The Dow Jones Industrial Average closed below 14,000 as technology stock and energy stocks led the markets lower. CNBC's "Fast Money" team considered the drop to be profit-taking and reviewed various downgrades by analysts.Chip stocks traded lower after Morgan Stanley downgraded Intel ( INTC), Advanced Micro Devices ( AMD) and NVIDIA ( NVDA) to underweight. Pete Najarian viewed the downgraded as very interesting, but he feels that PC demand is real. Guy Adami sees it as a gutsy call by Morgan. Mattel ( MAT) and Hasbro ( HAS) traded lower after BMO Capital Markets downgraded the toy sector. In Macke's opinion, the downgrade is about taking gains and he is still long Hasbro and Disney ( DIS) CSX Corp. ( CSX) traded lower after it was also downgraded by Morgan Stanley citing lack of freight volume growth. Adami maintains that $38 is the bottom. He also points out that Carl Icahn and Warren Buffett are long CSX. You can check out their portfolios on Stockpickr at Carl Icahn and Warren Buffett Speaking of Icahn, he raised his stake in Temple-Inland ( TIN) to 8.9% and BEA Systems ( BEAS) to 11%. Finerman thinks that BEA Systems is one where Icahn can become an active shareholder. She hazards a guess that Icahn will sue BEAS to force them to have an annual meeting. Adami thinks BEAS is going higher with or without Icahn.
Najarian sees continued buying in October call options on EchoStar ( DISH) as market speculators seem to be positioning for a takeover or break-up. Both Najarian and Macke like the stock. iShares FTSE/Xinhua China 25 Index ETF falls 5% after a huge 2-day run. Chinese markets remain on vacation for the rest of the week, but the Hong Kong Index saw its worst intraday reversal in almost nine years. Adami declares the reversal is for real in the Hong Kong markets and he doesn't see the selloff ending for the rest of the week.