The stock market exploded higher Thursday as investors cheered President Bush's mortgage plan that could help bail out many subprime borrowers. The Dow finished up 174 points and the Nasdaq closed up 42 points. The team at CNBC's "Fast Money" reviewed critical levels in the market as well as the tech stocks and the global outlook.
Pete Najarian explained that everything was working Thursday from the agriculture sector, financials, metals, energy and technology. The question now for Najarian is will this broad based rally continue? Jeff Macke thinks that now is the time to buy stocks after the S&P 500 broke key resistance at 1490. Macke explained that 1490 is now support and the market can trade higher as long as it stays above that ever important level.
Tim Seymour remarked that a lot of volatility has been taken out of the market and that is good for riskier assets. Guy Adami likes big-cap technology stocks like
traded up 2.4% after rumors hit Wall Street that Apple will introduce a ultra portable laptop computer at Macworld next month. Also, Apple announced it will be releasing a 3G version of the iPhone in 2008. Najarian thinks the street is getting overly bullish on Apple and he sold some of his Apple options into strength Thursday.
Chip stocks like
continued to show strength for a second day in row. Macke and Adami think the best chip stock to play is Intel. Adami predicted that Intel will go to $30 or higher. Najarian recommended investors sell
even after the S.E.C. closed an options backdating probe.
Emerging Markets Trade
Emerging market companies are aggressively competing for a share of the global growth pie. Tim Seymour, the resident "Fast Money" global growth expert gave viewers some of his best ideas for the emerging market trade. Seymour recommends
. Adami and Najarian favor
over China Aluminum.
Coal in your Stocking?
Coal stocks like
surge after Fording announces plans to look into selling the company. Najarian explained that coal is strong because it can be used to form steel and steam coal demand out of China is huge. Seymour said an interesting name is Russian steel firm
which is planning to spin off its coal mining business.
(Here's a look at a coal portfolio on Stockpickr.com
Retail stocks like
fell after November sale-store sales missed the mark. Macke advises playing the best-of-breed retailers like
or weak plays like
which have very low expectations. Najarian thinks the sell off on Target was overdone and he would look to bottom pick the stock now. Adami likes
for a retail consumer play. He explained that even though people are spending less, they are spending with a credit card which is bullish for MasterCard.
Solar stocks had a mixed day Thursday with
falling 4% and
exploding up 20%. Najarian explained that Hoku signed a deal to borrow $185 million from Merrill Lynch for setting up a polysilicon plant. His favorite name in the solar space is
, but he mentioned he sold his position in the stock.
Happy 52-Week High
Viewers write in with their own topics to be addressed.
Bill from Michigan wants to know, "With the housing crunch bottoming soon, is
at a bottom?" Macke doesn't agree that the housing crunch is bottoming soon and he isn't a fan of Home Depot. Jameson from Texas writes, "I know Tim Seymour loves global telecom plays, if he had to choose one and only one between
which would he choose?" Seymour went with China Mobile.
Pops & Drops
traded up 4% after the cell phone maker reaffirmed its fourth-quarter forecast and announced it's considering breaking up the company. Adami thinks it's a lottery ticket worth a look.
traded up 8% after the newspaper company said it will reduce debt by $500 million. In Najarian's opinion, this is a good thing for Tribune.
traded up 7% after the firm won a major pump order contract in Qatar. Adami likes the valuation on Flowserve, but he advised taking some profits on this move.
traded up 11% after Key Bank Capital Markets upgraded the stock to an aggressive buy. Najarian pointed out that the chemical sector had a great day on Thursday.
exploded up 30% after the mobile home maker reported a narrowed second-quarter loss. Seymour remarked that it doesn't seem the consumer is slowing down.
traded up 13% off the President's mortgage plan to help out the subprime borrower. Adami predicts the shorts will see another day of pain Friday.
traded up 8% off an upgrade from Morgan Keegan. Macke wouldn't bother with any truck or car rental firms.
traded up 7% after the chip licensing company said the SEC has ended its informal stock options probe. Najarian counsels getting out on this pop.
fell 8% after the retailer said same-store sales went down 3.4%. Macke cautions viewers to walk away from retailers that miss same-store sales.
fell 14% after November sales fell short of Wall Street estimates. It's dead money for now and Macke feels you must give it time.
The team handed out their best trade ideas for the day.
- Adami recommends Intel (INTC) - Get Report.
- Seymour tells investors to buy Stillwater Mining (SWC) .
- Najarian prefers buying Apple (AAPL) - Get Report.
- Macke suggested the S&P 500 Index (SPY) - Get Report and stop out if the S&P falls below 1495.
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