The stock market saw a healthy rally on Monday as investors bid up stocks ahead of the Federal Reserve meeting set for Tuesday. The Dow closed up 101 points and the Nasdaq finished 12 points into positive territory. The crew of CNBC's "Fast Money" analyzed the rally, the writer's strike and foreign investments.

Guy Adami explained that a

UBS AG

(UBS) - Get Report

TST Recommends

write down of $10 billion helped the market go up on Monday. He thinks bad news is good news until the market shows investors otherwise. However, Karen Finerman declares that the market keeps rallying off the same news of a Fed rate cut. She believes the rate cut is already in the market. In Jeff Macke's opinion, the market is trading off of key technical levels with the break above 1490 on the S&P 500.

That's Entertainment

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No end appears to be in sight for the writer's strike in Hollywood.

CNBC's

Julia Boorstin joined the "Fast Money" crew to discuss the entertainment stocks. Boorstin explained that if the strike continues through the winter, television programming will start to feel the negative effects for the first quarter of 2008.

Disney

(DIS) - Get Report

and

News Corp

(NWS) - Get Report

are diversified the best to weather the storm and

CBS

(CBS) - Get Report

could be hurt the most by the strike.

Najarian remarked that consumers are going to the internet for entertainment and his play is

Google

(GOOG) - Get Report

. On the other hand, Finerman says play internet advertising with

ValueClick

(VCLK)

. Adami and Macke both like Disney.

(Check on the performance of a portfolio of entertainment stocks on Stockpickr.com

Entertainment Stocks

.)

America on the Cheap

Foreign companies are quickly moving in to buy American companies off the weak US dollar. Macke expects that the next plays will be in the entertainment sector. He would look to buy

Take-Two

(TTWO) - Get Report

and

THQ

(THQI)

for potential takeover plays.

Adami mentioned that rumors floating around Wall Street are saying that the mining sector is in play. His pick is

United States Steel

(X) - Get Report

for a takeover opportunity. Finerman's most interesting idea is

Tiffany's

(TIF) - Get Report

for an acquisition play. Najarian likes

Alpha Natural Resources

(ANR)

for a takeover play in the energy sector. He also mentioned that big pharmaceutical firms like

Sanofi-Aventis

(SNY) - Get Report

and

Novartis

(NVS) - Get Report

could be looking to buy biotech companies to improve their pipelines.

Biotech Conference

News out of the American Society of Hematology Conference was moving biotech stocks on Monday. Najarian explained that

Celgene

(CELG) - Get Report

had disappointing news at the conference and the stock plunged 14%. On the flip side,

Millennium Pharmaceuticals

(MLNM)

traded higher after the firm reported positive results for their drug Velcade. Najarian thinks the selling on Celgene was overdone and the stock is presenting a buying opportunity at these levels.

Dividend Cuts

Washington Mutual

(WM) - Get Report

cuts its dividend to 15 cents a share, slashes jobs and sets capital infusion. Finerman wasn't the surprised with the dividend cut. She mentioned that her firm went short

MBIA

(MBI) - Get Report

on Monday and she expects more bad news to come. Adami says he loves

U.S. Bancorp

(USB) - Get Report

for a bank play because Warren Buffett holds a big stake and the company has no exposure to subprime. Finerman thinks that

Citigroup

(C) - Get Report

could be the next bank to cut its dividend.

(Take a look at Warren Buffett's portfolio on Stockpickr.com

Warren Buffett

.)

Strong Performers

Housing stocks put a in a strong performance Monday as short sellers cover ahead of the Fed meeting. Najarian mentioned that he is seeing bullish options activity in

Pulte Homes

(PHM) - Get Report

and

D.R. Horton

(DHI) - Get Report

. Adami thinks

Home Depot

(HD) - Get Report

is cheap on valuation and will be the stock of 2008. However, Finerman prefers

Lowe's

(LOW) - Get Report

for its strong balance sheet.

McDonald's

(MCD) - Get Report

hit an all time high on Monday after the burger giant reported that monthly sales went up 8.2%. Macke tells investors they need to own McDonald's. Adami points out that as long as McDonald's can hold onto global growth in Asia, the Middle East and Africa the stock will keep going higher.

Texas Instruments

(TXN) - Get Report

trades up 5% after hours off a positive mid-quarter update. This is a great opportunity to sell TXN, according to Najarian. Adami mentioned that he likes

Intel

(INTC) - Get Report

above $26 in the semiconductor sector.

Lafarge

(LFRGY)

announced plans to buy a cement unit from Egypt's Orascom for $12.9 billion. Finerman thinks a takeover could happen for

Texas Industries

(TXI)

. Najarian also likes TXI and he said keep an eye on

Martin Marietta Materials

(MLM) - Get Report

. But Adami loves

Jacobs Engineering

(JEC) - Get Report

for the firm's strong backlog.

POPS&DROPS

Pops -

Caterpillar

(CAT) - Get Report

traded up 3% after Bear Stearns made some positive comments on the equipment maker. Adami maintains that CAT is cheap and also a buy.

Cadbury Schweppes

(CSG)

traded up 1% after Nelson Peltz announced he is teaming up with Qatar to increase his stake in the company. Finerman remarked that Peltz has deep pockets and she likes this news and the stock.

LDK Solar

(LDK)

traded up 29% after the Chinese solar company signed a 10-year deal with a German solar cell maker Q-Cells. Najarian advises shareholders to take some profits.

Rite Aid

(RAD) - Get Report

traded up 9% after Lehman Brothers reiterated its $7 price target. Adami explained RAD is a lottery ticket that will pay off.

NYSE Euronext

(NYX)

traded up 3% off a positive Barron's mention. Najarian points out that the exchanges are "money printing machines."

Nasdaq

I:IXIC

traded up 3%. Finerman agrees with Najarian. The deals keep happening for the exchanges and Nasdaq has momentum.

Bankrate

(RATE)

traded up 20% after the company reported higher than expected 2008 revenues. Macke suggests covering your shorts in Bankrate.

Drops -

Overstock.com

(OSTK) - Get Report

fell 22% after CEO Patrick Byrne said fourth-quarter gross margins might be lower then previously expected. Macke tells investors to run away from OSTK.

Myers Industries

(MYE) - Get Report

fell 31% after Goldman Sachs delayed its $800 million acquisition of the plastic and rubber firm. According to Finerman it's a good company, but she wouldn't touch it here.

Palm

(PALM)

fell 2%. Macke steers viewers away from this stock.

Final Trade

The team starts the week with their favorite trades for the audience.

  • Macke recommends THQ (THQI) .
  • Adami likes U.S. Bancorp (USB) - Get Report for a play on Warren Buffett.
  • Najarian favors EMC (EMC) .
  • Finerman picked Saks (SKS) .

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