my point. the material names paid you. if you've owned them this year. if you have owned them since march, they've given you the money back you were due. that's why i think you're seeing this rotation in the market. >> where does the roh face go to? >> to energy. >> but if you look at energy right now, we talk about contango and we laugh about contango, but contango -- >> i don't laugh, joe. it's a very serious topic. >> it is a serious thing. it's all about inventories.
contango is telling you what is stockpiling, and you're looking right now at the relationship in oil between the front of the board and the back of the board is blowing out. >> i have a question, though, going back to pete. can you be a bull on met coal but not be a bull on the likes of freeport-mcmoran or the materials names? >> you can be a bull still on met coal. you can be a bull still on a lost these material names but you've got to be very selective and pick out the names that have direct exposure and the names that can profit most that maybe haven't moved yet and haven't given you the profit. i look at a tech resources. you're getting exposure across every metal there is. but the met coal space along with copper you're getting a little piece of everything. those are the kind of names that haven't made the kind of moves of something like a freeport. >> and steel and coal to me in the last couple days looks like it has broken down. >> very heavy. i think cliffs is the name you actually short because they have 25%. people play it as their china coal play. by the way, 8% of their business is coal. it's actually mostly ore and ore is running into headwinds. be careful on that name. that's a name i think you can get short.
stay long freeport and get short the other side. >> going to teak a break here. we've got more "fast money" coming up next. apple might be the toast of tech today. but how can you make money in microsoft ahead of earnings tomorrow? a strategy you won't want to miss. plus, a trucking stock that topped the tape. should you enjoy the ride or ease on the brakes? all that and more as america's post-market show continues. ♪ i'm in the house
welcome back to "fast money." we are live at the nasdaq marketsite in times square. we are watching starbucks now in the after-hours session actually starting to tick higher. brian kelly is all over that report. brian, are they talking about via? what are they talking about? >> they're talking about same-store sales, cost-cutting, and they're talking about seattle's best coffee at burger king. let's not forget that. what they've done with this company is cut costs, stopped growing the stores as fast, and focused on the profitable ones, and that's what's happening here. look at the stock in the after-hours trading 25.75, something like that. if this thing gets through 26 you're going to have a lot of breakout signals technically. >> did they say anything about new peak margins for fiscal year
10? i know a lot of analysts were looking for 12% or more. >> i haven't heard anything on that yet but i will listen very carefully for you, melissa. >> that's a nice guy, that brian. >> all about service, that b.k. >> what they're also doing is selling internationally and they're also in every grocery store that you walk in now, they're increasing that exposure. >> and they got dividend, and they got the cash -- the share buyback they announced and the cash flow. they really are doing things right. it took them a while but they got things going. >> what did you make of the mcdonald's action today? another all-time high. >> it made sense to me people would want to take some profits. i still happen to own some calls to the up side. i looked at those mcdonald numbers. absolutely incredible, across the board. the new products and of course they went to the mc -- the smoothie. >> mcdonald's new high. bringing it back to something earlier on. joe. >> yes, gary. >> there were 90 new highs today. so obviously -- >> not in the stocks that i'm short. >> well, i'm just saying -- i'm not going to be specific in terms of the rotation. i haven't looked at the list. but there was a meaningful, healthy breadth of new highs. so rotation is alive as opposed to wholesale selling.
