The stock market pulled back off record highs Wednesday after Wall Street analysts forecast negative earnings growth in the first quarter for the S&P 500. The team at
"Fast Money" did a post-mortem on the market.
Tim Seymour of Red Star Asset Management wasn't in bull mode Wednesday. Instead, he sold some steel and aluminum stocks because he is concerned about inflation and retail sales numbers. Jeff Macke maintains that the bears had nothing today and they couldn't break any of the heavily shorted stocks.
Bad news from
helped the bears. The bad news for Boeing was the delayed delivery of the new 787 Dreamliners. Finerman wasn't surprised by the delay, and she isn't worried about it.
( DAI) was hit with bad news Wednesday. The United Auto Workers are striking at the car maker after the union failed to reach a tentative contract before a union-imposed deadline. Macke doesn't think the strike will impact the auto supply stocks. He favors
. Seymour recommends
Dennis Gartman of
The Gartman Letter
joined the crew to discuss his thoughts on the commodities markets ahead of Bernanke's speech on Friday. Gartman's perception is that the
isn't concerned about inflation and will continue to cut rates. He would be a buyer on weakness in gold and sell short the U.S. dollar. He would accomplish this via the
streetTRACKS Gold Trust
Even if the Fed isn't concerned about inflation, Seymour is. His fear is that the weak dollar will eventually cause inflation. Gartman says until the Treasury Department comes out and defends the dollar that it's a short sale. Lastly, he continues to be bullish on the metal and grain markets.
(Take a look at this gold portfolio on Stockpickr.com:
News broke Wednesday night that the FDA advisory panel is backing drug-coated stents made by
Mike Huckman joined the "Fast Money" crew to discuss the stent developments.
Huckman explained that the advisory panel will require Medtronic to do a huge post-market study that will involve 5,000 people for five years. While this is good news for Medtronic, it's not good for
Johnson & Johnson
Huckman recommends investors look at side plays off this news with
( WYE). Lawsuit risk keeps Najarian from being a fan of the stent market. He would rather be in diagnostics plays like
Medical device maker
saw huge options activity Wednesday in the October $85 and $90 calls. Najarian feels the $90 calls are cheaper and have more upside ahead.
(Check out this portfolio devoted to medical stocks on Stockpickr.com:
Spin the Bottle
announced plans to spin off its US beverage unit after falling to find a buyer of the division. Cadbury plans to list the new company on the NYSE. Finerman is skeptical on this but having said that, would buy Cadbury if it were a bit cheaper.
Stocks on the Move
The positive story of the day was the strength in the Nasdaq, and Chinese stocks. Najarian mentioned that
might be close to releasing a Gphone and in his opinion, the stock is heading to $700.
traded higher after reporting strong earnings and same-store sales. Macke thinks too many shorts are leaning against the retailers.
is a name to get long and he likes
for a trade.
Finerman expects numbers to be bad for retailers, but she doesn't believe the stocks will go down. She mentioned some big insider buying at
. Najarian suggests that the best trade in the retail space is
Oil continues to trade higher, moving over $81 on Wednesday. Seymour says fundamentally nothing has changed for the oil names. He advises investors look at
. Finerman disagrees and comments that she has been selling some of the ConocoPhillips position in her hedge fund.
Rumors are swirling around Wall Street that
might be in takeover talks with
. Najarian points out that the options activity in Lexmark is very active with buying in the October, November and January call options. He finds the November calls to be the most profitable.
Pops & Drops
traded up 1%. Najarian declares this stock is going to go higher.
traded up 4% after being upgraded. Macke tells investors to look elsewhere.
traded up 2%. Seymour claims the beat goes on with Google.
fell 3% after earnings disappointed. Seymour says higher energy prices are hurting Alcoa.
fell 4% after lowering profit forecasts. Macke advises buying this stock under $30.
dropped 5%. Seymour remarks that Turkey's government is hurting business for this cellular play.
fell 8% after reporting a loss. Anything with a vacuum doesn't interest Finerman enough to get on board.
fell 7% after bearish analyst comments. Macke wants investors to get out of the mattress business.
The crew gave their last and final trade for the show.
- Jon Najarian makes it known that Google (GOOG) - Get Free Report is going to trade to $700 before the end of the year.
- Pete Najarian favors ValueClick (VCLK) .
- Seymour likes ConocoPhillips (COP) - Get Free Report for its European exposure.
- Finerman recommends Tyco Electronics (TEL) - Get Free Report.
- Macke wants Merck (MRK) - Get Free Report.
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