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 Takeout

CNBC 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 Worth

Oppenheimer 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 Preview

Procter 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.

Silicon Valley Cell Play

California currently has 3000 biotech companies that generate $60 billion in revenue. Names like Genentech ( DNA), Gilead Sciences ( GILD) and Amgen ( AMGN) all reside in Silicon Valley. Scientists are now excited about the potential of stem cell research and California is positioned the best to benefit from the controversial process.

Start-up firm 23andme.com is proposing to give customers access to their genetic blueprint. The co-founder of 23andme.com is married to Google ( GOOG) founder Sergey Brin. Najarian would keep an eye on Myriad Genetics ( MYGN) and Cepheid ( CPHD) for genetic plays.

(Check out this selection of stem-cell stocks on Stockpickr.com Playing Stem Cells.)

Coast to Coast

Manish Vora, Director of Research at Monness, Crepsi and Hardt, joined the "Fast Money" crew from PJ Clarkes to discuss some stock ideas. Vora's best name here is Diebold ( DBD). He likes Diebold's growth story with ATM machines, emerging markets and china. The stock has traded down recently on bad news for the election machine business and fears of slower growth in the ATM segment.

Word on the Street

Merrill Lynch ( MER) shares rose 2% on hopes that CEO Stan O'Neal is on his way out. Macke still doesn't want to own Merrill on the rumors. He thinks this story will take a lot longer to play out and he would sell the stock on any pops.

Chip stocks rallied after a bullish industry report shows global sales rose 5.9%. Macke still loves Intel ( INTC) and is long the stock. Adami mentioned that Goldman Sachs put a $35 price target on Dell ( DELL).

Kellogg ( K) reported strong third quarter profits, but warns on 2008 outlook. Related to food, Macke says the market saw strength on Monday in the grocery store chain stocks. He is long Safeway ( SWY) for a play on the grocery store sector.

Options action in Under Armour ( UA) perked Najarian's interest on Monday. The options market is looking for a 10% move on Under Armour in either direction. But Macke continues to like Nike ( NKE) instead.

Oracle's ( ORCL) $17 bid for BEA Systems ( BEAS) expired on Sunday. Finerman remarks that BEAS Systems has told Carl Icahn that it will not sell the company for $17, but it is still interested in a takeover offer.

Happy 52-Week High Activision ( ATVI)

Pops & Drops

Pops - Garmin ( GRMN) traded up 6% in front of the GPS maker's earnings report set for Wednesday. Finerman says she would not be long and is skeptical of this one.

American Axle ( AXL) traded up 12% on news the firm will extend product lines to include axles and frames for cars. If an investor has a long term horizon, then the stock looks good according to Macke.

Lehman Brothers ( LEH) traded up 4% on news that the investment bank is setting up a $3 billion fund to buy leveraged loans from struggling banks. Goldman Sachs ( GS) is the preferred stock for Finerman.

Sohu.com ( SOHU) popped up 7% in front of Monday's earnings report for the firm. Najarian says it's a good play on Chinese online search.

Weyerhaeuser ( WY) traded up 8% after Barron's had a bullish article on the timber company this weekend. Barron's predicts the shares will hit $100.

Drops- Tupperware Brands ( TUP) dropped 4% off of disappointing profits. Najarian declares this is an opportunity to buy it.

Office Depot ( ODP) fell 14% after the office supply firm delayed earnings and was downgraded. The results delay scares Adami.

Final Trade

The crew gives their best trades as they close out Monday's show.
  • Macke advised investors to trim positions in EMC Corp (EMC).
  • Adami likes Gilead Sciences (GILD) for the $300 million stock buyback they recently announced.
  • Finerman would buy Washington Group (WNG) for a takeover play.
  • Najarian believes Merrill Lynch (MER) is ready to go higher.
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