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The Selling Continues

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THE SELLING CONTINUES:

The headline: S&P 500 Sheds 1.8% as Bank Downgrades, Lowe’s (LOW) Forecast, Housing Data Pummel Stocks

It seems like there are “storm clouds everywhere,” Karen Finerman said. Goldman Sachs’ downrgrade of Citigroup (C) – saying Citi may be forced to swallow another $15 billion in write-downs – just put “salt in the wounds” of the market.

Jeff Macke pronounced: “The Street decided there’s a recession today.”

Symbol
Price
 
Change
%Change
NASDAQ
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S&P 500
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SC0Y
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GM
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LOW
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Pete Najarian was less bearish from a trading standpoint. Short term there are plenty of trades, he said. But long term the picture is less rosy – especially for the financials, which are in “dire straights,” he said. He also expressed worry over GM (GM), calling it a “major problem” that the stock is trading below $27.

AFTER HOURS ACTION: HEWLETT-PACKARD:

The headline: Strong PC Sales Fuel 28% Increase in profit for (HPQ)

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Price
 
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%Change
HPQ
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Guy Adami called Hewlett a great growth story that’s been untouchable. It’s still a buy, he said, and could go to the mid-$50 range.

AFTER HOURS ACTION: NORDSTROM:

The headline:(JWN) Shares Soar on Profit Growth, Expanded Buyback, Higher Forecast

Nordstrom is cheap, Jeff Macke said. Generally bearish on retail, JWN is one of the few Jeff would own.

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Price
 
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%Change
JWN
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Karen Finerman said she wouldn’t be surprised to see an end-of-year rally in the retail names since expectations have gotten so low.

AFTER HOURS ACTION: MEDTRONIC:

The headline:(MDT) Earnings and Revenue Beat Street Expectations

Symbol
Price
 
Change
%Change
MDT
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The earnings beat is positive news for Medtronic, Pete Najarian said, as it tries to recover from a damaging recall of heart wires. It’s too early to tell if the stock is a long-term buy, he said, but expect an uptick in the short term.

A LOWE DOWN DIRTY SHAME:

The headline:Lowe’s (LOW) Tumbles After Slashing 4th-Quarter, Full-Year Forecasts; Profit Falls 10%, Missing Estimates, As Housing Slump Hurts Sales

Lowe’s is getting closer to a bottom, Guy Adami said. It may be worthy of a trade.



Symbol
Price
 
Change
%Change
LOW
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Lowe’s is getting closer to a bottom, Guy Adami said. It may be worthy of a trade.

GOLD LOSING LUSTER:

The headline: Gold Drops 1.1% to $776.80 Following Worst Weekly Loss Since March

Symbol
Price
 
Change
%Change
Z2152
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The next $50 to $60 in gold prices will be lower, according to Guy Adami.

BIOTECHS BUDDYING UP:

The headline: Celgene (CELG) to Buy Pharmion (PHRM) for $2.9B in Bid to Boost Share of Blood Cancer Space

The deal was expensive for Celgene, Pete Najarian said, but worth it for Pharmion’s extensive pipeline.

Symbol
Price
 
Change
%Change
FNGN
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PFE
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On a related note, Guy Adami said Pfizer (PFE), which has had a terrible year, needs to make an acquisition if it wants to be saved. Pete adamantly said PFE shows no signs of growth and should not be bought.

REACHING FOR THE ‘STAR:

The headline: EchoStar (DISH) Shares Skyrocket After Citigroup Says 65% Chance AT&T (T) Will Buy Satellite Provider

Sell DISH in the upper-$40s and buy it back around $40, Jeff Macke said. Most importantly, with the stock up 20% Monday, investors should take profits. The market is too fragile to play around with 20% gains, Jeff said.

Symbol
Price
 
Change
%Change
DISH
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T
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Pete Najarian would sell DISH into the AT&T rumor.




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Trader disclosure: On Nov. 19, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Finerman's Firm Owns S&P 500 Options, Finerman's Firm Owns Russell 2000 Puts, Finerman's Firm Is Short (IWM), Finerman's Firm Is Short (MDY), Finerman's Firm Is Short (SPY), Finerman's Firm Is Short (IJR), Finerman's Firm Is Short (IYR), Finerman's Firm Owns (BIIB) Options, Finerman's Firm And Finerman Own (GS), Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD), Finerman's Firm Owns (KSS), Finerman's Firm Is Short (LEH) And Owns (LEH) Puts, Finerman's Firm Is Short (LEN), Finerman's Firm Owns (LTD), Finerman's Firm Owns (MSFT) Options, Finerman's Firm Owns (TWX), Finerman's Firm Owns (YHOO), Finerman's Firm Owns (WMT), Finerman's Firm Owns (NDAQ), Finerman's Firm Owns (NYX), Finerman's Firm Owns (NMX) Options, Finerman's Firm Owns (BEAS) Options, Macke Owns (DIS), Macke Owns (YHOO), Najarian Owns (AMTD) Options, Najarian Owns (CSCO) Options, Najarian Owns (YHOO) Options, Najarian Owns (GOOG) Options