Dylan Ratigan hosted CNBC's "Fast Money" show Thursday night. He began the show with a discussion of the credit market's improvement.Tim Seymour said the new commercial paper market is working out fantastic with General Electric ( GE) and American Express ( AXP) coming to the table to borrow. He says "$180 billion of longer-term paper has been issued so far this week." Karen Finerman told viewers she is still concerned about the commercial real estate market. She says "there is another commercial real estate shoe to drop out there." Pete Najarian explained that money from bonds is now going into equities. Guy Adami said watch for a "Friday rally," because he's hearing that European fixed-income funds will rebalance into U.S. equities. Ratigan told viewers to look at the Nikkei, which is up 26% over the past few days. Seymour says "nothing has been oversold more than emerging markets on the equity side." Najarian pointed out that Morgan Stanley ( MS) is holding up because the Japanese bank Mitsubishi UFJ ( MTU) controls a stake in it. The "Chart of the Day" was Goldman Sachs Group ( GS). Ratigan explained that Goldman is down 16% so far this week. Najarian said he isn't bullish on Goldman but the bonds are holding up sold despite the stock's weakness. Adami explained that the market is pricing in what could be a bad quarter for Goldman. Seymour mentioned that Barclays put out a negative report that said leverage isn't coming down at Goldman. Ratigan moved the conversation to Intel ( INTC), which led a surge in the technology sector today. Najarian told viewers to look at the moves in Intel, Hewlett-Packard ( HPQ), Apple ( AAPL) and IBM ( IBM). He says, "If the emerging markets can continue to show signs of recovery, it will be good for the semiconductor space."
Adami said he likes Intel and Oracle ( ORCL) at current valuations, but he warned viewers not to chase the stocks here. Najarian told viewers that November 15 calls for Yahoo! ( YHOO) were trading like crazy today. He says "people are thinking that Carl Icahn will get this thing moving in the right direction." Raymond James strategist Jeffrey Saut joined the crew to discuss whether now is the time to get back into stocks. Saut says "we made a climax low on Oct. 10 and the psychological low last week, so expect the market to trade up from here." He mentioned that most of the hedge funds' and mutual funds' redemption selling is largely in the rearview mirror. Good/Bad Stocks Jon Najarian joined the traders to talk about some stocks that have reported horrible news but are trading up. He said MGM Mirage ( MGM) has traded up nearly 45% in two days, despite reporting a 76% drop in third-quarter profits. He mentioned that Lowe's ( LOW) has traded up from $17 per share to over $20 per share, after home construction data showed new construction spending was down 19%. Finally, Najarian explained that AFLAC ( AFL) reported that their earnings were down 76%, but the stock rose from $33 per share to $44 per share. He told viewers he is still long MGM Mirage and Lowes' but he sold his position in AFLAC today. Seymour mentioned that America Movil ( AMX) and China Mobile ( CHL) are very good buys here. Ratigan continued a new segment called "Instant Replay," which looks to get inside of the traders' heads. Seymour said that he started to fade the news on Petroleo Brasileiro SA ( PBR) today after the stock opened up 10% on no news. He explained as the dollar started to get weaker, the stock rallied into the end of the day. Seymour made the point that emerging markets were strong and said a stock like PBR will trade inversely to the move in the dollar. The crew spoke hedge fund manager Doug Kass of Seabreeze Partners about whether private equity will be the next shoe to drop. Kass said the problems in the private-equity market could be just as bad as the housing bubble and credit crisis. He said the problems will be felt broadly at university endowments, our educational system, municipalities and pensions plans, all of which have invested heavily in private-equity deals. Ratigan said the public equity portion of these funds continues to get lower as demonstrated in the charts for Blackstone Group ( BX) and Fortress Investment Group ( FIG). Kass told viewers that most of the private-equity deals since early 2005 are now worthless. He warned viewers that many hedge funds around the world could see their very own private equity "black swan event" in the near future. Trader Radar Shares of Eastman Kodak ( EK) were among the most active names on the NYSE Thursday. Final Trade Seymour picked UltraShort Emerging Markets ProShares ( EEV). Adami selected Celgene ( CELG). Najarian said he loves Yahoo!