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Maybe 2008 Won't Be So Bad

MAYBE 2008 WON'T BE SO BAD

The headline: Market Rebound Continues For a Second Day With All 3 Major Indexes Closing Higher.

Stocks jumped again Thursday in a volatile session as investors found renewed confidence after a report that Bank of America is close to buying struggling mortgage lender Countrywide explains Dylan Ratigan.

Also, the market popped after Federal Reserve Chairman Ben Bernanke said the Fed was ready to lower interest rates again to ward off a recession, he adds.

I’m no less cautious that I was 2-days ago. I think this is a nice graceful exit for anyone who was trapped long, says Jeff Macke. But nothing more.

I see some good news, Guy Adami says. Corporate balance sheets never looked better and debt to cash ratios haven’t been so strong since the early ‘90’s.

Look at gold says Pete Najarian. It hit a new high Thursday. I think the miners continue to work.

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CAPITULATION FOR CONSUMER?

The headline: Wal-Mart ,Target (TGT), Retailers Jump Despite Worst Holiday Shopping Season In 5 Years.

Both Wal-Mart and Costco (COST) December sales beat Street estimates, explains Dylan Ratigan.

I think the retail sector is excessively beaten down and companies with a lot of cash on the books such as American Eagle (AEO) are attractive to me, says Karen Finerman.

Fair enough, adds Jeff Macke.

I like Blue Nile (NILE) as a trade, adds Guy Adami.

> Read more about Macke’s retail trade in “Trading Retail Woes”

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AFTER HOURS ACTION: AMERICAN EXPRESS

The headline:American Express Says A Slowdown In Cardholder Spending And Rising Delinquencies Will Lead To A Pre-Tax Charge Of Around $440 Million For Q4.

I think this data shows that we’re in a recession says Jeff Macke. Deal with it!

I agree, adds Pete Najarian.

I think Mastercard (MA) will get sold-off on the news but it doesn’t have the same credit exposure, explains Guy Adami. MA is probably a buy around $185.

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ROLLING 'STONE

The headline:Blackstone Shares Soar On $500M Buyback, GSO Capital Buyout.

Asset management firm Blackstone Group said it will acquire GSO Capital Partners LP for as much as $930 million and its board of directors approved a $500 million share repurchase program, explains Dylan Ratigan.

I think the GSO deal is an interesting move for Blackstone says Karen Finerman. But I think the buy-back is more interesting

I’m a buyer of BX at $20 says Guy Adami.

Me too adds Pete Najarian. And take a look at Fortress (FIG).

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FRIENDLY SKIES

The headline: Delta Soars After WSJ Report It Is Seeking To Begin Merger Talks With UAL (UAUA), Northwest (NWA).

I’d look really closely at Northwest, says Pete Najarian. Delta’s current CEO came from Northwest. But it’s a trade, you’re not buying valuation.

These stocks are mostly flat or down, adds Jeff Macke. Be careful, this space is tough.

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'HOO'S THAT KNOCKING AT MY DOOR?

The headline: Yahoo Shares Surge After NY Post Says Microsoft (MSFT) Still Mulling A Bid

This rumor has been around for a while, says Pete Najarian.

I think it’s a lottery ticket adds Guy Adami, but still worth a look.

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FREE TATA

The headline: Indian Automaker Tata Unveils New $2,500 Vehicle.

Called the Nano this hatchback is the world's cheapest car, explains Dylan Ratigan.

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Trader disclosure: On Jan 10, 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); Najarian Owns (AMR), (BIIB), (C), (MSFT), (EBAY); Najarian Owns (CFC) Options, (WM) Options,(YHOO) Options; Finerman's Firm Owns (KSS), (WMT), (YHOO), (AEO); Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (IJR), (IYR), (SPG); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Russell 2000 Puts And Is Short (IWM); Finerman's Firm Owns S&P 500 Puts And Is Short (SPY)

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