'Fast Money' Recap: Parsing the Jobs Report

The S&P 500 put in its best weekly gain in five years as Wall Street shook off a weaker-than-expected jobs report Friday. The Dow closed up 92 points and the Nasdaq finished up 23 points.

U.S. payrolls fell by 17,000 for January, which was the first loss in over four years. Tim Seymour of CNBC's "Fast Money" panel says that the payroll data suggest to him that the U.S. is heading into a recession, and that consumer spending will slow. Karen Finerman explained that the weak jobs report keeps her from being more bullish on the markets. Pete Najarian says the performance of the week goes to Ben Bernanke.

3 Stocks I Saw On TV

Yahoo!(YHOO Quote) exploded up 47% after Microsoft(MSFT Quote) bid $44.6 billion to take over the search giant. Macke says YHOO and MSFT are both buys off the news. Finerman mentioned that MSFT will probably bid higher for YHOO. Najarian says he oversold the calls and purchased YHOO stock on Friday. He says YHOO will trade between $28 and $31. Seymour says MSFT shareholders aren't happy with paying a 60% premium for YHOO. Najarian disclosed he bought MSFT on Friday because he feels the stock is cheap. Finerman explained that if an investor wants to own MSFT the cheaper way to do it is buy YHOO.

The Retail HOLDRs Trust(RTH Quote) put in another strong week as investors continue to bid up oversold retail stocks. Macke recommends investors who were long retail stocks to trim gains, and if you aren't in the sector, look to buy dips. Finerman says buy retail stocks going into next week if you have no exposure in the sector.

Bank stocks helped lead the market higher this week. Najarian explained that Bank of America(BAC Quote), JPMorgan Chase(JPM Quote) and Citigroup(C Quote) are all performing well, but investors should put collars on to hedge positions.

Alcoa(AA Quote) and China's Chalco partnered up to take a 12% stake in Rio Tinto(RTP Quote). Seymour speculated that the stake could be a way to prevent BHP Billiton(BHP Quote) from merging with Rio Tinto. He also mentioned that he is cautious on gold here and likes Stillwater Mining(SWC Quote) for a buy.

Merrill Lynch is set to kick off its drug device conference on Tuesday. Najarian says watch Biogen Idec(BIIB Quote), which reports earnings on Wednesday before the market opens. He mentioned that Carl Icahn controls a large stake in BIIB, and he isn't happy with the board. He would also watch OSI Pharmaceuticals(OSIP Quote).

Earnings Trade

A number of companies, including Cisco Systems(CSCO Quote), Walt Disney(DIS Quote), Time Warner(TWX Quote) and Comcast(CMCSA Quote), are set to report earnings next week. What is the trade?

Najarian likes Cisco Systems and he noticed some interesting options activity Friday. He feels CSCO is cheap at $25. Macke recommends buying Disney. None of the traders were interested in Time Warner.

Super Bowl Party Trade

The New York Giants are set to face the New England Patriots in Super Bowl XLII this Sunday. What is the trade as Americans get together to party and enjoy the football extravaganza?

Finerman mentioned that speculation is circling Wall Street that Anheuser-Busch(BUD Quote) could merge with Belgium brewer InBev. Seymour says the beer trade is a global story, and he would look at Compahnia de Bebidas das Americas(ABV Quote) and Fomento Economico Mexicano(FMX Quote). Macke favors Pepsi(PEP Quote) and Nike(NKE Quote). Najarian urged caution on Pepsi, because of their high commodity cost exposure.

Energy Trade

Joe Terranova, director of Trading at MBF Clearing Corp., joined the "Fast Money" crew to discuss his take on the energy markets. Terranova says that OPEC is going to cut production, and he sees oil retesting the $80-$85 area in the first and second quarters before it returns to $100 in the third and fourth quarters.

He says the best way to trade oil is to buy the refiner names like Valero(VLO Quote) and Tesoro(TSO Quote), and stay away from the major integrated stocks. Finerman disclosed she still has a little exposure to refiners at her hedge fund. Najarian likes Valero and ConocoPhillips(COP Quote).