Fed Tailwind: Is It Over?
After the Fed hinted at an end to rate cuts in its announcement Wednesday, retail and utility stocks may be the most vulnerable.
Jeff Macke can’t get behind even the best-run of the retailers without the Fed’s support. There’s no reason to be long companies like Target (TGT) that keep missing earnings, Jeff said. TGT is a great company but it can’t perform, and if the Fed stops easing it won’t make it any easier.
As for the utilities, Guy Adami thinks if the Fed stops easing, the group is in trouble. Take profits in names like PSEG (PEG) and Constellation Energy (CEG), he said.
Pete Najarian would buy the mining stocks on a pullback. Global growth can be counted on, and companies that mine commodities like copper are likely to continue to benefit.
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Trader disclosure: On Oct 31, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian owns options in (BIDU), (GOOG), (MER), (YHOO); Macke owns (YHOO), (DIS); Carter Worth’s firm is a market maker in (DRYS), (YHOO)