so when you get the weakness in a freeport, that money's being redeployed right away. >> back to mcdonald's mcdonald's, guys are going to the slow and steady wins the race. this is where you could see mcdonald's, which has set new highs, go higher because it's not seen as a beta play. they're going to pay you 3.5% div y50e8d. operating earnings up 9%. stripping out all the tailwinds. these guys are growing internationally and they're doing it slowly and they're doing it very well. these are the names people want to own right now, and it goes back to div yields. people that are investing to earn dividend income-n it for the long haul, these are some of the best companies in the world and if you look in the foot space a couple of these guys pay you. b.k. pays you a decent amount of money. it's actually the cheapest place to invest in -- >> you're talking about burger king. >> starbucks, thee guys -- >> but can you eat a whopper? that's a different question. >> we talked about the mccafe and we're talking about coffee. they sell it. they've doubled since 2009, their espresso, sales of that. they are clicking right now, doing things right -- >> there's so much in competition, though, at this
point. it seems like it's anybody's to grab, the market share. jack in the box is starting to offer coffee as well. subway has breakfast now. i mean, there's so much competition, and the marge rinz razor thin these days. the promotional activity this year's going to remain intact. >> but they continue to bring their new products. that really is the key. >> apple's coming out with the icoffee too. you've got to watch out for that. it's 25 minutes into the show, we haven't mentioned apple yet. >> we will. plenty of time. >> that's what the second half of the show's going to be about. >> that's right. 5:30 on it's 100% apple. we want to get you set up for tomorrow's trading session. we'll run through some of the headlines making news tomorrow. paulson. this is headline number one. fighting on the run for his fund. i should actually say fighting the run on his fund. for the second time this week john paulson holding a conference call with investors over his involvement in the goldman sachs case in an effort to prevent investors from leaving. is this run on paul sons funds justified or is he just an innocent sfwander in all of this
mess? here to answer that question, let's go back to anthony scaramucci, who's a managing partner at skybridge capital. anthony, first of all, i've got to ask you, of course, skybridge, fund of funds, is there any exposure to a paulson fund? >> no, we don't have any exposure. >> all right. what do you make of this? it does seem like he's trying to fend off redemptions. >> listen, i give the guy a lot of credit. this is sort of what goldman sachs should be doing. he's getting in front of his investors, open communication. he's trying to allay fears and suspicions. i think it's a brilliant strategy by him. and i do think it will stem some of the redemptions. people are fearful about his involvement in this goldman sachs case. and i think by speaking out and getting 234 front inting in fr he's going to dampen down some of the redemptions. the quote unquote run on his fund i think is potentially very exaggerated. >> the fact he's held two conference calls this week alone, doesn't that create this fear spiral where people might not be initially afraid and then they hear he's having two conference calls so then the thinking is people must be
knocking at the door for that redemption so, therefore they want to redeem? >> or he's got a very good crisis management team and a very good pr team. again, the best thing you can do when you're a publicly known enterprise is communicate with people. tiger woods, ostrich, head in the sand, didn't work for him. goldman sachs. goldman sachs, lloyd says we're doing god's work, it was probably a joke. no real response from goldman sachs. after that was quoted in the paper. communication when you're a public enterprise and a publicly nobody enterprise. paulson is a private company, but he's an internationally known figure. and i think he's getting very good advice here to communicate with these people. >> we showed a list of some of paulson's top holdings, some of which have seen some liquidation in the stocks, that is, on fears there are redemptions in paulson funds. but anthony, you actually like one of his holdings. which one? >> yeah. it's time for the hedge fund trade of the week. and this is cit, which is in
paulson's portfolio. it's also in avenue's portfolio. and the way these guys got this stock is that they owned the debt in cit and they got this stock and warrants out of the bankruptcy. cit has a brand new management team in john thain. it's trading below book value. and it's a warrant on the middle market lending recovery that we should see as the economy recovers. so this is a stock that could classically trade between 1.2 to 1.5 book value, and it's trading right now on about 90% of book. so this is a name that's owned in the hedge fund community. a lot of value/distress buyers own this name. and i think it's an interesting one, and we've made it the hedge fund trade of the week. >> all right, anthony. thanks so much. anthony of course is the author of the soon to be best-seller "good-bye gordon gekk oechlt." good-bye, anthony. >> that should be a best-seller already. i bet it is. let's get there. >> no, it's a fantastic book,
