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Fast Money Recap: Blame Financials

Most of the crew is sour on the sector. Crude oil rebounds, too.
Author:

"Fast Money's" Dylan Ratigan said financials were "the culprit" in Wednesday's market downturn.

He mentioned

Lehman Brothers

(LEH)

and

Bank of America

(BAC) - Get Bank of America Corp Report

as down big. Crude oil's rebound also was a factor.

Jeff Macke said "obviously the banks are not fixed." He mentioned investors follow what he has been saying about financials -- to "sell into the big rallies and buy in the fear." He said that with the markets down right now, it is almost at that fear moment where investors can safely accumulate shares.

Tim Seymour is bearish on financials. "I shorted some banks," one of those being

HSBC

(HBC)

. He does not see any reason for investors to be long.

Jon Najarian says "it's a great time to be short financials."

Joe Terranova said crude oil was down not because of the Russia-Georgia conflict but from the data released today regarding the decrease in formulated gasoline inventory levels.

He recommended

Valero Energy

(VAL) - Get Valaris PLC Class A Report

, but suggested to be very cautious: "If it doesn't move to the upside soon, sell it."

Najarian mentioned there has been "lots of call-option buying" with

XTO Energy

(XTO)

. He suggests investors to keep an eye on the stock.

Najarian also mentioned how he's buying

Rio Tinto

(RTP) - Get REINVENT TECHNOLOGY PARTNERS CLASS A Report

and

Freeport-McMoRan

(FCX) - Get Freeport-McMoRan, Inc. (FCX) Report

. He believes it is a great time to be buying these companies that have promising prospects.

Ratigan mentioned how retail names are moving to the downside such as

Macy's

(M) - Get Macy's Inc Report

.

Macke said "the risk is to the downside for the retailers." He believes the retailers will have a tough time meeting estimates that will cause the stocks to drop further from current levels.

As a result of the difficult market environment, Macke likes only the discounters --

Wal-Mart

(WMT) - Get Walmart Inc. Report

and

Costco

TheStreet Recommends

(COST) - Get Costco Wholesale Corporation Report

.

Ratigan changed subjects and noted how

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

has been performing quite well this week. He showed a chart that reflected how the

S&P 500

is essentially flat this week while Apple is up about 10%.

Najarian loves Apple. He mentioned how he went to a few Apple Stores and found out how the iPhones are not only sold out, but there is a wait to get the phones. As a result of the robust sales with its new iPhone 3G, Najarian believes the stock will continue to have strong earnings, making it a great buy at current levels.

Terranova agreed with Najarian. He said he bought it today because the stock action suggests "something is going on that is making the stock is going higher." He also said the technicals "look good."

Pete Najarian noted how

Applied Materials'

(AMAT) - Get Applied Materials, Inc. Report

CEO mentioned how the company has reached the trough and sees a modest recovery. He also likes

Burger King

(BKC)

and believes it is in a position where it could potentially do better than

McDonald's

(MCD) - Get McDonald's Corporation (MCD) Report

.

Ratigan broke in with news that the Federal Trade Comission (FTC) has released a statement stating those involved with manipulations in the markets will face high fines.

William Fleckenstein, president of Fleckenstein Capital, said the problems in the financials will not go away anytime soon. He said there has been "too much leverage" and bad credit conditions, which will continue to weigh down the financial sector.

Ratigan brought up the U.S. dollar rolling over during market hours.

Seymour believes there is no reason to see the dollar bounce back to the upside unless investors take into account the weakness occurring abroad. Overall, he is bearish on the dollar.

Najarian brought up

Longs Drug Stores

(LDG)

on how it's up 30% to $70.46. He also noted that there were a lot of puts being bought in

Briggs Stratton

(BGG) - Get Briggs & Stratton Corporation Report

. He said investors should be leery of getting into the stock, since it will be reporting earning results Thursday.

Najarian concluded by saying to "keep an eye on all miners."

Ratigan ended the program letting watchers know a couple of stocks moving to the upside while the markets traded in negative territory:

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

was up about 2% to $78.24 and

Coca-Cola

(KO) - Get Coca-Cola Company Report

was up 1% to $55.29.

This article was written by a staff member of TheStreet.com.