GO
Loading...

Biggest Jump In 3 Weeks

Monday, 25 Feb 2008 | 6:10 PM ET

BIGGEST JUMP IN 3 WEEKS

The headline: Dow Closes Higher After S&P Affirms “AAA” Ratings

Stocks advanced late in the session after S&P affirmed its rating of bond insurers MBIA(MBI) and Ambac Financial Group (ABK) . S&P said it appears the insurers will raise enough cash to pay claims they are likely to face, explains Dylan Ratigan.

S&P affirmed its "AAA" rating on Ambac and MBIA, though Ambac remains under scrutiny for a possible downgrade in the next few months.

Also, the company will be eliminating its dividend, Ratigan adds.

I don’t know what to make of this. It seems to me the market is just looking for any reason to go up, says Karen Finerman.

I think around March 1st the volatility lightens up, says Pete Najarian.

Read More:

>Ambac Still Needs Ratings Firms To Approve Rescue


-------------------------------------------

SWEET AND LOWE
The headline: Lowe's (LOW) Shares Pop After Profit Falls Less Than Expected.

Home improvement retailer Lowe's reported that profits would fall less than expected which the Street interpreted as positive news and shares gained 4%, explains Dylan Ratigan.

I think they set the bar low, says Karen Finerman. I guess investors think they probably can’t do worse.

-------------------------------------------

THE RAW MATERIALS OF A RALLY

The headline: Energy ETF (XLE), Materials ETF (XLB) Lead Market As Commodities Continue Run.

I like nat gas, says Guy Adami, Schlumberger (SLB) and Baker Hughes (BHI) are worth a look. And stay away from the gold miners, he adds. Also check out Alcoa (AA).

I recommend coal stocks such as Arch Coal (ACI), Massey (MEE), and Peabody Energy (BTU), adds Pete Najarian. Buy them on any dip. And keep your eye on Alpha Natural Resources (ANR).

Alcoa scares me here, says Jeff Macke. So do the coal names for that matter.

-------------------------------------------

LIFE TAKES VISA...BUT DO BROKERS?

The headline: Visa's Possible $17B Stock Offering Would Be Largest IPO In U.S. History.

Visa said Monday it expects to raise almost $19 billion from an initial public offering, which would easily become the largest IPO in U.S. history, explains Dylan Ratigan.

San Francisco-based Visa Inc. said in a Securities and Exchange Commission filing it will offer 406.6 million shares at $37 to $42 per share. There will be an option for its underwriters to buy an extra 40.6 million shares to cover any excess demand.

I think Visa and Mastercard (MA) will trade closely, says Karen Finerman.

I’d buy Mastercard on any dip, adds Pete Najarian.

-------------------------------------------

AN INFLATED SENSE OF IMPORTANCE

The headline: All Eyes On Inflation Report Tuesday After CPI Last Week Stoked Stagflation Fears.

I think the numbers will make the week exciting, but I don’t see a trade here, says Pete Najarian.

Inflation and the jobs numbers are the two numbers I fear, adds Karen Finerman.

-------------------------------------------

OPTIONS ACTION:IT'S ALL ABOUT NETWORKING

The headline: Pete Seeing Unusual Options Activity In Network Appliance (NTAP)

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

Call buying suggests to me that this stock could move higher, says Pete Najarian.

______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Feb.25, 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 (ATVI), (YHOO), (DIS); Najarian Owns (C), (MS), (MSFT), (XLF), (YHOO); Najarian Owns (CCOI) Calls, (AA) Calls, (NTAP) Calls; Najarian Owns (ACI) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MSFT), (SUN), (TYC), (WMT) (YHOO), (AAPL); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (LEH); Finerman's Firm Owns Shares Of Royal Bank of Scotland Group plc; WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; GE Is The Parent Company Of CNBC

  Price   Change %Change
LOW
---
MA
---
MBI
---
NTAP
---
SPDR MAT SEL
---
SPDR FIN SEL
---
ANR
---
BTU
---
ACI
---
AA
---
SLB
---
MCD
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report