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Awful '08 Continues

AWFUL '08 CONTINUES...

The headline: U.S. Stocks Tumbled Tuesday On New Fears Of Recession

Countrywide Financial shares plummeted Tuesday on growing alarm about the No. 1 mortgage lender's financial health, says Dylan Ratigan. Shares dropped significantly in its steepest decline since the stock market crash of 1987.

The plunge came amid speculation the company may file for bankruptcy as it struggles to emerge from the mortgage and credit market crisis in one piece. The company denied the speculation.

I’ve noticed that options investors are buying the CFC 5-strike puts for January explains Pete Najarian. But, stay away from the financials he adds. Look at gold and energy, instead.

Or for a defensive play, look at Altria (MO) and Johnson & Johnson (JNJ) Guy Adami adds.

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TECH & TELECOM TUMBLE:

The headline:AT&T Sinks After CEO Comments Stoke Concerns About Consumer Business.

The chief executive of AT&T said the U.S. economic slowdown was hurting the company's consumer business. That sent shares of the largest U.S. phone company down 4.8% explains Dylan Ratigan.

The market is nervous says Karen Finerman. It seems traders are selling first and asking question later.

Unless you have your head buried in the sand, you know the consumer was weak says Jeff Macke. There’s no surprise here.

I think AT&T looks attractive at $37.5 says Guy Adami

I agree says Pete Najarian. Buy shares of AT&T on this panic sell. But, otherwise, don’t jump into technology right now.


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GOLD SOARS TO RECORD HIGH

The headline: Gold Surges 2.1% To All-Time High Of $880.30 On Slumping Dollar.

Don’t confuse being long Newmont with being long gold. If you made money in Newmont, take profits, says Guy Adami.

I’m not sure I agree, says Pete Najarian. Options investors are buying upside calls in the gold mining companies, he explains. I like these stocks far better than the GLD.


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HEALTHY & WEALTHY

The headline: Healthcare Rally Continues For 2nd Day As Amgen , Wyeth (WYE), Merck (MRK) Shares Jump.

Investors want to play defense in times like this, says Jeff Macke. MRK seems like a good place to park you money.

I love DaVita (DVA) says Karen Finerman.

Of all the healthcare stocks, my favorite is Lilly (LLY) says Pete Najarian. And Pfzier (PFE) at a 10 P/E looks attractive, too.

I like Gilead (GILD) and GlaxoSmithKline (GSK) adds Guy Adami.


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CAYNE LEAVES THE JOINT

The headline: Bear Stearns Shares Fall Even As CEO James Cayne Prepares To Step Down.

CEO James Cayne will be replaced by current president Alan Schwartz explains Dylan Ratigan.

I think there’s more bad news to come, says Karen Finerman. I expect more write-downs at Bear.


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PUTTING THE STAR BACK IN 'BUCKS

The headline: Starbucks Soars As Founder Howard Schultz Returns To CEO Post.

Look for this stock to stabilize says Jeff Macke. But it’s not a straight shot to $40.

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Trader disclosure: On Jan 8, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (SWY), (INTC); Najarian Owns (BIIB), (MCD), (MSFT); Najarian Owns (AAPL) Options, (CFC) Options, (VLO) Options, (YHOO) Options; Najarian Is Short (WM) Through Options; Finerman's Firm Owns (CROX), (DVA), (GS), (YHOO), (DSW); Finerman's Firm Is Short (IJR), (IYR), (IWM), (SPY), (SPG), (TCO); Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (MSFT) Options

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