Pops & Drops: AIG, McDonald's...

Following are the day’s biggest winners and losers. Find out why shares of AIG and McDonald’s popped while IBM and Apple dropped.

POPS (stocks that jumped higher)

AIG (AIG) popped 18%. Investors are betting that a Wall Street bailout will benefit this hobbled insurance giant. – It’s a lottery ticket at best, says Guy Adami.

McDonald’s (MCD) popped 3%. A burger and fries looks like a safer bet in this volatile market. – It works, says Jeff Macke.

United States Natural Gas Fund (UNG) popped 4%. Investors are betting that long nat gas into winter is the right trade. Lately it’s been a widow maker.

British American Tobacco (BTI) popped 7%. Dresdner Kleinwort raised the company’s price target ahead of earnings.

DROPS (stocks that slid lower)

Apple (AAPL) dropped 4%. The iPhone maker slumped on Wednesday as more investors worry that that Apple’s target audience (young people) could have less disposable cash. – I wouldn’t be the first guy into this stock right now, says Pete Najarian.

Ford (F) dropped 13%. The auto maker said September sales plunged 35% and investors worry that tight credit could make it harder for drivers to obtain car loans. – I don’t think too many people are walking into their showrooms, muses Joe Terranova.

Boston Scientific Corp. (BSX) dropped 7%. Both Boston Scientific and Medtronic were are ordered to pay $629 million to Johnson and Johnson due to a heart-stent patent dispute. – Ouch, exclaims Pete Najarian.

IBM (IBM) dropped 6%. Big Blue posted its largest drop in 3 years on profit worries.

Alcoa (AA) dropped 6%. The aluminum producer said it will cut jobs and halt production at a Texas smelter, due to weak market conditions.



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Trader disclosure: On Oct.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 (MSFT), (WMT), (HAS); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (WB); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BIIB) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS) And (MS) Puts; Najarian Owns (NCC) Calls; Najarian Owns (XLF) Call Spread; Terranova Owns (MA), (AAPL), (EOG), (FCX), (FTO), (GS), (KOL), (NOV), (POT), (X), (VLO), (YHOO); Terranova Owns (MS) And Is Short (MS) Call; Terranova Owns (AIG) And (AIG) Puts

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW), (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC), (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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