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Dow Gives Up 140-Point Rally

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HERE WE GO AGAIN:

The headline: Dow Gives Up 140-Point Rally as Financial Distress Knocks Market Again Following One-Day Respite

Eric Bolling says American Home Mortgage (AHM) dragged down the market. He thinks AHM will likely have trouble meeting their margin calls to companies such as UBS (UBS), Bear Stearns (BSC) and Bank of America (BAC).

On a related note, when asked how he traded Tuesday’s market Eric explains he sold S&P Futures; and Nasdaq Futures

Guy Adami doesn’t think we’ve seen capitulation in the market. He expects to see 12,700 in the Dow by Labor Day.

Guy thinks this is an opportunity to buy engineering stocks, drillers and aerospace names

Pete Najarian is still buying stocks he loves such as Goldman Sachs (GS) as well as puts for protection.

Jeff Macke recommends taking some gains off the table and relax. He still likes McDonald’s (MCD) and Costco (COST) but expects they will go lower in the short term.

Symbol
Price
 
Change
%Change
S&P 500
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NOVU
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COST
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GS
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MCD
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OIL ABOVE $78:

The headline: Crude Jumps Nearly 2% To Record Close On Supply Concerns; Record Oil Close Helps Spark Market Turnaround

Eric Bolling recommends owning oil for the charts. He recommends owning the Oil Service HOLDRs (OIH).

A BITE OUT OF APPLE:

The headline:Apple (AAPL) Shares Tumble On Analyst Talk Of Production Cuts In Either iPod Or iPhone

Pete Najarian says the market was full of speculation and consequently he saw a lot of volume on the August 130 puts.

Eric Bolling says money is flowing out of Apple – he recommends buying stock on this dip.

Jeff Macke agrees with Eric.

Symbol
Price
 
Change
%Change
VOW3
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GENERAL'S MARCH:

The headline:General Motors (GM) Reports $891M Profit, Crushing Analyst Estimates...

Guy Adami explains that GM led the market higher before the afternoon’s sell-off.

Symbol
Price
 
Change
%Change
GM
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DOW BOWS:

The headline: Murdoch To Get His Prized Asset as News Corp.(NWS) Set To Buy Dow Jones (DJ) After Crucial Bancroft Branch Accepts Offer

Pete Najarian says this suggests to him that deals are still getting done. He adds that Marathon Oil (MRO) acquired Western Oil Sands (WTO) for $5.8 Billion.

Symbol
Price
 
Change
%Change
MRO
---
FOXA
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PILL POPPING:

The headline: Big Pharma Comeback Continues With GlaxoSmithKline (GSK) Avandia Ruling, Johnson & Johnson (JNJ) Restructuring

Guy Adami explains that GlaxoSmithKline shares jumped after an FDA panel recommended Avandia remain on market. Guy says GSK is a buy.

Pete Najarian likes Bristol Myers (BMY) for its diabetes drug pipeline.

Symbol
Price
 
Change
%Change
BMY
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JNJ
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AFTER HOURS ACTION: WHOLE LOT OF LOVE:

The headline: Whole Foods (WFMI) Soars After Hours On Stronger-Than-Expected Earnings

Jeff Macke says sell the news.

TAKE YOUR POSITION: REITS:

The headline: Alexandria Real Estate Equities (ARE) To Report Earnings Thursday

Pete Najarian feels Vornado (VNO) and Simon (SPG) are performing well and consequently he expects ARE will perform well too.

Eric Bolling says to stay away from these trades – he doesn’t like any real estate trades.

TAKE YOUR POSITION: ELECTRONIC ARTS:

The headline: Electronic Arts (ERTS) To Report Earnings Tomorrow After The Bell

Jeff Macke says he’s not interested in ERTS. He says don’t buy ERTS or Activision (ATVI) in this tape.

Symbol
Price
 
Change
%Change
FHGUAX
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Trader disclosure: On July 31st 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), Najarian Owns (GS); Bolling Owns (DIS), (T); Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures: CNBC Is A Service Of NBC Universal And Dow Jones