Federal Reserve Chairman Ben Bernanke's bearish testimony before Congress and a Moody's downgrade of bond insurer FGIC brought the bears out to play Thursday. The Dow fell 1.4%, the S&P 500 lost 1.3%, and the Nasdaq sloughed off 1.7%.



"Fast Money," the crew discussed the role of a dismal performance from the financials in the down market. Pete Najarian remarked that the financial stocks never participated in the recent up days.

Goldman Sachs

(GS) - Get Report


Lehman Brothers

( LEH), along with


(BX) - Get Report


Fortress Investment Group


, looked awful today, he added.

Guy Adami said it appeared that investors are skeptical that the financials will recover in 2008. He noted Goldman Sachs' downgrade of


(INTC) - Get Report

. Jeff Macke blamed the bad day on volatility, saying that in this environment, any move will be big, whether up or down.

Najarian said both Goldman and


(C) - Get Report

are in trouble. Karen Finerman said Goldman is the premiere franchise in the sector. She sees it as a good investment to the long side.

Chart of the Day

Goldman underperformed the

Financial Sector SPDR ETF

(XLF) - Get Report

. Adami said it was down to attractive levels, but investors should wait for the May 13 report. Najarian speculated that the company would have big write-offs. He said he believes Goldman faces $10 to the downside.

Sifting Thourgh the 13-F's

In required

Securities and Exchange Commision

filings, big money managers today disclosed some of the moves they made.



Chairman Eddie Lampert sold his position in Citigroup. Finerman, Adami and Macke agreed he had taken a loss. Macke lauded Lampert for quitting when he was behind.

Berkshire Hathaway

( BRKA) CEO Warren Buffett took a stake in


(GSK) - Get Report

and added to positions in

Wells Fargo

(WFC) - Get Report



(KMX) - Get Report

. Adami liked the Glaxo play, but said it was a trade for an 18-month window, not a fast-money move.

Noted short-seller of the bond insurers Bill Ackman sold some of his position in


(MCD) - Get Report

and added to Sears,


(TGT) - Get Report


Barnes & Noble

(BKS) - Get Report

. Finerman said Sears was interesting to her for the long term.

Riding the Railroads

The sector has enjoyed strong movement lately. Adami noticed that Bear Stearns raised price targets on

Burlington Northern Santa Fe

( BNI),

Canadian National Railway

(CNI) - Get Report


Norfolk Southern

(NSC) - Get Report

. He reminded viewers to check out

Trinity Industries

(TRN) - Get Report



(WAB) - Get Report



(GBX) - Get Report


Najarian hypothesized that the upgrades had come on the heels of the BB&T Transportation conference. He said the action in rails and truckers marks a turn in the economy.

Najarian discussed the put activity on


(UNH) - Get Report

. He guessed that it was speculation, adding that the activity likely was based on some inside information.

Macke talked about the beating


(CMG) - Get Report

took on a weak forecast, saying that with input costs rising, casual dining is not the place to be.

The Beauty Trade

In honor of Valentine's Day, Finerman put together several beauty stocks. She recommended

Estee Lauder

(EL) - Get Report


Procter & Gamble

(PG) - Get Report



(AGN) - Get Report

. Adami expressed interest in Estee Lauder for its international sales.


The crew called up Nick Pinchuk, CEO of


(SNA) - Get Report

, to talk about the stock's amazing run. Pinchuk attributed the success to a great brand and an increasing tendency among consumers to repair their vehicles instead of buy new ones. Adami liked the repair story.

Stocks of Love, Stocks of Scorn

In another Valentine's bit, each trader picked two stocks -- one that they love, and one that they scorn. Finerman disclosed her crush on


(FLS) - Get Report

because it continually beats and raises guidance. She scorned one of her first loves,

Home Depot

(HD) - Get Report


Adami said he loved


(MA) - Get Report

and scorned


(DELL) - Get Report

. Macke stuck with McDonald's, and spurned



. Najarian told of his love for


(NOK) - Get Report

and his heartbreak over


(MU) - Get Report


Commander Planet

In the last installment of Najarian's "Commander Planet" bit, he discussed solar energy. He noted the massive stock increase in

First Solar

(FSLR) - Get Report



(SPWR) - Get Report

. He reminded viewers that solar energy is very expensive and represents a tiny fraction of the global energy market. He noted that few solar companies turn a profit and that silicon is very expensive.

Adami said investors could take a flyer on

Evergreen Solar

( ESLR). Macke added that business was very good at

Cypress Semi

(CY) - Get Report

Fast Messages

One viewer asked Najarian about large call volume on

Circuit City

(CC) - Get Report

. He replied that the play was speculative. Macke reminded viewers that the company has been a perennial buyout name.

A second viewer asked Finerman about


(CROX) - Get Report

. She is long Crocs options and stock, and is expecting strong earnings next week.

Final Trade

Macke likes

Short Dow30 ProShares

(DOG) - Get Report

. Adami is into the

XTO Energy

( XTO) secondary offering. Finerman believes in

Kaiser Aluminum

(KALU) - Get Report

. Najarian is stoked on Burlington Northern Santa Fe.

Pops and Drops





jumped 3%. Najarian said the Internet advertising space is attractive.


(GT) - Get Report

rose 7%. Adami advised taking profits.


(CAR) - Get Report

leapt 10%. Macke said to sell the car rentals.



Liz Claiborne

( LIZ) fell 18%. Finerman said it doesn't look good for the company.

Ingersoll Rand

(IR) - Get Report

slipped 1%. Adami said it's having trouble digesting its


( TT) acquisition.

Jones Apparel


went down 10%. Macke stressed that investors should sell apparel stocks.


(NTGR) - Get Report

plummeted 20%. Finerman said she doesn't like to buy a stock when it falls that much.

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