'Fast Money' Recap: I Heart Ma Bell

The trading panel is bullish on AT&T's prospects vis-a-vis Apple's iPhone.
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On Wednesday night, Dylan Ratigan started the

Fast Money

program by stating how oil has been trending downward as financials continue their upward momentum.

Joe Terranova said he was proud to say he is long on

Financial Select Sector SPDR

(XLF) - Get Report

, since he feels crude oil will continue with its current weakness. He then pointed out a chart showing that oil and financials have an inverse relationship.

Pete Najarian added to Terranova's point by saying, "Financials works when oil goes down."

Jeff Macke said, "It would be a little cute to be short on financials," stating it would be a risky move, since the sector is rising essentially every day. He also said that he sold

Goldman Sachs

(GS) - Get Report

. He said he could not find a reason to continue holding the company after a "40 point rise" since he bought it.

Najarian said he is very bullish on

AT&T

(T) - Get Report

. He said the company showed tremendous strength in the wireless sector that "beat everyone's estimates." He also mentioned that he sees more strength coming from the

Apple's

(AAPL) - Get Report

iPhone -- it sold 1 million units in one weekend. He said the iPhone "is where they are going to see their growth." He ended by saying "landline business is down, but wireless will continue to rise."

Macke did not agree with Najarian and said he is quite bearish on AT&T.

Ratigan said that

Qualcomm

(QCOM) - Get Report

is up 11% to $49.50 after it announced it is postponing its earnings.

Ratigan then brought up

Amazon.com

(AMZN) - Get Report

, which was down about 3% to $68.64 after hours upon reporting its second-quarter profit rose to $158 million, or 37 cents a share, from $78 million, or 19 cents a share, it earned in the same quarter last year, beating analysts' estimates by 11 cents.

Macke mentioned that Amazon.com had a great quarter but said, "When you double earnings, people expect a great guidance." He said the drop in the stock was the result of the tepid guidance of raising its revenue forecast from 20.0 billion to 20.1 million

Ratigan said that

Qualcomm

(QCOM) - Get Report

announced it is postponing its third-quarter earnings report.

Costco Cuts

Finerman said, "I was surprised on

Costco

(COST) - Get Report

" when it lowered its earnings forecast today after saying inflationary costs will eat into the company's profits.

Macke said what the warnings from Costco are nothing new, stating it is something that will affect all retailers. That is why he said he is sticking with best of breed,

Wal-Mart

(WMT) - Get Report

.

Oil-Based Trades

Najarian said the rally in

General Motors

(GM) - Get Report

has nothing to do with its prospects getting better but the fact oil has been trending downward.

Addison Armstrong, director of market research for Tradition Energy, said he believes oil will continue to trend downward, and that the price per barrel could fall as low as $105 by October. He said he sees serious demand destruction in China in the foreseeable future.

Katie Stockton, chief market technician MKM Partners, came on the show to give her expertise from a technical standpoint. She said that on a technical basis she is bearish on crude oil but is bullish on gold. A specific gold play she likes is

Royal Gold

(RGLD) - Get Report

, saying "I would take advantage on any pullbacks." She is also bullish on

Wells Fargo

(WFC) - Get Report

.

Macke said

Wynn Resorts

(WYNN) - Get Report

will be reporting its earnings tomorrow. He said he does not believe any casino is right to own, especially those levered to Las Vegas, since travel will be down for the rest of the year.

The Options Option

Bill Brodsky, chairman and CEO of Chicago Board of Options Exchange, spoke about the advantages of using options as a part of investors' everyday strategies to boost returns.

Najarian and Finerman stated how they agree that using options can boost returns and, most of all, offer protection to the downside.

Macke recommends investors practice with fake portfolio accounts before going to the options, stating, "You have to know what you are doing."

Further Action

Ratigan mentioned breaking news that Robert K. Steel, CEO of

Wachovia Corporation

(WB) - Get Report

, bought a million shares of his company at $15 yesterday.

Ratigan brought up more news regarding Amazon.com, stating that it had reversed in the after-hours trading and is now in positive territory. Ratigan also said that

Baidu.com

(BIDU) - Get Report

was up about 13% to $325.00 after reporting its earnings surged 87%to $38.6 million -- analysts had expected $35.5 million.

The

Fast Money

panelists said this move makes them wonder about

Google

(GOOG) - Get Report

and

Yahoo!

(YHOO)

, which are seeing weakness in advertising space.

Parting Shots

Najarian recommends

Applied Materials

(AMAT) - Get Report

as a good solar play. He said the sector will continue to grow and that Applied Materials will benefit greatly.

Finerman said he is bearish on all ethanol stocks, citing it as a sector that investors should avoid.

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