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'Fast Money' Recap: Wrigley Deal Could Get Sticky

The U.S. stock market didn't quite know where to go Monday as it geared up for a congregation of Federal Reserve officials later this week. The Dow was off 0.2%, the S&P 500 gave up 0.1%, and the Nasdaq climbed 0.1%.

On CNBC's "Fast Money" TV show, Jeff Macke said that today begins a big week. He said that the Fed's release will be the most interesting the market has seen in a while. He predicted the Fed would stop cutting rates. The guidance segment of the report will be the most important. He expects this week's jobs report to "stink," and said today's unchanged market reflects that traders are getting ready for a slew of information in upcoming days. Karen Finerman agreed.

Tim Seymour noted that volume was down 25% and pointed out that GDP numbers will be as an important indicator for investors. He said that a negative print may indicate to the market that the U.S. has seen the worst of the recent economic slump.

3 Stocks I Saw on TV

Guy Adami said that Joy Global (JOYG) and Bucyrus (BUCY) don't appear to be hurting in the weak economy. He said investors should hope that Burlington Northern Santa Fe (BNI) misses when it reports earnings tomorrow, because the stock has been hot.

Macke took a minute to discuss Mars' Berkshire Hathaway (BRK.A - Get Report) -backed takeout of Wrigley (WWY). Berkshire CEO Warren Buffett's maneuvering was impressive, he said. He recommends Berkshire stock on the deal, he said.

Do not buy Tootsie Roll (TR - Get Report) on this news, said Adami. Macke said that this acquisition is a one-off deal, and Finerman cautioned viewers that the deal may not be a layup from an antitrust standpoint. She predicted the deal would drag on for a long time.

Car Maneuvers

The traders took a look at billionaire investor Kirk Kerkorian's maneuvers through General Motors' (GM - Get Report) ups and downs on news that his investment firm Tracinda would increase its stake in Ford (F - Get Report).

Macke recommended getting long Ford on the news, saying shareholders want Kerkorian on their side. He said the best way to play alongside Kerkorian is to buy the dips.

Seymour said that Kerkorian isn't looking for a management turnaround, and he thinks Ford is an interesting story. He pointed out that GM reports earnings in a couple of days.

Adami recommended that viewers pay attention to Borg Warner (BWA) as an upstream play on the autos.

Visa Approved

After hours, Visa (V - Get Report) posted an earnings beat, but shares were down on guidance that was below the Street's expectations. Macke said the company crushed on earnings by sandbagging forecasts. He reminded viewers that the stock is up about 80% since the company came public. He said the earnings were fine and the company is just plugging away. Seymour pointed out rest-of-world growth in the earnings statement.

The deadline for a deal between Microsoft (MSFT - Get Report) and Yahoo! (YHOO - Get Report) expired today. Finerman predicted Microsoft would do something aggressive at this point, perhaps taking an exchange offer directly to Yahoo! shareholders.

Macke disagreed, saying Microsoft should simply walk away from the Yahoo! deal. He urged CEO Steve Ballmer to walk away from Yahoo!

Continental Airlines (CAL - Get Report) announced today that it wouldn't be merging. Seymour said to avoid the airlines.
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BRK.A $204,945.00 1.78%
F $14.56 1.60%
GM $36.26 0.17%
MSFT $55.22 1.60%
PBR $4.74 -0.63%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

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