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'Fast Money' Recap: Parsing the Jobs Report

The crew also looks at how to play the possible Microsoft-Yahoo! merger.

The S&P 500 put in its best weekly gain in five years as Wall Street shook off a weaker-than-expected jobs report Friday. The Dow closed up 92 points and the Nasdaq finished up 23 points.

U.S. payrolls fell by 17,000 for January, which was the first loss in over four years. Tim Seymour of

CNBC's

"Fast Money" panel says that the payroll data suggest to him that the U.S. is heading into a recession, and that consumer spending will slow. Karen Finerman explained that the weak jobs report keeps her from being more bullish on the markets. Pete Najarian says the performance of the week goes to Ben Bernanke.

3 Stocks I Saw On TV

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Yahoo!

(YHOO)

exploded up 47% after

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

bid $44.6 billion to take over the search giant. Macke says YHOO and MSFT are both buys off the news. Finerman mentioned that MSFT will probably bid higher for YHOO. Najarian says he oversold the calls and purchased YHOO stock on Friday. He says YHOO will trade between $28 and $31. Seymour says MSFT shareholders aren't happy with paying a 60% premium for YHOO. Najarian disclosed he bought MSFT on Friday because he feels the stock is cheap. Finerman explained that if an investor wants to own MSFT the cheaper way to do it is buy YHOO.

The Retail HOLDRs Trust

(RTH) - Get VanEck Vectors Retail ETF Report

put in another strong week as investors continue to bid up oversold retail stocks. Macke recommends investors who were long retail stocks to trim gains, and if you aren't in the sector, look to buy dips. Finerman says buy retail stocks going into next week if you have no exposure in the sector.

Bank stocks helped lead the market higher this week. Najarian explained that

Bank of America

(BAC) - Get Bank of America Corp Report

,

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

and

Citigroup

(C) - Get Citigroup Inc. Report

are all performing well, but investors should put collars on to hedge positions.

Alcoa

(AA) - Get Alcoa Corp. Report

and China's Chalco partnered up to take a 12% stake in

Rio Tinto

(RTP) - Get REINVENT TECHNOLOGY PARTNERS CLASS A Report

. Seymour speculated that the stake could be a way to prevent

BHP Billiton

(BHP) - Get BHP Group Ltd Sponsored ADR Report

from merging with Rio Tinto. He also mentioned that he is cautious on gold here and likes

Stillwater Mining

(SWC)

for a buy.

Merrill Lynch is set to kick off its drug device conference on Tuesday. Najarian says watch

Biogen Idec

(BIIB) - Get Biogen Inc. Report

, which reports earnings on Wednesday before the market opens. He mentioned that Carl Icahn controls a large stake in BIIB, and he isn't happy with the board. He would also watch

OSI Pharmaceuticals

(OSIP)

.

Earnings Trade

A number of companies, including

Cisco Systems

(CSCO) - Get Cisco Systems, Inc. Report

,

Walt Disney

(DIS) - Get Walt Disney Company Report

,

Time Warner

(TWX)

and

Comcast

(CMCSA) - Get Comcast Corporation Class A Report

, are set to report earnings next week. What is the trade?

Najarian likes Cisco Systems and he noticed some interesting options activity Friday. He feels CSCO is cheap at $25. Macke recommends buying Disney. None of the traders were interested in Time Warner.

Super Bowl Party Trade

The New York Giants are set to face the New England Patriots in Super Bowl XLII this Sunday. What is the trade as Americans get together to party and enjoy the football extravaganza?

Finerman mentioned that speculation is circling Wall Street that

Anheuser-Busch

(BUD) - Get Anheuser-Busch InBev SA/NV Sponsored ADR Report

could merge with Belgium brewer

InBev

. Seymour says the beer trade is a global story, and he would look at

Compahnia de Bebidas das Americas

(ABV)

and

TheStreet Recommends

Fomento Economico Mexicano

(FMX) - Get Fomento Economico Mexicano SAB de CV Sponsored ADR Class B Report

. Macke favors

Pepsi

(PEP) - Get PepsiCo, Inc. Report

and

Nike

(NKE) - Get NIKE, Inc. (NKE) Report

. Najarian urged caution on Pepsi, because of their high commodity cost exposure.

