The market experienced a nasty reversal on Thursday after trading to record highs earlier in the day. The panel at CNBC's" Fast Money" dissected the change of heart in the market for investors.
According to Pete Najarian, the market reversal was caused by a JPMorgan analyst who lowered his estimates on
. Jeff Macke disagreed with Pete and doesn't think the Baidu downgrade meant anything; it just gave traders an excuse to sell. Furthermore, he suggests the selling will continue on Friday.
Karen Finerman found the reversal was interesting and like Macke expects a lot more to go. Guy Adami tells investors to take profits on
after volume suggested to him a move lower is in the cards. Investors can buy these back cheaper after they come in.
Gasparino and Citi
is set to report earnings on Monday.
Charlie Gasparino joined the "Fast Money" crew to discuss his take on Citigroup. Gasparino comments that a lot of traders think that CEO Chuck Prince is about to resign from Citi. With the stock trading up, Adami recommends investors get long Citi here before Prince goes with a stop at $45. In Najarian's opinion, the trade in Citi is to buy the stock, buy the $47.50 put option and sell the December $55 call. On the other side, Macke is bearish on Citigroup and he doesn't think Prince is going to leave.
Gasparino mentioned Wall Street speculation that some
( MER) top executives aren't happy with the high pay CEO Stan O'Neal is receiving. He predicts that a possible a pay cut is coming his way, but it will not be an easy thing to enforce. Adami notes that viewers should always be long
Credit Card Plays
A way to play the growth in internet shopping for the holidays is through credit card companies. Electronic transactions with credit cards are the preferred way for consumers to purchase products online. Macke suggests getting long
and the credit card companies like
because they will benefit from all the transactions online. Finerman was kicking herself for not buying MasterCard at $127, which she still likes. She also favors
and Adami agreed on both plastic plays.
(For more ideas on credit card stocks, check out this portfolio on Stockpickr.com,
Word on the Street
is near a break out at $31 Adami loves Microsoft and he likes it as a trade into earnings. Don't be surprised if there's a big share buyback from the software giant. Najarian contends that Microsoft is always late to the party with new products. Instead, he prefers EMC and he bought call options on the name Thursday.
( ERTS) buys $860 million for a variety of video game titles owned by Elevation partners. Macke doesn't like Electronic Arts as much as
The FDA will come to a decision on Monday if
can market Tsyabri for Crohn's disease. Najarian suggests the drug could be a blockbuster by 2009.
Crude oil trades up 2% to close over $83. Adami maintains
is a good trade here and he feels it will reach $60 before the end of the month. Najarian likes the bullish action in the
Oil Service HOLDRs
News broke Thursday that Madonna is close to signing a revolutionary deal with
for $120 million.
Media reporter Julia Boorstin visited the "Fast Money" show to give her thoughts on the Madonna developments. She contends that Live Nation is paying too much for the Material Girl. Boorstin also noted that
Warner Music Group
went up on the news because a lot of Wall Street analysts think its smarter for the record label to lose her then pay that kind of money. At the end of the day the music companies are losing money with album sales down 15% across the board and digital music sales aren't making up for the decline. Najarian says Madonna is the winner here not Warner Music Group and can't find a trade off these developments.
Fans of the show write in with their own questions to be answered.
Trent from Washington writes, "Can you please comment where you see
Research In Motion
( RIMM) going in the next 6 month and please provide a price target. Adami thinks Apple will miss in the coming quarter and will trade down to $135, where it will be a buy. His target is $170. Adami says if Research In Motion trades below $100, then buy it. His target is $125.
Chas from California asks, "With
gaining shelf space in grocery stores over Folgers, how will this affect sales at Starbucks stores for the very same item? Macke tells Chas that Starbucks is a short.
Pops & Drops
traded up 6%. Finerman thinks Ford might avoid a strike with the Union.
traded up 1%. Najarian maintains that the Macau trade is working and he still likes WYNN and
Las Vegas Sands
traded up 1% on a strong profits report. Adami points out that the move here is done..
popped 6% after same-store sales increased 2.7%. Macke wants investors to take some gains because the numbers weren't fantastic.
traded up 2%. Najarian is positive on the story at the advertising giant.
fell 10% after missing Wall Street estimates. Adami jokes that he hopes the stock doesn't foreshadow the show because it has "FAST" as a ticker symbol.
fell 10% after lowering guidance. Adami thinks problems could be developing because of higher input costs.
Happy 52-Week High
The team gives their best trade idea as they close the show
- Macke advises investors look at UltraShort QQQ ProShares (QID) - Get Report for a trade.
- Adami recommends Short Dow30 Proshares (DOG) - Get Report.
- Finerman calls for shorting Baidu.com (BIDU) - Get Report and covering by Monday no matter what.
- Najarian likes EMC (EMC) and declares it's cheap on valuation.
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