i'm told. right, gary? you read it. >> it is. i think i'm mentioned in the book. >> that's why it's so great. >> i can't comment. >> all right. let's move on to headline number two here. amazon to amaze. at least that is the verdict of the top fundamental chart and options gurus on the street. take a look at tonight's "fast money" 360. >> with amazon, yes, we're buyers into the print. we like the fundamentals here. we think the earnings could prove to be a modest catalyst. the street estimates for 60 cents seem reasonable. there's an overhang issue here that we think has been exaggerated although we think it's real but we think it's been exaggerated related to apple and the ipad. we think the core fundamentals for amazon are well intact. we think the long thesis is well intact. we're buyers. >> we're going to look at amazon now. amazon's been a favorite of ours at wjb for a long time. we've had it on our focus list, so to speak, since last spring. we've had targets for amazon of
160 and 175. we think amazon is as good as it gets in this whole market. up trend, major monster base it had broken out of last year, and we think the trend is really pristine, and we're going to look to buy this on any pullback or any consolidation. >> here's what the option markets right now are pricing in ahead of the amsnon earnings. now, those aren't till form tomorrow. you have a full day to trade as well. but right now very bullish, leaning toward the up side. i see the may 1 60 calls getting a lot of activity. people pricing in an 8% to 10% move for amazon earnings already. >> all right. amazon facing a lot of different issues here, including the launch of the ipad, although that happened in this current quarter that we are in. what do you make of it? >> well, i think at the end of the day they're going to continue to be competition and there's going to be headwinds, but this is still i think kind of an internet secular growth story. the users are continuing to come out -- their margins are coming down. they face competitive pressures. but this is a stock i think you can own. they're delivering earnings growth. it's just a question of
valuation. and it's very difficult for me to own this valuation. >> to me it's an e-commerce story that stays intact with fundamentals that are phenomenal. you will see organic growth here. look for the stock to go north of 150 clearly off these earnings. >> does ebay's miss make you concerned, gary? >> no. it's company specific, and amazon is executing and ebay is not. >> pete? >> i completely agree with him. and i'll tell you what, the options today were absolutely -- by the end of the day they started to explode, a little bit more activity. got a full day tomorrow. but right now people are bullish. >> and of course we'll be all over amazon's report tomorrow on "fast." meantime, more "fast money" is coming up next.
welcome back to "fast money." we are checking ebay. we're actually debating on the desk right now. in the after-hours session it is close to session lows. second quarter guidance was a little bit weak but it did reiterate its full-year guidance. so essentially, banking on the fact that the second half of the year will make up for the weakness in the second quarter.
and what gary and i were discussing here was gary was saying that they could be in violation of reg fd because they nd i was saying why did they have to even adjust their guidance? because some companies don't even give guidance. >> the original headline that we were referring to earlier in the show was that they were giving new guidance that was meaningfully different from what was out there. if you put guidance out there, the way i understand fd, and that you know during the quarter that that guidance is stale or needs to be changed, you have a responsibility to come even mid-quarter. now, they are, as you pointed out, melissa, saying they are still comfortable with the year. so that's going to be the sort of fallback, that they're not changing full-year guidance. but again, it doesn't -- you know, we've been talking so much about goldman, smell and transparency. it doesn't smell good. it's not transparent. if it's that much of a miss, come out, you know, give the guidance mid-quarter. >> i like your sniff test, gary. it's intriguing. it is intriguing. all right. moving on. think the job market is dead? well, guess again. because believe it or not, we
are in the midst of a global feeding frenzy for talent. so where in the world is the street hiring right now? scott page is founder and co-ceo of salomon page, a leading global executive search and staffing firm. scott, it is a pleasure to welcome you to "fast money." >> thank you for having me. >> where are they hiring? and this is actually going to be in a very shocking area to people out there. >> i've been doing this for 25 years now, and i would have never expected this to come back so quickly. two years ago we were in the middle of a credit crisis, all of a sudden you're seeing people hiring in credit areas that have been dead for two years. >> specifically what? >> high-grade credit, high yields. subprime. mortgage-backed securities where people have been hiring mortgage traders for two years. all of a sudden we're seeing people starting to hire again. and this is not just a domestic phenomenon. this is a global phenomenon. >> scott, are these buy side firms too? is this telling us there are there's an opportunity, guys want to get smarter, they want to get some of the best guys who used to trade it? is this a way of saying where some of the money is?
>> absolutely. but what we're actually seeing is people leaving the buy side to come back to the sell side. so it's quite an interesting situation where for many years you saw the migration to one side. they're migrating back. >> they probably lost all their money on the buy side -- >> there's definitely the winners and the losers. >> scott, give us a sense of what the advance time is. if firms are spending the money going with the human capital allocations right now, what are they anything in terms of results, in terms of earnings up side surprise? what i'm trying to get at is if they're hiring people now you've seen the cycles. at what point will we start to see those new hires impact the earnings report on the up side? >> i think where you'll start seeing second half of this year into first half next year. you've got to estimate it takes three to six months for people to really get up and running. >> and you feel what you're seeing right now is as strong of a retention in terms of beefing up as you saw precrisis? >> absolutely. we haven't seen this for two years. the markets have been dormant. all of a sudden you're seeing a frenzy. >> scott, we've got to leave it there for today, but hope you'll
come back to our show sometime soon. scott page of solomon page. we've been watching a lot of tech movers in the after-hours session. but for true tech lovers this is the earnings week to watch. got them all. but the big daddy of them all is tomorrow. microsoft. out after the bell. so let's get an options strategy ahead of this bell whether. mike khouw of cantor fitzgerald and an "options action" contributor is in fact standing by. mike, you're fairly bullish on this stock. >> well, first of all, the stock has been behaving very well lately and it's obviously been moving up pretty sharply. one of the things i would highlight and the guys on the desk have already mentioned this, you know, if all you do is sort of meet the street's expectation, you can't really expect a whole lot more out of it. what i'm sort of recommending here is a bit of a stock replacement strategy where you can remain long but take some of the profits that you've already realized if you like to do that. what we're taking a look at here, over the past eight earnings quarters this thing has moved with a magnitude of about 4.86%. the options markets aren't implying a move quite that sharp.
but an important you point i would make is this is a stock that has -- the median here is 2.8%. what does that mean? about half the time or more you're going to see numbers below that in terms of the stock's performance after earnings. what i'm looking at is you could sell your long microsoft stock and instead look to buy the june 32 calls, pay about 70 cents for those, and sell the 34s against it for about 20 cents. net net you're going to pay about 50 cents for that. that's about 1.6% of the stock's price. and it doesn't need to move thatch for this to be in the money. and in the meantime you're going to have realized a nice little move that's taken place over -- >> this is not a trade you're going to be holding till june expiration. you're probably going to get out of this trade in advance of that, correct? >> yeah, this is definitely something that if the stock moves up sharply, and let's remind ourselves too that the target price on this thing if you take an aggregates view what the street's view on this thing is 35 bucks or maybe a little lower than that. that's one of the reasons we can feel comfortable selling the 34 call. but obviously if the stock does move up sharply you could take profits on this trade. >> pete, just to switch gears,
you were watching corning but corning callings were very active. >> they've got earnings next week and last week we flagged the fact they were coming after the may up side calls. they continue to come after the may up side calls but today they started to go out to the new month. they're going after the 23s. last week it was the may 21, 22s. now it's these june 123s. so expectations are very high. when you look at pc dwroeth and you're talking about glass and glw, corning is involved with just about everything about displays. this is a very interesting play. if the growth is there, these are the guys that should be profiting and i think there's still more up side. >> mike khouw, thank you very much for that strategy. mike khouw of cantor fitzgerald. and of course you can catch mike and me on "options action" every friday night live on cnbc at 5:30 p.m. eastern time. we've got more "fast money" coming up next.
