Fast Money Recap

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'Fast Money' Recap: Bouncing Banks

TSC Staff

Pete Najarian said he likes the Financial Select Sector SPDR(XLF Quote - Cramer on XLF - Stock Picks) because the financials will react positively to the bailout plan. Joe Terranova said he bought MasterCard(MA Quote - Cramer on MA - Stock Picks) today because the company has a small debt profile, global exposure and long-term double digit profit growth.

Jeff Macke says he has no fundamental justification for owing the U.S. dollar. "The rest of the world is more screwed up than we are, but at least we know were screwed up," he added. Macke says the financials are a buy here because what the senators and Congress are really just voting on a suspension of reality.

Guy Adami mentioned that JPMorgan Chase(JPM Quote - Cramer on JPM - Stock Picks) hit a 52-week high today and U.S. Bancorp(USB Quote - Cramer on USB - Stock Picks) traded higher. "The banking industry will survive, and the good banks like will do better, and the bad banks will be taken out back to the woodshed," he added.

Macke said the good banks like Goldman Sachs Group(GS Quote - Cramer on GS - Stock Picks) , Wells Fargo(WFC Quote - Cramer on WFC - Stock Picks) and Citigroup(C Quote - Cramer on C - Stock Picks) are buys. Adami said JPMorgan could potentially become the biggest bank in the world.

Najarain says that if you are looking for another processor, take a look at Nasdaq OMX Group(NDAQ Quote - Cramer on NDAQ - Stock Picks). He says the stock continues to go higher and says its numbers are "unbelievable."

Texas Senator Kay Bailey Hutchison joined the traders to discuss the Senate vote on the bailout plan. She said she plans on voting for the plan to help stabilize the markets. "We need transparency and accountability. This business where we made loans and packaged them up to be sold to somebody else, is just not the way mortgages have worked throughout this country's history," she said. Adami pointed out that people should be mad at themselves for taking on loans they knew they weren't going to be able to pay back. "There is blame everywhere, and we must try to do what we must do now," Bailey responded.

Ratigan brought up the news that legendary investor Warren Buffett took a position in General Electric(GE Quote - Cramer on GE - Stock Picks) in a similar deal to the one he made with Goldman Sachs Group. Macke said it's a good deal for Buffett. Adami says that if Buffett really likes GE, he should look at Honeywell(HON Quote - Cramer on HON - Stock Picks) which is trading at a 52-week low due to hedge fund liquidation.

Najarian told viewers to look at 3M Company(MMM Quote - Cramer on MMM - Stock Picks) which is trading near a 52-week low.

Ratigan moved the talk to the commodity complex. Terranova said the weakness in the sector today was off of the bearish ISM number. Macke says the parade has gone by for the ag and steel names. "I don't want to touch these names," he said.

Ratigan told the traders that the Wall Street Journal is reporting the mystery bidder for ImClone(ICML Quote - Cramer on ICML - Stock Picks) is Eli Lilly(LLY Quote - Cramer on LLY - Stock Picks). Najarian said to keep an eye on Pfizer(PFE Quote - Cramer on PFE - Stock Picks), because it has $26 billion in cash for acquisitions. Adami says to watch Novartis(NVS Quote - Cramer on NVS - Stock Picks), because by 2012 60% of its revenue will be non-pharmaceutical.

Technical Outlook

Carter Worth, chief market technician at Oppenheimer, joined the traders to discuss the technical outlook for the stock market. Worth said the huge volatility the market is experiencing right now never happens at the middle. "It happens at tops or bottoms, and this isn't the top," he said. Worth told viewers to lean off the "short pedal" a little bit.

He said one sector that looks bad is the transports. He says the transports technically have more room to fall. Worth says investors should be out of rails like Burlington Northern Santa Fe(BNI Quote - Cramer on BNI - Stock Picks), Union Pacific(UNP Quote - Cramer on UNP - Stock Picks) and Norfolk Southern(NSC Quote - Cramer on NSC - Stock Picks), and big trucking stocks like J.B. Hunt Transport Services(JBHT Quote - Cramer on JBHT - Stock Picks) and Ryder Systems(R Quote - Cramer on R - Stock Picks) plus package haulers like UPS(UPS Quote - Cramer on UPS - Stock Picks) and FedEx(FDX Quote - Cramer on FDX - Stock Picks).

Najarian said he agrees in the short-term with Worth. Some stocks Worth likes technically here are AstraZeneca(AZN Quote - Cramer on AZN - Stock Picks) and Novartis.

Dry Market

The traders discussed some plays for a market with poor returns. Macke said he likes Wal-Mart, McDonald's and Procter & Gamble(PG Quote - Cramer on PG - Stock Picks). Najarian said Nike(NKE Quote - Cramer on NKE - Stock Picks) continues to outperform and it has $2 billion in cash on its books. Terranova said to take a look at Kraft(KFT Quote - Cramer on KFT - Stock Picks). Adami likes Johnson & Johnson(JNJ Quote - Cramer on JNJ - Stock Picks) and Church & Dwight(CHD Quote - Cramer on CHD - Stock Picks).

Final Trade

Adami picked Novartis. Najairan said he likes regional banks like National City(NCC Quote - Cramer on NCC - Stock Picks). Macke says play the vultures with Berkshire Hathaway(BRK.A Quote - Cramer on BRK.A - Stock Picks)

Where will the Dow Jones Industrial Average stand at the end of 2008?
	Above 10,000 9000-10,000 8000-9000 7000 to 8000 Below 7000