GOOGLE SPOILS DAY'S RALLY
The headline: Google (GOOG) Fourth-Quarter Profit Falls Below Analyst Expectations Sending Shares Down 7% After Hours
The earnings data will likely amplify concerns that Google won't be able to sell as much online advertising -- the main source of its profit -- as consumers clamp down on their spending amid ominous signs of a recession in the United States, explains Dylan Ratigan. Google shares rose $16.03 to finish at $564.30 in Thursday's regular session then plunged in extended trading after the fourth-quarter results came out.
I think the stock could rebound at the open, says Pete Najarian.
Valuations seem reasonable, says Guy Adami. It could be time to buy GOOG.
DOW RALLIES 207
The headline: Stocks Rebound After Bond Insurer Says It Won't Trigger SubPrime Security Meltdown.
Wall Street's worries about bond insurers eased, helping the stock market to rally strongly. The improvement came after an early round of selling took the Dow down sharply immediately at the open, says Dylan Ratigan.
I’m a little skeptical of the rally, says Karen Finerman. It could be a lot of window dressing. I shorted Capital One (COF) on Thursday.
AFTER HOURS ACTION: MOTOROLA
The headline:Motorola (MOT) To Consider Selling Its Mobile Device Unit.
The announcement came amid speculation that the company may sell or spin off the cell-phone unit after more than a year of dismal results and declining market share, explains Dylan Ratigan.
In response to Thursday's announcement Carl Icahn stated in a press release, "For many months I have been publicly advocating the separation of Mobile Devices from Motorola's other business and I am pleased to see that Motorola is finally exploring that proposal. However, we have previously informed Motorola that we expect to run a slate of directors for the upcoming annual meeting and this announcement by Motorola will not deter us from that effort -- we believe Motorola is finally moving in the right direction but certainly still has a long way to go."
I suspected it’s what Carl Icahn was hoping for, says Karen Finerman.
I ask myself, how much lower can this stock go, says Guy Adami. If you’ve got a taste for risk, it could be worth buying.
BANKS RALLY ALMOST INTO BLACK
The headline: Financials Rally After Bond Insurer MBIA Says It Can Maintain 'AAA' Rating.
MBIA (MBI) CEO Gary Dunton reassured Wall Street, by saying he is confident the company can retain its crucial AAA credit rating and that MBIA will still be able to raise fresh capital, explains Dylan Ratigan.
In ’08 I think you buy dips in financials, says Guy Adami. You've heard us say financials have to lead the recovery, well I think they’re leading. Take a look at Wachovia (WB), he counsels.
I also like bank stocks says Pete Najarian. I think investors should continue to wratchet up your exposure in the Financial Select Sector SPDR (XLF), he says. Or look at Wells Fargo (WFC) and U.S. Bancorp (USB).
RETAIL RALLY INTO BLACK FOR '08
The headline: Target (TGT), Home Depot (HD), Wal-Mart (WMT) Lead Retail ETF (RTH) Into Positive Territory For `08.
Retail shares jumped 4% Thursday after Deutsche Bank upgraded the sector and predicted “the worst will soon be behind us,” says Jeff Macke.
I’m selling the rally across the board, says Karen Finerman, except Crocs (CROX). I’m not selling Crocs.
I agree that it’s time to take profits, adds Guy Adami, and keep an eye on Home Depot (HD).
PLANES, TRAINS, & TRUCKS
The headline: Transport Stocks Surge Once Again Today, Suggesting Economic Concerns May Be Overstated.
We told you Burlington Northern (BNI) was the play going into earnings, says Guy Adami. The stock could be ahead of itself right now, but early recovery names should be owned soon, he counsels. Also take a look at Frontline (FRO).
If we see consolidation in the airlines, I expect great revenues from those left standing, says Pete Najarian.
I don’t like the space, says Karen Finerman. The valuations are too high for me.
EARNINGS RESULTS: PRICELESS
The headline: MasterCard (MA) Skyrockets 14% After Reporting Blowout Quarterly Earnings.
MasterCard on Thursday trounced estimates and said fourth-quarter profit rose more than sixfold on surging overseas spending and the dollar’s weakness, says Guy Adami. Don’t chase the stock, but I think MA is a buy on any dip.
AN ALLIANCE OF BULLS
The headline: Whopping Seven Wall Street Firms Upgrade Alliance Data (ADS).
Alliance Data, a credit-card processor is suing Blackstone to complete buyout, says Karen Finerman. But I think it’s going to be hard to win.
I think the stock looks cheap, says Pete Najarian.
OPTIONS ACTION: BOOB TUBES & STEEL TUBES
The headline: Pete Seeing Unusual Options Activity Commercial Metals (CMC).
Options action suggests to Pete this stock could go significantly higher.
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Trader disclosure: On Jan 31, 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), (EMC), (INTC), (ATVI); Najarian Owns (BR), (C), (CSCO), (EMC), (MS), (MSFT), (YRCW); Najarian Owns (EBAY) Calls, (CMC) Calls, (GOOG) Calls, (YHOO) Calls; Finerman Owns (GS); Finerman's Firm Owns (PZN), (TSO), (VLO), (YHOO), (BR); Finerman's Firm And Finerman Own (CROX); Finerman's Firm Is Short (SPY), (IYR), (IJR), (MDY), (CME), (WFC), (COF); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts