'Fast Money' Recap: Sigh of Relief

The gang discusses Fed comments, Cisco's strong earnings and 'whale' Steven Cohen.
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The "Fast Money" men on Tuesday discussed

Fed

Chairman Ben Bernanke's calming effect on the market. He released a statement that had Wall Street whistling a happier tune.

Eric Bolling says that the markets continue to love Ben and that he did the right thing by calming the markets. Jeff Macke believes that Bernanke didn't panic and that the market responded appropriately. Pete Najarian likes the financials, saying that if

Bear Stearns

(BSC)

trades to $100, the company could do a buyback with their $11 billion. RealMoney Take: Jim Cramer said recently, "That was part of the problem with the Bear Stearns (BSC) call on Friday. We heard before the call that July was solidly profitable." To read more on what Cramer said,

click here.

Guy Adami likes the valuation on

Morgan Stanley

(MS) - Get Report

and recommends market players start to build positions.

Cisco

(CSCO) - Get Report

reported a strong forecast of 13% to 16% revenue growth for 2008, smoking Street expectations.

Najarian is bullish on

Juniper Networks

(JNPR) - Get Report

and

Sun Microsystems

(SUNW) - Get Report

. Macke likes Cisco's guidance; he sees capex spending good going forward. Adami wouldn't chase CSCO up now, but going forward he says buy it on dips. Is the

Google

(GOOG) - Get Report

chart starting to look good? Real Money Take: Sramana Mitra said recently, "However, going by analysts' estimates of revenue share, the perplexing question is, how can Google (GOOG) possibly earn from AdSense as much as about 40% of its revenue when it has to share the AdSense spoils with millions of Web publishers?" To read more on what Mitra said,

click here.

Bolling likes that Google has punched through the previous double top of $513, and he believes that market players should buy it right here. On Tuesday

Apple

(AAPL) - Get Report

announced the introduction of a slimmer, faster iMac. Najarian thinks AAPL will go to new highs soon and he sees bullish options activity. Macke isn't thrilled with Apple's 5% penetration in the PC market. RealMoney Take: Dan Fitzpatrick said recently, "The last time I covered Apple (AAPL), we were looking for support around $125 because that's where the 50-day moving average was sitting." To read more on what Fitzpatrick said,

click here.

Adami favors

Dell

(DELL) - Get Report

and

Hewlett-Packard

(HPQ) - Get Report

on the back of Apple.

American International Group

(AIG) - Get Report

will report earnings Wednesday after the close.

Adami would hold off on buying this stock until the market knows if AIG has any subprime problems. Najarian says stay away from the insurance stocks.

Myriad Genetics

(MYGN) - Get Report

saw some unusual options activity on Tuesday. Pete Najarian noticed speculators buying calls, which could indicate that the stock is heading to $70.

Bolling likes WYNN because he believes a big Japanese investor will signal licensing wins for the company. Bolling also likes

Penn National Gaming

(PENN) - Get Report

, which is trading $6 below its deal price. Najarian favors

Playboy

(PLA)

for a play on Macao and sees this stock going higher.

The recent heat wave across the U.S. has wheat at record highs. Bolling likes the utilities stocks for a play off of that brutal weather. Adami believes that

Deere

(DE) - Get Report

goes higher. RealMoney Take: John Reese said recently, "The first requirement of this strategy is that the company has a market capitalization of at least $150 million; Deere's is a huge $26.8 billion." To read more on what Reese said,

click here.

Housing Stocks Pop on Fed Comments

After Ben Bernanke's comments Tuesday, the group that responded to the upside was the homebuilders. Investors now hope that the Fed will ease the pain in that sector. Macke says run away from the idea of buying the homebuilders. Adami favors

Fluor

(FLR) - Get Report

and

McDermott

(MDR) - Get Report

, and says they're not going away anytime soon.

Bolling would play infrastructure stocks such as

Jacobs Engineering

(JEC) - Get Report

and

Bucyrus International

(BUCY)

. Najarian would keep an eye on

Thornburg Mortgage

(TMA)

, which he saw 9 to 1 puts to calls traded Tuesday. RealMoney Take: Jim Cramer said recently, "I spent yesterday once again going over the Thornburg Mortgage (TMA) and call and I am blown away by how the conference call and statements from management are so far apart from where their debt is trading." To read more on what Cramer said,

click here.

A Deal on Retail?

The Fed's nascent realization that credit is becoming more difficult to obtain for some consumers came as a relief to some market players The question was posed weather market players should look to buy recently beaten down retail stocks and stocks that have suffered from the recent credit scares in the market. Macke says market players can buy

Jos A. Banks

(JOSB)

and

Target

(TGT) - Get Report

for a short-term retail trade. Jeff would invest with a longer-term time frame in

Costco

(COST) - Get Report

.

