STOCKS JUMP 2% AHEAD OF FED
The headline: S&P 500, Dow Average Climb 2% This Week Ahead of Fed Meeting Next Week
I think investors should buy the S&P, set a stop at 1495, “grab a pair” and go for it, says Jeff Macke.
There are not a lot of things left to go wrong and there are a lot of things left that could go right, adds Karen Finerman.
Pete Najarian thinks there are problems “out there” in hedge-fund land. Corus Bank (CORS) is a great example of a stock with too much short interest for Pete’s comfort level.
BUSH ON BANKS: MISSION ACCOMPLISHED
The headline: Bank Shares Rally On Mortgage 'Bailout' Plan.
The White House plan to freeze certain mortgage rates and help homeowners refinance their loans sent bank stocks higher, despite a slew of analyst downgrades, explains Dylan Ratigan.
This could be the bottom for US Bancorp (USB), says Guy Adami. (It’s worth noting, Adami doesn’t think this company has much subprime risk.
MORGAN STANLEY ON THEM MOVE
The headline: Morgan Stanley's Institutional Securities COO Resigns Friday, Following Zoe Cruz Resignation.
Also, Morgan Stanley (MS) signed a cooperation agreement this week with Chinese broker China Fortune Securities explains Pete Najarian. It could be a signal from CEO John Mack that Morgan is moving forward, suggests Najarian, and I’m getting bullish on this stock.
WHAT'S UNDER THE TREE?
The headline: Holiday Sales Outlook Uncertain After Retailers Provide Mixed Picture This Week.
Shares of Saks (SKS) and Nordstrom (JWN) surged this week, explains Jeff Macke while Target (TGT) sunk after disappointing November same-store sales. Of all the retailers he likes The Gap (GPS) best.
Guy Adami prefers Mastercard (MA) which he recommends buying on a pullback.
> Read more: Karen’s “Retail Bargain”
SEMI GOOD WEEK
The headline: Intel (INTC), Micron (MU), Rambus (RMBS), Semiconductor Stocks Break Out This Week.
Thomas Weisel upgraded Intel Wednesday, citing growing global demand for laptops explains Pete Najarian. However, his favorite tech name remains Apple (AAPL).
COMMODITIES ARE KING
The headline: Materials, Energy Stocks Lead Market Rally This Week With Exxon (XOM),Chevron (CVX), ConocoPhillips (COP) Posting Healthy Gains.
Freeport-McMoRan (FCX) is a materials stock investors should consider on any pull back, according to Guy Adami, as well as US Steel (X.)
WIDOWS & ORPHANS REJOICE
The headline: Utilities - Beloved For Their Dividends - Surge This Week On Rate-Cut Expectations.
Allegheny Energy (AYE), American Electric Power (AEP), PG&E (PCG), Veolia (VE), and Suez (SZE) all posted strong gains this week, says Jeff Macke.
Take profits on Public Service Enterprise (PEG) going into December 11th, says Guy Adami. It’s probably got a 50 point cut priced in the stock.
Forget that, buy coal says Pete Najarian.
RATE CUTS 'ROUND THE WORLD
The headline: Global Markets Surge This Week as Rate Cuts Catch On.
The Bank of England cut key rates Thursday by quarter-point, explains Karen Finerman. It’s the 1st reduction in 2 years. She adds it’s good for the US because it gives the Fed more room to cut. And, she adds, copper is down 15% in the past 2 or 3 months – which could be a sign of inflation coming down. That also would give the Fed room to cut.
Jeff Macke agrees.
The dollar might have turned – going into ’08 – long dollar could be the trade adds Guy Adami. And if I had to go into emerging markets China Mobile (CHL) is my play.
Pete Najarian prefers agriculture names such as Monsanto (MON) as his global play.
DAILY CHECK ON SOLARFUN
The headline: Solarfun (SOLF) Adds 12% Friday After Shedding 13% Over The Last 2 Days.
SunPower (SPWR) also jumped Friday after Jefferies issued an upgrade explains Pete Najarian. However, he prefers Cypress (CY) and MEMC (WFR) in the space.
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Trader disclosure: On Dec. 7, 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 (INTC), (ATVI), (DIS); Najarian Owns (TGT) Options, (XMSR) Options, (BSC) Options, (EMC) Options; Finerman's Firm And Finerman Own (GS), (PLCE),(EL),(CROX),(JWN); Finerman's Firm Owns (KSS), (SKS), (WMT); Finerman's Firm Is Short (SPY), (IJR), (IYR); Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (BIIB) Options; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC.