The stock market continued to see huge volatility on Wednesday with the Dow dropping almost 200 points and then closing flat. Market rumors swirled that the Federal Reserve might initiate an emergency rate cut before its scheduled meeting on Oct. 31. The team at CNBC's "Fast Money" analyzed the day's events for investors.

It surprised Karen Finerman to see the strength in the reversal. Pete Najarian expressed his love for the volatility in the markets, because it allowed him to sell some strength and then buy weakness. Case in point, he used Wednesday's market volatility to buy Microsoft ( MSFT) and Yahoo! ( YHOO). Jeff Macke disagrees and believes this was a tough day for the bulls and bears to make money.

The Nasdaq struggled early Wednesday, dropping almost 3% with the semiconductors leading the decline. Najarian would avoid buying the dips in the chipmakers, but he would buy the gadget makers like Nokia ( NOK), Research In Motion ( RIMM) and Apple ( AAPL).

Technical Take With Carter Worth

Oppenheimer chief market technician, Carter Worth, joined the "Fast Money" crew to discuss his take on the technical action in the markets. Worth sees major technical damage in all the charts for the G7 nations.

He feels the S&P 500 is setting up for a move lower and he made the shocking statement that the world might be approaching a global recession. Macke pointed out that the chart on the semiconductors made a head and shoulders Wednesday and broke down.

Mike Huckman's Take on Drug Stocks

CNBC's Mike Huckman joined the "Fast Money" crew to discuss his views on the drug stocks. Huckman brought up three key developments in the drug-stock universe that investors should be aware of. He started with Eli Lilly ( LLY), which announced plans to stop enrollment in clinical trails for blood-clotting drug Prasugrel. Huckman hints that with Eli Lilly keeping quiet on the reasons for stopping the trials, investors have become extremely worried.

Next up was Amgen ( AMGN), which saw a 23% drop in sales for top drug Aransep. According to Huckman, the market is now waiting for data on Amgen's osteoporosis treatment, which will be out next year. Najarian reminds viewers that the top-selling drugs were successful for Amgen, but it's the anemia decision that has helped it the most. Finally, Cephelon ( CEPH) received bad news about its narcolepsy drug. The FDA issued a warning that the drug could cause fatal skin rashes as a side effect.

(One way to see how a drug fund might perform, is to look at the Fidelity Select Pharmaceuticals portfolio on Stockpickr.com.)

Microsoft Trade

Microsoft is set to report earnings after the bell on Thursday. Macke suggests that it's a nice time to get a hold of the stock. Najarian got long Microsoft on Wednesday, and he believes the company will report positive earnings.

Microsoft announced plans to invest $240 million for a stake in social-networking Web site Facebook. CNBC's Jim Goldman joined the "Fast Money" crew to talk about the deal.

Goldman says Microsoft is giving Facebook a Baidu.com ( BIDU) type valuation. Adami thinks Google ( GOOG) bid up face book to force Microsoft into paying up for a stake. Macke remarks that this Facebook deal is nothing to Microsoft in terms what the company paid. Goldman reminds the panel that Google has its own social networking site in Orkut. Goldman believes that Facebook could be a big-time, long-term investment for Microsoft.

Financial Pain

Bank of America ( BAC) made late-breaking news with plans to shake up its investment bank by cutting 3,000 jobs and as well as the retirement of the head of its Global Corporate and Investment Banking unit. Finerman wasn't surprised with the news. Adami advocates keeping an eye on Bank of America.

Merrill Lynch ( MER) reported the worst lost in company history on $8.4 billion in writedowns. Adami claims the market might have cut Merrill a break if it had written down more future losses. Macke maintains that Merrill has no clue how big the writedowns will be and investors should just avoid the financials.

Adami advises investors to look at Raymond James Financial ( RJF) for a trade. Najarian noted that options activity in the Financial Select Sector SPDR ( XLF) November $33 straddle saw huge volume, indicating to him that traders are looking for a big move in the exchange-traded fund.

Global Growth Trade

Global growth continues to shine, and the U.S. is hitting record export numbers. Finerman puts forward Flowserve ( FLS) as a great global growth trade for a play on China and India and for its cheap valuation of 15 times earnings. Flowserve allows investors to buy into a hot market like China in a cheaper way.

Adami prefers Boeing ( BA) for a play on China, India and Russia. In his opinion, everyone is buying planes and he believes Boeing is a great story. Instead of buying Boeing, Finerman would play off it with Kaiser Aluminum ( KALU). Macke warned investors to not chase Chinese stocks. He advises playing China with YUM! Brands ( YUM) and Yahoo!.

(For a global growth portfolio, check out Global Growth Capital on Stockpickr.com.)

VMware Victorious

VMware ( VMW) profits tripled on strong demand for server software. Najarian called VMware a green company, because it saves on energy costs. Plus, the report was very strong. Adami hints that Microsoft will not be able to catch VMware for a long time, because VMware has a monopoly on the market. Adami also wants investors to wait for EMC ( EMC) to report earnings on Thursday before he gives his take on the company. Macke mentioned he is still long EMC.

Happy 52-Week High, Coca-Cola ( KO).

Pops & Drops

Pops -- Genzyme ( GENZ) traded up 3% after beating Wall Street estimates on robust drug sales for rare diseases. Najarian applauds the great news for GENZ.

CME Group ( CME) traded up 2% on a 68% jump in profits. Finerman notes that the good numbers for CME are happy times for all the exchanges.

Drops -- Cablevision ( CVC) fell 3% after shareholders turned down the bid by the Dolan Family to take the cable firm private. Finerman wasn't surprised and reminded viewers that she has never made money trading a Dolan deal.

AT&T ( T) fell 1% after market rumors made the rounds that the company might look to buy DIRECTV Group ( DTV) or EchoStar Communications ( DISH). Macke would like to buy the dips in AT&T, but he stressed you didn't get much out of one Wednesday.

Broadcom ( BRCM) plunged 17% after profits fell and a number of analysts hit the stock with downgrades. Adami offers getting back in at $31.50.

Cheesecake Factory ( CAKE) dropped 3% after missing Wall Street revenue estimates. Macke sees problems with casual dining.

Final Trade

In this segment, the team voices their best trade ideas as they close the show.
  • Macke recommends Yahoo!.
  • Adami would buy Microsoft.
  • Finerman prefers a defensive play in Altria (MO).
  • Najarian makes a play on global growth with crane maker Manitowoc Company (MTW).
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