The market experienced a nasty reversal on Thursday after trading to record highs earlier in the day. The panel at CNBC's" Fast Money" dissected the change of heart in the market for investors.According to Pete Najarian, the market reversal was caused by a JPMorgan analyst who lowered his estimates on Baidu.com ( BIDU). Jeff Macke disagreed with Pete and doesn't think the Baidu downgrade meant anything; it just gave traders an excuse to sell. Furthermore, he suggests the selling will continue on Friday. Karen Finerman found the reversal was interesting and like Macke expects a lot more to go. Guy Adami tells investors to take profits on EMC ( EMC) and VMWare ( VMW) after volume suggested to him a move lower is in the cards. Investors can buy these back cheaper after they come in.
Gasparino mentioned Wall Street speculation that some Merrill Lynch ( MER) top executives aren't happy with the high pay CEO Stan O'Neal is receiving. He predicts that a possible a pay cut is coming his way, but it will not be an easy thing to enforce. Adami notes that viewers should always be long Goldman Sachs ( GS) regardless.
The FDA will come to a decision on Monday if Biogen ( BIIB) can market Tsyabri for Crohn's disease. Najarian suggests the drug could be a blockbuster by 2009. Crude oil trades up 2% to close over $83. Adami maintains Tesoro ( TSO) is a good trade here and he feels it will reach $60 before the end of the month. Najarian likes the bullish action in the Oil Service HOLDRs ( OIH).
Chas from California asks, "With Starbucks ( SBUX) gaining shelf space in grocery stores over Folgers, how will this affect sales at Starbucks stores for the very same item? Macke tells Chas that Starbucks is a short.