Dylan Ratigan began CNBC's "Fast Money" by mentioning how the financials are down during market hours, bringing down the major indices. Some notable financials trading to the downside are Freddie Mac (AZO), down 18% to $4.82, Fannie Mae (FNM), down about 18% to $6.52, and Goldman Sachs (GS - Get Report) trading down 2% to $160.25.Joe Terranova said, "I'm still long on Goldman," and he said he feels that investors who are willing to buy a great financial firm for the long term should consider getting in below $160. Jeff Macke said that if you held on to Freddie or Fannie, you would be down about 18% today. He said there is no fundamental reason to own financials, and regarding Freddie Mac and Fannie Mae specifically, he said "these are stocks you cannot own." Zachary Karabell stated, "I agree with Macke: Avoid these financials." Pete Najarian returned to talking about Goldman Sachs, stating, "Goldman is the leader, and sooner or later the bad news will come to an end." He said that makes this financial worth buying in the long term.
Ratigan brought up two retailers, Lowe's ( LOW - Get Report) and Home Depot ( HD - Get Report). Macke said he does not feel there is any reason to invest in retailers, especially Lowe's and Home Depot. He said retailers' "trailing earnings are going to be weak" and the fundamentals are not strong, causing Macke to feel this sector should be avoided. Najarian feels investors should "wait for the opportunities." The Chart of the Day was the Russell 2000. Karabell commented that small-cap stocks have rallied strongly since they were "beaten up" just like the financials and retailers have been beaten up. Therefore, he feels the rally is short term, and that is why he does not feel compelled to invest in small-cap names. Ratigan brought up how Hewlett-Packard ( HPQ - Get Report) is down 4% to $43.94 before it reports its earnings on Aug. 19. Najarian said he believes investors are trading Hewlett-Packard and Dell ( DELL) as a dollar trade. He said "HP gets most of its money overseas, while Dell gets most of its money within the United States."
Jon Najarian continued by talking about how Broadcom ( BRCM) could be worth buying. He said that "if Apple is doing as well as it seems to be doing with its iPhone," Broadcom should benefit quite well financially, since it supplies parts such as the GPS chips for the iPhones. Karabell mentioned how analysts' making predictions what the S&P 500 earnings will be is "meaningless, since a part of the sector is falling off the cliff while the other is doing considerably well." He said the sector falling off the cliff was the financial group, while some sectors in technology are doing quite well.