The last day of 2007 was a disappointment for the bulls on Wall Street. The Dow finished Monday down 100 points and the Nasdaq lost 22 points. The cast of characters at CNBC's "Fast Money" changed a bit, but the commentary was as strong as ever. A preview for 2008 took the stage front and center.The Fast Money lineup for December 31st was made up of the following, Brian Schaeffer, Managing Director of Van Der Moolen Capital Markets, Carter Worth, Oppenheimer Chief Market Technician, Jon Najarian (Pete's Brother) founder of Optionmonster.com and Guy Adami.
What's up for 2008?Guy Adami likes Unilver ( UL) going into 2008. Jon Najarian recommends the Consumer Discretionary SPDR ( XLY) because he thinks consumer spending will return in 2008. Carter Worth thinks that the stock market will have a "black" beginning for the New Year. Brian Schaeffer explained that he is a long term optimist, but a short term pessimist going into 2008. Schaeffer mentioned he is bullish on healthcare stocks like Intuitive Surgical ( ISRG) and Tenet Healthcare ( THC). Adami thinks the valuation on ISRG is a little rich at current levels. (Check out this portfolio pick for 2008 on Stockpickr.com POA 2008 Portfolio.)
2008 PredictionsThe "Fast Money" traders offered up 5 major market predictions for 2008. Adami's prediction is that Pfizer ( PFE) will embark on a major takeover in biotech and trade higher. He feels Pfizer has no pipeline but they do have lots of cash to do a takeover. Schaeffer agrees with Adami and he thinks that big cap pharmaceuticals will be the place to be in 2008. Schaeffer's prediction is that health care stocks will rise on valuation. He likes the valuations and good yields for the sector going into 2008.
Oil PredictionAddison Armstrong Director of Market Research for Tradition Energy joined the "Fast Money" crew to discuss his take on oil for 2008. Armstrong expects oil prices to trade lower to the $75 level in 2008 because of a weaker economic environment. He thinks slowing demand from China and India will help to take crude oil lower. Adami agrees with Armstrong and feels $75-$80 is the right price for crude. Najarian thinks oil will sell off, but it will not stay at the $75 level for long. Oil put in its best year for returns in 5 years and gold saw its best year since 1979. Worth says stick with the gold, oil and soft commodities trade.
CKE Restaurants CEO InterviewAndy Puzder the CEO of CKE Restaurants ( CKE) joined the "Fast Money" crew to discuss his take on the prospects for his company. Puzder compared CKE's 99 cent burger to comparable priced burgers from Wendy's and McDonald's. The size of CKE's burger wasn't even comparable to its competitor's offerings. Puzder explained CKE is also doing very well with their premium coffee. Schaeffer mentioned he will be a buyer of the stock. Adami thinks CKE needs to get out a better message to Wall Street.