Stocks weren't in favor with investors Monday, as recession fears continue to worry the markets. The Dow lost 108 points and the Nasdaq fell 30 points.
"Fast Money," Jeff Macke explained that investors didn't have many reasons to buy stocks Monday. Pete Najarian says this market is still a trader's market. Karen Finerman says that credit issues are still a problem, and that she is staying short
. Tim Seymour says emerging markets have better valuations, and investors are flocking to the overseas trade.
Credit problems and concerns with subprime continue to hurt the financial stocks. Finerman mentioned that
traded lower Monday off a Merrill Lynch downgrade. Also,
, Capitol One, and
traded down on a UBS downgrade. Najarian pointed out that
was strong in the tough environment for financials.
of trying to take control of the internet with its $44.6 billion bid for
. Macke says Google is complaining and the price action in their stock is weak. Najarian says a good earnings report from
could help the technology sector. He also likes
and he would avoid Google for a few more weeks. Seymour says he loves
reported a fourth-quarter net loss of $458 million due to hefty losses on charges. Najarian mentioned that
drug-coated stents will hurt BSX.
Las Vegas Sands
reported fourth-quarter profits that plunged 65% due to expansion costs. Finerman says the recession is hitting travelers, and she is short
. Macke mentioned that
Dollar Thrifty Automotive Group
fell 37% Monday after the rental car firm cut its 2007 earnings guidance.
Legendary real estate investor Sam Zell announced an 8% stake in
. Najarian reminded viewers that Zell sold the real estate sector at the top, so you might want to pay attention to him buying HOT here.
Big pharma stocks like
were strong in a weak tape. Najarian says MRK has been oversold, and this could be the time to buy. He also likes
are set to report earnings this week. What is the trade?
Macke explained he likes Disney because it always anticipates slower growth in the economy. He loves what CEO Bog Iger is doing by integrating the theme parks with the movie division. Seymour says he likes Disney for their ESPN brand that caters to adults.
is set to report earnings on Wednesday. What is the trade? Seymour says that
and China's Chalco don't want to see BHP buyout
. He explained that this opposition to the takeover will help to raise the price for a potential bid for RIO, and consolidation will remain a theme for the entire sector. Seymour says
are in play. He also likes
Market Vectors-Coal ETF
for a way to play the coal sector. Finerman disclosed she is long Rio Tinto. Najarian says keep an eye on
Alpha Natural Resources
Retail stocks have been
over the past couple of weeks, but some best of breed names like
took a hit Monday. With January sales figures due out Thursday, is it time to take profits in the space?
Finerman explained that when a sector moves that sharply to the upside, investors must take some off the table. She would like to see the sector pull back more before she reloads. Macke says the retail stocks will be great trading vehicles for the entire year.
He recommends investors make a list of retail names they like and wait for them to come down. Seymour likes
from a valuation perspective, and Macke says he would buy SHLD at a 9-handle. Finerman says she doesn't have a long SHLD position, but she wouldn't short it.
With 80 million people, Egypt is the most populous nation in the Middle East. The country is starting to see the flow of petrodollars into its economy. Egypt's economy is now growing at 7% annually and receiving a shot in the arm from growth in tourism.
Last year 10 million foreigners flocked there. What is the trade? Seymour says the trade is the
S&P Emerging Middle East & Africa SPDR
T. Rowe Price Tramx Mutual Fund
Clorox CEO Interview
CEO Don Knauss joined the "Fast Money" crew to discuss his company's prospects. Knauss explained that he issued more cautious guidance Monday because the pressures of commodity costs are rising from $25 million to $100 million for the second half of the year.
He says their glad trash bags have the largest exposure to commodities costs of all their major brands. Knauss says Clorox is growing their top line ahead of Wall Street expectations, growing volume and running more efficient cost saving programs. Seymour disclosed he bought
on Monday because they have big exposure to Eastern Europe. Finerman says she owns Wal-Mart which is her way to get exposure to firms like Clorox.
traded 10 times its average daily volume Monday.
Pops and Drops
traded up 5%. Seymour wondered if anyone even owns a Palm Pilot.
traded up 4%. Najarian says RNWK has some problems.
China Life Insurance
traded up 5%. Seymour doesn't like that LFC trades at 45 times earnings.
Solarfun Power Holdings
traded up 8%. Finerman says don't get involved in SOLF.
fell 6%. Macke explained that UAUA announced it would charge consumers $25 to check a second bag.
Pier 1 Imports
fell 8%. Macke says PIR is the slowest turn around in history.
fell 10%. Finerman explained the drop is misleading because the stock only fell 50 cents.
fell 6%. Najarian says UA paid up for its Super Bowl advertisement and it didn't work.
fell 12%. Seymour says that VM story is losing ground to
Delta Air Lines
fell 7%. Macke says Monday was a tough day for the airlines.
fell 3%. Najarian explained that HUM is putting out too much negativity in a stock market that is unforgiving.
. Macke likes Walt Disney ahead of earnings and for a long-term investment. Seymour favors
Gold Fields Limited
. Finerman recommends
in front of earnings.
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