This is merely “headline risk” – certainly bad news, but not detrimental to the stock or company, Jeff Macke said. Expect it to go away.
NEXT STOP: $100 OIL?:
The headline: Crude Hits Intraday High of $97.10 Before Finishing Up 2.9% to $96.70
One way to trade record oil is to play the refiners, Guy Adami said. Investors could buy Valero (VLO) for its valuation or go with the more expensive Tesoro (TSO), which could be ripe for a takeover now that activist shareholder Kirk Kerkorian has taken a stake, Guy said.
BUCKS, BULLION, BUSTS & BOOMS:
The headline: Gold Surges to 27-Year High as Dollar Slides to Fresh Record Low vs. Euro
This story has become nearly a daily occurrence. Investors should keep in mind that the move in the U.S. dollar is not nearly as big as the move in crude oil, Karen Finerman said.
TIME WARNER JUMPS BEFORE EARNINGS:
The headline: Time Warner (TWX) Ticks Up Ahead of Earnings as Incoming CEO Jeff Bewkes Names New CFO
On any metric, Time Warner is cheap, according to Guy Adami.
Karen Finerman is long TWX herself, and Pete Najarian would buy it if former AOL CEO Steven Case steps in, which has been speculated.
The headline: Utilities Drag on Market as the Worst Performers of the Day
Public Service Enterprise Group (PEG) reported great earnings last week but the stock has been down, which should indicate the tribulations of this sector, Guy Adami said. If the Fed does indeed stop cutting rates, PEG will suffer. Guy would buy it up again if it got knocked down to the low $80s.
OPTIONS ACTION: CROC ‘N ROLL:
The headline: Najarian Sees Unusual Options Activity in Crocs (CROX) as CEO Purchases 48,669 Shares
Don’t expect this stock to return to $70, Pete Najarian said. The options activity suggests investors think it could see $50 between now and December, but “don’t look for this thing as a homerun.”
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Trader disclosure: On Nov. 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: Jeff Macke owns (YHOO), (INTC), (ATVI); Pete Najarian owns (CY), (BHP), (CSCO), is short (MBI), owns options in (BHI), (BIDU), (C), (FMCN), (GOOG), (HAL), (YHOO); Finerman’s firm owns Russell 2000 Puts, S&P 500 Puts, (CROX) options, (MSFT) options, (LEH) puts, is short (MER) and owns (MER) puts, (TSO), (TWX), (YHOO), is short (MDY), (IJR); Finerman’s firm and Finerman own (GS)