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Stocks Tumble More Than 2%

DOW PLUNGES 315 POINTS

The headline: Stocks Tumble More Than 2%

Gloom about the economic outlook helped to pull The Dowdown sharply, explains Dylan Ratigan. The losses came after reports on personal spending and consumer sentiment gave no immediate reason for believing that economic weakness will level out soon. Also, a larger-than-expected loss from insurance giant AIG raised more concerns about fallout from the credit crunch.

The Fed is talking like they’re going to cut again, says Karen Finerman. I like the market here, but it could go down further.

Find out what the traders think about the day’s market action and how they’re trading it. Read Friday’s Stock Slide.

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BREAKING NEWS ON DEFENSE CONTRACT

The headline: Boeing (BA) Shares Fall as Northrop Grumann (NOC) and EADS Win $40 Billion Tanker Contract.

If you want to play defense look at Raytheon (RTN), says Guy Adami.

I agree, says Jeff Macke.

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WARREN BUFFET'S ANNUAL LETTER

The headline: Buffett: Insurance Business Had Excellent Year, But Party Is Over

Warren Buffett's annual letter to the shareholders of Berkshire Hathaway (BRK), and the entire financial world, was released Friday, explains Dylan Ratigan. It includes a warning about not expecting too much from Berkshire's insurance business. While it had an "excellent" year, helped by "the second year in a row free of major insured catastrophes," Buffett proclaims, "That party is over."

What he’s saying is that his business is getting more challenging because they’re not getting the premiums in order to take the risks, explains Jeff Macke. That’s fine, I still think Berkshire Hathaway is a buy.

Read More:

> Warren Buffett's Letter to Shareholders: Don't Expect Double-Digit Stock Gains Over Long Run

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FINANCIALS FLAILING

The headline: American International Group (AIG) Plunges, Friday Caps Another Horrid Week For Financials.

American International Group, on the heels of reporting its largest-ever loss, said on Friday the subprime crisis had thrown it into "uncharted waters" that were likely to remain choppy through 2008.

If you want to buy AIG, I think you should stop out at $44.50, counsels Guy Adami.

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GOLD FAST APPROACHING $1,000

The headline: Gold Hit A Record High Of $978.50 Overnight As Investors Seek Hedge Against Persistent Inflation

U.S. gold futures closed up on Friday, after a third straight session of record highs driven by a weak dollar, and traders bet a historic commodities rally could soon take the precious metal over $1,000 an ounce, explains Dylan Ratigan.

The weak dollar should remain bullish for gold and oil, says Jeff Macke.

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OIL CROSSES $103 OVERNIGHT

The headline: Crude Oil Retreats Friday After Passing $103 Overnight.

Oil fell to just below $102 a barrel, back from a record high reached due to supply disruptions, explains Dylan Ratigan. The latest jump followed the shutdown of an oil pipeline in Ecuador and a fire at a European natural gas plant.

I think investors should check out natural gas, says Pete Najarian. The chairman of Chesapeake bought 500,000 of his own shares. That speaks volumes about where he thinks the stock is headed.

Look at Apache (APA) and XTO Energy (XTO) on pullbacks, adds Guy Adami.

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INFLATING FEARS

The headline: Inflation Jumps The Most In 4 Months In January, Wiping Out Gains In Income.

I think inflation and the jobs number are concerns, says Karen Finerman.

The latest jobs numbers comes out next week, and I’m not expecting great things, adds Jeff Macke.

If you’re looking for a recession play look at Altria , Guy Adami says.

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TECH SHORT CIRCUITS

The headline: Apple , IBM Lead Tech Comeback This Week That Fizzles Friday.

I like Apple at these levels, says Pete Najarian, as a value play. But you have to hold onto the stocks. Also IBM looks attractive to me.

I think Apple will work, but it’s going to take a while, adds Jeff Macke.

Guy Adami reminds the panel that he likes Western Digital (WDC) on dips.

What do you think? Will Apple rebound to new highs this year? Tell us now. Answer the Charles Schwab Question of the Day.

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DEALS FROM HELL

The headline:Sprint NextelEarn Title Of 'Deal From Hell' With $30B In Merger-Related Write-Downs.

AT&T (T) and Verizon (VZ) look like buys to me, says Guy Adami. They were dragged down by Sprint, and shouldn’t have been in my opinion.

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BOTTOM IN FOR RETAILERS?

The headline: Retail Price Action This Week Not Nearly As Bad As Earnings Would Suggest.

I think Kohl’s (KSS) is a decent value, says Karen Finerman. And look at JC Penney if it gets under $45.

I’m bullish on Wal-Mart (WMT), The Gap (GPS) and Costco (COST), adds Jeff Macke.

Mastercard (MA) looks like a buy to me, says Guy Adami, if the Visa IPO pulls down the stock.

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OPTIONS ACTION: GETTING CRAZY IN FT. LAUDERDALE

The headline: Pete Seeing Heavy Put-Buying Activity In Fort Lauderdale-Based Citrix Systems

Options action suggests to me that the stock could go significantly lower within 6 weeks, says Pete Najarian.

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Trader disclosure: On Feb.29, 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), (ATVI), (DIS), (INTC); Najarian Owns (AAPL), (BIIB), (BKC), (C), (CSCO), (MS), (MSFT), (YRCW), (XLF); Najarian Owns (YHOO) And (YHOO) Calls; Finerman Owns (GS); Finerman's Firm Owns (AAPL), (CROX), (FNM), (GE), (MSFT), (TSO), (WMT); Finerman's Firm Is Short (IYR), (IWM), (IJR), (MDY), (SPY); Finerman's Firm And Finerman Own (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm And Finerman Own (TYC); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (MO)
Finerman's Firm Owns (YHOO); Finerman's Firm Is Short (LEN); Seymour Owns (MSFT); Seygem Asset Management Owns (TS), (TSO), (HXM), (EEV), (ITU); Seygem Asset Management Is Short (EEM); GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

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DJIA
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AFF
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CHK
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CTXS
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IBM
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JCP
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MO
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NOC
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S
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KSS
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APA
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AAPL
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BA
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