The stock market recovered slightly on Friday after a strong October jobs report helped lift the Dow 27 points and the Nasdaq 15 points. All eyes and ears including CNBC's "Fast Money" team were speculating on the news about Citigroup (C) - Get Citigroup Inc. Report.
Citi made late breaking news Friday when the bank called for an emergency board meeting for this weekend. For Jeff Macke, the banks are still a sell here unless you're the fastest of traders. Karen Finerman went long Citigroup through options on Friday and she sees a bounce if CEO Chuck Prince leaves. Macke agrees that it does look like a near term reversal to the upside could be in store for Citigroup. Tim Seymour thinks the downside for the financials might be a bit over done and he bought
on Friday, but plans to trade out of it on Monday.
Miller Gives his 2 Cents
Bill Miller, famous Legg Mason money manager, likes financials and consumer names, proposing that the global plays might be over. He predicts that new leadership in the markets will come from US, large-cap, dollar-based stocks. The greatest gains in the next five years will come from the stocks that investors are most panicked about now. For ideas, he suggests that investors look at the 52-week low list. Seymour disagrees with regards to consumer names because he expects they will do nothing over the next year. He points out Miller hasn't done that well this year. Macke dismisses Miller's statement as reckless and it's not an actionable statement.
(To get a better look at Miller's picks, look at his portfolio on Stockpickr.com
is set to report earnings on Wednesday. Oppenheimer Chief Market technician Carter Worth joined the "Fast Money" crew to discuss his thoughts on Cisco Systems. In Worth's opinion, CSCO has relative strength and during market sell-offs investors haven't been selling the shares. Adami notes that fundamentally CSCO is doing well. The earnings reports recently from
were indications that things are good in the space. Seymour contends CSCO is a bell-weather for technology and the company is finding ways to grow outside of the U.S. Macke feels CSCO is just getting started and any pullback in the name is a chance to buy it.
Technology stocks were strong most of the week even when the market was selling off. Macke loves the space and wants a dip on
so he can get in. Adami favors
, but he would wait for a pullback to buy it cheaper.
Most major retailers are set to report same-store sales for October on Wednesday Nov. 7th and Thursday Nov. 8th. Macke recommends buying the dips on the retailers because nobody is expecting anything good.
are Macke's favorite plays here. Finerman is positive on the retailers, but she is nervous about the consumer and she sold her
A shareholder group including Maurice Greenberg is requesting that
American International Group
look at strategic alternatives. The stock is trading up 3% after hours on the news. Greenberg, who use to run AIG, is currently the largest shareholder and controls $3 billion in the insurance behemoth's stock. According to Charlie Gasparino's sources, Greenberg wants to get rid of the current mangers and board of directors. Macke would be a buyer of AIG off this news. Finerman finds this situation very interesting because of the amount of stock Greenberg controls.
It's a Gusher
Oil hits another record high to close at $95.93. Seymour maintains the oil trade is crowded short term and he sees resistance for crude around the $98-$99 level. Finerman favors
for a global play and she thinks the story will continue to work because the company has a strong backlog. She also mentioned that FLS is her biggest position, although she did trim some on Friday. Adami tells investors
still has a rich valuation and if you want to play the oil space look at
. There is more pain in many of the oil names because they're over owned.
Emerging Market Trade
Emerging markets experienced volatility along with the US markets this week. Seymour expects the story to remain the same with the US dollar weakening and emerging markets growing. He recommends investors look at emerging markets like Brazil, Russia and China. Brazilian banks
Banco Itau Holding Financeira S.A.
Banco Bradesco S.A.
are his plays. In Eastern Europe, he likes cellular plays
. He noted that investors can collect premium and sell volatility on these names for a great trade. Seymour currently has positions in ITU and MBT.
(If Brazil is your favorite, check out this portfolio on Stockpickr.com
Happy 52-Week High
Pops & Drops
IAC Interactive Corp
traded up 9% after beating earnings. Finerman compliments Barry Diller on the earnings beat.
traded up 12% on a strong profits report. Seymour would ride this stock up through $12, then look to take profits.
traded up 4% after Russian competitor Silvinit had a major flood causing tight world supplies to tighten further. Per Seymour, this trade remains on.
popped 16% after profits doubled. Macke declares BIDU is the Google of China.
fell 17% after New York Attorney General Andrew Cuomo sued WM alleging it colluded with a real estate appraisal firm to inflate the value of homes to help ensure that loans went through. Adami doesn't think things will work out well for WM.
fell 8% for the week. Macke maintains nothing is wrong with YHOO it's just resting.
fell 6% following the downward trend in the market. Finerman contends that fear of a slowing consumer is making investors sell TGT.
fell 11% after missing profit forecasts. Seymour admits TIE came up short on earnings, but he would get back in $1 lower.
Quicker than the Ticker
The panel likes to revisit past trade ideas to see how well they performed.
Back on October 8th, Seymour suggested buying
Central European Media Entertainment
. Seymour got it right and shares of CTC Media went up 7% and CETV surged 20% since his recommendation.
On October 17th Adami told investors to buy
. Adami nailed the call and the stock has advanced 17% since he recommended it.
October 29th Finerman advised shorting GPS play
. Finerman was dead on and GRMN declined 20% since her call.
It was October 31st when Macke recommended investors to short
. Macke was right and two days later Citigroup fell 9%.
Fast Money Misfires
However, the panel doesn't always get it right and admits when they get it wrong.
Earlier this week on Tuesday, Adami recommended buying
Las Vegas Sands
. He missed the trade and LVS plunged 19% since his call. Adami now feels that LVS still has a rich valuation and the company is having some problems in Macau. However, down the road it will be a buy, but for now he favors
Last Friday Finerman recommended shorting oil. Since her call oil has climbed 6% higher. Finerman would get out of the short oil trade because it didn't work.
A week ago Macke told investors to buy
Procter and Gamble
. Procter has fallen 3% since he picked it, but Macke says the earnings report wasn't that bad and maintains its going to work in the long-term.
On October 4th Seymour favored investment bank
on valuation. Seymour was way off and Merrill fell 19%. Looking at it now, it seems that Merrill has been overly beaten up and he would stay long.
After a rollercoaster week, the team gives their best picks. Although, not necessarily for stocks.
- Macke picks the Indianapolis Colts over the New England Patriots. Finerman went with the New England Patriots.
- Adami places his bet on Intel (INTC) - Get Intel Corporation Report.
- Seymour chooses Immersion (IMMR) - Get Immersion Corporation Report.
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