On a wild trading day Tuesday, the Dow Jones Industrial Average was up 1.09%, the S&P 500 rose 0.73% and the Nasdaq Composite fell by 0.02 points.
"Fast Money" Tuesday, Karen Finerman noted that the overseas markets were weak, and guessed that euphoria over Warren Buffett's overtures to the municipal bond insurers might have buoyed the market. Jeff Macke agreed, but said that the deal was better for Buffett than for the bond insurers. He advised viewers to "buy the vultures, sell the meat."
Guy Adami observed that
hit a 52-week high and advised viewers to take profits. Pete Najarian noticed a rotation out of tech and coal, which was a complete reversal of yesterday's action. He said he continues to like
from a valuation standpoint, but he is more cautious about
Najarian went on to advise that
will get pummeled for the wrong reasons, so it would be wise to watch for an entry point.
, but not as much as
, of which he said, "This is where you want to be if you want to be in the autos."
Najarian said that the agriculture sector still offers many opportunities. Names include Potash,
. On a pullback, these stocks are buys, he said. Adami added that
reported a "ridiculous quarter," which bodes well for
, which should be bought on dips, he said.
takeover bid for
, Finerman said that, as a holder of Yahoo! shares, she hopes the two companies come to the table. She anticipates a tender offer from Microsoft, which would force Yahoo! to substantiate its claim that Microsoft's bid is too low.
The upcoming Wireless World Conference is on Najarian's radar. He noted Microsoft's purchase of
, which makes the Sidekick, a popular wireless device. He believes Microsoft is trying to go mobile in anticipation of Google's Android phone software. Furthermore,
recently struck a deal with Google to use its search technology and is rolling out four new models. He remained bullish on Nokia.
Najarian went on to say that
( DNA), with an array of drugs in the pipeline, looks promising. In particular, Avastin, a breast cancer drug, is in phase III, and could be a very big seller if approved.
earnings, Adami said he likes
better as a valuation play. Macke agreed.
In the casinos,
reported today. Finerman explained that the Macau story had been driving the stocks, and Najarian noted that bad numbers from Macau had hurt the stocks. He also noticed that the last time
Las Vegas Sands
took a big drop, it was back up soon after. He didn't believe the same was true for Wynn and said to stay away.
Housing Still Hurting
On a day when the homebuilder ETF was down and sector player
was destroyed, Finerman said she wasn't sure what was going on, but she wouldn't be short the homebuilders anymore. Adami explained that Masco's guidance was a disaster. He also counseled investors to take profits in
World Wrestling Enertainment's
run, Macke said there had been a lot of short pressure on the stock, and then the company beat on a lot of different metrics, including attendance, which is remarkable. He said the stock is not a screamer at $20, but it isn't bad either.
The crew welcomed Lynn Westfall, head economist at
, to discuss the energy sector. He said he believes $60 a barrel is a fair market value for oil, and that the Saudi oil minister agrees with him.
Asked about a refining margins decline, Westfall said the stock has been cut in half, which he believes is an overreaction by investors. Najarian and Finerman called the stock a long-term buy, while Adami said he thought he saw a floor at $35. Macke said he needs to see some exogenous factors turn around before he recommends the stock.
Noting a turn in early-cycle names in the steel, chemical and transport sectors, Adami advised that viewers take profits and look for entries in DuPont and
. He noted that John Hess, CEO of
, had recently bought a stake in Dow Chemical and added that he believes the
is setting up for a second-half recovery, which will continue these stocks' run.
Najarian and Macke emphasized that discipline would be crucial in 2008, and investors should sell into strength and buy on dips. "Grind away," Macke intoned.
John Merriman, CEO of Merriman Curhan Ford and Co., joined the "Fast Money" crew to share several stock picks. First up, he recommended
on its growth, international exposure, new management and valuation.
Second, he said he likes
on growth and resistance to recession. Finally,
Energy Conversion Devices
( ENER) looks good to Merriman. It's growing fast, beat on earnings and shows good momentum.
Najarian agreed with Merriman on Energy Conversion Devices, but said that Taser is always getting into legal trouble.
was one of the most heavily traded stocks today.
As part of a segment on energy plays, Najarian looked at coal. He said that the material provides half the electricity in the U.S., and prices may double this year. It's a dirty energy source, but Najarian noted an initiative by world governments to clean it up. He named
( BUCY), Eastman Chemical and
Burlington Northern Santa Fe
( BNI) as sector plays. Adami said to take profits in Burlington and
Pops and Drops
jumped 5%. Adami said he likes the company. Marsh & McLennan rose 3%. Macke said "Marsh Mac is dead."
rose 3%. Najarian said it was a good move for the day and noted that the company had cut costs.
was up 3%. Finerman said it was too complicated and advised that investors stay away.
99 Cents Only Stores
( NDN) popped 9%. Adami called it a classic relief rally, and he wouldn't go for it.
was up 4%. Macke called the move "nice," and said he was still long
was up 9%. Adami said he liked TAP and
( LEH) was down 3%. Finerman said investors likely aren't excited about its commercial real estate exposure.
lost 21%. Najarian said that wind turbines have not yet arrived.
fell 33%. Finerman said, "This is bloodletting."
( WINN) was down 12%. Macke called the stock's movement a round trip. He likes
. Emergency Medical Services slipped 12%. Najarian said that maybe the stock is too cheap down here.
One viewer asked if options expirations next Monday meant investors could expect a "whoosh" in the market. Najarian said there would be continued volatility through February.
Another viewer asked Macke if
was a buy. Macke said it's too early for Chipotle.
A third asked if
was a buy. Finerman said she owns it for the long haul. Adami said there was no reason not to own them as it approached a value level.
Finerman said she was into
Najarian was looking at
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