DOW FALLS TO LOWEST LEVEL SINCE OCT. 2006
The headline: Stocks falter, capping down week
Stocks tumbled for a second consecutive session after the government's February jobs report revealed employers slashed payrolls last month, compounding fears that the U.S. economy is succumbing to recession. From the open, the Dow didn't stand much of a chance, explains Erin Burnett who’s in for Dylan Ratigan.
There isn’t enough volume to make this capitulation, says Guy Adami. However I still like the rails and the energy sector. (To find out how Adami is trading this market click here.)
I think it’s almost time to start buying, adds Jeff Macke. However I’m still waiting for panic.
I agree, says Pete Najarian. We want to see the panic. And it could happen Monday. Look for a big percentage move in the VIX.
BANK STOCKS LOWEST SINCE 2003
The headline: Bank Stocks Crushed This Week As Credit Fears Spread Like Wildfire.
Financials fell, nearly to their 5-year lows, as investors vented their frustrations after hopes of an Ambac bailout fizzled, explains Burnett.
There’s put buying in US Bancorp. , explains Guy Adami. But I think that’s investors speculating USB could be the last bank to fall. Personally, I think it’s best of breed and a buy.
I think investors can start building a position in Goldman Sachs right now, says Jeff Macke.
CRUDE CROSSES RECORD $106
The headline: Crude Oil Ends Week Up 3.3% To $105.15 After Touching Record High Of $106.54 Friday.
Oil prices eased off a new record on Friday after buying by speculators hedging against the weaker dollar and inflation sent prices above $106 a barrel, explains Erin Burnett. A government report showing a second straight month of contractions in U.S. payrolls spurred talk the Federal Reserve might cut interest rates again, weakening the dollar early in the day. The greenback later rebounded, helping to ease oil off earlier highs.
I see risk in the integrated oil names. Instead check out oil services stocks such as Baker Hughes , says Guy Adami.
I like the United States Oil Fund , adds Jeff Macke.
GOLD FLIRTING WITH $1,000.
The headline: Gold Finishes Down $0.80 This Week To $974.20 After Climbing As High As $995.20.
Gold erased initial gains to finish lower amid talk that cash-squeezed funds sold bullion for liquidity, capping a volatile week which saw gold made several runs toward $1,000 an ounce, says Erin Burnett.
CAFFEINE HIGH AMID THE LOWS
The headline: Coffee Prices Touch Highest This Week Since July 1995.
The demand for coffee is surging, explains Pete Najarian. Consumption is much higher that anyone can supply.
TAKE SHELTER IN TECH?
The headline: Should You Hide From The Subprime Storm In Technology?
Since October, when they led the Nasdaq to a 52-week closing high, the so-called four-horsemen – Google (GOOG), Research In Motion (RIMM),Apple (AAPL) and Amazon (AMZN) have reversed course and dragged the index with them, explains Karen Finerman.
The four stocks were market darlings because investors saw successful technology companies' strong balance sheets and global exposure shielding them from the global credit storm. But as the prospect of U.S. recession became more likely these companies started to follow the general downtrend of stocks and are now depressing the sector.
At current levels I think there’s selective value in technology, says Karen Finerman. Look at Microsoft , she says.
Or Intel , counsels Jeff Macke. That stock is behaving well.
I like Oracle (ORCL) ahead of earnings, says Guy Adami. Find out why. Read “Oracle Tells Future”
GURU GARTMAN GIVES OUTLOOK
The headline: Chart Guru Dennis Gartman Tells Us What's Next For Stocks, Commodities.
Strategic investor Dennis Gartman is an esteemed commodities trader and the author of The Gartman Letter. Following is a synopsis of his main points.
I have held to the thesis that we are in recession, and that we entered this recession some time in the 4th quarter of last year, says Gartman. Friday’s non-farm numbers simply confirm that for me. I think the Fed has no choice but to continue to ease monetary policy, taking the yield curve to a very, very positive slope.
Given the Fed’s appears to be more concerned with economic well being and less concerned with inflation, the longer term trend for the dollar should be downward, but for gold and the commodity markets, it remains upward.
What’s the trade?
Be long nat gas, Gartman counsels. I think Penngrowth and San Juan Basin , are buys. And hold off on the agriculture names for now, he adds, because they look a bit overdone.
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Trader disclosure: On Mar. 7, 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), (YHOO); Pete Najarian Owns (AAPL), (C), (CSCO), (MS), (MSFT), (XLF), (MCD), (BKC); Pete Najarian Owns (COP) Calls, (AMAT) Calls; Pete Najarian Owns (XLB) Puts, (USB) Puts; Pete Najarian Owns (YHOO) And (YHOO) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (FLS), (HD); Finerman's Firm Owns (AAPL), (DVA), (FNM), (MSFT), (TSO), (WMT), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (RTH); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owned (DVA) On 12/17/07, 2/12/08, 2/26/08
Gartman Owns (COIN), (PBR), (PAL), (GLD), (SJT), (DE), (NFLX), (WDC), (RIG), (SWC) (SDS),
Gartman Is Short (GM), (DRYS), (GOOG), (CME), (APOL), (WFMI)
CIBC Gartman Index Owns Wheat, Corn, Gold, Crude Oil, Natural Gas, Sugar
CIBC Gartman Index Is Short S&P Futures