The Dow closed up 117 points on Tuesday as energy, financials and technology stocks were strong. The crew at CNBC's "Fast Money" took a look at these sectors and where investors could make some profits.
Crude oil closed in on the magic $100 mark, after hitting another record high at $97.10 finally finishing Tuesday at $96.70. Adami tells viewers they can play
on valuation or go with
, which is more expensive, but has Wall Street whale sponsorship. Finerman discloses that she is long TSO.
Let the Sun Shine
With oil near $100, investors continue to look towards alternative energy stocks for ideas. Finerman offers
as an idea since it is scheduled to IPO next week. She would also consider
, but only with options. Najarian continues to favor
(Take a look at a portfolio based on solar ideas on Stockpickr.com,
Auto Stock Trade
is set to report earnings Wednesday morning before the bell and
is set to report earnings on Friday before the bell. Adami likes Ford Motor and he believes any news will be good news. He also mentioned that Ford is looking to sell Land Rover and Jaguar and they're close to making a deal with the U.A.W. Adami sees the stock trading up to $9.75.
traded down 3% after hours on news that the company will take a $39 billion non-cash charge on financial assets in the mortgage arm. Adami declares General Motors a widow maker. E.K. Riley analyst Robert Toomey predicts the stock will not go much lower on Wednesday, because the charge shouldn't impact cash flow.
Finerman mentions that her hedge fund has no exposure in the auto sector right now because of issues with the U.S. consumer. In Macke's opinion,
Hertz Global Holdings
all lose from the continued improvements at Ford and General Motors He advocates being long Ford here.
Jeff Macke says we saw a counter trend rally on Tuesday and everything worked accept
and the retailers. He feels that investors can still be long volatility in this market. Pete Najarian says the mortgage insurers had a nice bounce Tuesday and he cautioned investors to not buy into the hype. He feels the sector has a problem and he mentioned that Doug Kass might be dead right on his bearish take of the group.
denies write-down speculation for the fourth time on Tuesday. Finerman believes Goldman Sachs and she thinks they'll do a better job at managing risk then the rest of the investment banks. Najarian says this is a stock pickers market and you have to pick your spots carefully in the financial sector.
Trade off Google
continues to surprise investors with news like the recent entry into the mobile handset market. Is there another way to trade the mobile space if you've missed the move in Google? Najarian claims the trade is
Focus Media Holding
( FMCN), which is a China play that sells advertising space on mobile handsets. He mentions that the options activity in Focus Media is suggesting to him the stock is poised to move higher. Adami also reminds investors that Focus Media is set to report earnings on or around November 21st and the stock has doubled on the year. Najarian continues to believe that China isn't dead yet.
Research In Motion
( RIMM) all hit 52-week highs Tuesday. Najarian likes the way these technology names are moving. He loves the price action in Google and Intel but he didn't like the action in
. Adami and Macke both like Intel here.
shares took a hit Tuesday after U.S. lawmakers slammed the company for their role in helping to identify a Chinese dissident who was later imprisoned. Macke concedes this is headline risk, but is certain it will go away.
is set to report earnings Wednesday.
Jim Goldman explains that Cisco Systems has been on a tear since June as the popularity of video content has expanded on the Internet. Goldman says Cisco Systems just has to meet earnings expectations for the momentum to continue. Najarian currently holds a long position in Cisco and he plans on buying a little more Wednesday morning. Macke says they'll come in and beat earnings so don't bet against these guys.
Utilities stocks struggled on Tuesday coming in as the worst performing sector of the day. For Adami, if the Fed is done cutting rates then
Public Service Enterprise Group
will go lower and you can buy it in the low $80's.
(If you like utility stocks, take a look at this fund on Stockpickr.com
Pops & Drops
Archer Daniels Midland
traded up 7% on a strong profits report. Najarian points out what a great opportunity to sell ADM.
Jacobs Engineering Group
traded up 5% after profits rose 43%. Adami declares the infrastructure build out story is still real.
XM Satellite Radio
( XMSR) traded up 12% on speculation that the merger with Sirius could get done by year end. Macke still likes
Sirius Satellite Radio
( IMB) traded up 10% after the CEO said the company would survive the mortgage blowup. Finerman reminds viewers they don't know what they are getting with IMB, so stay away.
Church & Dwight
traded up 9% after posting a 34% jump in profits. Adami suggests it's a bit rich on valuation after the move, so it's best to wait for a pullback in order to buy it.
traded up 7% after Deutsche Bank upgraded the stock and slapped a $250 price target on the credit card name. Finerman predicts MA has more to go on the upside.
Beazer Homes USA
trades up 10% after shareholders demand the CEO be fired. Even after that, Finerman wouldn't be long BZH.
popped 22% as revenues per patient rose 8%. Najarian reminded investors that THC was at $8 not long ago.
( NTY) fell 5%. Macke maintains these guys are suffering.
Cooper Tire & Rubber
fell 14% as sales and profits missed estimates. Adami congratulates CRT Capital who issued a sell on the stock on October 19th.
Molson Coors Brewing
fell 2% after third quarter profits fell amid charges. Macke buys the dip on TAP.
The team declares their best ideas at the end of the show.
- Najarian recommends shorting MBIA (MBI) - Get MBIA Inc. Report.
- Macke grabs buy tickets for Intel (INTC) - Get Intel Corporation Report.
- Adami picked Ford Motor (F) - Get Ford Motor Company Report.
- Finerman advises shorting Lehman Brothers Holdings( LEH).
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