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Halftime: Analyst Downgrades (!) Apple

Look outside.

OK. Did you see any pigs flying?

Hmm. Neither did we. Yet, one analyst has done the unthinkable.

JMP Securities analyst Alex Guana downgraded Apple to 'market perform' from 'market outperform.' Guana said Hon Hai — Apple's largest manufacturing partner in China — has experienced sales-growth deceleration in recent months. Guana isn't sure why sales dropped off, but said Hon Hai's slowdown doesn't bode well for Apple.

Apple has said it's seeking to use other manufacturers, which could explain a drop-off in Hon Hai's sales. But outside of Apple manufacturer Foxconn, Guana said other Chinese tech manufacturers are only slowing down. So if Apple is going to other manufacturers, he isn't sure who.

Patty Edwards, chief investment officer at Trutina Financial, is somewhat concerned about Hon Hai not tracking well. Edwards said she doesn't know a lot about Chinese manufacturing, but if an analyst has enough conviction to issue Apple a downgrade, she thinks that's noteworthy. Given Hon Hai's slowdown and how disaster has struck Japan, she recommends caution in the tech space.

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Trader disclosure: On Mar. 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian Owns (AAPL), (AAPL) Call Spreads. Pete Najarian Owns (BAC) Calls. Pete Najarian Owns (C). Pete Najarian Owns (F) Bonds. Pete Najarian Owns (IBM) Calls. Pete Najarian Owns (MS). Pete Najarian Owns (JPM) Call Spread. Pete Najarian Owns (TCK). Pete Najarian Owns (BTU) Calls Spread. Pete Najarian Owns (HK) Call Spread. Pete Najarian Owns (MTW) Calls. Steve Cortes Owns (EXC). Steve Cortes Owns (TM). Steve Cortes Owns (SDY), Is Short S&P. Steve Cortes Is Long U.S. Dollar vs. Australian Dollar. Steve Cortes Is Long U.S. Dollar vs. Canadian Dollar. Steve Cortes Is Long U.S. Dollar vs. Euro. Steve Cortes Is Long Oil. Steve Cortes Is Short (C). Steve Cortes Is Short (F). Steve Cortes Is Short Gold. Steve Cortes Is Short Silver. Steve Cortes Owns (SO).

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC

PATTY EDWARDS
Edwards Owns (XLB) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (SPY) For Clients

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own (TSO)
Accounts Managed By Kanundrum Capital Own (VLO)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (UUP)
Accounts Managed By Kanundrum Capital Are Long U.S. Dollar
Accounts Managed By Kanundrum Capital Are Long U.S. Bonds
Accounts Managed By Kanundrum Capital Are Long Copper
Accounts Managed By Kanundrum Capital Are Short Euro
Accounts Managed By Kanundrum Capital Are Short Yen
Accounts Managed By Kanundrum Capital Are Short Pound
Accounts Managed By Kanundrum Capital Are Short (XLF)
Accounts Managed By Kanundrum Capital Are Short (IXG)
Accounts Managed By Kanundrum Capital Are Short (XRT)
Accounts Managed By Kanundrum Capital Are Short (EWJ)
Accounts Managed By Kanundrum Capital Are Short (EWY)

ALEX GAUNA
JMP Securites Is A Market Maker In (AAPL)

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