Don't Bet Against Priceline

Priceline.com

(PCLN)

is up 47% so far this year, and the company reported strong earnings after the close, which moved the stock even higher. Priceline's CEO Jeffrey Boyd joined the "Fast Money" crew to talk about his company's prospects. Dylan Ratigan asked, "What is the phenomenon this year?"

Boyd said he believes that "with e-commerce stocks you're seeing recognition as these businesses grow their scale, which gives them an ability to build their operating margins." Ratigan followed asking how much bigger profits can get. "In our case the gross bookings rose 33% year over year in Q2 and yet our pro forma net income more than doubled. That gives you an idea of the kind of leverage you can get," Boyd said.

Eric Bolling asked how important William Shatner is and if he's a big shareholder? "Mr. Shatner is a great asset for Priceline.com, and I agree that he does a great job advertising our domestic business," said the CEO. "But most of our growth is coming from our international business, and our brand for that business is booking.com -- and we don't use Mr. Shatner"

Macke likes the stock and believes the margins are terrific. Najarian also liked the Priceline. Adami says they're doing everything right; and Bolling would play the Chinese version of Priceline,

Ctrip.com

(CTRP) - Get Report

. RealMoney Take: Steve Smith recently said, "While the decline in fuel prices didn't help airline stocks, shares of Priceline recovered from early losses and are starting to see a pickup in option activity..." To read more on what Smith said,

click here.

Whale Week: Hedge Fund King Cohen

Tuesday the crew profiled hedge fund king Steven Cohen who runs SAC Capital. Cohen is well known for doing fast trading to turn enormous profits. He is estimated to be worth $3 billion, and his hedge fund charges 50% of profit.

Recently Cohen has changed some of his trading style from the fast in-and-out trading to amassing stakes in companies like

Ameritrade

(AMTD) - Get Report

and

Take-Two Interactive

(TTWO) - Get Report

, and holding them for months.

Cohen spends over $700 million in art purchases a year and owns a $7 million tiger shark. Macke says Cohen became a whale by fast trading, but he wouldn't follow him into the long positions. Adami called Cohen the Henry Aaron of trading.

Najarian says Cohen made most of his year in five days, and he isn't the Warren Buffett of the world. Cohen hires his own private psychologist to teach his traders how to take risk.

Ratigan says the lesson from Cohen is to trade in a way so you can live to fight another day. Bolling would own something as Cohen announces he owns it, but he'd get out if it goes south. Bolling has friends who work for Cohen and calls them "the riskiest traders on the Street."

Happy 52-week high to

Costco

(COST) - Get Report

.

Pops and Drops

Pops

--

Mentor

(MNT)

was up 17% on a strong sales forecasts. Najarian thinks the stock is up because consumers in the luxury markets are buying.

XM Satellite Radio

(XMSR)

was up 5% Tuesday on positive talk from the head of the FCC.

Urban Outfitters

(URBN) - Get Report

was up 10% on strong sales. Adami says good things are happening at this company.

Interpublic Group

(IPG) - Get Report

was up 15% on strong growth out of Asia. Najarian says the Asian markets are on fire, and this stock is up because the Chinese growth is there.

Blue Nile

(NILE)

was up 16% on a strong quarter. Macke says you have to be long this stock.

Drops

--

Heelys

(HLYS)

crashed 32% Tuesday after falling below Wall Street expectations. Macke didn't like the guidance and said "get out."

DreamWorks

(DWA)

was down 9% after Paul Allen sold half of his position in the stock. Adami says get back in once the secondary is priced.

Dean Foods

(DF) - Get Report

dropped 6% on weak profit due to rising milk prices. Bolling would stay out with milk prices going higher.

Microsoft's

(MSFT) - Get Report

Xbox prices dropped 13%. Macke believes the Wii is stronger.

Clear Wire

(CLWR)

was down 15% on reporting a poor quarter. Bolling says investors should stay with this stock.

Poe & Talbot

(POP)

was crushed, dropping 60% as the housing market troubles hit home for this lumber company. Adami would stay away.

Final Trade

Jeff Macke likes Target for a trade. Pete Najarian would play Juniper Networks off of the strength in Cisco Systems. Guy Adami favors

Micron Technology

(MU) - Get Report

; and Eric Bolling believes the trade to make based on technical analysis is Google. RealMoney Take: Sramana Mitra said recently, "Micron (MU), whose imaging chip powers the iPhone's camera." To read more on what Mitra said,

click here.

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