The word on today's rally, the fda's "sanofi smackdown" and more

Best Gain of 2007: _The headline: _Strong Retail Sales, Lower Interest Rates Push Dow to Biggest Gain since Last Summer _The word:_ The beige book report caught everyone by surprise, Eric

Bolling says. He’s been running a short position with both the S&P and the Nasdaq but now he’s flattened it out. “Yesterday no one wanted to buy and today no one wanted to sell,” Pete

Najarian says. He expects the market’s volatility to continue for the next couple of weeks and he likes names that have international exposure like FLUOR (FLR) and CATERPILLAR (CAT). These

kinds of companies can maintain themselves despite market volatility and they continue to trend higher, he says. With the market so unpredictable, Guy Adami recommends sticking with what’s

working. He likes HEWLETT-PACKARD (HPQ) and DELL (DELL) which have stood their ground even when it’s been shaky. Stacey Briere Gilbert, chief options strategist for Susquehanna Investment

Group, is filling in for Jeff Macke tonight and she likes the large caps here. Eric Bolling reiterates that, with global tensions as they are, it’s a good time to have your money in oil and

metals. Built For the Road Ahead?: _The headline: _Ford Shares Climbing on Possible Sale of Jaguar, Land Rover Brands _The word:_ Guy is positive on FORD (F). He thinks Alan Mulally, former

CEO of Boeing, can help the stock in the short term. But if interest rates go up, automakers like Ford will be “dead money,” Eric says, because people won’t borrow to buy cars. Stacey thinks

there are just better places to go. Even after rallying, Ford is still only an $8.50 stock. ICE-ing on the Cake: _The headline:_INTERCONTINENTAL EXCHANGE (ICE) Sweetens CBOT Offer in Order

to Trump Chicago Merc _The word_: Pete says it’s clear that ICE wants this deal done – but now it’s in the hands of the CBOT’s shareholders. And Eric, who works at and is a shareholder of

the NYMEX (NMX), says he hears rumors that an acquisition – possible by the NYSE – could happen as soon as July 4. Guy thinks it won’t happen until Labor Day but either way, there’s a good

chance the NYMEX gets taken out, they say. Wall Street Earnings Parade: _The headline:_ Goldman, Bear Report Earnings Tomorrow as Wall Street Earnings Parade Continues _The word:_ Stacey

thinks GOLDMAN SACHS' (GS) earnings are already priced into the stock, but it’s a buy anyway on a long-term basis. Guy notes that Goldman is around its 52-week high, while LEHMAN

BROTHERS (LEH) and BEAR STEARNS (BSC) are both off their 52-week highs. A short-term sell off in LEH is possible after the company reports, he says, and he thinks Bear’s earnings are priced

into the stock. If You Can’t Say Anything Nice: _The headline:_ Former Citigroup CEO Sandy Weil Fails to Compliment Successor Chuck Prince on “Squawk Box” _The word: _Weil dodged the

question, which is anything but a ringing endorsement of Prince. But what do you expect? CITIGROUP (C) stock hasn’t done anything for a long time, Guy says. China Trade – Construction: _The

headline:_ Caterpillar (CAT) Climbs After Reaffirming Outlook at Shareholders Meeting; Illinois Tool Works Surgues on Merrill Upgrade _The word: _Caterpillar is “doing everything right,” Guy

says. After not participating in last year’s rally, CAT is still playing catch up. Guy thinks there’s even more upside from here. And when it comes to the China boom, CATERPILLAR (CAT)

isn’t the only builder reaping the benefits. Pete likes COOPER INDUSTRIES (CBE), ILLINOIS TOOL WORKS (ITW), FOSTER WHEELER (FWLT) and AECOM (ACM). He also likes diversified industrials like

GENERAL ELECTRIC (GE), UNITED TECHNOLOGIES (UTX) and HONEYWELL (HON). When companies like these are so internationally exposed, they become almost immune to volatility in the U.S. markets.

It isn’t just China, either. With India’s growth rate almost matching that of China, Eric thinks investors should remember the steel names, along with the producers of the iron ore used to

make steel. He likes RIO (RIO) and POSCO STEEL (PKX). Growth expansion isn’t slowing, he says. “Let’s ride the wave.” NO WEIGHT LOSS PILL YET: _The headline:_FDA Says Today Not Sure That

Sanofi Weight Loss Drug is Safe _The word: _This was a “complete smackdown” for SANOFI-AVENTIS (SNY), CNBC pharmaceuticals reporter Mike Huckman says. The FDA panel voted 14-0 that it didn’t

have enough data to say that Sanofi’s drug Acomplia was safe. Clinical trials showed potential side effects of depression and even a risk of suicide, Huckman says. Sanofi went down 5% in

after-hours trading, but the bad news could spread to other Big Pharma names like MERCK (MRK), BRISTOL-MYERS (BMY) and PFIZER (PFE), he says, because all three companies are developing

anti-obesity drugs that work similarly to Acomplia. And while GLAXOSMITHKLINE’S (GSK) over-the-counter diet pill Alli is slated to go on sale this week, Huckman says analysts expect it to

net between $100 million and $200 million, which is “small potatoes” compared to potential sales of a drug like Acomplia. While Big Pharma wrestles with the development of a miracle diet

drug, biotech companies are hard at work as well, Huckman says. ARENA (ARNA) has a drug in phase three testing, which is typically the last stage before seeking FDA approval. And NASTECH

(NSTK) has a nasal spray compound in phase one testing. _SEAGATE CORRECTION: Pete Najarian erroneously said SEAGATE (STX) could benefit from the iPhone release because it produces flash

memory, but Seagate makes hybrid drives which will not be used in the iPhone. Pete apologizes for the mistake, but still thinks Seagate is a buy even without exposure to flash drives. _

_DISCLOSURE: Stacey Briere Gilbert Is Chief Options Strategist For Susquehanna Financial Group, LLLP Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP

Gilbert Does Not Cover Individual Securities But Does Recommend Trading Strategies; An Affiliate Of Susquehanna Financial Group, LLLP Is An Options Specialist In Certain Of The Stocks

Discussed By Gilbert; An Affiliate Of Susquehanna Financial Group, LLLP Is A Market Maker In Certain Of The Stocks Discussed By Gilbert; Gilbert Owns (TIE); Susquehanna Financial Group, LLLP

And Affiliates Own More Than 1% Of The Shares In (CAL); Bolling Owns Gold, (ICE), (NMX); Najarian Owns (STX), (MS), Is Short (AMR) and (CAL); GE Is The Parent Company Of CNBC _ Bolling Has

Closed Out Of His Short S&P Trade Bolling Has Closed Out Of His Short Nasdaq Trade _______________________________________________________ Got something to say? Send us an e-mail at

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