The gang on CNBC's "Fast Money" show on Monday saw last week's stock market plunge as a battle between King Kong (financial distress) and Godzilla (global growth). And due to credit problems, King Kong won.
This week, Treasury Secretary Hank Paulson will be in China for trade talks. Eric Bolling is bullish on China and he would own
iShares FTSE/Xinhua China 25 Index
CurrencyShares Euro Trust
Guy Adami is bullish on American firms that reap big gains from having global market share like
Jeff Macke agreed with Adami that American firms that do business in China is the way to play it. His pick was
, while Pete Najarian was bullish on
A potential earnings play this week could be from a sector most investors don't think about. This week, two big garbage companies come out with earnings:
. Guy Adami's favorite pick in this sector is
. Pete Najarian agreed with that pick and also endorsed Allied Waste.
Dealmaking Not Dead Yet?
Last week saw many Wall Street traders predicting that mergers are dead due to higher borrowing costs for private equity firms. But could Corporate America pick up the slack? Pete Najarian thinks deals will continue to close, noting with Roche and
as examples for this week. He thinks that some firms could be turning away potential deals, but the M&A activity is still alive.
Guy Adami mentioned how Honeywell is buying back stock due to a strong balance sheet. He feels strong balance sheets are bullish for M&A. Jeff Macke believes Nelson Peltz could raise his stake in
. Market speculators took Wendy's stock up 10% after hours on the Peltz rumors. If you're long, Macke would take profits.
The Michael Vick Trade
A big image problem has developed for the National Football League with Atlanta Falcons star quarterback Michael Vick, who's been accused of being involved in funding dogfights.
ESPN analyst Sean Salisbury joined the "Fast Money" crew tonight to chat about this dilemma. Sailsbury believes that the superstar advertising model is dead, and he doesn't feel sorry for Vick if the allegations turn out to be true.
Pete Najarian believes the way to trade it is to buy
because the company doesn't use sports stars in its advertising. He put the blame squarely on
for picking Vick to promote products.
Eric Bolling believes pro sports should have one strike and then you lose your opportunities in sponsorships. He kiddingly said the trade here is
Corrections Corp. of America
Face 2 Face
The gang took its first viewer email: "I fear that as fast as the emerging markets funds went up this year they will go down just as fast and far more than a 15% pull back in the S&P. Should I sell my emerging market fund and put it all in a money market fund until the storm passes? Do you think the markets will finally have a 10% correction?"
Eric Bolling told the viewer to get out of
iShares MSCI Emerging Markets Index
if he's scared.
The second viewer email posed a question specifically for Bolling: "Is
getting killed more so due to the 500 pts the DOW has lost? If the market was flat, what do you think XOM would be trading for?"
Bolling said to get out of refiners and integrated oil. Eric is bullish on oil services and his pick is
Oil Service HOLDRS
. Pete Najarian said he would buy put options as an insurance policy on Exxon..
Oil is closing in on $80 and the crew took a good look at alternative energy plays. Before the bell Monday,
beat estimates by 13 cents, but the stock turned lower for the day on poor guidance.
Cameco CEO Gerald Grandey appeared to discuss his company's prospects. He was asked about demand, and he said, "As fossil fuels become more expensive people recognize the benefits of nuclear. There's a real buzz about nuclear power these days."
Next, he was asked if as oil moves higher, does demand for his company's products move higher? "Not really, because building a new nuclear plant takes 8 to 10 years. There's more recognition that nuclear has to be a larger component in the future." Grandey stressed that his company is a long-term play especially with thir position in the nuclear energy space.
Eric Bolling said he would only play Cameco and
for the long term -- like six months. He feels this sector is too volatile for short-term trades.
Pete Najarian was bullish on solar power plays
MEMC Electronic Materials
( WFR). Jeff Macke likes
Word on the Street
Is it safe to get back into the stock market? Eric Bolling is bullish on earnings and believes stocks are cheap. Jeff Macke is a seller at 1490 on the
, but he feels the market could bounce. Guy Adami believes the market will continue to sell off, but that overall, it looks good.
Pete Najarian doesn't believe market players are as nervous as they were late last week. Chip stocks were some of the best performers om Monday. Pete Najarian is bullish on the wireless sector and he likes
, as well as
Guy Adami would watch Nvidia's gross margins here, and Jeff Macke was bullish on
for the long term.
Regional banks were also among the top-performing sectors today. Guy Adami would rather be in
Bank of America
then the regional banks. Eric Bolling would avoid the banks due to the subprime worries.
saw some interesting options activity on Monday. Pete Najarian believes options players think Ameritrade is done going down. Guy Adami believes Ameritrade will make a deal with
, but Eric Bolling would stay away from the financial sector.
was up 10% after hours on good earnings. Jeff Macke said private equity group KKR has taken a $700 million stake in Sun. Macke feels this is smart money getting into the stock, and Najarian agreed.
Merill Lynch came out with a report Monday that said oil will follow a pattern of the last three years and decline in the second half of the year. Eric Bolling believes oil will hit $80. Pete Najarian was bullish on
were down 12% on a 15% fall in revenue. Jeff Macke believes the CEO of RSH needs to be more available to Wall Street.
was up 7% after Goldman Sachs and Citigroup upgraded the stock recently. Jeff Macke was bullish on the stock as a long-term play.
will report earnings before the bell Wednesday. Guy Adami was bullish on Mastercard as a long-term play.
Happy 52-Week High
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