'Fast Money' Recap: Volatility Is Staying
Word On The Street
The
Dow
plunged 250 points on Friday as a weak jobs report put control back into the hands of the bears. Pete Najarian says volatility is here to stay for a little longer. Guy Adami says the good news is we're not coming off huge valuations, but the bad news is the trend is still lower. Karen Finerman says we have multiple shoes to drop out there and traders need to trade around the tape. Jeff Macke continues to say sell until you can sleep.
Adami thinks this quarter will be a record for
Goldman Sachs
(GS) - Get Report
. Finerman disagreed, and Macke said they better have record earnings. (RealMoney Take: Jim Cramer said recently, "Nimble people should ring the register. Sell the Goldman and the
Bear
(BSC)
and buy 'em back later." To read more on what Cramer said,
)
Energy service stocks broke out on Friday as crude oil continues to climb. Najarian says he likes
BJ Services
(BJS)
,
Halliburton
(HAL) - Get Report
and
Baker Hughes
(BHI)
. Adami says he is still very bullish on energy here, and Macke said sell crude.
Carter Worth, the chief market technician at Oppenheimer, joined the crew to discuss the action in gold. Worth says the charts are telling him that gold is going higher and he likes
Agnico-Eagle Mines
(AEM) - Get Report
,
Barrick Gold
(ABX)
and
Newmont Mining
(NEM) - Get Report
. Adami agrees with Worth, but says be cautious because he thinks a rate cut is already priced into this sector.
The U.S. dollar sank amid fears from the weak jobs report. Adami says if you want to play the weak dollar, buy
Hewlett-Packard
(HPQ) - Get Report
.
NYSE Euronext
(NYX)
reported record average daily volumes of 3.68B shares in August. Najarian says Goldman Sachs will have a monster quarter off of trading volumes. He also favors
Nymex
(NMX)
and
CME Group
(CME) - Get Report
. Adami says buy NYSE on dips. (RealMoney Take: Steven Smith recently said, "Options in the New York Mercantile Exchange and the NYSE_Euronext are also likely to be active, as the rumors of the latter acquiring the former take on more credence." To read more on what Smith said,
)
The India growth story continues, and fast money can still be made. Najarian says play India by getting long
Ericsson
(ERIC) - Get Report
and
SAP
(SAP) - Get Report
.
Biotech Trade
Amgen
(AMGN) - Get Report
has had a tough time all year trending down, but a key FDA ruling is in store for the largest biotech next week. Can the stock recover?
CNBC
pharmaceuticals reporter Mike Huckman joined the crew to discuss the prospect for Amgen and the rest of biotech. Huckman says investors will not know until a FDA vote on Tuesday if a key Amgen anemia drug will have restrictions. Huckman says investors should watch
Amylin
(AMLN)
,
Lilly
(LLY) - Get Report
and
Alkermes
(ALKS) - Get Report
.
Najarian is bearish on Amgen, but he favors
Genentech
(DNA)
. (RealMoney Take: Jim Cramer said recently, "Genentech and Amgen have bottomed too, and it looks
Biogen Idec
(BIIB) - Get Report
is in play." To read more on what Cramer said,
)
Fannie Trade
Fannie Mae
(FNM)
a government-sponsored corporation which was created to support lending to home buyers, traded up on Friday while the rest of the financials went down. What is the reason, and what is the trade?
Najarian says that statements from Hank Paulson on Friday took the stock up. Paulson said he was talking with Fannie Mae and
Freddie Mac
(FRE)
about the problems they face and how they can be fixed. Finerman says now is a good opportunity for both firms, because they can both go in and be a buyer of paper with decent spreads. She wouldn't buy yet, saying she wants to see panic first. Najarian says he would be a buyer of both stocks, and Macke agreed.
How Low Will The Fed Go?
After a disastrous jobs report on Friday the Fed now has even more reason to cut rates at the next meeting on Sept. 18. The futures markets are pricing in a 75% chance that the Fed will cut by half a percentage point.
Macke says the Fed will cut a half, and it won't help. Short the financials on this news. He feels the rate cut is in the market. Finerman says a cut doesn't matter, and other news will play a bigger part. Adami would rather see a 25 point cut.
Pops and Drops
Pops:
Kraft
(KFT)
traded up 3%. Finerman loves the story.
News Corp.
(NWS) - Get Report
traded up 3%. Macke says the company will be just fine.
Freeport-McMoRan
(FCX) - Get Report
popped 4% as gold climbed past $700. Adami still likes the stock, and he thinks it's going to $115.
Drops:
Harley Davidson
(HOG) - Get Report
fell 10% after cutting earnings guidance. Najarian says stay away.
Apple
(AAPL) - Get Report
dropped 7% this week after announcing plans to give in-store credits to early buyers of the iPhone. Najarian says they will survive. (RealMoney Take: Cody Willard said recently, "I write on why AAPL and
(GOOG) - Get Report
and
Adobe
(ADBE) - Get Report
remain the best plays on the coming disruption of the wireless carriers." To read more on what Willard said,
)
Krispy Kreme
(KKD)
plunged 41% after its quarterly results. Finerman says that it's a bear market for the stock.
National Beverage
(FIZZ) - Get Report
fell 12% after disappointing on earnings. Macke says if you're expecting a bounce, forget it.
Wyeth
(WYE)
fell 1% on a negative court ruling. Najarian says don't worry.
Alcoa
(AA) - Get Report
dropped 3% after a negative note from UBS on the company. Adami likes the stock and he likes that Carl Ichan is dipping his toe in the name.
Home Depot
(HD) - Get Report
fell 8% on bearish comments from the CEO. Finerman says she likes the stock at this valuation.
Target
(TGT) - Get Report
dropped 7%. Macke says he told you to sell earlier this week.
General Motors
(GM) - Get Report
fell 5% after disappointing August sales numbers. (RealMoney Take: Jim Cramer recently said, "GM's cutbacks are daunting." To read more on what Cramer said,
)
Quicker Than the Ticker
On Aug. 24 Najarian recommended
Juniper
(JNPR) - Get Report
. He was right and the stock has gone up 6% since his call. On Sept. 5 Finerman picked Kraft. She was right, and Kraft went up 3% the next day. On Sept. 6 Macke recommended selling
Retail HOLDRS
(RTH) - Get Report
at $100. He was dead on and the RTH fell 2%. On Sept. 5 Adami said buy Biogen. Adami was right, and the stock went up 6% the next day.
(RealMoney Take: Adam Feuerstein said recently, "There has been quite a buzz about Carl Icahn's interest in Biogen Idec. The financier received FTC clearance last week to buy more stock in the biotech firm." To read more on what Feuerstein said,
)
Fast Fire
Macke recommended
Costco
(COST) - Get Report
several times in August. Since his recommendation the stock has fallen 11%. Macke now says to buy Costco in the $50's and sell it in the $60's. On Sept. 5 Adami picked
Campbell's Soup
(CPB) - Get Report
. Since his call the stock has declined 6%. Adami admitted on Friday he was wrong on this call.
On Sept. 4 Finerman recommend getting long
Office Depot
(ODP) - Get Report
. Since her call, the stock has gone down 18%, and she now says cut your losses and sell the stock. On Sept. 5 Najarian said get in
Research In Motion
(RIMM)
. Since his call the stock has gone down 4%. He is standing by his call and he still likes the company.
Final Trade
Macke says sell the
New York Times
(NYT) - Get Report
. Adami said short the Dow by buying
Short Dow30 ProShares
(DOG) - Get Report
. Najarian recommends
Oilsands Quest
(BQI)
as a play on the oil sands of Canada.