It’s a tug of war out there, folks. Tech attempts to pull the market higher but the housing slump drags us down. What’s the word on the Street?
EBAY PULLING BACK AFTER HOURS
The headline:eBay (EBAY) CFO: Rapid Growth Of Low Margin Business Will Hurt ’08 Margins.
Jeff Macke recommends letting the after hours buying settle a little, then he says the stock is a buy. He’s not concerned.
Pete Najarian thinks there’s more upside in this stock.
Guy Adami thinks the trade is United Parcel Service (UPS). If sales are relatively strong in online retail, he thinks it stands to reason UPS will do well, too.
HOUSE OF BLUES
The headline:Washington Mutual (WM) CEO Sees No End To Housing Slump
Karen Finerman says she’s not surprised the last quarter was bad for WM, but she’s concerned that the next quarter could be worse.
Pete Najarian suggests the market digested the numbers in financals too quickly and he expects adjustments.
Jeff Macke feels housing will continue to be a train wreck for the financials, however he’s bullish on other sectors.
The headline: The SEC opened an informal investigation into stock sales by Countrywide Financial Corp.'s (CFC) CEO.
Guy Adami says, where’s the smoke there’s often fire.
BREAKING NEWS: BOSTON SCIENTIFIC
The headline: Boston Scientific (BSX) To Cut 2300 Jobs, Approx 13% Of Workforce
Pete Najarian says stay away from this company as well as Medtronic (MDT). He feels there’s too much risk.
IN TECH WE TRUST
The headline:Intel (INTC),Yahoo (YHOO) Surge on Earnings, Overcoming More Housing Woes.
Karen Finerman is concerned that despite strength in tech, the overall trend is toward bad news and tougher times in ’08.
Jeff Macke says bad news can be good. He feels weakness could mean another rate cut.
Guy Adami thinks CEOs feel as if they have a window of opportunity right now to lower Street expectations.
The headline: Goldman Sachs Releases Positive View on Wal-Mart (WMT) and Negative On Nordstrom (JWN).
Whatever their issues are, they are likely reflected in the price already, says the report. Karen Finerman adds in the history of WMT stock she’s never seen a valuation like this.
FAST MONEY WORLD: SHANG HIGHS & MUMBAI MAYHEM
The headline: China ETF (FXI),PetroChina (PTR), China Mobile (CHL), China Life (LFC) All Surging Wednesday.
Fast Money regular Tim Seymour joins the conversation. He says there’s speculation that the Shanghai and Hong Kong markets could merge and consequently companies that trade in Shanghai are trading at a premium.
Seymour emphasizes that it’s only speculation. Any investor who buys these stocks should also take out put protection, he says.
On a related note, Dylan Ratigan says India shares plunged 10%, overall.
Tim Seymour explains the government of India is very concerned about currency flow and India is looking to limit the amount of foreign capital coming in. As a result, he says the India ADRs that trade in New York are taking a hit.
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Trader disclosure: On Oct 17, 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), (INTC), (SWY); Najarian Owns (C), (GOOG); Najarian Owns (CY) Options, (ETFC) Options, (EBAY) Options, (FXI) Options; Finerman Owns (C), (GS); Finerman's Firm Owns (BIIB), (WMT), (TGT), (MO), (CTX), (COP), (LTD), (MSFT); Finerman's Firm And Finerman Own (HD), (ASD); Finerman's Firm Owns S&P 500 Index Puts; Finerman's Firm Owns Russell 2000 Puts; Tim Seymour Disclosure: Seygem Asset Management Owns (INFY)