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'Fast Money' Recap: Music to the Market's Ears?

Grasso said he would wait to see if Microsoft can find support from the 50-day moving average near $40 before getting long the stock. 

DSW Inc. (DSW) fell 27% on Wednesday after missing on revenue and earnings miss. Finerman said the quarter was really bad but insisted that it's still a "great company." She took a small long position. 

Michael Kors (KORS) finished slightly higher after a volatile trading session following its fourth-quarter top- and bottom-line beat. Adami said there are concerns over inventory builds and margins but reasoned that the stock seems likely to move higher. 

Nathan said Costco Wholesale (COST) is somewhat expensive in valuation at 21 times forward earnings. He pointed out the company has missed its last three earnings estimates and that $110 appears to be an important support level. 

Must Read: 'Fast Money' Recap: Going Global

Regis Philbin was a guest on the show. He is a buyer of Amazon (AMZN) and believes CEO Jeff Bezos will be able to keep the company on track to success. He said it is unlikely for the stock to go back below $300. He is a buyer of Micron (MU) on a pullback and he is also long Yahoo! (YHOO) for its Alibaba exposure. 

Finerman said she is long Softbank for its exposure to Alibaba. She suggested that investors are concerned with how Yahoo! use its proceeds from its stake in Alibaba. Nathan added that shares of Yahoo! trade poorly, despite a foreseeable catalyst for investors. He said caution is warranted on the stock. Adami thinks shares of Yahoo! are going higher. 

Grasso said Amazon has good long-term prospects but he would sell the stock and look for a better entry point if it breaks below $280. 

David Einhorn, founder and president of Greenlight Capital, was a guest on the show. Einhorn is long Micron and said the stock is still attractively priced. He also said Micron's business has fundamentally improved and analyst estimates are too low. 

Grasso said DRAM prices and shares of Micron move in lockstep. However, Micron appears to be slightly over-extended, which may warrant a pullback in the stock price. 

St. Jude Medical (STJ) climbed 3% and was the first stock on the show's "Pops & Drops" segment. Grasso said to stay long the stock. 

Allergan (AGN) fell 5%. Finerman said shareholders are in for a long-term battle due to Valeant Pharmaceuticals' (VRX) continued takeover attempts. 

Workday (WDAY) jumped 2%. Nathan said the stock is still in a "major downtrend" and suggested lower lows are on the way. 

Toll Brothers (TOL) popped 2%. Adami said the company has done a great job but he would "take profits and run."

Dennis Gartman, editor and publisher of The Gartman Letter, said many large traditional funds that hold 60% of its assets in stocks and 40% in bonds are making a rotation. Due to the gains in the stock market, many may be selling parts of their equity stake and buying bonds, thus stocks and bonds, which are typically inverse, both continue to rally. He is not a seller of bonds. 

CNBC's Meg Tirrell was a guest on the show. Eli Lilly's (LLY) patent on its erectile dysfunction drug Cialis expires in 2017, so the company is trying to get it approved for over-the-counter purchase. The move would allow Eli Lilly to continue profiting from the drug's revenue stream, which accounted for $2.2 billion 2013, surpassing the $1.88 billion in sales from competitor Viagra. 

The "Fast Money" final trades had a different twist on Wednesday: Philbin was a buyer of Caterpillar (CAT), Grasso was a buyer of Twitter with a stop-loss at $29.50 and Nathan was a buyer of July put options on the iShares 20+ Year Treasury Bond ETF (TLT). Finerman suggested buying a small position in DSW and Adami was a buyer of Cisco Systems (CSCO)

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.
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