'Fast Money' Recap: Bad News Pulls Down the Market.

Najarian wasn't as bearish and he says he likes the investment banks. He thinks the core numbers for Goldman Sachs Group(GS Quote), Morgan Stanley(MS Quote) and Lehman Brothers Holdings(LEH Quote) were phenomenal, but he wouldn't bottom pick the stocks.

Goldman Sachs Group raised its write-down estimates for Citigroup(C Quote), Merrill Lynch(MER Quote) and JPMorgan(JPM Quote). Finerman explained that if she was running Citigroup she would cut the dividend by 40%. Adami again recommended U.S. Bancorp(USB Quote) as the best way to play financials. Najarian likes Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote).

Drug Trade 2008

CNBC Pharmaceuticals Reporter Mike Huckman joined the "Fast Money" crew to discuss his take on the drugs stocks for 2008. Huckman explained that the FDA is expected to approve a new drug-coated stent from Medtronic(MDT Quote) and in a few months they might approve another one from Abbot Laboratories(ABT Quote). Huckman says this is a big deal because it will raise the competition in the drug-coated stent market.

Huckman mentioned that the FDA is expected to make a decision on approval for Genentech's(DNA Quote) breast cancer drug Avastin. Analysts are predicting that this approval would add $1 billion in revenue for Genentech. Najarian prefers Biogen Idec(BIIB Quote) over Genentech. On a final note, Huckman advised investors to watch Dendreon(DNDN Quote), which is set to release preliminary data on prostate cancer drug Provenge in the middle of the year. Huckman speculated that if the data shows Provenge extends the lives of patients it could receive FDA approval. Najarian predicts an approval would be huge and the stock could return to $20 if it happens.