DOW DROPS 175
The headline: Stocks Lost Ground On Apparent Worry About The Economic Outlook.
Federal Reserve Chairman Ben Bernanke said the economy should grow at a slow pace before recovering later in the year, explains Dylan Ratigan. Although his comments were seen as indicating that more interest rate cuts are likely the Dow closed lower.
Also at a congressional hearing lawmakers and regulators expressed concern that a collapse of the bond insurers--which back the funding for building hospitals, schools and more--could inflict further pain on banks suffering from the mortgage meltdown and lead to higher taxes for homeowners.
Make sure to put collars on your trades, says Pete Najarian, to limit your risk.
WRITE-DOWN THE HATCH
The headline: Financials Sink After UBS Earnings, Lehman Comments Stoke Write-Down Fears.
Financial companies' shares fell after Lehman Brothers cut its price target on Goldman Sachs Group Inc and reduced its first-quarter earnings estimates on several large broker-dealers, Dylan Ratigan says. Lehman expects further sizable markdowns from subprime mortgage securities, leveraged loans and commercial mortgages.
Also, Swiss bank UBS(UBS) has revealed $26.6 billion in exposure to risky U.S. mortgages distinct from subprime loans, increasing its vulnerability to the global credit crisis and sending its shares sharply lower.
I like Goldman (GS), says Karen Finerman. They’re a world class organization, but investors are afraid that they will come out with a write-down and that’s dragging down share price.
Wait until they report - but then it could be time to buy GS, says Guy Adami.
I only think Goldman is a buy, says Pete Najarian, if it dips another $10. But I also think they could have skeletons in their closet.
LAMPERTS CUTS CITIGROUP STAKES
The headline: Hedge fund legend Eddie Lampert Cuts Stake In Citigroup (C) to 19 million shares from 28 million
Smart investors take their losses, says Jeff Macke. He’s smart and getting out of Dodge.
BUFFETT TAKES POSITION IN GLAXO
The headline: Berkshire Hathaway Reports 1.5 Million GlaxoSmithKline (GSK) Stake As Of Dec. 31
That’s a new position for him, says Dylan Ratigan. He also added to his positions in Wells Fargo (WFC) and Carmax (KMX).
I think GSK is setting up for a trade. But you’d have to stay in it for 18 months, says Guy Adami.
And keep your eye on Pharmion (PHRM) adds Pete Najarian.
ACKMAN SELLS MCDONALD’S
The headline: Activist Investor Bill Ackman Sells McDonald's (MCD) Stake, Adds To Sears (SHLD), Target (TGT), Borders Holdings (BGP).
Ackman has said Target should be a $120 stock, says Karen Finerman, in about 2 years.
I think it will take forever to turn around Sears, says Jeff Macke.
AMERICA'S NEW ERA: RAILROADS
The headline: Rail Shares Fall Thursday Even After Bear Stearns Lifts Price Target
I think this could be the turn in the economy that everyone is talking about, says Pete Najarian.
How’s Guy Adami playing it? Read Rebuilding The Rails
The headline: UnitedHealth (UNH) Put Activity Surged Yesterday Before New York Attorney General Announced Lawsuit.
It seems to me like somebody knew something, says Pete Najarian.
Also I’m seeing increased volume in Seagate Technology (STX) put options, Najarian adds. That suggests to me that the stock could go lower.
AFTER HOURS ACTION: CHIPOTLE
The headline: Chipotle (CMG) Shares Tumble After Hours On Lower-Than-Expected Earnings
Are you surprised, exclaims Jeff Macke.
OIL HITS 1-MONTH HIGH
The headline: Crude Oil Climbs 2.3% To $95.46, Fueled By Thursday's Inventory Report.
Oil surged more than 2 percent to top $95 a barrel on Thursday, spurred by supply concerns and strong economic data from giant consumers the United States and Japan, says Dylan Ratigan. The rise added to gains earlier in the week that came amid an escalating legal battle between Exxon Mobil Corp (XOM) and Venezuela over the nationalization of a giant heavy oil project.
Watch XTO Energy (XTO) says Guy Adami. I think it’s priced Friday. If you want to play nat gas look to XTO if there’s a sell-off.
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Trader disclosure: On Feb.14, 2008, 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 (ATVI), (YHOO), (INTC; Najarian Owns (C), (CSCO), (MS), (MSFT), (YHOO), (MCD), (XLF), (NOK), (ETFC); Najarian Owns (AAPL) Calls; Finerman Owns (GS); Finerman's Firm Owns (SUN), (TSO), (VCLK), (AAPL), (WMT); Finerman's Firm Owns (MSFT) And Is Short (MSFT) Calls; Finerman's Firm Owns (YHOO) And Is Short (YHOO) Calls; Finerman's Firm Is Short (SPY), (IJR), (IYR), (MDY), (IWM), (WFC); Finerman's Firm And Finerman Own (FLS); Finerman's Firm And Finerman Own (HD), Finerman Owns (HD) Puts; Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm And Finerman Own (KALU); Finerman's Firm And Finerman Own (CROX) And (CROX) Options