Weak and revised GDP data for the fourth quarter and pessimistic commentary from Federal Reserve Chairman Ben Bernanke sent stocks lower Thursday. The Dow, the S&P 500 and the Nasdaq each fell about 0.9%.
"Fast Money" TV show, the traders discussed today's earnings statement from
. The company posted a revenue miss and included many one-time charges on the report.
Guy Adami called the news mixed, noting that Dell's margins were better than expected. He suggested
for investors who've been thinking about Dell.
The financials were hurt today by a Bernstein analyst downgrade, said Pete Najarian. He observed that
gave back a lot of the previous day's gains. He likes the pullback as a buying opportunity but is going to wait for Goldman to come back a little more.
On the continued commodities boom, Tim Seymour said getting long oil was a good trade. He argued that oil prices were all about the dollar's weakness, and pointed out that the Fed essentially has said it won't control inflation.
Najarian extolled the virtues of natural gas. He claimed that oil stocks have run, but as
has integrated its Burlington Resources acquisition, it is too cheap at seven times earnings.
Adami continued to advocate for
, emphasizing that they're not expensive. He recommended waiting for a pullback in the sector to get long. These stocks are not expensive.
Macke stuck with his trade on the
ETF. He said not to overthink the gold trade or the
U.S. Oil Fund
on a breakout in copper was a great trade.
Najarian reminded viewers of coal. He told viewers to look at
Alpha Natural Resources
. He claimed the stocks were on fire because China needs steel. He also lauded
for its gold, copper and coal exposure.
In retail, Macke said the combined success of a new CEO and low expectations led to an after-hours jump from
. He added that the company has "tons of ways to win," and he is a buyer of the stock.
, on the other hand, guided down and is inconsistent operationally, he said.
wrote down nearly its entire Nextel purchase, taking a hit of $29.5 billion. Macke called Sprint "crazy," in part because it's offering unlimited voice and data for $99 to compete with
, which offer unlimited voice for $99. I wouldn't touch Sprint with a ten-foot pole, he concluded.
Najarian chimed in that he likes AT&T and Verizon and has hated Sprint forever. He compared the company's Nextel acquisition to the ill-fated merger between AOL and
shares up $7 on the day, Najarian said people are jumping on a bandwagon out of fear that they missed their entry point.
Adami praised UBS and Citi for downgrading
after a very strong increase in share price.
ended a study on a very aggressive cancer drug because the data was very encouraging. Najarian predicted that the drug could be worth $500 million.
Adami added that Novartis is cheap for its sector and is coming off a "slew" of FDA approvals. Najarian also praised
for going to Japan to buy new drugs, which it can't find in the U.S.
A Flip From Financials
The crew welcomed John Najarian from Option Monster to talk about a turn in financials. He said the shorts were beginning to get out of the way in names like
People are liquidating short positions and even buying back this stock, he said. He added that the same thing was happening with Goldman Sachs,
. He predicted bullish action from Goldman on upcoming earnings.
Adami praised Goldman for its transparency. Najarian said he would get long Goldman at $160.
Burger King Begins Brewing
On weakness from
is stepping up its coffee game. Macke called Burger King "good operators" who have "proven themselves." He explained that best-of-breed fast food companies are doing well as pinched consumers move away from casual dining.
Najarian said he likes Burger King's room for growth. The company only has one-fourth the number of stores that
operates. Adami gave McDonald's props for "kicking it internationally."
Macke argued that it's harder to do good coffee than people think. He endorsed Starbucks on a coffee trade.
Brazilian Market Waxes
Brazil has reached a new high, beating Beijing to offer the largest free float of any emerging market. Seymour said that even though Brazil and Argentina sport expensive currencies, but they're exporting commodities that are needed by the rest of the world. He recommended playing the homebuilders and cellular companies in that market.
Najarian would rather stay in the U.S. markets and buy
to play the countries' infrastructure buildout. Adami suggested
for its excellent work in international markets. He also counseled investors to look at
as a global play. Macke stuck with streetTracks Gold and U.S. Oil ETFs.
traded at stupendous volume today.
Inside the Consumer Mind
Tough times means careful consumer trades, Macke said. He told of consumers saving money by avoiding restaurants ranging from Red Lobster -- run by
Food that can be bought at the supermarket is in, giving
. He also said to watch
Seymour expressed skepticism from a commodity prices perspective. He worried about the companies' ability to pass on costs to consumers.
said in an
filing that it had received interest from other companies besides
, which made a $2 billion offer to buy Take-Two. Macke said Take-Two was bluffing, and Najarian added that he could hardly believe the $2 billion bid in the first place.
A viewer wrote in to ask about
earnings statement coming up tomorrow. Macke said CEO Warren Buffett's letter to shareholders is a must-read. He noted that Buffett is the only super investor who has not gotten long
Another viewer asked whether Najarian's positions in McDonald's and Burger King were long-term trades. Najarian replied that he likes the names for the long haul.
A third "Fast Money" fan asked Adami which regional banks to avoid after Ben Bernanke said bank defaults were possible in his testimony to Congress today. Adami said it's wise to avoid the space but
was probably the best bet.
A final inquirer asked about
. Tim Seymour cited a big buyback and recommended owning the stock.
Macke went with the
Short Dow30 ProShares
ETF. Adami chose the same thing. Seymour went short
. Najarian chose
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