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Dow Pushes Higher Despite Bad News

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INVINCIBLE TAPE:

The headline: Dow Closes Up Despite Lowest Confidence in 2 Years, Worst Home Sales in 5 Years

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S&P 500
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All the stocks that were down early in the day came back and rallied, Pete Najarian says. The tech sector especially gathered steam for the rest of the market.

TROUBLE IN MERCHANDISE:

The headline: Target (TGT), Lowe’s (LOW), Wal-Mart (WMT) Plunge on Target September Warning, Drop in Consumer Confidence

“There was indiscriminate selling across the board,” Karen Finerman says. It suggests to her something other than the fundamental consumer confidence number was troubling these stocks. But if Target trades down on Wednesday, she would buy it.

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LOW
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TGT
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WMT
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Guy Adami also recommends Target as a trade.

TECH, INTERNET NAMES STRONG:

The headline: Apple (AAPL), Google (GOOG) Shares Rise to New Records Today Amid Dismal Consumer

Gadget names like Garmin (GRMN) have been strong because of overseas demand, Pete Najarian says. He expects more upside in tech names on the back of the global growth story.

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VOW3
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GOOGL
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GRMN
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HRI
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BKNG
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Jeff Macke notes that online travel booking site Priceline.com (PCLN) has been rocketing, but other travel-related companies like Hertz (HTZ) and AMR Corp. (AMR) have been getting crushed. He would take the safe road and short names like AMR rather than getting long Priceline.

OIL IN TURMOIL?:

The headline: Crude Drops Nearly 2% as Saudi Oil Minister Says Energy Market is “in Turmoil”

Dennis Gartman, author of The Gartman Letter, tells the panel that some of the weakness in crude is due to a less-than-disastrous hurricane season. The fact is, crude has gotten a bit extended on the upside, Gartman says. He wouldn’t be surprised if crude traded back down to around $76 or $77 per barrel. “That would still be well within the confines of a nicely defined bull market,” he says.

NON-EXISTENT HOME SALES:

The headline: Homebuilders in Downward Spiral as Existing Home Sales Fall to 5-Year Low

Karen Finerman would consider Centex (CTX) as a short-term trade. Guy Adami says if KB Home (KBH) trades north of 10 million shares and makes a 52-week low, which he expects it to do Thursday, investors could “jump in with both feet” for a short-term trade.

Jeff Macke stresses that none of the homebuilders should be thought of as investments.

DISH BREAKING…UP:

The headline: Starry-Eyed Investors Bid Up EchoStar (DISH) on Break-Up Talk

Satellite names like DISH and DirecTV (DTV) have been going down based on the idea that they can’t compete with cable, but Jeff Macke thinks they have “spent long enough in the penalty box” and are ready to be plays against the cable companies.

DETROIT, DAY TWO:

The headline: GM Strike Sparking Cost Concerns As It Stretches Into Second Day

If the strike extends past four or five days, it could start to have an effect, Pete Najarian says, based simply on how much money GM (GM) is losing.

If you want an auto-related trade, get long BorgWarner (BWA), Guy Adami says. Its auto components are geared toward better fuel efficiency and that’s the future of the auto sector.

OPTIONS ACTION: KEEP ON TRUCKIN’:

The headline: Trucking Company YRC Worldwide (YRCW) Sees Options Surge on Takeover Speculation

It’s hard to know what exactly is going on, Pete Najarian says, but he’s sure it is institutional buyers who are coming in to scoop up these options in YRC.

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Trader disclosure: On Sept. 25, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AAPL), (VCLK); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts; Finerman’s Firm and Finerman Own (HD); Finerman Owns (NMX), (NYX), (TGT), (VCLK), (WMT)