Word on the StreetThe stock market struggled Tuesday with the Dow dropping 71 points and oil hitting another high above $88 a barrel on geopolitical concerns that Turkey might attack Iraq. The "Fast Money" team offered their individual takes on both the day's broad market action and stock-specific news. In the health care sector, Bristol-Myers ( BMY) received Food and Drug Administration approval for breast cancer treatment Ixempra. Najarian likes Bristol's cancer drug pipeline, and he believes it has a lot more behind this coming. Adami likes Pfizer ( PFE) into earnings. Finerman says she bought some Biogen Idec ( BIIB) $85 and $90 December call options for a takeover play. Johnson & Johnson ( JNJ) reported a drop in profits off of poor heart stent sales. Najarian says the stent business is not good but other parts of the company's business are doing OK. He isn't a big fan of the stock, however. Adami disagreed and said he likes J&J for the consumer side of the business. Oil crossed the 88-dollar mark for the first time ever on Tuesday as the market begins to price in Turkey attacking Iraq. The teram offered their takes on this surge. Adami likes Apache ( APA) on a valuation basis, and he believes it'll go to $105. Adami doesn't think the $80-to-$90 move in oil is a good thing for the overall stock market. Finerman still likes ConocoPhillips ( COP) for a play on rising oil prices. Najarian noticed some unusual options activity in some regional banks on Tuesday. He is worried about the regional banks, and he says the Fed rate cuts haven't helped. Najarian saw heavy trading in PNC Bank ( PNC) options, with 7,000 contracts trading hands for the October $65 puts. This action suggests to him that market players think PNC will drop in the next three days.
Will Oil Hit $100?With oil hitting a record high of $88, is $100 the next stop? Dennis Gartman, author of The Gartman Letter, joined the "Fast Money" crew to discuss his take on crude oil. Gartman doesn't believe we will get $100 oil, but if it does move that high it won't last long. If oil reaches $100, Gartman believes it will be because of major pipeline attacks in Iraq. Gartman noted he is starting to be a buyer of natural gas here. He would play natural gas with United States Natural Gas Fund ( UNG), San Juan Basin Royalty Trust ( SJT) and Pengrowth Energy Trust ( PGH).
eBay TradeeBay ( EBAY) is set to report earnings on Wednesday after the bell. What is the way to trade the online auction play ahead of the numbers? Macke likes the eBay into earnings. Najarian isn't seeing any action in the options on eBay right now but, he mentioned that option players have been waiting until the day of earnings to place bets.
Whale Watch in KraftWall Street whale and activist shareholder Nelson Peltz could be ready to make some noise at Kraft ( KFT). Finerman says Peltz has a window to nominate new directors within the next 30 days. Finerman thinks a nomination will drive the stock higher if it happens. She owns Kraft personally and for her hedge fund. Adami thinks Kraft could hit $36.
Pops & DropsPops -- Supervalu ( SVU) traded up 6% on a strong profits report. Macke thinks it's a great stock right here. Bear Stearns ( BSC) traded up 2% after a Chinese investment firm expressed interest in acquiring a stake in the brokerage. Adami says it's rich on valuation, but it's still a lottery ticket here. Marriott ( MAR) traded up 4% on rumors of a takeover. Najarian says this is not a pop you want to hold. E.W. Scripps ( SSP) traded up 9% after the company announced plans to split into two companies. Macke advises selling the pop. Saks ( SKS) traded up 5% on takeover speculation. Finerman isn't buying the takeover rumors. Robbins & Myers ( RBN) exploded up 18% on strong fourth-quarter profits. Finerman believes this is a great earnings story. Drops -- Amylin ( AMLN) fell 5% after the FDA said diabetes drug Byetta might cause pancreatitis. Najarian says this is negative news. Domino's Pizza ( DPZ) crashed 14% after taking a hit on profits from the rising costs of cheese and declining customer visits. Macke advises getting long beer stocks shorting pizza stocks. Indian stocks fell after market regulators announced plans to make it harder for foreigners to purchase local firms. Adami says we could see a very dicey evening in India's market.
Final TradeThe crew signs off with their last trade ideas for the show.
- Macke recommends Microsoft.
- Adami suggests buying Intel.
- Finerman favors Kraft.
- Najarian says the options activity in EchoStar has him bullish on the satellite firm.