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Stocks Rebound - Overcome Credit Fears

STOCKS REBOUND, OVERCOME CREDIT FEARS

The headline: Stocks Posted Modest Gains To Begin The Trading Week.

The Dowclosed in positive territory on Monday, explains Dylan Ratigan, despite renewed worries about potential losses linked to the credit crisis. AIG, one of the 30 companies in the Dow index, says it will need to change the way it values its credit default swaps involving collateralized debt obligations.

I think the tape could have been a lot worse, but it wasn’t, says Tim Seymour. That could be telling.

Don’t short a dull tape, counsels Jeff Macke.

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YAHOO REJECTS MICROSOFT BID

The headline: Yahoo Rejects Microsoft's $44.6B Offer, Claiming It 'Substantially Undervalues' Company.

Yahoo spurned Microsoft's $44.6 billion takeover bid as inadequate Monday, explains Dylan Ratigan, betting that it can elicit a higher offer from the world's largest software maker or find another way to deliver a comparable payoff to its shareholders

The rebuff by the slumping Internet pioneer had been widely anticipated after word of Yahoo's intention was leaked during the weekend. In its formal response, Yahoo said its board had concluded Microsoft's unsolicited offer "substantially undervalues" the Sunnyvale-based company.

I don’t think this is Microsoft’s last offer, says Jeff Macke. And I really don’t think they will get $40 a share.

There was speculation there could be a private equity deal, adds Tim Seymour. I think there’s probably another dollar or two in this stock, but that’s it.

What do you think? Tell us now. Answer the Charles Schwab Question of the Day.

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BREAKING NEWS: BLACKBERRY BLACKOUT

The headline: E-Mail Service Of Research In Motion's Blackberry Smartphones Experienced A "Critical Severity Outage" On Monday.

Research in Motion experienced a “critical severity outage” affecting "users of the Americas network," explains CNBC Silicon Valley Bureau Chief, Jim Goldman. Last April, a massive outage crashed BlackBerry service across North America, leaving thousands of users without access to wireless e-mail.

If it lasts longer than 24 hours then there’s a trade on RIMM weakness, says Jeff Macke. If a blip, it’s quickly forgotten.

I think the trade is Nokia , adds Pete Najarian.

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BANK OF AMERICA ENTERS DOW AVERAGE

The headline: Dow Average Replaces Honeywell , Altria With Bank Of America , Chevron .

The Dow Jones Industrial Average, the most widely known barometer of the U.S. stock market, is making the first change in its lineup of 30 stocks in nearly four years, dropping Honeywell and Altria and adding Chevron and Bank of America, says Dylan Ratigan. The changes, the first since 2004, will take effect on Feb. 19.

I think Honeywell (HON) is a buy on the dip, says Guy Adami.

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OIL SPIKES ON CHAVEZ THREAT

The headline: Crude Oil Jumps 2% To $93.59 After Venezuela's Chavez Threatens To Halt Exports To U.S;

Oil surged to a one-month high near $94 a barrel on Monday after Venezuela threatened to stop sending oil to the world's top fuel consumer the United States. Venezuelan President Hugo Chavez made the threat on Sunday, after an Exxon Mobil lawsuit froze $12 billion of Venezuelan assets to step up Exxon's push for compensation from a nationalized oil project.

I think supply disruption has been already been priced into oil, says Tim Seymour. I like ConocoPhillips as well as Exxon.

I like COP too, says Pete Najarian.

If it dips to $80 investors should buy XOM, says Guy Adami.

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INVESTORS SHRUG AT HOLLYWOOD ENDING

The headline: Media Stocks Mostly Flat As Investors Anticipated End to Writers Strike This Past Weekend.

Hollywood screenwriters should be back at work within days after their three-month strike, explains Dylan Ratigan.

I like Disney says Jeff Macke and I’m long.

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TOY STORY

The headline: Hasbro Shares Jump After Profit, Revenue Top Forecasts.

I like Hasbro and Mattel , Jeff Macke says. Even in this awful economy, parents will probably continue to buy toys for their children.

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STADIUM GOOD FOR SHAREHOLDERS?

The headline: NY Giants And Jets May Draw Record Sum For Stadium-Naming Rights.

5 Biggest Stadium Naming Rights Deals

Stadium

City

Cost

Year Named

Reliant Park

Houston

$300 M

2002

FedEx Field

Wash D.C

$207 M

1998

American Airlines Center

Dallas

$195 M

2001

Philips Arena

Atlanta

$182 M

1999

University of Phoenix Stadium

Glendale, AZ

$152 M

2006


Returns Since Purchase of Naming Rights

Stadium

Stock

Returns

Reliant Park

(RRI)

+31%

FedEx Field

(FDX)

+204%

American Airlines Center

(AMR)

-60%

Philips Arena

(PHG)

+121%

University of Phoenix Stadium

(APOL)

+20%



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Trader disclosure: On Feb.11, 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 (INTC), (DIS), (YHOO), (HAS); Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT), (XLF), (YHOO), (NOK), (ATI); Najarian Owns (FRE) Puts; Najarian Owns (AAPL) Calls, (NIHD) Calls, (OSIP) Calls, (DVN) Calls; Seymour Owns (AAPL), (CSCO), (F), (GM), (INTC), (MSFT), (TSO); Seygem Asset Management Owns (SSL), (GFI), (YHOO), (CHL), (COP), (NIHD)

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