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Tomorrow's Playbook - From Google To Merck & More

Friday, 25 Jan 2008 | 6:25 PM ET

#1 - From Google To Merck

What are the most important earnings to watch next week, and how do you trade them?

We’re on the eve of an information avalanche, explains Dylan Ratigan. A third of earnings are reported next week, the Fed meets, OPEC meets and a jobs report comes out. What will you be watching, he asks the traders.

Pete Najarian

- Look to the truckers, says Pete Najarian. A year ago they signaled a slowdown but few paid attention. Keep an eye on YRC Worldwide (YRCW).

- If the refiners are beat up, buy Marathon (MRO) on the dip, Najarian counsels.

Guy Adami

- Watch Burlington Northern (BNI) numbers, says Guy Adami. They report on Tuesday and I think the stock ahead of earnings is interesting.

- Also you can get long Google (GOOG) into earnings understanding that if they say something terrible the stock could drop by $50 dollars.


Tim Seymour

- I’m watching data out of the Fed next week, says Tim Seymour, as well as info out of OPEC and the economic numbers.

Karen Finerman

- I like Altria (MO) but the moves in this stock aren’t usually extreme, says Karen Finerman.

Next Week's Trades #1
A preview of next week's earnings, with the Fast Money crew.
  Price   Change %Change
GOOGL
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MO
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MRO
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YRCW
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#2 - Half Or Quarter?

After the Fed’s surprise rate cut this past Tuesday what will they do next week at their regularly scheduled meeting?

Deutsche Bank Chief Economist Joe Lavorgna joins the panel for this conversation. Following us a synopsis of his main points.

--The Fed will probably cut interest rates by 50 bps and remove the words 'timely manner' from the statement indicating that the Fed is done cutting rates for now (at least on an inter-meeting basis).

--In the aftermath of the Fed, expect the bond market to sell off if it believes further easing is going to be harder to come by. The stock market will probably go up because investors will begin anticipating a stronger 2nd half of the year, aided by the Fed and large fiscal stimulus.

How might the market react to the jobs report and GDP next week?

Payrolls are expected to come in around +70K and the unemployment rate is expected to remain unchanged. However, if both figures come in stronger than expected – (payrolls better, unemployment rate down) it could drive stocks higher and Treasury prices lower.

Can you trade it?

I think you buy banks on dips, says Guy Adami.

I agree, adds Karen Finerman.

Watch homebuilders says Tim Seymour. They could drop next week after their surge this week.

Tell us what you think. We want to know. Answer the Charles Schwab Question of the Day.

Next Week's Trades #2
An outlook on next week's Fed meeting, with Joe Lavorgna, Deutsche Bank chief economist and the Fast Money team.
  Price   Change %Change
NASDAQ
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S&P 500
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#3 - Under The Radar Next Week

What trends in the market will be worth trading next week?

Pete Najarian

I like Massey (MEE) as a coal play.

Karen Finerman

Watch inflation data next week.

Guy Adami

At $32 Microsoft (MSFT) is a buy.

Tim Seymour

I would buy the South African miners that were sold off Friday and sell miners in other parts of the world that popped Friday. Also I’d sell the GLD.





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Trader disclosure: On Jan 25, 2008, 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 (C), (CSCO), (MCD), (MS), (MSFT)’ Najarian Owns (AAPL) Calls, (COP) Calls, (DOW) Calls, (WM) Calls, (AAPL) Calls, (DPTR) Calls, (YRCW) Calls; Seymour Owns (AAPL), (CSCO), (INTC), (MSFT), (TSO), (SSL), (SBUX), (YHOO); Seygem Asset Management Owns (COP); Finerman's Firm And Finerman Own (HD); Finerman Owns (GS), (M), (WMT), (MO), (GLNG), Finerman's Firm Owns (SUN), (TSO), (VLO), (YHOO), Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns Paramount Energy Trust

  Price   Change %Change
MRO
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YRCW
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GOOGL
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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