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Best Day In Almost 2 Weeks

Tuesday, 12 Feb 2008 | 6:25 PM ET

BEST DAY IN ALMOST 2 WEEK

The headline: Wall Street Ends Tuesday With Best Day In Almost 2 Weeks

The Dow finished higher Tuesday after investor Warren Buffett offered to help out troubled bond insurers, easing some of the market's concerns about further deterioration in the credit markets.

I don’t think it was such an impressive day, says Karen Finerman. And the deal is really only good for Buffett.

I think investors should take profits in names that have taken off, such as Potash , counsels Guy Adami.

I still like Apple says Pete Najarian but watch for weakness in technology names. Also on the next down day I recommend buying Mastercard .

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BUFFETT TO THE RESCUE...DOW RALLIES 200 POINTS ON BUFFETT'S COMMENTS.

The headline: Stocks Rise On Buffett’s Interest in Muny Bonds

Word on the Street
The Fast Money guys take a look at today's top business stories.

During a live telephone call to CNBC’s Squawk Box, billionaire investor Warren Buffett offered to reinsure $800 billion in municipal bonds now insured by Ambac, MBIA and FGIC, effectively giving them a AAA credit rating, explains Dylan Ratigan.

Those insurers are in danger of losing their AAA credit ratings due to problems with subprime mortgages and other loans. Buffett tells us he sent that offer to the bond insurers last week, and that he's giving them 30 days to find a better deal.

Buffett says one bond insurer turned him down, and he hasn't yet heard from the other two. He also said he didn't think regulators could do much to force the bond insurers to accept his offer, unless they took over the companies themselves.

> Read more
Warren Buffett to CNBC: I Will Reinsure $800B in Municipal Bonds

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AFTER HOURS: GENERAL MOTORS (GM)

The headline: GM Reports Net Loss, Excluding Tax Benefit

Shares of General Motors reversed course in pre-market trading Tuesday after enthusiasm about what looked like a surprise profit waned when the chief exeuctive said it was unlikely analysts knew about a one-time tax benefit, Dylan Ratigan says.

The only play in the auto space I really like right now is Borg Warner , says Guy Adami.

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AG TRADE AWESOME
The headline: Monsanto Raises 2008 Outlook; Shares Jump.

Agribusiness giant Monsanto raised its fiscal 2008 per-share earnings estimate by 20 cents a share. The hike comes on a "revival" in its round-up business and strong early-season corn orders, says Dylan Ratigan.

Keep an eye on DuPont and Dow , says Pete Najarian. I think the combination of chemical fertilizer and seeds are impressive. But don’t chase these names, buy the dips.

I like Deere on any pullback, adds Guy Adami.

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YAHOO SHAREHOLDERS WANT BETTER OFFER

The headline: Legg Mason Legend Bill Miller Wants Microsoft To Raise $31-Per-Share Offer For Yahoo

I think the ball is in the Yahoo shareholders court as well as Microsoft’s court, says Karen Finerman. And I think Microsoft will probably increase their offer.

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WIRELESS WORLD UPDATE

The headline: Wireless Stocks Continue Run as Giant Conference in Barcelona Continues.

Keep an eye on Nokia , says Pete Najarian. They just struck a deal to use Google as their search engine. I expect Nokia will get very aggressive in wireless and I recommend it for the portfolio long term.

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AFTER HOURS ACTION: GENENTECH (DNA)

The headline: Genentech 3% Higher After Hours

Genentech Inc said its cancer drug Avastin met its primary goal of prolonging progression-free survival when combined with chemotherapy in a breast cancer study, sending its shares more than 3 percent higher, explains Dylan Ratigan.

I think this stock is impressive, says Pete Najarian.

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AFTER HOURS ACTION: A BOTTOM FOR SEMI STOCKS?

The headline: Applied Materials , Largest Provider of Chipmaking Equipment, Seeing More Orders Than Estimated.

I think AMAT’s numbers should bode well for Intel , says Guy Adami.

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AFTER HOURS ACTION: WYNN

The headline: Wynn Resorts Reports Profits In Q4

Wynn Resorts Ltd., the casino company controlled by billionaire Steve Wynn, said Tuesday it swung from a loss a year earlier to a profit of $65.5 million in the fourth quarter, pushed by sharply higher VIP business in Macau, explains Dylan Ratigan.

The Macao’s numbers were expect to be huge, says Pete Najarian. And they weren’t. I expect that stock will take a hit.

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A CANARY IN THE HOUSING COAL MINE?

The headline:Masco , Maker of Paint & Faucets, Plunges Tuesday After Reporting Unexpected Loss.

I wouldn’t be short the homebuilders, anymore says Karen Finerman. I think that’s trade is done.

I think investors should take money off the table in Home Depot , adds Guy Adami.

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STREET SMACKDOWN

The headline: World Wrestling Entertainment Jumps 6% After Earnings Beat Estimates.

I’m not sure the stock is a screaming buy, says Jeff Macke, but it’s not bad.

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Trader disclosure: On Feb.12, 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), (ATVI), (DIS); Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT), (NOK), (XLF), (YHOO), (MCD); Najarian Owns (AAPL) Calls; Najarian Owns (FRE) Puts; Finerman Owns (GS) Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MSFT), (TSO), (VLO), (WMT), (YHOO), (AAPL), (GE), (DVA); Finerman's Firm Is Short (SPY), (IWM), (IJR), (IYR), (MDY), (LEH), (LEN); Finerman's Firm And Finerman Own (CROX) And (CROX) Options; Finerman's Firm Is Short (LEH) And Owns (LEH) Puts

  Price   Change %Change
DJIA
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AMAT
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BWA
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DD
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DE
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DOW
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GM
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HD
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INTC
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MA
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MAS
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MBI
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MO
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MSFT
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NOK
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POT
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WWE
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WYNN
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YHOO
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MDIG MUNI
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MCD
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