The stock market plunged Friday as the Dow has now seen its worst 3-day start since 1932 and the S&P 500 has seen its worst start to the new year since 2000. The Dow finished the day down 256 points and the Nasdaq fell 98 points. The team at CNBC's "Fast Money" did a post mortem on the day and previewed upcoming conferences in various sectors.Jeff Macke explained that the S&P 500 is right back to the panic lows it made in August and November but now it's at a great risk of breaking those lows. Pete Najarian says the job number shocked him and the Intel ( INTC) downgrade was a surprise. He explained how the Intel downgrade crushed names like Apple ( AAPL), Research In Motion ( RIMM) and Google ( GOOG). He thinks this selloff on Apple is a great buying opportunity heading into Macworld. Jon Najarian likes Research In Motion, if it holds $100 going into the Consumer Electronics Show. However, Guy Adami favors Unilever ( UL), Procter & Gamble ( PG), Altria ( MO) and Microsoft ( MSFT) at the $32 level. Macke mentioned he would be a buyer of the S&P 500 for a trade with a tight stop at 1400.
(Here's how one manager set up his electronics portfolio in Stockpickr.com My 14-7Electronics.)
Financial stocks continue to get battered as investor's fear the worst is still to come. Pete Najarian explained the investment banks finally cracked Friday after Goldman Sachs Group ( GS) fell below $200. He thinks now is the time to buy the put options on the Financial Select Sector SPDR Fund ( XLF). Jon Najarian warns that Bear Stearns ( BSC) is setting up to drop 20% in one day.
Humana ( HUM) traded up 5% after a CIBC analyst made some bullish comments on the health insurer. Adami sees more room to the upside for Humana. Drops - Valero ( VLO) and Tesoro ( TSO) both fell more than 8%. Jon Najarian thinks they will continue moving lower. Sallie Mae ( SLM) fell 15%. Adami thinks it still has more room on the downside. Macy's ( M) fell 12% off of the bearish jobs report. Macke explained that the jobs data caused a parade of sellers in the retail stocks. KLA-Tencor ( KLAC) fell 12% after Intel was downgraded on Friday. Jon Najarian is looking for KLAC to drop below $60. Talbots ( TLB) fell 19% after the women's clothing firm said it would shut down its children's and men's clothing and cut 5% of its workforce. Macke reminded investors to never buy specialty retailers on the dip.
December 26th was the day Najarian recommended coal play Alpha Natural Resources ( ANR). He was off the mark on this call and ANR has fallen 12% since he recommended it. Najarian isn't giving up just yet, he is sticking with the coal name.