The Stimulus Trade: What's Hot?

Lawmakers are pulling out the big guns in their efforts to attack the worsening economic crisis. On Friday Congress voted on the highly anticipated $787 billion stimulus package, one of the largest spending initiatives our nation has ever undertaken to stave off a downturn.

The final package includes about $500 billion in spending and $287 billion in tax cuts. The White House has said that it would take about a month for the money to begin flowing.

Some big manufacturers moved higher Friday, on expectations they will be among the first to benefit from the stimulus with Boeing and United Technologies both posting gains.

Consumer stocks, however, dropped on skepticism whether consumers will rush to spend the tax cuts that are part of the stimulus.

So, what’s the trade, now? For insights we turned to Zach Karabell, president of RiverTwice Research and Dennis Gartman, author of The Gartman Letter.

Zach Karabell

Considering the aggressive actions being taken by lawmakers, Karabell recommends putting a few names on your radar.

Before the show Karabell told our producers to take a look at Google, AMD, IBM, and VMWare for their cutting edge technology. He feels it’s bullish that they’re all focused on next generation initiatives – and that’s where the stimulus is focused.

“This is like bell ringing that reminds you where these companies are relative to the market,” he says. In other words, out in front.

And he also says, take a look at battery companies like Johnson Controls and 3M .

Dennis Gartman

Dennis Gartman just finds the whole stimulus confusing.

“The bill is 1100 pages and the only thing I come away with is that they’re focused on infrastructure and alternative energy,” he says. "I’m long First Solar but I’m short many other things against it."

And, in case you're wondering he owns copper but that’s a trade on China’s stimulus.

Read More:

> The Stimulus Trade: An Interview with U.S. Transportation Secretary Ray LaHood

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Trader disclosure: On Feb. 13th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (AMGN) & (AMGN) Puts; Terranova Owns (IBM) Call Spreads; Terranova Owns (XBI), (OTS), (FCX), (KCE); Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Owns (MSFT), (RIG), VNO); Finerman's Firm Is Short (BBT), (TM), (IYR), (IJR), (IWM), (MDY), (SPY), (COF), (USO); Macke Owns (AAPL), (MS), (TM), (SDS); Seymour Owns (AAPL), (BAC), (EEM), (FXI), (YUM); Seymour's Firm Owns (VIP)

Karabell Owns (GE)