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Dow Jumps 101 Ahead of the Fed

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A RUN FOR THE BANKS:

The headline:

Bank Shares Lead Market Higher on

MBIA (MBI)

,

UBS (UBS)

Investments

UBS’s $10 billion write-down was the catalyst for the market going higher, as far as Guy Adami is concerned. Remember, bad news no longer means stocks have to go lower. He called Monday a “very encouraging day.”

Symbol
Price
 
Change
%Change
MBI
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Karen Finerman doesn’t think the market is still rallying because of the Fed. That has been baked in for some time, she said. She also expects more bad news to come from MBIA.

AFTER HOURS ACTION: WASHINGTON MUTUAL:

The headline:Washington Mutual (WM) Cuts Dividend to 15 Cents a Share; Raising $2.5 Billion

Symbol
Price
 
Change
%Change
USB
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WM
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Guy Adami recommended U.S. Bancorp (USB), which is one of the safest financials for its lack of subprime exposure.

HAS HOUSING FINALLY BOTTOMED?

The headline: Housing Stocks Surge on Unexpected Gain in October Pending Home Sales

There’s some short covering occurring in the housing stocks, according to Pete Najarian. He expects some more bottom picking after seeing options activity in some of the homebuilders.

Guy Adami said all the bad news with Home Depot (HD) might finally be baked into the stock. With a pristine balance sheet, HD now looks cheap to him.

Karen Finerman, who has been long HD for some time, said Lowe’s (LOW) is starting to get attractive, too. When Home Depot moves, expect Lowe’s to move in lockstep.

Symbol
Price
 
Change
%Change
HD
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LOW
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Pete Najarian remains skeptical on the homebuilding retailers. Let these stocks show they can rally before putting too much faith in them, he said.

INVESTORS LOVIN’ IT:

The headline:McDonald’s (MCD) Hits All-Time High on Strong November Same-Store Sales

McDonald’s is boring, but for all the right reasons. The company beats expectations on a monthly basis, Jeff Macke said, and it’ss along-term buy for exactly that reason. When analysts say it has topped – that’s all the more reason to keep buying it, he said.

INVESTORS LOVIN' IT

As long as it can hold onto growth in Asia, the Middle East and Africa, Guy Adami expects MCD to continue to be worth owning.

AFTER HOURS ACTION: TEXAS INSTRUMENTS:

The headline: Texas Instruments (TXN) Soars on Mid-Quarter Update

Pete called the news a “great opportunity to sell” TXN. It’s an undiversified chip company facing too much competition, he said. The real indicator is PC sales – that’s what drives the complex higher and he thinks the best way to play that is with Intel (INTC).

Guy Adami would also buy Intel above $26 as the strongest of the semi names.

AFTER HOURS ACTION: TEXAS INSTRUMENTS

Buy TXN as a trade, perhaps, but definitely not for an investment, Jeff Macke said. “When the semiconductor industry gets a cold, TXN gets the bubonic plague.”

BIG CONFERENCE MOVING DRUG STOCKS:

The headline: The Drug Trade as American Society of Hematology Conference Continues

BIG CONFERENCE MOVING DRUG STOCKS

Celgene (CELG) disappointed at the conference and dropped over 14% Monday. But Pete Najarian thinks it was overdone and due for a sell off. Expect Celgene to rebound, he said.

CEMENTING A DEAL:

The headline: France’s Lafarge to Buy Cement Unit of Egypt’s Orascom for $12.9 Billion

CEMENTING A DEAL

The growth in the Middle East cannot be ignored. Karen Finerma thinks Texas Industries (TXI) could be tapped to be a player there. Guy Adami reiterated a buy on Jacobs Engineering (JEC).

NO CHECK, PLEASE:

The headline: More Than 2/3 of U.S. Noncash Pyaments Last Year Made Electronically

NO CHECK, PLEASE

Between the death of checks and the surge of online shopping, Mastercard (MA) is a long-term buy, according to Guy Adami. It doesn’t have the credit risk of its competitors because it isn’t a consumer story so much as it’s a transaction processing story. Other credit card makers were downgraded recently. Not Mastercard, though. Guy would continue to buy MA.

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Trader disclosure: On Dec. 10, 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 (DIS), Macke Owns (ATVI); Najarian Owns (ETFC), Najarian Owns (PHM) Options, Najarian Owns (TSL) Options, Najarian Owns (BHP) Options, Najarian Owns (GOOG), Najarian Owns (BIDU), Najarian Owns (EMC) Options; Finerman's Firm Owns Russell 2000 Puts, Finerman's Firm Is Short (MDY) And Owns (MDY) Puts, Finerman's Firm Is Short (SPY), Finerman's Firm Is Short (IJR), Finerman's Firm Is Short (IYR), Finerman's Firm Is Short (IWM), Finerman's Firm Is Short (MBI), Finerman's Firm Owns (LEH) Puts, Finerman's Firm Owns (GS), Finerman's Firm And Finerman Own (HD), Finerman's Firm Owns (LOW), Finerman's Firm Own (XHB), Finerman's Firm Owns (SKS), Finerman's Firm Owns (NYX), Finerman's Firm Owns (NMX) And (NMX) Options, Finerman's Firm Owns (TWX), Finerman's Firm Owns (TXI); Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC