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Buy or Bail? Playing Sectors That Led Market Lower

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Following are sectors that led the market lower.

BUY OR BAIL: UTILITIES?
Eric Bolling says get out of the Utilities SPDR ETF (XLU). Buy it cheaper on a dip or when you know it’s good again.

BUY OR BAIL: TELECOM?
Jeff Macke says give it a little space. Eric Bolling says he likes AT&T (T) because they’ve got the iPhone.

BUY OR BAIL: BANKS?
Pete Najarian says the growth to the upside remains incredible. He says buy Goldman Sachs (GS). Guy Adami agrees.



BUY OR BAIL: HOMEBUILDERS?
Eric Bolling says commercial REITs such as Public Storage (PSA) haven’t been hurt nearly as much as the homebuilders.

TRADE UPDATE: TOLL BROS.: HOUSING'S HEAVY TOLL:
The headline: Toll Brothers (TOL) Tumbles On Fears Rising Rates Will Hurt Prices, Sales
The word: Guy Adami says he’s out of this stock and with rates going higher investors will avoid homebuilders.

WEAK RETAIL FUELS SELLOFF.
The headline:Macy's (M), J.C. Penney (JCP) Sales Decline in May on Surging Gas Prices, Slumping Housing Market ..Wal-Mart (WMT) May Sales Rise Just 1.1%
The word: Jeff Macke recommends waiting on the retail names until later in the Summer. However, he likes Nordstrom (JWN) as a long term story.

TRADE UPDATE: SAKS' SWEET MUSIC:
The headline:Saks (SKS) Shares Surge On 38% Jump In May Same-Store Sales
The word: Guy Adami says Saks is a tourist destination and that helps Saks tremendously.

SUBLIME SUBPRIME?
NovaStar Financial (NFI) Adds To Gains Following Successful Sale Of Home Loans
Pete Najarian believes NFI is a takeover candidate based on the volume of options traded Thursday.

Symbol
Price
 
Change
%Change
GS
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JCP
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JWN
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SKS
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T
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TOL
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WMT
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Trader disclosure: On June 6 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 (JWN), Najarian Owns (AMD),(.VIX),(AMTD), (AAPL), (NFLX), (NVDA); Bolling Owns (T), (ICE), (NMX), (MPEL); Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures; Bolling Is Short (FXI) And Owns (FXI) Puts;