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Earnings Trump Credit Crunch

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The bulls enjoyed a feast this week with Microsoft, Apple and tech shares driving the market higher. Here’s the word on the Street.

WHAT A WEEK FOR TECH:

The headline: Microsoft, Apple, EMC, VMware Enjoy Enormous Gains This Week.

Microsoft (MSFT) surged 15% this week after profits and revenues trounced estimates explains Macke.

Guy Adami likes Intel (INTC) because in an interview last week, the CEO revealed he didn’t have enough chips to meet demand.

Pete Najarian prefers Apple (AAPL) for the surge in Mac computer sales. He tells the panel to avoid the chip names.

Symbol
Price
 
Change
%Change
VOW3
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EMC
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INTC
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MSFT
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VMW
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THE WEEK: CRUDE SURGES:

The headline: Oil Crosses $92 For 1st Time Friday Before Closing Up 1% To $91.46.

Oil jumped this week on supply concerns from new Iran sanctions and Turkey-Iraq tensions explains Guy Adami. He’s noticed that stocks are not climbing in tandem with the rally in crude. He doesn’t think current prices will sustain.

Jeff Macke agrees. He too thinks the price of crude will soon slide.

Symbol
Price
 
Change
%Change
OIH
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THE WEEK: FINANCIALS:

The headline: Countrywide (CFC) Soars More Than 30% Friday After Saying It Expects To Be Profitable In 4th Quarter

“Does anyone believe that Countrywide is out of the woods, I sure don’t!” asks Najarian. He says, “The trade is a put spread. Buy the $17.50 puts and sell the $15 put. Whatever your cost is, that’s the maximum you can lose.”

Guy Adami likes Raymond James (RJF) in the space. He thinks they have their act together.

Karen Finerman finds the financials worrisome.

Symbol
Price
 
Change
%Change
RJF
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OPTIONS ACTION: PORTALS & PLATFORMS:

The headline: NajarianSeeing Unusual Options Activity In Yahoo (YHOO).

The number of people speculating on a move in Yahoo!, Friday, was absolutely explosive, says Pete Najarian. The volume suggests to him that the stock could go higher.

Symbol
Price
 
Change
%Change
AABA
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TAKE YOUR POSITION: PROCTER & GAMBLE

The headline: Procter & Gamble (PG) To Report Earnings Tuesday Before The Bell.

Jeff Macke likes this stock.

Karen Finerman likes that PG generates more than 50% of their sales from outside the US.

Guy Adami expects PG to go higher.

Symbol
Price
 
Change
%Change
PG
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TAKE YOUR POSITION: KRAFT

The headline: Kraft (KFT) To Report Earnings Wednesday Before The Bell.

Karen Finerman likes Kraft and expects to see some headway on cost-cutting.

Symbol
Price
 
Change
%Change
MDLZ
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TAKE YOUR POSITION: ELECTRONIC ARTS

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

Jeff Macke reminds the panel that ERTS already said they were going to beat their numbers.

TAKE YOUR POSITION: MANITOWAC

The headline:Manitowoc (MTW) To Report Earnings Wednesday After The Bell

Pete Najarian likes this Manitowoc (MTW) and thinks the company’s earnings will provide an accurate picture of how much construction is going on in China and India.

Symbol
Price
 
Change
%Change
MTW
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Trader disclosure: On Oct 26, 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), (INTC), (YHOO), (EMC); Najarian Owns (GOOG), (BHI), (C), (DISH), (HAL), (YHOO), Najarian Owns (SNDK) Calls; Najarian Owns (MSFT) Puts; Finerman Owns (C); Finerman's Firm And Finerman Own (GS), (KFT), (MSFT), Finerman's Firm Is Short (MER) And Owns (MER) Puts; Finerman's Firm Owns (MO), (NVT), (TWX), (YHOO), (BIIB); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (BEAS) And (BEAS) Options