U.S. Stocks retreated from their highs on Thursday as bullish news from the retail sector clashed with a rally in crude and a drop for
. The ouster of two high-level executives from
also made headlines. The
rose 0.5%, the
added 0.3% and the
"Fast Money" TV show, the traders discussed the Lehman news. Karen Finerman said it was "disgraceful" that the company sacrificed CFO Erin Callan. Lehman threw Callan "under the bus" and made her the sacrifice for the company's woes, she said.
Guy Adami said Lehman traded 173 million shares today and that it is "worth a trade here" and to buy with a stop, acknowledging that there is some downside potential.
Jeff Macke agreed with Adami on his idea to place a stop on a long-side play in Lehman. Pete Najarian said that Lehman had heavy put activity and the volatility was high.
3 Stocks I Saw on TV
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On the possibility of a sale of Lehman, Adami said that "integration will be a disaster" and that firms will not know what they are buying when they buy the bank.
Macke agreed. He said that the stock is trading below book value but that does not mean anything to investors.
Najarian said that he was "not comfortable" with buying a dip on the banks. He said that
did not have a good day. On the other hand, he said
are looking interesting with heavy call activity.
Volatility Here to Stay
On the broader market, Najrian said that recent volatility will not be a "couple-day thing" and investors must watch oil prices. He said that a rally in oil prices was a main reason why the market started to come back down after today's early rally.
Macke said that today markets experienced a "fake rally" and people will find excuses to sell in this environment.
Moving onto Yahoo!, Finerman said that "if you want to be long
, short Yahoo!" Yahoo! had announced today that it had ceased buyout negotiations with Microsoft.
Macke said that "Yahoo! has no plan" and investors should stay away from the stock.
Jeff Lindsay of Sanford Bernstein appeared on the program to speak about Yahoo! and Microsoft.
Lindsay said that investors have to see if Yahoo! gets a deal with Google. The "pressure is off" of Microsoft as an acquirer, he said. He said Yahoo! is in a period of uncertainty, and a deal with Google will determine where the stock's price ultimately heads.
Lindsay said that if Google will do a deal, it has "cut off oxygen" to Microsoft and Microsoft winds up the loser.
An Apple a Day
went unnoticed today. The stock was down 4% on concerns over CEO Steve Jobs' health worries, he said.
Finerman said that there is no company that is more dependent on one man than Apple, and that "speculation weighed down on this stock."
Macke said that Jobs effectively fixed Apple after leaving and if he leaves, "Apple is in trouble."
Exxon Dumps Its Pumps
The traders also discussed
and why the company is deciding to sell off 820 of its retail gas stations.
Macke said that retail gas is "a hassle" when Exxon could venture into green endeavors. He said that to ExxonMobil, this sale means nothing because "they're huge."
The show then welcomed Bill Fleckenstein, president of Fleckenstein Capital, to discuss the outlook for financials. Fleckenstein said that the problem with financials are their financial statements. He said that there will be a bottom in the space some day, but not soon. He said that the "economy is weaker than we think." The
is talking a lot about inflation, but it is little more than talk, he said.
Fleckenstein also said that although a lot of people were piling into tech he would be shorting a "whole host of tech stocks."
Michael Darda, chief economist at MKM Partners, joined the crew to talk about the economy. He said that if the inflation expectation comes in high, investors should expect imminent rate hikes and stick with stocks that work in an "inflationary environment."
Najarian said that the next Fed meeting will bring a strong rally in dollar.
The traders then discussed the recent market volatility. Najarian said that when volatility breaks the 100- or 200-day moving average that any stock is extremely volatile. He said not to look at stocks on a daily basis because this is a trader's market.
Finerman said that Najrian has been dead-on with his calls. She also said she sees housing stocks with low price-to-earnings multiples "rolling over".
The traders then discussed pharmaceutical food products, or foods with health benefits.
Macke said that the trend is "all a scam" and if he was going to play it he would go with
Adami said that
would be his pick to play this new craze. UBS made the stock one of its top picks, he said.
In oil, Dylan Ratigan noted that the
U.S. Natural Gas
ETF was the "best performer of the year."
Joe Terranova joined the show to talk about crued. He said that the market could take a shot at $140 a barrel in the next few days. He said that natural gas has risen 71% year-to-date and could rally another 10%. Terranova recommended
as plays on natural gas. He said he expects a July 4 peak in natural gas prices. Past that date, it will be "topped out," he said.
Najrian said that he is still holding natural gas stocks and told investors to look at solar and wind names. He said that he also liked Chesapeake Energy and to keep in mind the upcoming election.
Macke said that he would buy
Adami said he would go with Lehman.
Finerman said that she loves Microsoft right now after it walked away from Yahoo!.
because it "always performs."
This article was written by a staff member of TheStreet.com.