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Stocks Plunge 2% On Citi Earnings

STOCKS PLUNGE 2% ON CITI EARNINGS

The headline: Citigroup , Merrill Lynch Hammer Market As Woeful 2008 Continues.

Citigroup announced a massive 18.1 billion dollar write-down for bad mortgage assets and slashed its dividend, Dylan Ratigan says.

Investors now believe that troubles at Citi are going to drag on for another quarter, says Pete Najarian. The market didn’t like that.

I would have preferred to see a larger dividend cut, says Karen Finerman.

US Bancorp (USB) was up all day, Tuesday says Guy Adami. When the dust settles, I think this stock will go higher.

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GOV. SPITZER ON WALL STREET'S WOES

The headline: New York Governor Eliot Spitzer On Subprime Crisis

New York Governor Eliot Spitzer joins the panel. Following is a synopsis of his main points

What do you think of today’s market action, Gov. Spitzer?

“All the financial services companies need to get rid of the junk on their balance sheets,” he says, “and then raise the capital needed.”

“What worries me most is that their capital debt is going to have a huge negative impact on the lending capacity and that could drag the whole economy down,” he adds. “The magnitude of this is grossly underestimated.”

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A FAST MONEY ICAHN

The headline: Billionaire Investors Carl Icahn Reveals How He’s Trading This Market

The last time we spoke you said the market was on a precipice?

“It now seems like we’re falling off a precipice,” says Icahn. “It’s not the end of the world forever but I think there are shoes that could fall. For instance, commercial real estate could get hit hard. There was just too much leverage put on them… and retailers are down a lot, perhaps too much. They may be cheap. But that said, American management teams are, apparently, not up to the job.”

How are you trading Biogen?

“With Biogen I still believe it’s a great company and that someone will buy them,” Icahn replies.

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AFTER HOURS ACTION: INTEL

The headline: Intel Plunges 16% On Earnings; Point To Lower Open Wednesday

Intel (INTC) reported fourth-quarter earnings and gave an outlook that missed Wall Street expectations, sending shares down 15% on Tuesday explains Dylan Ratigan.

I thought INTC was going to rock – I had it dead wrong, says Guy Adami.

I’m expecting the S&P to be down 20 points in the morning, adds Jeff Macke.

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MACBOOK AIR...BALL

The headline: Apple Shares Tumble After Steve Jobs Keynote Fails To Impress Investors.

Steve Jobs did not deliver anything fresh says Pete Najarian. Apple reported 4 million iPhone sales while investors were hoping for 5 million. Nothing said was exciting enough to drive the stock. And I’m not buying this dip.

Should Apple volume top 100 million shares take another look, says Guy Adami.

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AT LEAST WE HAVE OUR HEALTH

The headline: Healthcare Shares Hold Together As Broader Market Gets Slammed.

Don’t go into healthcare believing it’s bullet proof, says Pete Najarian. It’s certainly not. However, the one stock I really like right now is Biogen Idec .

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