STOCKS DROP MOST IN A MONTH:
The headline: S&P 500 Sheds 2.4% This Week on Fed Disappointment, Inflation Concerns
This economy looks like it’s already in a recession, according to Pete Najarian. If this week showed anything, it’s that the growth is no longer there. The agriculture and industrial complexes are working, he conceded, but not much else. Possibly the only financial worth owning is US Bancorp (USB), Pete said, since its shown its subprime exposure is next to nothing.
The Fed’s decision Tuesday showed it is clueless as to what’s going on in this market, Jeff Macke said. He called the statement was “half-baked” and “reactive” and the reason why stocks faltered from Tuesday on.
GREENBACK COMEBACK:
The headline: Dollar Gains Most Against Euro Since 2004 on Inflation Data
The inflation data is what’s hampering the Fed from cutting rates further, Karen Finerman said. She gave the central bank an “F” for its execution this week.
Jeff Macke said the real reason for the rally in the dollar is because it has been overshorted and it’s becoming clear the Fed won’t continue to cut rates. But a depressed dollar is good for all stocks, he said. It’s not a coincidence that the dollar rallied when the market was down.
A stronger dollar could slow profits of the big multinational corporations like McDonald’s (MCD) and Hewlett-Packard (HPQ), Guy Adami said. He remains bullish on international steel stocks, though, saying the pricing power there remains strong.
CITIGROUP’S BALANCING ACT:
The headline: Citigroup (C) to Bring $49 Billion in Assets onto Balance Sheet After Bailing Out Affiliated Funds
Citi has a lot more work to do on its balance sheet, Karen Finerman said.
TECH’S TWO FACES:
The headline: Microsoft (MSFT), Cisco (CSCO) Surge This Week While Chip Shares Stumble
Pete Najarian sees the majority of the tech sector sustaining strength going into the first half of 2008. Stay away from the chip stocks, though, he said. Texas Instruments (TXN) is particularly worth selling.
WII ARE THE CHAMPIONS:
The headline: November Nintendo (NTDOY) Wii Sales Total 981,000 Units, Beating X-Box 360, PlayStation 3
The video game story has been alive and well for some time, but it isn’t too late to cash in, according to Jeff Macke. The best way to play it, he said, is with the software names like Take-Two (TTWO) and THQ (THQI).
A SCARY LITTLE CHRISTMAS:
The headline: Online Holiday Sales May Grow at Slowest Pace on Record: comScore
Jeff Macke isn’t concerned about the health of the online shopper. The week was bad for stocks in general, he said. Amazon.com (AMZN), eBay (EBAY) and Mastercard (MA) – the big online shopping bellwethers – should all do just fine.
The Mastercard growth story is still intact, Guy Adami said. Even if this represents a chance for shorts to jump in.
WHALE WATCHING:
The headline: Carl Icahn Says Motorola (MOT) Break-Up Could Create $20 Billion in Shareholder Value
With Motorola CEO Ed Zander stepping down at the beginning of the year, Pete Najarian thinks Icahn’s dreams could finally become reality this time.
A CEO switch is generally positive for a restructuring plan, at least as far as Karen Finerman is concerned.
Jeff Macke wouldn’t be impressed, though. He called MOT a “stuck pig” that would manage to lose money on the iPhone if it had the chance.
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Trader disclosure: On Dec. 14, 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), (BIIB), Najarian owns (BSC) options, (TSO) Options, (TT) Options, (GOOG) Options, (YHOO) Options; Finerman's Firm Owns (GS), (VLO), (TSO), (WMT), (YHOO), (TWX),(INTC); Finerman's Firm Is Short (IWM), (IYR), (SPY), (IJR), (MBI); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (MDY) And Owns (MDY) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts