The stock market saw its worst week since 2003, with the Dow falling 4.4%, S&P 500 dropping 4.6% and the Nasdaq tumbling 4.5%.
"Fast Money," Jeff Macke says this was a bear market week, but he isn't sure the bears made all that much money. He says nobody he knows made a ton of coin Friday.
Pete Najarian says look at the weakness in the
Financial Select Sector SPDR
for reasons why the market was so bad this week. He explained these sectors are under attack, and the credit world is really seeing problems right now.
Technology stocks were under heavy selling pressure this week, taking the
into an official bear market, although the Nazz bucked the trend this week. Karen Finerman disclosed she bought
on Friday for its cheap valuation. Najarian says
is a value play at $23. Adami says CSCO is a buy at current levels.
Wheat prices hit a record high for the third consecutive day. Najarian advised investors to keep an eye on March 31, when the farmers report is released on what they're going to plant. Adami explained that the railroad stocks have been a huge beneficiary of the grain market explosion.
He recommends investors look to buy
Burlington Northern Santa Fe
on a pullback. He also recommends
Kansas City Southern
in the rails and coal plays
Alpha Natural Resources
for a coal play.
Lehman Brothers upgraded the U.S. packaged food sector. citing growth and cheap valuations. Finerman says
is expensive here. Adami prefers
, which trades at 11 times forward earnings. He mentioned that Citigroup made it one of its top picks for 2008. Macke says stay with generics like
. Najarian thinks the Lehman call was an awful one.
Najarian noted ridiculous options activity on Friday in
. He noticed huge call-options volume and almost no put-buying.
Jamie Dimon, CEO of
, said at a Credit Suisse conference Thursday that he is looking to go after the subprime and large mortgage markets. Najarian says Dimon is acting like a vulture and not the meat. He is looking to buy JPM on a pullback.
proposed deal may come to a head next Friday when the Yahoo board meets to discuss the merger. Will the deal close and what is the trade?
Najarian says YHOO could get a higher bid just to close the deal. He also mentioned that
might make a play for AOL. Finerman disclosed she owns YHOO and that the first bid is rarely where a deal closes. She also disclosed she is long MSFT. Adami says MSFT is too cheap at $29, and Macke agreed.
The G7 or Group of Seven finance ministers and the heads of their central banks are set to meet this weekend in Tokyo. Many investors are comparing the U.S. financial crisis to Japan's 1990 crisis. What is the trade?
Adami says the
better be early with lowering interest rates and not wait too long like Japan did in the 1990s. He explained that if the Fed does the right thing, it will set up banks for great third- and fourth-quarter earnings. Adami recommends U.S. bank stocks like
Bank of America
Drug Earnings Trade
is set to report earnings on Tuesday before the market opens. What is the trade?
Brian Schaeffer, managing director at VDM, Capital joined the "Fast Money" crew to discuss the drug stocks. Schaeffer says he loves the big-cap pharma sector, but he hasn't been a buyer of SGP. He mentioned that he loves
for its 6% yield. Najarian also like PFE and says it needs to make an acquisition of
Allergan CEO Interview
CEO David Pyott joined the "Fast Money" crew to discuss the FDA investigation into its antiwrinkle drug Botox. Pyott explained that Allergan and Botox have had a very strong safety record for more than 18 years, with Botox being used in cosmetic and licensed medial applications.
He explained that the FDA is doing a label review for Botox, not a safety review, but a small group of juvenile cerebral palsy patients may have developed some severe side effects.
These side effects were noticed when the cerebral palsy patients were given larger doses of Botox then cosmetic patients normally receive. Pyott says Allergan is going to consider redoing trails for juvenile cerebral palsy patients. Najarian says the market overreacted and it's all about the FDA reviewing the labeling going forward.
Quicker Than the Ticker
On Jan. 25, Finerman recommended
for a play on liquid natural gas. She was on the money, and GLNG rocketed up 16% since her call.
On Jan. 7, Adami said buy
because Warren Buffett owns it and the company doesn't have subprime issues. He was right, and USB popped 15% since his recommendation. On Feb. 4, Macke picked
. Macke made a good call and DIS shot up 5%. On Jan. 28, Najarian recommended
Cognizant Technology Solutions
because he noticed heavy call options-buying on the IT outsourcing firm. He hit this call out of the park, and CTSH exploded 20% higher from the time of his recommendation.
traded almost five times its average daily volume Friday.
Pops and Drops
The following Pops & Drops segment highlighted some stocks that made extreme moves during the week.
traded up 3%. Macke says buy the dips on MCD.
traded up 1%. Najarian explained that PepsiCo succeeded in offsetting its commodity costs by raising prices.
traded up 9%. Adami says if you can buy AVP on a dip it might be worth a look.
Advanced Micro Devices
plunged 21%. Adami mentioned that AMD was a $40 stock two years ago, and now it's on its way to zero. Allergan fell 6%. Macke says the negative news on Botox is a problem.
Simon Property Group
fell 12%. Finerman says SPG will see more downside pressure.
iShares FTSE/Xinhua China 25 Index
fell 6%. Najarian explained that if America sneezes, China catches a cold.
Macke likes Microsoft. Adami prefers
. Finerman recommends buying
ahead of their earnings report. Najarian says buy CNet Networks off the heavy call-buying he noticed Friday.
Stockpickr is a wholly owned subsidiary of TheStreet.com.