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
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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.
No end appears to be in sight for the writer's strike in Hollywood.
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.
are diversified the best to weather the storm and
could be hurt the most by the strike.
Najarian remarked that consumers are going to the internet for entertainment and his play is
. On the other hand, Finerman says play internet advertising with
. Adami and Macke both like Disney.
(Check on the performance of a portfolio of entertainment stocks on Stockpickr.com
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
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
for a takeover opportunity. Finerman's most interesting idea is
for an acquisition play. Najarian likes
Alpha Natural Resources
for a takeover play in the energy sector. He also mentioned that big pharmaceutical firms like
could be looking to buy biotech companies to improve their pipelines.
News out of the American Society of Hematology Conference was moving biotech stocks on Monday. Najarian explained that
had disappointing news at the conference and the stock plunged 14%. On the flip side,
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.
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
on Monday and she expects more bad news to come. Adami says he loves
for a bank play because Warren Buffett holds a big stake and the company has no exposure to subprime. Finerman thinks that
could be the next bank to cut its dividend.
(Take a look at Warren Buffett's portfolio on Stockpickr.com
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
. Adami thinks
is cheap on valuation and will be the stock of 2008. However, Finerman prefers
for its strong balance sheet.
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.
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
above $26 in the semiconductor sector.
announced plans to buy a cement unit from Egypt's Orascom for $12.9 billion. Finerman thinks a takeover could happen for
. Najarian also likes TXI and he said keep an eye on
Martin Marietta Materials
. But Adami loves
for the firm's strong backlog.
traded up 3% after Bear Stearns made some positive comments on the equipment maker. Adami maintains that CAT is cheap and also a buy.
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.
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.
traded up 9% after Lehman Brothers reiterated its $7 price target. Adami explained RAD is a lottery ticket that will pay off.
traded up 3% off a positive Barron's mention. Najarian points out that the exchanges are "money printing machines."
traded up 3%. Finerman agrees with Najarian. The deals keep happening for the exchanges and Nasdaq has momentum.
traded up 20% after the company reported higher than expected 2008 revenues. Macke suggests covering your shorts in Bankrate.
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.
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.
fell 2%. Macke steers viewers away from this stock.
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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