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Recession Fears Knock Stocks

RECESSION FEARS KNOCK STOCKS

The headline: Investors Take A More Cautious Approach To The Market.

Stocks lost ground Monday, explains Dylan Ratigan coming off their best week in nearly five years. Given the size of last week's gains -- the strongest for the Dowand S&P 500 since March 2003 -- a modest pullback shouldn't come as a surprise.

Not a lot of reason to buy stocks, Monday adds Jeff Macke. This is what taking gains looks like.


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BAD CREDIT

The headline: Financials Tumble On Concerns Subprime Woes Will Spark Widespread Credit Problems.

Financial stocks, which led the recent recovery, were sold off Monday explains Karen Finerman. Wachovia and Wells Fargo (WFC) each fell more than 7% on Merrill Lynch downgrades. And American Express , Capital One (COF), and Discover (DFS) plunged on a UBS downgrade.

I’m going to stay short COF, Finerman adds.

Interesting to note that Mastercard did not struggle in this environment, says Pete Najarian.

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GOOGLE FIRES BACK

The headline: Google Launches Into Action In Effort To Thwart Microsoft's $44.6B Offer For Yahoo! .

Google fired back at Microsoft's $44.6 billion bid to acquire Yahoo, accusing Microsoft of seeking to extend its computer software monopoly deeper into the Internet realm, explains Dylan Ratigan. David Drummond, a Google senior vice president and its chief legal officer, said in a blog post that the combination of Microsoft and Yahoo could undermine the open competition that has fueled more than a decade of web innovation.

I don’t see any reason to rush in and buy, right now counsels Pete Najarian.

In other tech news…

Cisco (CSCO) should knock the cover off the ball with earnings, speculates Pete Najarian. I think the stock is cheap compared to the growth they’re projecting. I also like Apple (AAPL), he adds.

I love Intel (INTC), says Tim Seymour.

Tech is a longer term play, adds Jeff Macke. I find other sectors more interesting right now.

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BREAKING NEWS: BOSTON SCIENTIFIC

The headline:Boston Scientific Corp On Monday Posted A Quarterly Net Loss On Restructuring Charges And Costs To Divest Certain Assets.

The medical device maker reported a fourth-quarter net loss of $458 million, or 31 cents a share, compared with a year-ago net profit of $277 million, or 19 cents a share, explains CNBC Pharmaceutical reporter Mike Huckman..

And Medtronic’s (MDT) drug coated stents will likely eat into BSX future profits, adds Pete Najarian.

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AFTER HOURS ACTION: LAS VEGAS SANDS (LVS)

The headline: Las Vegas Sands Profit declines As The Company Cites Expansion Costs

I think we’re seeing the recession hit travelers, whether it’s leisure or business or both. I’m short Morgans Hotel (MHGC).

Shares of Dollar Thrifty dropped 37% on Mondayadds Jeff Macke, after DTG slashed its 2007 earnings guidance, citing weak demand in the travel market and soft used car sales.

As the traders were discussing their travel and leisure trades, news crossed that Sam Zell acquired an 8% stake in Starwood (HOT).

Maybe we should all start looking at Starwood, if Zell’s jumping in, says Pete Najarian.

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PILL STOCKS POPPING

The headline:Merck , Eli Lilly , Beaten-Up Big Pharma Stocks Perform Monday In Rough Tape.

I think Merck stock has been punished and this could be a buying opportunity says Pete Najarian. But look at Sanofi-Aventis (SNY), first.

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STREET POLITICS

With Super-Duper Tuesday at hand, who do you think will be the best candidate for Wall Street?

Tell us now. Answer the Charles Schwab Question of the Day.

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Trader disclosure: On Feb.4, 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), (INTC), (DIS); Najarian Owns (AMR), (BIIB), (C), (CSCO), (YHOO), (XLF), (MCD); Najarian Owns (AAPL) Calls, (GOOG) Calls, (NYX) Calls, ; Najarian Owns (WM) Puts; Finerman Owns (GS), (RTP), (YHOO), (AEO), (WMT); Finerman's Firm And Finerman Own (CROX), (KALU); Finerman's Firm Owns (NMX) And (NMX) Options; Finerman's Firm Is Short (SPY), (IJR), (IYR), (IWM), (MDY), (CME), (COF); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (MHGC); Seymour Owns (CSCO), (GOOG), (INTC), (MSFT), (SBUX), (YHOO), (SHLD), (UN); Seygem Asset Management Owns (CTCM), (FMCN), (GAF), (GFI); Charles Schwab Is A Sponosr Of "Fast Money"

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