welcome back to "fast money." we are live at the nasdaq marketsite in times square. all right. for you tech investors worried about tonight's silicon valley slaughter, don't rely on apple to help you out. the company's blowout quarter last night failed to help the sector today, up only a fraction while apple itself rallied only 6% to a new all-time high. but take a look at the apple ecosystem because we did see some nice moves in some of the
pliers to the am supply chain, once ones that we flagged last night, for instance, triquint semi, 20% of its revenues from apple. that stock posted a nice 2% gain in today's session. cirrus and also lg display, which tim has talked about before. is there still a trade in some of these names that saw gains on the back of apple's very strong quarter, tim? >> i think lg and samsung, two names we talk-b we see it because of also their exposure to some of the lower end guys. and again, joe talked about this, qualcomm's miss is their gain. so i think i love these names. korea's been taking off over the last couple months. i think the market actually is cheap and i think samsung has a lot of growth. lpl's the name to buy eefr here. samsung you can trade in london. >> and the apple eco, and don't send me the nasty e-mails, at&t reported earnings. and again, those who thought at&t was a derivative way to play apple, you've been burned. if you look at!/rkñwhat the iph has done and on at&t stock over the same period of time as sort of the direct beneficiary, you've been burned. >> but you didn't get burned being long best buy which has
been a derivative play off apple -- >> that was beautiful, that seguiway. >> you like that? >> yeah. >> you want to do it again? >> it was a nice little tango. >> not contango but tango. >> speaking of tango, let's go to brian kelly. >> there should be an app for contango. >> there should be an app -- >> you want me to break out a little running man here? probably not right now. >> not so much. not so much. >> all right. >> sprint. >> you guys are -- gary's talking about at&t. joe's talking about best buy. i like sprint off the apple ecosystem play here. i talked about it on the halftime report today. but what they have is their 4g wireless modem. you can use it with an apple ipad. you don't have to wait for the 3g ipad to come out. and then you can use it with all your other gadgets at home. so i think they could really benefit off of this. >> brian, you can't see it, but pete has this pained look on his face as you're talking about -- >> that one's a little bit tough for me. i think the one thing we learned from that ctia conference that happened just a few months ago was spending on cap ex.
i mean, best buy obviously is a clear-cut winner, but you can go down the line. i think nvidia. there's a lot of obvious names. look at akamai today. in a tape that didn't look all that great and they were hitting a lot of various tech names, that's a name that continues to push toward 52-week highs. it's all about delivery. >> but sprint is ahead on the 4g network. they're ahead of at&t and ahead of verizon. and it's a much more compatible network with other things like the hpq slate that might be coming out. >> we just haven't been proven, though. i have yet to see it. and i was on that bandwagon because at&t, for instance, you got the great dividend and all the rest of it. these things just don't work, though. they just continue to spend money. they do give you a dividend yield. but their performance has been absolutely awful. >> it's been a slow climber. but just wait. >> just wait. ooh. fighting words. all right, beekz, we'll see you later. time for "pops and drops," movers you may have missed in today's session. we kick it off with a pop for united technologies, up 3%. >> first quarter revenue up 20%. beat, raised 60% of its revenues
coming from overseas which is helping them out. 52-week high at 76.79. the trade off this is to stay long. use the stop at 70 bucks. >> lockheed martin, lmt, was up 1.5%. >> you wouldn't call that a pop but the stock moved higher. good earnings, bhaet on estimates. and as pete said if you beat you will move higher. >> that was a takedown of my pop. that's not very nice. >> is that a pop? >> drop for mechel. >> the ever valuable coke and coal player actually tripled their profit but aside from some accounting revaluation hieroglyphics they lost money. great story, buy it at 27, which is a buck 50 cheap from here. >> he just corrected you. >> quietly, though. no, you just corrected her because i just kind of calmly did it. >> that was georgetown taking down harvard. >> well, look, maybe on the lacrosse field but -- >> i'd rather be correct. i'd rather know. mechel. drop for cree. >> this thing over the last month has gone up 16%, 17%. big pullback today. they got it to spend a lot more. the margins are going to come in a little bit.
also a very green play. >> pop for tupperware. >> it's tuperware, actually. >> 11%. brian kelly, what do you say -- >> it's an emerging market story. that's really what this was all about. overseas sales beat significantly. it's all about the emerging markets with it tupperware. >> right on, b.k. >> and we have a drop for pirates. according to the international maritime bureau, pirate attacks around the world fell by 34% from a year ago in the first quarter 2010. the bureau says it logged only 67 incidents so far this year compared with the 102 incidents last year. >> they'll be back. i mean, these guys are shameless. they're taking on the u.s. navy. >> the market's gotten better. they're making money in the market. they don't have time. >> they're trading apple. bull market or bear, traders are always hungry for ideas. so, i start my trading day
with td ameritrade's morning perspective. this is key. and look at this. pattern matcher. spots technical patterns automatically. this is what i need. look at that head and shoulders right there. it's like pattern x-ray vision. it's like, uh, a pattern radar. shouldn't you be trading with td ameritrade? that's an idea. this is such the edge. announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account.
