DOW 14,000, WE HARDLY KNEW YA:
The headline: Dow Drops 79 Points to Below 14,000 As Tech, Energy Stocks Decline
Jeff Macke says investors are taking gains and taking a pause.
The headline: Intel (INTC), Chip Makers Fall On Morgan Stanley's Bearish Outlook.
After Micron released earnings the stock plunged on its quarterly loss and fears of a supply glut explains Dylan Ratigan. On top of that Morgan Stanley slapped Intel (INTC), Advanced Micro Devices (AMD), and NVIDIA (NVDA) with "Underweight" Ratings
Pete Najarian suggests there could be a glut of chips, however he expects to see demand for PC’s to continue higher.
AMBER WAVES OF PAIN:
The headline: Wheat Falls By Daily Limit For A 2nd Straight Day On Planting Forecasts.
Freeport-McMoRan (FCX) and commodity stocks sold off after gold dropped 2.4% Tuesday, says Dylan Ratigan. Also crude ended the day little changed, but oil stocks declined.
Pete Najarian isn’t surprised to see a pull back. He suggests this could be a buying opportunity in BHP Billion (BHP) and FCX.
Guy Adami thinks a Sunday Times piece on gold sacred the dickens out of the market. On a related note, Adami says if investors want to buy a refiner he likes Tesoro (TSO) above $45.
WHALE WATCHING: ICAHNIC MOVES:
The headline: Wall Street Whale Carl Icahn Boosts Stakes In Temple-Inland (TIN), BEA Systems (BEAS).
Last week on Fast Money Carl Icahn talked about BEA Systems. He said, "Well, as we’ve said, we would like to see it sold. We think that being alone in that area is possibly dangerous and that the company is worth a great deal more to a synergistic buyer…I think there are 3 or 4 that are logical buyers - Hewlett-Packard and Oracle, possibly even an IBM, an SAP."
On Wednesday, Carl Icahn increased his stake in BEA Systems to 11% (from 8.5%) and he increased his stake in Temple-Inland to 8.9% (from 8.7%).
Karen Finerman likes that Icahn bought more BEAS shares. She speculates that he will try and nominate a slate of directors to the board to achieve his agenda, which is to get the company sold.
Guy Adami agrees with Finerman and thinks BEAS stock is going higher.
TOY STORY 3: THE MASSACRE:
The headline: Mattel (MAT), Hasbro (HAS) Drop After BMO Capital Markets Downgrades Toy Sector.
Jeff Macke says the downgrade is about taking gains. Macke shows the following chart and says he’s still long Hasbro.
Returns Since Macke Recommended on September 10th:
Disney (DIS) +3%
Hasbro (HAS) +11%
Nintendo (NTDOY) +18%
Scholastic (SCHL) +6%
SECTOR TRADE: OFF THE RAILS:
The headline: CSX Corp. (CSX) Shares Derail On Morgan Stanley Downgrade.
Morgan Stanley cites lack of freight volume growth in downgrading CSX explains Dylan Ratigan.
Guy Adami calls the downgrade gutsy. He explains Carl Icahn, Warren Buffet and other big investors remain in this stock. Adami feels $38 is the bottom.
OPTIONS ACTION: THE DISH ON ECHOSTAR:
The headline: Pete Seeing Unusual Options Activity In EchoStar (DISH); EchoStar Surging On Potential Break-Up, AT&T Buyout Talk.
Pete Najarian says recent call buying suggests to him the stock is going higher.
The headline: China ETF (FXI) Plunges 5% After Amazing 2-Day Run... As Rest Of China Vacations For Week, Hong Kong Index Sees Worst Intraday Reversal In Over 9 Years.
Karen Finerman says that’s why our market is never closed for more than 3 days in a row.
Guy Adami doesn’t expect much of a rally in Hong Kong for the rest of the week.
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Trader disclosure: On Oct 3, 2007, 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 (DIS), (HAS), (INTC); Macke Owned (DIS) And (HAS) On 9/10/07; Najarian Owns (BIDU); Najarian Owns (GS) Options; Finerman Owns (GS); Finerman Is Short (WYNN); Finerman's Firm And Finerman Own (KALU); Finerman's Firm Owns (ASD), (BWS), (NYX),(NMX), (BEAS), (PSS), (NVT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts