3M (MMM) popped 4%. They make things that everyone needs from Post-It notes to chemicals used in aircraft and as a result earnings increased by 3%. – Valuations look rich, counsels Guy Adami.
UAL Corp (UAUA) popped 9%. Although the airline reported a loss, the weakness was largely due to the high price of oil which has come down in recent days. – I think airlines will work better than casinos or automakers simply because they get away with charging higher prices for a worse experience, exclaims Jeff Macke.
American Express (AXP) popped 8%. Although third quarter earnings fell more than 20% they weren’t as bad as many had feared and in fact, beat analysts' estimates. – I’m a little skeptical of their numbers, says Karen Finerman.
DROPS (stocks that slid lower)
Western Union (WU) dropped 17%. The world's biggest money-transfer business reduced guidance due to uncertain global markets. – It seems like they have some long term troubles, warns Pete Najarian.
Freeport McMoRan (FCX) dropped 11%. The company posted a sharp decline in third-quarter profit and said it would curtail a planned mine expansion because of weaker metals prices. – If it holds $30.03 it’s okay to trade, says Guy Adami.
Netflix (NFLX) dropped 12%. The DVD rental company cut its current-quarter subscriber and revenue outlook for the second time in two weeks because of the weakening economy. – I’m not sure how to play this stock but I think obsolesce is inevitable, says Jeff Macke.
Sun Microsystems (JAVA) dropped 17%. The hardware giant issued an outlook that was below Wall Street's forecast and said it could take a charge for its biggest acquisition. – Not good, says Pete Najarian.
Lockheed Martin (LMT) dropped 9%. The world's largest defense contractor forecast earnings well below Wall Street estimates for next year, reflecting concern that growth in U.S. military spending will slow.
CME GROUP (CME) dropped 9%. A Raymond James analyst cut his rating on the firm to "Market Perform" from "Outperform" because macroeconomic problems are likely to be a drag on the company's volume growth in the coming quarter.
Trader disclosure: On Oct. 27, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU)(BTU)(C)(GS)(INTC)(MSFT)(NUE) -- Macke Owns (MCD)(WMT)(MSFT)(SDS)(UUP) -- Pete Najarian Owns (INTC) And Is Short (INTC) Calls, (MGM) And Is Short (MGM) Calls, (MS) Put Spread -- Jon Najarian Owns (UBS)(FCX) Calls, (SU) Calls -- Finerman's Firm Is Short (IYR)(IJR)(MDY)(SPY)(IWM)(BBT)(COF) -- Finerman Owns (GS) -- Finerman's Firm Owns (JNJ)(MRK)(MSFT)(SUN) -- Finerman's Firm Is Short (USO) -- Gartman Owns (FXE) And Is Short (FXY) -- CIBC Gartman Index Is Long The Australian Dollar And Is Short The Euro -- Pado does not have disclosures on: S&P 500, RTH, QQQQ, GS
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