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Stocks on the Move: Caterpillar, Allstate, Palm and More

Following are the day's biggest winners and losers. Find out why shares of Caterpillar popped while Palm dropped.

POPS (stocks that jumped higher)

Caterpillar (CAT) popped 3%. CAT led the Dow higher after a Bear Stearns analyst said its exposure to China should be a boon for the heavy equipment maker. Adami: That analyst is a little late to the party with that statement, but CAT is still cheap and a buy.

Cadbury Schweppes (CSG) popped 1%. Nelson Peltz is teaming up with Qatar to increase his stake in the candy and soft drink company. Finerman: Peltz is a great food investor and Qatar has plenty of money. It’s a good combination and could translate into good news for the stock.

LDK Solar (LDK) popped 29%. The Chinese solar company said it signed a 10-year contract to supply silicon wafers to German solar cell maker Q-Cells. Najarian: Take some profits in the solar names that see huge gains.

Rite Aid (RAD) popped 9%. The pharmacy chain is still riding high after Lehman Bros. reiterated its $7 price target on Friday. Adami: RAD is a lottery ticket, but it will pay off.

NYSE Euronext (NYX) popped 3%. Barron’s reported the decline of floor trading at the NYSE has, in fact, beefed up the exchange’s bottom line. Najarian: The exchanges are “money printing machines.” For better or worse for the traders, the fact is that electronic trading allows for much heavier volumes, which has helped NYX.

Bankrate (RATE) popped 20%. The online provider of personal financial services forecast higher than expected 2008 revenue. Macke: “Cover your shorts.”

Nasdaq (NDAQ) popped 3%. Industry consolidation among the exchanges continued to send Nasdaq shares higher. Finerman: The deals keep coming for the exchanges.

Allstate (ALL) popped 3%. Barron’s reported the nation’s largest publicly traded home insurance company was undervalued. Adami: All state doesn’t have the bad exposure many people think it does. He would buy it.

DROPS (stocks that slid lower)

Overstock.com (OSTK) dropped 22%. CEO Patrick Byrne said sales promotions and discounting might lead to Q4 gross margins lower than recent quarters. Macke: “Run away” from this stock.

Myers Industries (MYE) dropped 31%. Goldman Sachs delayed its planned $800 million LBO of the plastic and rubber company. Finerman: This is what happens when financiers get cold feet. Myers is a good company but don’t buy it right here.

Palm (PALM) dropped 2%. The smartphone maker continues to plummet after Friday’s news that shipping delays and high warranty costs led to an unexpected loss. Macke: Another stock where the best thing to do is “run away.”

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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