×

S&P Falls For A Third Week

graphic_word_ofthe_street.jpg

Stocks fell on Friday, pressured by weak corporate earnings and concerns about the outlook for the rest of the year.

General Electric, the parent of CNBC, dragged down the Dow after reporting a 44 percent drop in quarterly profit on weakness at GE Capital and its lighting and appliance units, and warned that 2009 would be "extremely difficult."

Its shares tumbled nearly 11 percent to their lowest point since early 1996 as investors continued to worry about the U.S. conglomerate's ability to maintain its dividend.

Will the credit rating and dividend remain in tact at GE?

I do think it remains in tact, muses Karen Finerman. Unless they have to access government funds that mandate they can not pay one.

It seems to me like the market is treating GE like a bank, says Guy Adami. But there’s intrinsic value in the other businesses.

The Street is not comfortable that they have enough transparency in GE, bristles Jeff Macke.

I saw a lot of activity in the options, adds Pete Najarian. There’s widespread speculation in this stock.

--------------------

GOOGLE BOUNCE DRIVES NASDAQ HIGHER TODAY

The Nasdaq was the best performing index, briefly climbing into positive territory although it struggled to stay there. Google helped lift the tech heavy index after the Internet search giant reported earnings that beat expectations after the bell on Thursday.

It seems to me that the cream has risen to the top, says Pete Najarian. IBM , Apple and Google are the cream.

--------------------

BANKS END BRUTAL WEEK HIGHER

Banks finished this brutal week slightly higher although massive concerns remain about just how healthy the financial system really is. Meanwhile shares of Capital One touched a 10-year low on credit losses.

I bought Bank of America, Citigroup and Morgan Stanley on Friday reveals Jeff Macke. The bad news is out. I don’t think there’s anything else these firms can say that will shock the Street. But I’m a trader. I could be out of these in a flash.

I think we could have seen capitulation in Bank of America, adds Guy Adami. It looks interesting to me.

--------------------

YEN FOR YEN

The yen rose against major currencies on Friday, benefiting from concerns about the global economy that sent Asian shares lower and made investors more averse to taking risks.

A strong yen kills Japan, explains Jeff Macke, because it makes goods and services from Japan’s companies such as Toyota more expensive.

Selling the euro or selling the pound against the yen is a crowded trade, adds Guy Adami.

--------------------

OIL SURGES TO END WEEK

Oil prices rose more than 6 percent on Friday as mounting evidence that OPEC is complying with the bulk of its record output cuts countered gloomy economic data.

Everyone is calling for a bottom in oil, says Pete Najarian, but it’s yet to be seen. Oil services had a great week but when you have profits like this it’s time to take some off the table.

I’m short the USO against the oil services sector, adds Karen Finerman.

I’d look at Schlumberger, adds Guy Adami.

The Schlumberger chart just may be the worst looking chart I’ve ever seen in my life, counters Jeff Macke. If you have profits you should take them.




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Jan 23, 2009, 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 (MS), (BAC), (C), (TM), (MCD); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Najarian Owns (EEM) Call Spread; Najarian Owns (FCX) & (FCX) Short Calls; Najarian Owns (GLD) Call Spread; Najarian Owns (GE) Put Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls/Put Spread; Najarian Owns (GNW) Long Calls; Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Owns (MSFT), (TBT), (UNH), (V); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (ANF), (COF), (USO); Finerman's Firm Owns (ROH) Calls

CNBC.com with wires