Hope of a Federal Reserve rate cut continues to bring the bulls out on Wall Street. In spite of record oil prices and new lows on the dollar, the Dow managed to close up 63 points on Monday. The team at CNBC's "Fast Money" mull over the potential of a rate cut and its effects.In Pete Najarian's opinion, the big question is will the Fed cut 25 or 50 basis points. Karen Finerman continues to be surprised that the market is rallying on the Fed rate cut anticipation. Utilities Select Sector SPDR Fund ( XLU) led the stock market higher on Monday. Guy Adami likes Public Service ( PEG) into earnings, but he also mentioned he wouldn't be against investors taking some off the table here. Crude oil rose to a record $93.80 as Mexico cuts gulf output. Reuters was out saying that gas prices will now play catch up with crude. Najarian continues to like the oil service sector, with Adami suggesting Tesoro ( TSO) as a buying opportunity here. Finerman was turned off with the Tesoro CEO's plan to cut its dividend and instead look to do some takeovers.
Warren Buffett's Chinese TakeoutCNBC reporter Becky Quick joined the "Fast Money" crew to discuss what Warren Buffett thinks about China. Quick and Buffett recently returned from a trip to Chna, and Quick explained that Buffett doesn't think China is a bubble, he just thinks the market has run up a whole lot and it's hard to find bargains. Quick explained that Buffett sold his entire stake in PetroChina ( PTR) because he made a handsome profit, not because he thinks it won't go higher. The real concern with China is what will happen after the Olympics. She also mentioned that Buffett is worried about the rising protectionism in the United States and what that could do to relations with China. (Check out the most viewed portfolio on Stockpickr.com, it's Warren Buffett.)
Chartology with Carter WorthOppenheimer Chief Market Technician Carter Worth joined the "Fast Money" crew to review the charts of Liz Claiborne ( LIZ) and Eastman Kodak ( EK). Worth points out that stocks worldwide are rallying but nobody is buying Liz Claiborne. He explained that the chart on LIZ is showing relative weakness and the stock is topping out. On the other hand, the Eastman Kodak chart displays bullish trends going into earnings. He directs viewers to the heavy volume on the up moves and thinks the stock has put in a bottom at $30. Najarian likes EK, both fundamentally and trendwise. Worth went on to say that the best trades are the ones that keep on working like the falling U.S. dollar. The charts demonstrate that the market is taking out the lows on the dollar and this suggests that the dollar will continue lower.
3 Stocks I Saw On TV, Oct. 30
Earnings PreviewProcter and Gamble ( PG) is set to report earnings on Tuesday and Clorox ( CLX) will report Wednesday. Macke expects that Procter will deliver for earnings. He feels the stock is still relatively cheap compared to its peers. However, he doesn't want to be long Clorox. Adami maintains Procter is worth owning even if they miss the earning's number. Finerman prefers Procter as a defensive play, in case the United States is heading into a recession. Najarian reminds investors about Colgate ( COL), which he think has more upside then Procter. Exxon Mobil ( XOM) is set to report earnings on Thursday before the open. Adami continues to caution investors to avoid Exxon Mobil in front of earnings. He believes the oil giant is setting up for a disappointment and investors can buy the stock back cheaper.