The week began with a flashback to the credit crisis. It ended with figures showing the fastest inflation in six months and the lowest consumer-sentiment reading in 28 years. Along the way, as the stock market ebbed and flowed, CNBC guests assembled a collective portfolio that was heavy on technology, energy, and global exposure.
Monday:
Lehman Brothers [LEH 25.81 
3.11 (+13.7%) 
] warned of an unusually large $2.8 billion quarterly loss, and pledged to raise $6 billion in new capital. April pending-home sales, a leading economic indicator, rose 6.3 percent.
David Sowerby of Loomis Sayles recommended technology stocks, with their abundance of free cash flow:
Applied Materials [AMAT 20.09 0.73 (+3.77%) ] ,
Corning [GLW 27.50 0.71 (+2.65%) ] ,
Harris Corporation [HRS 55.81 1.08 (+1.97%) ] . He also liked trendy watchmaker
Fossil[FOSL 31.76 1.21 (+3.96%) ] and beverage producer
Dr. Pepper Snapple [DPS 24.67 0.49 (+2.03%) ] .
Stifel Nicolaus's Todd Weller went with information technology:
Eclipsys [ECLP 21.65 0.49 (+2.32%) ] ,
Allscripts [MDRX 12.75 0.19 (+1.51%) ] ,
Quality Systems [QSII 32.79 0.58 (+1.8%) ] ,
Cerner [CERN 48.00 0.99 (+2.11%) ] .
Gary Anderson of the UMB Scout International Fund pointed overseas to
Novo Nordisk [NVO 61.46 
-1.27 (-2.02%) ] ,
United Overseas Bank [UOVEY 27.55 -0.14 (-0.51%) ] , and
Petrobras [PBR 67.94 1.43 (+2.15%) ] .
Tuesday:
The trade gap widened more than expected. Fed chairman Ben Bernanke warned that oil prices are driving inflation. XTO [XTO 68.03 -0.49 (-0.72%) ] announced it was buying privately-owned Hunt Petroleum.
Tuesday:
The trade gap widened more than expected. Fed chairman Ben Bernanke warned that oil prices are driving inflation. XTO [XTO 68.03 -0.49 (-0.72%) ] announced it was buying privately-owned Hunt Petroleum.
Phil Orlando of Federated Investors recommended not oil companies, but oil exploration and equipment firms: Transocean [RIG 146.00 1.52 (+1.05%) ] and Schlumberger [SLB 99.69 0.87 (+0.88%) ] .
David Riedel of the Riedel Research Group suggested Deere [DE 77.92 -0.04 (-0.05%) ] , which is providing the world's farmers with technology to gain desperately-needed efficiency in food production.
The Jensen Portfolio's Robert Zagunis told investors to go with companies that are big, global, and high-quality: Automatic Data Processing [ADP 43.14 0.54 (+1.27%) ] , Johnson & Johnson [JNJ 66.27 0.58 (+0.88%) ] , and Wells Fargo [WFC 26.08 0.53 (+2.07%) ] .
Paul Fremont of Jefferies and Credit Suisse's Dan Eggers recommended non-regulated utility companies. Fremont picked First Energy [FE 79.79 1.56 (+1.99%) ] , NRG [NRG 43.82 0.75 (+1.74%) ] , and Dynegy [DYN 9.29 0.19 (+2.09%) ] , while Eggers went with Public Service Enterprise Group [PEG 46.61 0.47 (+1.02%) ] , FPL Group [FPL 67.42 1.91 (+2.92%) ] , and Reliant Energy [RRI 24.45 0.50 (+2.09%) ] .
Wednesday:
Crude oil inventories fell more than expected. The Fed's anecdotal Beige Book pointed to a weak economy, with a soft labor market and consumers hit by rising food and energy prices.
CastleArk Management's Jerry Castellini told investors to stop obsessing over oil prices and buy stocks like
Petrohawk [HK 34.56 0.08 (+0.23%) ] ,
Southwestern Energy [SWN 46.63 -0.13 (-0.28%) ] ,
Ultra Petroleum [UPL 93.38 0.24 (+0.26%) ] ,
Nabors Drilling [NBR 44.47 -0.01 (-0.02%) ] ,
National Oilwell [NOV 83.16 2.72 (+3.38%) ] , and
Rowan Drilling [RDC 44.08 0.37 (+0.85%) ] .
Keith Wirtz of Fifth Third Asset Management recommended a blend of technology and ketchup:
IBM [IBM 126.15 2.30 (+1.86%) ] and
H. J. Heinz [HNZ 50.63 1.09 (+2.2%) ] , saying both companies are defensive and are part of unique momentum trends.
Thursday:
First-time jobless claims hit their highest weekly level since late March; Lehman Brothers replaced its chief financial officer and chief operating officer; and Philadelphia Fed president Charles Plosser told CNBC inflation is his chief worry, and rates will have to go up -- the only question, he said, is, "When?"
David Katz of Matrix Asset Advisors suggested a move back into some selected financials:
Merrill Lynch [MER 38.00 1.72 (+4.74%) ] and
Morgan Stanley [MS 41.04 2.66 (+6.93%) ] , but Fusion IQ's Barry Ritholtz strongly disagreed, recommending
Arch Coal [ACI 71.50 2.65 (+3.85%) ] ,
Swift Energy [SFY 59.06 -0.13 (-0.22%) ] ,
Oracle [ORCL 22.63 0.77 (+3.52%) ] ,
Sybase [SY 32.26 0.42 (+1.32%) ] , and
BMC Software [BMC 38.35 0.16 (+0.42%) ] .
Matthew Kaufler of Touchstone picked
Triquint Semiconductor [TQNT 6.43 0.32 (+5.24%) ] and
Assured Guaranty [AGO 24.54 0.93 (+3.94%) ] , a bond insurer that's kept its AAA rating while some high-profile competitors have been losing theirs.
Friday:
May's consumer price index reading showed the fastest inflation in six months, while June's preliminary consumer sentiment fell to its lowest level in 28 years.
Barry James of James Advantage Funds went with some major U.S. multinationals, three of them the largest companies in their respective fields:
McDonald's [MCD 59.95 0.61 (+1.03%) ] ,
Owens Illinois [OI 51.91 0.30 (+0.58%) ] ,
Hewlett Packard [HPQ 47.45 0.48 (+1.02%) ] and
Wal-Mart [WMT 59.18 0.07 (+0.12%) ] .
