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Market Turnaround

MARKET TURNAROUND

The headline: Stocks Reverse Steep Losses And Turn Positive

The Dow staged a dramatic turnaround Friday, shooting higher in the last half-hour of trading after word that a bailout plan for troubled bond insurer Ambac Financial could be announced next week.

CNBC’s Charlie Gasaprino reported shortly before the closing bell that a plan to help shore up the finances of Ambac Financial Group Inc. could be announced on Monday or Tuesday. Ambac shares jumped on the report and finished up $1.48, or 16 percent, at $10.71.

I don’t think the agencies can downgrade the bond insurers, now says Jeff Macke. However, I also don’t think the market can rally unless the financials are at least benign.

Read More:

> Banks Closing in on Deal for Ambac Bailout

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ROLLER-COASTER WEEK FOR BANKS:

The headline:
Financials Flail Through Volatile Week As Credit Fears Spread

Merrill Lynch lowered its ratings on government-sponsored lenders Freddie Mac (FRE) and Fannie Mae (FNM) to "sell," contending the companies face continued headwinds amid the credit crisis. Meanwhile, Goldman (GS) and other brokers tumbled Friday after Sanford C. Bernstein slashed profit estimates, explains Dylan Ratigan.


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TO $101 AND BACK

The headline:Crude Oil Closes Up 3.5% To $98.81 This Week After Surging As High As $101.32.

Light, sweet crude settled at $98.81 a barrel on the New York Mercantile Exchange amid concerns about potential supply disruptions and cold weather, explains Dylan Ratigan

The breakout this week seems like it’s straight out of a text book to me, says Jeff Macke. Stay long.

I like Baker Hughes and Schlumberger says Guy Adami. Take a look.

Recessionary fears and the high price of oil aren’t a combination that I find attractive, says Karen Finerman. Stay away.


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GOLD, COMMODITY BREAKOUT

The headline: Gold, Platinum, Copper, Coal - If It Came From The Earth, It Was Rallying This Week.

Gold and platinum both soared to record highs Thursday on South Africa supply concerns. Meanwhile Kinross Gold shares fell Friday on disappointing earnings.

Find out how Guy Adami recommends playing gold. Read The Right Gold Trade.

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CONTINENTAL DRIFT

The headline:European Stocks Add Modest Gains This Week While U.S. Shares Fall.

Emerging markets (EEM) and Brazil (EWZ) appear to be picking up momentum, explains Tim Seymour, despite the domestic stock market. This is a different world.

I don’t agree, says Jeff Macke. I don’t think the United States can go belly up while the rest of the world thrives.

I agree with Macke, Karen Finerman chimes in.

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FRAYED WIRELESS

The headline:AT&T (T), Vodafone (VOD), Telecom Stocks Tumble This Week As Price War Looms.

The two largest U.S. mobile service providers, Verizon Wireless (VZ) and AT&T Inc., on Tuesday unveiled $99.99-a-month plans for unlimited calls. T-Mobile USA went a step further by including text messaging in that price.

Sprint has yet to respond, but analysts say it could be considering an unlimited calling plan for as low as $60 a month in a bid to stem customer defections.

That could force AT&T and Verizon Wireless, a venture of Verizon Communications and Vodafone Group, to cut their prices or face losing customers, explains Dylan Ratigan.

I like AT&T on a valuation basis, says Guy Adami.

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AFTER HOUR ACTION

The Headline: The FDA Signals Likely Approval Of Genentech’sAvastin For Breast Cancer.

I think this could be a 2 billion dollar drug going forward, says Guy Adami. My sense is there’s no way the FDA will back down.

Guy told you about this Thursday. Read DNA's D-Day.

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Trader disclosure: On Feb. 22, 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 (DIS), (YHOO); Seymour Owns (AAPL), (INTC), (MER), (S), (TSO); Seygem Asset Management Owns (GFA); Finerman Owns (GS); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (MPG), (MSFT), (TSO), (VLO), (WMT), (YHOO), (AAPL), (GE), (JCP), (KSS); Finerman's Firm Is Short (IYR), (IWM), (IJR), (MDY), (SPY), (GFI), (LEH); Finerman's Firm And Finerman Own (HD) And (HD) Puts; Finerman's Firm And Finerman Own (CROX) And (CROX) Options; NBC Universal Is The Parent Company Of CNBC

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