systems posted a 32 -- oh, no, it's 82. >> 82. >> that's a pop. >> that's a huge pop. jump in profits. the stock was up 5% on the session. joining us now, the boss at ryder. he is gregory swinton. grig, ni greg, nice to see you. >> good to be here. >> obviously, investors were very pleased with your results. but i do want to focus in on the one area of your business that has a little bit of improvement to show, and that's a contractual business. the trends there are a little bit weak, and i'm wondering what you're going to be looking for in terms of the economic data on any sort of signs out there that will signal to you that those trends are reversing and in fact improving. >> yeah. i think the reason things went well today is that we showed improvement in those transactional items. but in your question for the contractual, what we will be looking for from our customers, and we have 15,000 of them under contract, we'll be looking for them to have more confidence in the economy, in their businesses. so they'll be willing to re-sign up for equipment when the terms
expire as well as add new equipment. we think that's probably two to four quarters away yet. but you know, with a little luck, we may speed that up a bit. >> hey, greg, it's tim. first of all, congratulations on great numbers. my good friend ed wolf at wolf research way shout out who says congratulations also on the professionalism you've brought to the cost structure over the last decade. that's really the question for me, which is that is this just about improving the cost structure of the business? we talk so much, it's a parlay from what melissa's talking about. it is there really a top line growth? your fleet management systems, which is the biggest part of your business, were actually down and the customer non-renewals were something improved but not something to be talking about top line improvement. can you give us more color there? >> sure. cost is always a factor. having process improvement, process change, cost kroeshlgs that's always effective. and in fact the business model changes we've made helped us to get through this very difficult freight recession in the last
three to four years. for the top line i think that you're seeing the transactional revenue picking up, the contractual will also pick up, and in addition you know, we still have a possibility because of cash and a strong balance sheet to do acquisitions as well as share repurchases if we need it. >> greg, thank you so much for joining us. we appreciate it. greg swienton, the boss at ryder systems. and of course it is green week here at nbc universal. they are doing a lot of green things. we'll be talking about that on the other side of this break. stay tuned.
time for the final trade. tim. >> keeping it brief. monsanto. >> joe. >> it's been a week for google. hasn't recovered any of the drop yet, has it? >> gary. >> apple. if you don't own apple, it's like being short apple. it's going to continue higher. >> pete. >> exxonmobil. giddy up. >> we'll see you back here tomorrow for more "fast money" on cnbc. >> announcer: next, a nuclear power play that's getting a presidential push. could the plan to energize america energize your portfolio? cramer's one on one with the shaw group's ceo. "mad money," next on cnbc.
♪ well, look who's here. it's ellen. hey, mayor white. how you doing? great. come on in. would you like to see our new police department? yeah, all right. this way. and here it is. completely networked. so, anything happening, suz? she's all good. oh, my gosh. is that my car? [ whirring ] [ female announcer ] the new community. see it. live it. share it. on the human network. cisco.
i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere. >> "mad money." you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. uh-uh. just trying to make you money. my job is also to entertain and to educate you. so call me at 1-800-743-cnbc. by now it's pretty clear that most people in this country like this group of seventh-graders i taught over at that kings collegiate over in brooklyn, they view wall street as the modern-day equivalent of sodom and gomorrah. it's like wall and broad intersected, sodom and gomorrah intersected. everybody wants to talk about whether or not goldman sachs is really a bad actor. i know that's not what you want
to hear about. are you making any money on that? on "mad money" we don't want to get lost in the sodom and gomorrah of things and end up turning into a pillar of salt. like lot's wife. we could care less about goldman and sorting it out because you know what we're really about? we're about the benjamins. fear not about being in the arena a la teddy roosevelt. we're helping you try to make money in the market. even on a xwla blah blah day like today, with the dow gaining just 8 and the s&p, i don't know, .12%. hey, don't give away the story there, jim. we could care less about what some 30-year-something kid did or didn't do at an investment bank like goldman. i think you want to buy the stocks of banks that can make you money. regional banks like huntington banc shares, hban, up