The market spent most of the day trying to climb its way out of negative territory Thursday. It took a rope from tech stocks to pull the market up in order to end the day only slightly down. CNBC's "Fast Money" team took a look at what was driving the market and talk about upcoming drug company earnings.

Tech Safety Line

Google ( GOOG) reported quarterly profits that soar 46% and the Internet search giant added 2,130 employees in the third quarter. Pete Najarian remarked that it might take a while for the market to digest the new hires at Google.

Nokia ( NOK) traded higher after earnings nearly doubled and global market share rose to 39%. Najarian points out that it's all about growth in China and India and Nokia is seeing strong demand for its high-end products.

Drug Money?

The big pharmaceutical companies will have earnings rolling in with Pfizer ( PFE), Eli Lilly ( LLY) and Wyeth ( WYE) set to report Thursday and Merck ( MRK) and Schering-Plough ( SGP) set to report Monday.

CNBC's Mike Huckman joined the "Fast Money" crew to discuss his take on the Big Pharma group. Huckman says Pfizer issued news that it will no longer sell Exubera, an inhalable insulin device. This news took down Alkermes ( ALKS), MannKind ( MNKD) and Nektar ( NKTR).

Najarian points out that Nektar has a real problem because it doesn't have many other products to cushion this blow. Macke remains bullish on all of the Big Pharma stocks and especially Pfizer. Guy Adami agrees with Macke on Pfizer's earnings, remarking that they weren't that bad and he still likes it here. Karen Finerman continues to believe that Merck will buy Biogen Idec ( BIIB).

Word on the Street

Along the lines of good news and bad news, Advanced Micro Devices ( AMD) reported a quarterly loss but, revenues soared. In Najarian's opinion, the AMD sales and revenue numbers were great. Adami suggests trading off of AMD with Dell ( DELL). However, Macke would buy Microsoft ( MSFT) based on this news.

Baxter ( BAX) traded higher after earnings beat Wall Street estimates. Najarian recommends looking at a medical device play with Intuitive Surgical ( ISRG). He tells viewers about ISRG using technology that allows for surgeons to operate remotely and the firm specializes on cutting down time spent in the hospital for patients.

Financials were mired in the mud as Bank of America ( BAC) traded lower after reporting a 32% drop in earnings. Capital One Financial ( COF) reported a third quarter loss as profits fell 32%. Najarian would sell Capital One Financial and buy State Street ( STT) and JPMorgan ( JPM).

Wal-Mart ( WMT) announces plans to drop prices ahead of the holiday season. Finerman maintains that Wal-Mart is attractive on valuation and she owns the stock. Wal-Mart cuts prices all the time and this isn't "new" news to Macke, so he advises investors to sell.

Rail Trade

Are railroad stocks ready to rebound after the housing sector dragged down the group recently? Adami tells viewers that the rails seem to have pricing power when the truckers don't. In his opinion, the rail stocks look poised to do something good and he likes that many of the biggest investors on Wall Street are getting into the sector. Finerman and Adami picked CSX ( CSX) in the rail space. Najarian's favorite is Burlington Northern ( BNI) and Macke prefers Union Pacific ( UNP).

(For an interesting take on a rail stocks, check out the Rails and Agriculture Portfolio at

Oil Gushes

Oil continues to hit record highs as market speculators begin to price in the possibility of Turkey invading the Kurds in Northern Iraq. According to Macke, as long as jobs are being created, the economy won't be hurt by rising oil.

Instead, Najarian proposes playing off oil with solar stocks. He recommends buying Cypress Semiconductor ( CY), SunPower ( SPWR), JA Solar ( JASO) and Suntech ( STP). In that case, Macke favors NRG Energy ( NRG). Adami says buy Shaw Group ( SGR) for a play on nuclear power.

Happy 52-week high, Hewlett-Packard ( HPQ).

Pops & Drops

Pops -- Callaway Golf ( ELY) traded up 12% on higher profits. Macke feels positive about the nice guidance.

Drops -- Allstate ( ALL) dropped 4% after revenue fell 16%. Adami counsels that the valuation is getting interesting and recommends investors look at $50 for a compelling trade.

iShares FTSE/Xinhua China 25 Index Fund ( FXI) fell 3%. Najarian predicts that it's probably going to be up 5% on Friday.

American Standard ( ASD) fell 5% after cutting its 2007 forecast. Finerman was disappointed with the earnings, but the valuation is cheap.


In this segment, viewers send in their own burning questions to be answered.

Ernest from New York writes, "We're seeing more green news from the auto sector these days. Even their commercials are touting hybrid and electric technology. From a supplier standpoint, which stocks do you like?" Adami ponts out that the play here is Borgwarner ( BWA).

JB from California asks, "Could the excellent quarter from fast food companies like McDonald's ( MCD) and Sonic ( SONC) be caused by the higher summer cattle slaughter resulting in cheaper beef prices?" Macke informed JB that both McDonald's and Sonic blew away the earnings because they're well run firms that hedge their beef costs.

Happy Hour Trade

Manish Vora, the Director of Research for Monness, Crespi, Hardt & Co., joined the "Fast Money" crew from Devin Tavern in Manhattan to discuss some trading ideas. Vora tells viewers to get long small-cap engineering and construction firm KHD Humboldt Wedag ( KHD) for a play on concrete demand in India, Russia and China. Vora also likes KHD for its cheap multiple as compared to its larger-cap peers.

Final Trades

The team makes its final trades as they sign off at the end of the show.
  • Macke recommends Intel (INTC).
  • Adami would short Exxon Mobil (XOM) for the second day in a row.
  • Finerman is a buyer of Limited Brands (LTD) on a pullback after the retailer was replaced in the S&P 100 index.
  • Najarian loves and owns Cypress Semiconductor.
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