Recap of April 6: Mideast and the Markets

Neil Cavuto was joined by Joe Piscopo, Comedian & Co-founder of  Avellino Entertainment; Jim Rogers, President of JimRogers.com; David Nelson, CEO of DC Asset Management; and Karen Gibbs, Fox News Senior Business Correspondent.

Mideast and the Markets

What would happen to the U.S. stock market if an all-out war broke out in the Middle East?

Jim says the market would collapse if war broke out in the Mideast, and that investors should not be in stock market. David Nelson thinks the market would over react, making it a big buying opportunity.

Oil prices have soared since Iraq and Iran warned they would cut back oil production to countries supporting Israel.  While this has put pressure on the market, our guests told investors what stocks they think may actually benefit from higher oil prices.  Jim likes Total Fina (TOT) and Repsol YPF (REP).   David likes Global Sante Fe (GSF), but thinks higher cost from rising oil prices will hurt Goodyear (GT).

More For Your Money

Despite all the worries on Wall Street, there are many stocks that are bucking the recent downward trend. Our guests point out stocks that are outpacing the market so far this year, and will continue doing so in their opinion.
 
Jim likes AK Steel (AKS), which is up 23% year-to-date and Rio Tinto (RTP), which is up 5% year-to-date.  David likes Humana (HUM), which is up 19% year-to-date and Linen ‘n Things (LIN), which is up 22% year-to-date.

Joe says casinos like Park Place Entertainment (PPE) should do well because they are packed with customers right now.

Head To Head

Neil and his guest Eamon Javers, editor-in-chief of Washington Business Forward, debated the federal government’s decision to remove the National Guard from the nation’s airports. Neil says the government is making a big mistake because the National Guard helps scare away terrorists and helps travelers feel safe.  Eamon says the government is right, and that the money spent on the Guard would be better spent on searching for terrorists.
 
FOX on the Spot

Joe Piscopo predicts former Wall Street Week host Louis Rukeyser will sign a TV deal with the Playboy channel and will be dubbed the “Money Bunny!”

Karen Gibbs thinks Israel will bow to international pressure, and will back out of the West Bank.

Jim Rogers thinks the recent peace in Angola will help make it become the richest country in Africa and that now is the time to invest in Angola.
 
David Nelson says Congress will crack down on unsecured “sweetheart” loans to corporate executives.

Neil Cavuto says Arthur Andersen will disappear as it continues to lose business and clients over the Enron scandal.