Recap of CNBC's Fast Money, Tuesday June 17.
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Will Goldman Lose its Shine? Goldman Sachs (GS)
In spite of decent news from Goldman, the Dow dropped and stocks were mediocre. While the investment bank’s quarterly earnings declined 11% on slower trading, Goldman still avoided much of the credit crisis woes that have plagued other banks. However, Fox Pitt Kelton securities analyst David Trone says it will be a while before Goldman is a buy, because government regulation is looming over all the brokers; “their long term returns are going to be permanently suppressed and in my opinion they will consolidate," said Trone. However, Terrranova would buy Goldman under $160.
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The Bulls Must Be Crazy: Morgan Stanley (MS), Keycorp (KEY), Bank of America (BAC), Regions Financial (RF), Visa (V), Mastercard (MA)
While The Street expects Morgan Stanley to report good news, the group noted the bank has taken $12.9 billions in write downs. Guy Adami said he might be crazy, but thinks Morgan might be a buy here. Macke agreed with him on the first part of his statement and said anyone buying financials needs a therapist. Najarian noted put buying suggests that Morgan will be going lower. He is also concerned about KEY, Bank of America, regional banks and doesn’t think RF will sustain its 12% dividend. Najarian likes Visa and Mastercard, because consumers use plastic when they pay at the pump.
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Via Long Investment Ideas from Seeking Alpha:
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