Best Week In 5 Years



The headline:S&P 500 Rebounds From Horrible 2008 Start to the Best Weekly Gain in 5 Years.

Stocks capped this week's gains with a rally, explains Dylan Ratigan. Despite concerns about a weaker-than-expected jobs report (U.S. payrolls fell by 17,000 In January) investors bid stocks higher led by financial issues.

I think the market needed the weak data, otherwise inflation concerns would have dragged stocks lower.

To me it suggests a recession is more likely, observes Tim Seymour.

Weak jobs growth prevents me from being terribly bullish, adds Karen Finerman.



The headline:Yahoo Surges Nearly 50% After Microsoft Launches $44.6B Takeover Offer.

Microsoft offered to buy Yahoo! for $44.6 billion, in a bold bid to transform two ailing Internet businesses into a worthy competitor for market leader Google (GOOG), explains Dylan Ratigan.

In what would be the biggest Internet deal since the ill-fated Time Warner-AOL merger, Microsoft sent a letter to Yahoo's board on Thursday night to offer $31 per share in cash and stock. The price is a 62 percent premium over Yahoo's Thursday close, but only about a quarter of what the Internet company was worth at the height of the dotcom bubble in 2000, Ratigan says.

In Davos, Bill Gates told CNBC "In some ways Google because they focus on software and do some interesting things, a lot of people would highlight them as maybe the most interesting competitor we have. We’re going to challenge them in search. And surprise them."

I think Yahoo stock is attractive right now, says Karen Finerman. It seems likely to me that MSFT will bid higher.

I oversold the calls and bought Yahoo stock on Friday, says Pete Najarian. I’m betting YHOO trades somewhere between $28 and $31. Also I like Microsoft stock on the news.

As a Microsoft shareholder. the fact that MSFT is paying a 60% premium doesn’t make me happy, says Tim Seymour.



The headline:Retail ETF Adds To Last Week's Gain As Target (TGT), Wal-Mart (WMT) Continue To Work.

Stay long retail over the course of this rally, says Jeff Macke. If you own retail I think you trim gains and if you don’t, buy dips.

If I didn’t own any already, I’d also buy retail going into next week, says Karen Finerman.



The headline:Financials ETF (XLF) Crosses Into Positive Territory As Banks Lead Market Higher This Week.

I like Bank of America (BAC), JPMorgan Chase (JPM) and Citigroup (C) says Pete Najarian. But put collars on these trades to protect yourself.



The headline:Alcoa , China's Chalco Team Up To Buy 12% Stake In Rio Tinto For $14B.

I think they’re trying to prevent the BHP Billiton (BHP) and Rio Tinto (RTP) from merging because it could mean death to their margins, speculates Tim Seymour. On a related note, Seymour is wary of gold at current levels and recommends Stillwater Mining(SWC) as a buy.



The headline: Legendary Investor Carl Icahn Gets Motorola Break-Up, Reveals JC Penney Stake.

It’s been an incredible week for billionaire investor Carl Icahn, explains Dylan Ratigan. Shares of Motorola (Icahn owns a large stake) rose 10 percent Friday after the company said it was considering splitting off its mobile phone division. Meanwhile, there’s speculation Icahn is quietly building a stake in department store operator J.C. Penney Co.

If you want to trade with a whale, I’d trade with Buffett in the rails, says Pete Najarian.

Read More:

Fast Money’s exclusive interview with Carl Icahn



The headline: Merrill Lynch Drug, Devices Conference Kicks Off Tuesday

Keep an eye on Biogen says Pete Najarian, they report earnings Wednesday before the bell. Carl Icahn holds a large stake in this company too and he’s disappointed with the board. And keep an eye on OSI Pharmaceuticals.

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Trader disclosure: On Feb.1, 2008, 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 (INTC), (YHOO); Najarian Owns (BIIB), (C), (CSCO), (MCD), (MS), (MSFT), (XLF), (YHOO); Najarian Owns (AAPL) Calls, (GOOG) Calls; Finerman Owns (GS), (M); Finerman's Firm Owns (NMX), (PZN), (RTP), (SUN), (VLO), (YHOO), (TSO), (WMT), (JCP), (SKS); Finerman's Firm And Finerman Own (CROX), (FLS), (HD); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (CME); Seymour Owns (AAPL), (CSCO), (INTC), (MSFT), (S), (MER), (MBI), (GAF); Seygem Asset Management Owns (CX), (ABV), (FMX)