'Fast Money' Recap: Rate Rumor

The bulls started charging at the hint of a rate cut.

Author:
Stockpickr Staff
Publish date:
Nov 28, 2007 9:57 PM EST

The stock market experienced its most positive move of the year on Wednesday. The Dow closed up 331 points and the Nasdaq finished up 82 points. The team at CNBC's "Fast Money" discussed the change of mood in the market, as well as the banking, retail and tech sectors.

Even with the positive turn of events, Pete Najarian doesn't trust this market yet. Tim Seymour believed that the rally was all about

Federal Reserve

rate-cut rumors and liquidity. The buying was powered by tons of short-covering.

It's in the Bank

Banks saw a rebound on Wednesday as speculation of a rate cut helped lift the sector. Karen Finerman was impressed that bad news from

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

and

Freddie Mac

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didn't take the financials down. This suggests to her that we could be at a bottom for the financial sector.

(Looking for names that do well after a rate cut? Check out the

Fed Rate-Cut Portfolio Names You Didn't Think Of

portfolio at Stockpickr.com.)

Guy Adami advises investors to get into the best-of-breed financials like

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TheStreet Recommends

TECHNOLOGY

MSFT AMZN GOOGL

2 hours ago

Shopping Cart

Online retailers were strong performers on Wednesday after Cyber Monday set a retail sales record. Adami continues to recommend playing the online sales trend by buying

MasterCard

(MA) - Get Mastercard Incorporated Report

instead as a play on the actual transactions. However, Najarian prefers

eBay

(EBAY) - Get eBay Inc. Report

, which he thinks has the most upside potential.

Hot Tech

Technology stocks were on fire Wednesday with the Nasdaq finishing up 3%. Adami likes chip stock

Intel

(INTC) - Get Intel Corporation Report

, which he thinks was unfairly sold off. Finerman suggests buying

EMC Corp

(EMC)

and shorting

VMware

(VMW) - Get VMware, Inc. Report

. Najarian would rather go long EMC and buy puts on EMC or VMW for protection.

Dell

(DELL) - Get Dell Technologies Inc. Class C Report

is set to report earnings after the market close Thursday. Adami mentioned that this is Dell's first conference call in 18 months and he doubts they will screw it up. He thinks Dell is underowned and will trade up to $30. Seymour likes that 25% of Dell's growth comes from international sales and there is more room to grow.

Russia Trade

One of the hottest markets in the world right now is Russia. Parliamentary elections are set to start this Sunday. Seymour mentioned that Russia has always been a natural resource play, but that is now changing due to the petro-dollars trickling down into the hands of the consumers. Seymour says the big-time growth is in the mobile phone operators like

Vimpel-Communications

(VIP)

and

Mobile TeleSystems

(MBT) - Get Mobile TeleSystems Public Joint Stock Company American Depositary Shares (Each representing 2 Shares of) Report

. Two more ways to get exposure to Russia that Seymour likes are

iShares MSCI Emerging Markets Index

(EEM) - Get iShares MSCI Emerging Markets ETF Report

and

CTC Media

(CTCM)

(Check out Russia stock picks on Stockpickr.com:

Russian stocks you can invest in from the USA

Petro Play

Crude oil fell 4% to $90.62. Adami thinks the trade might be to get long the dollar and short oil and gold. In Seymour's opinion, oil is in a bit of trouble here, but won't go down much further. However, Najarian thinks the solar names are still in play, and he likes

SunPower

(SPWR) - Get SunPower Corporation Report

Suntech

(STP)

and

Cypress

(CY) - Get Cypress Semiconductor Corporation Report

. He also likes the large shippers of crude oil like

Nordic Tankers

(NAT) - Get Nordic American Tankers Limited Report

Chartology With Carter Worth

Oppenheimer Chief Market Technician Carter Worth joined the "Fast Money" crew to discuss his take on the charts of a few stocks. Worth took a look at the charts of

Williams-Sonoma

(WNM)

and

Bed Bath & Beyond

(BBBY) - Get Bed Bath & Beyond Inc. Report

. He feels that both charts are displaying a "head and shoulders" pattern, which historically suggests that these stocks will head lower.

Adami predicts that if either stock drops 2% from current levels they will then decline to 8% lower. That led to Najarian to suggest that

Google

(GOOG) - Get Alphabet Inc. Report

Research In Motion

(RIMM)

and

Apple

(AAPL) - Get Apple Inc. Report

seem to lead the market down and up. He offers that you can follow the chart of Google to try getting ahead of market declines and rises.

Happy 52-Week High,

Berkshire Hathaway

(BRK.A) - Get Berkshire Hathaway Inc. Report

Pops & Drops

Pops --

AutoNation

(AN) - Get AutoNation Inc. Report

traded up 7% after activist investor Eddie Lampert raised his stake in the firm to 30%. Finerman remarked that it was a big day for anything retail.

Analog Devices

(ADI) - Get Analog Devices Inc. Report

traded up 3%. Adami commented that on a valuation basis he would rather own

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

Siemens

(SI) - Get Silvergate Capital Corporation Class A Report

traded up 3%. The company announced it's shaking up the board of directors, which is good news, according to Najarian.

Lowe's

(LOW) - Get Lowe's Companies Inc. Report

traded up 6%. Finerman suggests this was just a dead-cat bounce.

Acuity

(AYI) - Get Acuity Brands Inc. Report

traded up 7% as speculation of a takeover made the rounds on Wall Street. Adami noted that Jim Cramer likes Acuity and so does "Fast Money."

Children's Place

(PLCE) - Get Children's Place Inc. (The) Report

traded up 9%. Finerman is long PLCE and also thinks a takeover is possible.

Drops --

Ultrashort S&P 500

(SDS) - Get ProShares UltraShort S&P500 Report

fell 6%. The ETF, which goes up when the

S&P 500 index

goes down, fell as the markets exploded higher. Seymour points out that based on technical signals, this could trade lower.

Syntax-Brillian

(BRLC)

fell 8% after missing analysts' sales estimates for 2008. Najarian remarks that BRLC is having major problems.

Pep Boys

(PBY) - Get Prospect Capital Corporation 6.25 % Notes 2018-15.06.28 Report

fell 16% after the firm cut 550 jobs and closed 31 stores as part of a restructuring plan. In Seymour's opinion, this isn't a good story for Manny, Moe and Jack.

Final Trade

The best trade ideas are handed out by the team at the end of the show.

Seymour would buy Stillwater Mining (SWC) as a play on platinum.
Adami prefers U.S. Steel (X) - Get United States Steel Corporation Report.
Finerman sees value in Pzena (PZN) - Get Pzena Investment Management Inc Class A Report.
Najarian suggest playing Isis (ISIS) for a potential takeover target.