DISASTER AVERTED IN FINAL HOUR:
The headline: Late-Day Recovery By Bank Stocks Brings Dow Back from 200 Pt. Decline
Thursday’s market action wasn’t pretty, the traders agree. Look for the market to continue being volatile and be prepared for it to continue to go lower, Guy Adami said.
The financials have been one of the most volatile spaces and Pete Najarian recommended putting on a spread for protection when trading bank stocks.
Many of the regional banks don’t have the balance sheet to announce huge write-downs, Tim Seymour said. But that doesn’t mean the market hasn’t heard from them yet.
IS THE TECH TRADE OVER?
The headline: Nasdaq Suffers Worst 2-Day Drop Since 2002 As Cisco (CSCO) Forecast Triggers Tech Sell-Off
Thursday’s tech wreck was disastrous, but look for bright spots like EMC (EMC) and its spinoff, VMware (VMW), Guy Adami said. The story that has propelled those two particular stocks is “far from over.”
The red-hot tech stocks of late performed particularly poorly, with Apple (AAPL) losing 6%, Google (GOOG) losing 5%, Intel (INTC) losing 4% and Research In Motion (RIMM) losing 6%. Have these stocks lost their steam? It may be too early to tell, but Pete Najarian said he would hold off on buying a stock like Apple, saying it still has room to go lower before it bounces back.
Tim Seymour said Cisco, hammered after reporting earnings, has been oversold and “looks good” at current levels. Cisco has proven it isn’t reliant on U.S. sales, Tim said, so any bearish domestic guidance shouldn’t hold so much weight.
WORST OCTOBER SALES IN 12 YEARS: The headline: Retailers Report Worst October Same-Store Sales Since 1995; Is It Time to Bottom Fish Consumer Names After Poor Sales Figures? To Karen Finerman, many of the retail numbers are not as disappointing as they sound. She feels comfortable owning retail stocks with good balance sheets and said the children’s retail space, including Gymboree (GYMB) and Children’s Place (PLCE), look especially appealing. AFTER HOURS ACTION: DISNEY: The headline: Across-the-Board Strength In Its Divisions Helps Disney (DIS) Top Earnings Estimates Bob Iger has transformed Disney and made this stock worth owning, Guy Adami said. If you believe in Iger, stay in DIS. AFTER HOURS ACTION: PRICELINE: The headline: Priceline.com (PCLN) Soars As Much As 16% After Hours As Earnings Trounce Estimates Priceline is up because it reported upside guidance, Pete Najarian said. Cisco (CSCO), on the other hand, did not, and that’s why that stock has been hit. EMERGING MARKETS RE-EMERGE: The headline:Emerging Markets ETF (EEM) Bounces Higher After Falling More Than 2% A couple of stories pushed the EEM higher, including a large oil discovery by Petrobras (PZE) in Latin America and news of potential acquisitions for Russia’s Gazprom. Emerging markets are all looking cheap here, Tim Seymour said. BIOGEN COURTSHIP BEGINS: The headline: Pfizer (PFE), Merck (MRK), Johnson & Johnson (JNJ), Frontrunners As Bidding For Biogen Idec (BIIB) Begins The beauty of the Biogen deal is that it will happen no matter what the state of the market is, Karen Finerman said. The suitors are all companies with strategic and long-term interests in Biogen, and market volatility won’t keep the acquisition from taking place. Biogen’s pipeline is four times the size of Pfizer’s, making PFE the perfect acquirer, Guy Adami said. The pharmaceutical giant should scoop BIIB up even if it has to overpay because the pipeline is that important, Guy said. SOLAR INSANITY: The headline: First Solar (FSLR) Leads Monster Solar Stock Rally Amid Broader Market Sell-Off, Soaring 28% After Earnings Scorch Street Expectations The upside moves in the solar complex provided a perfect opportunity for Pete Najarian to sell Cypress Semiconductor (CY) into strength. A lot of these names have run so much that they are becoming overheated, he said. Take some profit now before it’s too late. Guy Adami added: Take profits in Evergreen Solar (ESLR), which was up over 17% Thursday on nearly twelve times normal trading volume. ______________________________________________________
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Trader disclosure: On Nov. 8, 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 (CSCO); Najarian Owns (BHP) Options, (C) Options, (GS) Options, (GOOG) Options, (VMW) Options, Najarian Owns (XLF) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns (BEAS), (KSS), (WMT); Finerman's Firm Owns (BIIB) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P Puts; Finerman's Firm Is Short (MDY), (IYR), (IWM), (SPY), (LEH), (MBI); Finerman's Firm Is Short (MER) And Owns (MER) Puts; Finerman's Firm Owns (PLCE), (YHOO), (MSFT); Seygem Asset Management Owns (CSCO), (CCJ), (EEM), (GLD), (MSFT), (SWC), (YHOO), (GFA), (F), (AAPL), (INTC), Gazprom