The stock market took off on Wednesday after ADP's monthly employment survey showed four times the number of jobs added. The Dow finished up 196 points and the Nasdaq closed up 46 points. The crew at CNBC's "Fast Money" took a closer look at the rally and how the consumer figured in.
Jeff Macke explained that the market didn't break any resistance up top, so it proved nothing. Guy Adami expects that we might see some rate cuts in Europe, but until we get though that 1490 level on the S&P all bets are off. Karen Finerman predicts the jobs report will be the most important thing that comes out this week. Pete Najarian was impressed with the strength in the Nasdaq and the emerging markets.
Consumer Mind Trade
Being part of the "IT" crowd is a strong psychological force for the American consumer. Macke explained that consumers will pay any cost to get an "IT" product that makes them part of the crowd. Every year there are one or two "IT" products that sweep over the nation. Macke explained that these "IT" products all have desire, passion and excitement. Macke thinks the video game makers are now in the sweet spot because the Nintendo Wii has changed the complexion of the console world. He likes
Footwear stocks like
traded higher on solid earnings reports. Finerman says these stocks were so over-sold and the valuations just got ridiculous. She recommends
, because she doesn't think the growth is over yet. She also likes the valuation with the stock trading at 16 times earnings.
The Nasdaq put in a strong performance lead by gains in
. Najarian was impressed with the action in Google and Apple. He reminded investors that the iPhone is a trigger for higher Apple PC sales. Najarian also noted that
is $0.08 from hitting $700.
Chip stocks put in a very strong performance Wednesday with
reaching a three-year high. If a recession is in the cards why are the chip stocks performing so well? Najarian explained that Intel makes their money from other areas besides chips like networking. He mentioned that he likes
for a play on graphic chip demand. Macke says if the consumer doesn't die then Intel will trade over $30. Adami likes Intel and he thinks it will trade to $30.
Word on the Street
Speculation circled Wall Street on Wednesday that a GE Executive Michael Neal might be in line for the top spot at
. Adami says it's troubling that nobody wants the job after it has been offered to few people already.
( DNA) trades up 5% after the close Wednesday after an FDA panel said Avastin should not be approved for breast cancer patients that have seen the disease spread to other parts of the body. The vote was 5-4 against approving the drug. Najarian says the FDA normally likes to go with what the panel recommends. He favors the stock at these levels no matter what happens with the FDA going forward. Adami likes DNA based on valuation and he thinks this is a good entry point to buy the stock.
( SOLF) is now up 125% over the last week. Finerman explained that the CEO sold half his shares for a secret amount and she wouldn't own this stock now. Najarian prefers
for solar plays.
Global Growth Trade
Is the politically driven potential relief for the housing sector releasing the global trade to reintroduce itself? If so, what is the trade? Finerman thinks with so much growth outside of the US that a rescue of the housing sector might not be a big factor. Adami thinks steel will be a big ticket in 2008 for the global growth trade. He likes
Dubai is quickly becoming a powerhouse in the world of finance. Jon Najarian joined the "Fast Money" crew from Dubai to discuss some investment ideas. Najarian explained that Dubai is a 2-hour flight from 1.4 billion people in Pakistan and India. This gives Dubai the potential to be a financial hub for the region. He explained that The Dubai International Financial Center is under English law which makes it an attractive place for western companies to do business as compared to other parts of the Arab world. Najarian recommends buying
Nasdaq Stock Market
for a play on the Dubai Bourse. Najarian finished with calling Dubai Las Vegas on concrete steroids.
Pops & Drops
traded up 8% on no news. Macke tells investors to sell this stock if you're silly enough to own it.
traded up 2%. Everybody knows that Merck was sandbagging earnings estimates according to Najarian.
fell 16% after Moody's said the firm is at a greater risk of a capital shortfall. Finerman covered her short on MBI Wednesday.
traded up 6% after a Lehman analyst upgraded the stock. Finerman says the rising tide in technology took ORCL higher.
traded up 8% after a Merrill Lynch analyst upgraded the stock. Per Adami, it's an international story worth a look.
exploded up 22% after the candle maker forecasted a strong 2008 outlook. Finerman says who knew?
( ADLR) exploded up 20% after Pfizer cut a $264 million deal with this biotech to develop two experimental pain drugs. Adami says it's a lottery ticket, but take a look.
fell 9% after cutting its 2007 sales forecast. Macke says walk away from this one.
( IHP) fell 3% after a JP Morgan analyst downgraded the stock. Finerman likes this stock and she suggested investors take a close look at it.
traded up 4% on no news. Adami belives GILD is going higher.
fell 13% after the firm said the fourth-quarter will be weaker-than-expected. Macke warns investors to stay away.
traded up 8% after the hard-drive maker raised its sales and profit forecast for the second-quarter. Najarian likes this stock.
The team gave their best trade ideas for the day.
- Macke picked GameStop (GME) - Get Report.
- Adami likes Intel (INTC) - Get Report.
- Finerman favors Crocs (CROX) - Get Report.
- Najarian likes EMC (EMC) for a buy on Thursday.
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