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No. 2 - Drugs & Money

Two things could derail the market this week; drugs and money. No, we’re not talking about some wild party! We’re referring to the slew of earnings set to come out this week. Bank of America (BAC), Citigroup (C), Pfizer (PFE) and Wyeth (WYE) - a combined three quarters of a billion dollars in market cap - are all reporting results this week. What’s the trade?

Jeff Macke says financials have been a fly in the ointment during this rally. He’s not expecting tremendous news from Citigroup, however, he thinks JP Morgan (JPM) needs to perform well Tuesday or financials will drag the market lower.

In addition, Jeff says Wells Fargo (WFC) has huge mortgage exposure. He adds as a rule of thumb if the financials don’t perform, traders sell first and ask questions later.

Eric Bolling says financials have continued to lag and he has not warmed up to the sector.

So much for money - onto drugs. Pete Najarian tells the panel to get out of Big Pharma names such as Pfizer and Wyeth before earnings are announced. He also does not like Big Biotech such as Genetech (DNA). Instead, Pete says stick with small biotechs such as Biogen (BIIB), Gilead (GILD) and Amylin (AMLN).

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Trader disclosure: On July 17th 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 (ATVI); Bolling Owns (BP), (XOM), Corn, Soybeans, Gold, Silver, Platinum, Copper; Najarian Owns (SNDK); Seymour Owns (BAC), (BBD), (COP), (INTC), (ITU); GE Is The Parent Company of CNBC; CNBC Is A Service Of NBC Universal And Dow Jones