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Wall Street extended the selling on Wednesday after a Federal Reserve official hinted that further rate cuts could be off the table due to rising inflation. The Dow finished down 65 points and the Nasdaq fell 30 points.

Cisco Systems

(CSCO) - Get Free Report

shares dropped 8% after CEO John Chambers said he sees challenging times ahead for the world's largest networking supplier.



"Fast Money, Tim Najarian explained that Chambers didn't offer guidance, and the market is now going to punish CSCO. Guy Adami says the quarter wasn't that bad, and he believes the stock is very attractive on valuation. Karen Finerman disclosed she bought some


(MSFT) - Get Free Report

on Wednesday.


(MBI) - Get Free Report

announced it will issue 50.3 million shares of common stock to raise $750 million. Finerman says she wouldn't buy stock on this offering. She doesn't believe this will solve MBIA's problems because it wasn't enough money. Macke called the offering "ambiguous," and he explained that the deal is for convertible stock, not common stock.

Time Warner


shares traded higher after the company reported a strong 2008 profit forecast and announced it plans to split up AOL.

Najarian disclosed that he sold TWX into strength on Wednesday and he is now waiting for it to pull back to buy again. Macke says he would sell TWX because he doesn't see a buyer for AOL. Najarian reminded Macke that nobody thought there was a buyer for



until Microsoft stepped up.

The Wall Street Journal

reported that merger talks between


(DAL) - Get Free Report



( NWA) could finalize by next week. Merger talks between


( UAUA) and


(CAL) - Get Free Report

are also reportedly heating up. Najarian says a merger between NWA and DAL would be perfect.

CME Group

(CME) - Get Free Report



( NMX) each fell 17% Wednesday after the Justice Department recommended a review of the futures-clearing rules. Adami cautioned investors to be patient with NMX, but said NMX holds lots of value. Finerman disagreed and urged investors to get out of the exchange stocks. She doesn't like to see regulatory issues because it's hard to guess how long they'll last or how damaging they could be.

M&A Trade

Frank Aquila, an M&A specialist and partner with the law firm of Sullivan & Cromwell, joined the "Fast Money" crew to offer his take on M&A. Aquila thinks M&A will see boast this year due to the following reasons: good balance sheets, low rates, weak dollar, the decline of private equity and change in Washington. Aquila says the most M&A will happen in the energy, basic materials and engineering & construction sectors. Adami says buy


(GHL) - Get Free Report



(LAZ) - Get Free Report

for M&A plays.

Cruise Line Trade

Cruise lines seem to be unaffected by a slowdown in the economy.

Walt Disney

(DIS) - Get Free Report

CEO Bob Iger hammered home this point yesterday when he said, "Our ships are 85% booked for the year."

What is the trade? Finerman explained that families are going on cruises now because they aren't an expensive vacation. Adami prefers

Royal Caribbean

(RCL) - Get Free Report



(CCL) - Get Free Report


Simon Property CEO Interview

Simon Property Group

(SPG) - Get Free Report

CEO Steve Sterrett joined the "Fast Money" crew to discuss his company's prospects. Sterrett says the malls are pretty healthy right now, and SPG ended the year with 93% occupancy in regional malls. He explained that as long as America is essentially at full employment, the average consumer will spend his or her paycheck at the mall. Finerman disclosed she is short SPG for a retail hedge.

Retail Sales Trade

January retail sales figure are set to be reported on Thursday. What is the trade? Macke says it's going to be ugly for retail. He advised investors to start making a shopping list and play it conservatively. Macke says buy


(WMT) - Get Free Report



(COST) - Get Free Report

on pullbacks. Finerman disclosed she bought more


(CROX) - Get Free Report


Trader Radar

Polo Ralph Lauren

(RL) - Get Free Report

traded almost five times its average daily volume Wednesday.

Pops & Drops



Polo Ralph Lauren

(RL) - Get Free Report

traded up 10%. Macke says sell RL on this 10% pop.

JDS Uniphase


traded up 26%. Najarian says JDSU is knocking the cover off the ball.


( RAH) traded up 8%.

Tyco Electronics

(TEL) - Get Free Report

traded up 7%.

Adami would rather own


(APH) - Get Free Report

in this sector.

Thermo Fisher

(TMO) - Get Free Report

traded up 8%. Adami gave kudos to Merrill Lynch for adding TMO to its "Focus List" when the stock was trading at its low.





fell 7%. Adami explained that LendingTree is where IACI got crushed.

Harman International


fell 15%. Finerman says maybe all the bad news is in this stock now.

Cheesecake Factory

(CAKE) - Get Free Report

fell 9%. Finerman says she loves to eat at CAKE, but casual dining is taking it on the chin.

Double-Take Software

( DBTK) plunged 26%. Najarian mentioned that DBTK has issues with its 2008 forecast.

Warner Music Group

( WMG) plunged 21%. Macke says there is no bottom in the music industry.


(AAPL) - Get Free Report

fell 6%. Finerman says Apple is starting to get attractive.

Final Trade

Adami favors

Dow Chemical

(DOW) - Get Free Report

. Finerman likes Microsoft. Macke says if the futures are up Thursday morning, you sell the

SPDR Trust

(SPY) - Get Free Report

, and if the futures are down, you buy SPY. Najarian recommends

JetBlue Airways

(JBLU) - Get Free Report


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