Energy Trade

Joe Terranova, director of Trading at MBF Clearing Corp., joined the "Fast Money" crew to discuss his take on the energy markets. Terranova says that OPEC is going to cut production, and he sees oil retesting the $80-$85 area in the first and second quarters before it returns to $100 in the third and fourth quarters.

He says the best way to trade oil is to buy the refiner names like

Valero

(VLO) - Get Valero Energy Corporation Report

and

Tesoro

(TSO)

, and stay away from the major integrated stocks. Finerman disclosed she still has a little exposure to refiners at her hedge fund. Najarian likes Valero and

ConocoPhillips

(COP) - Get ConocoPhillips Report

.

Seymour loves Tesoro and ConocoPhillps and he would also check out

BP

(BP) - Get BP p.l.c. Sponsored ADR Report

and

Market Vectors-Coal

(KOL) - Get VanEck Vectors Coal ETF Report

. Lastly, Terranova mentioned that on Feb. 11 the Nymex will launch a new futures contract that investors will want to look at.

Under Armour CEO Interview

Under Armour

(UA) - Get Under Armour, Inc. Class C Report

CEO Kevin Plank joined the "Fast Money" crew to discuss his firms prospects. Plank says he saw the opportunity to do something great, with Under Armour's new Super Bowl footwear ad.

He explained that the ad is more then just a commercial or one-day event; it's a brand campaign and the start of a yearlong marketing launch. The ad will promote a new cross-trainer shoe that will hit the stores in May. Plank says the opportunity for UA is to become a great athletic brand and he will measure their success once he sees the consumer's reaction.

Carl Icahn Interview

Legendary investor Carl Icahn joined the "Fast Money" crew to discuss his take on

Motorola

(MOT)

,

J.C. Penny

(JCP) - Get J. C. Penney Company, Inc. Report

and Biogen Idec. Icahn says Motorola should be split up so the hand held business can be separated from the rest of the company.

Icahn mentioned that he isn't buying into Wall Street speculation that

Dell

(DELL) - Get Dell Technologies Inc Class C Report

will buy Motorola's handheld business. He mentioned he would rather see the division spun off into a separate company and see how it goes. Icahn refused to comment on speculation that he is accumulating a large position in J.C. Penney. Lastly, Icahn mentioned that Biogen Idec is better off sold and merged with a Big Pharma player.

Pops and Drops

The following Pops & Drops segment highlighted some stocks that made extreme moves during the week.

Pops

:

Medtronic

(MDT) - Get Medtronic Plc (MDT) Report

traded up 4%. Najarian says be careful with MDT.

Flowserve

(FLS) - Get Flowserve Corporation Report

traded up 17%. Finerman says if you own FLST, take a little bit off the table.

MasterCard

(MA) - Get Mastercard Inc. (MA) Report

traded up 11%. Macke praised Adami for being bullish on MA from lower prices.

Cemex

(CX) - Get Cemex SAB de CV Sponsored ADR Report

traded up 14%. Seymour says you have to own CX.

Estee Lauder

(EL) - Get Estee Lauder Companies Inc. Class A Report

traded up 14%. Finerman liked Estee Lauder's recent earnings report.

Crocs

(CROX) - Get Crocs, Inc. Report

exploded up 26%. Najarian explained that Crocs is going up due to a short squeeze.

There were no "drops" discussed tonight.

Final Trade

Seymour likes

SPDR S&P Emerging Middle East & Africa

(GAF)

for Middle Eastern exposure. Finerman recommends Yahoo! for an arbitrage play. Najarian favors Biogen Idec.

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