Pops & Drops: UPS, Motorola...

Following are the day’s biggest winners and losers. Find out why shares of UPS and Northrop Grunman popped while Motorola and Capital One dropped.

POPS (stocks that jumped higher)

UPS (UPS) popped 6%. Although UPS reported lower-than-expected profits investors and analysts believe the company is well positioned to weather the downturn. - I liked that it traded higher on bad news, says Guy Adami.

Harley-Davidson (HOG) popped 16%. Warren Buffett’s Berkshire Hathaway has agreed to buy $300 million of debt, for 15% percent return on the notes. - That's a loan for 15%, exclaims Jeff Macke. What's good about that for shareholders?

Proshares Ultrashort Lehman 20+ Yr ETF (TBT) popped 5%. The ETF that tracks the inverse of Treasuries popped as Treasuries fell on speculation the US gov’t will increase borrowing. - I sold a little of this ETF, says Karen Finerman.

CME Group (CME) popped 2%. The world's largest derivatives exchange reported higher-than-expected fourth-quarter profit as a favorable product mix and tight cost controls offset a drop in trading volume.

Emerson Electric (EMR) popped 6%. The industrial conglomerate reported a higher-than-expected quarterly profit on Tuesday on strong demand for technology used in oil and gas industries and sales growth in emerging markets.

Northrop Grunman (NOC) popped 4%. The aerospace giant said its quarterly profit grew 15 percent on an increase in sales.

Avon Products (AVP) popped 9%. Although the cosmetics firm posted a lower-than-expected quarterly profit, it raised its dividend and investors felt relief that results were not worse given the dismal state of consumer spending in what was the weakest holiday season in almost four decades.

Tyco International (TYC) popped 19%. The firm reported a better-than-expected profit helped by strong sales of valves and thermal controls to the oil, gas and power industries.

DROPS (stocks that slid lower)

Motorola (MOT) dropped 11%. The handset maker reported a fourth-quarter loss, suspended its dividend, and forecast a worse than expected first-quarter loss. - I don't like this stock, says Jon Najarian.

MGM Mirage (MGM) dropped 15%. Citigroup began coverage of MGM Mirage with a 'sell' rating, and said the casino operator may have to sell at least one of its properties this year to raise cash for its CityCenter project. - No good, says Guy Adami.

Qualcomm (QCOM) dropped 3%. Goldman downgraded the company to ‘Neutral’ from “Buy” saying the shares are now fairly valued.

Capital One Financial (COF) dropped 11%. Goldman Sachs cut it’s price target for this firm to $18 from $42.

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Trader disclosure: On Feb. 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Macke Owns (ERTS), (TM), (DIS), (MS), (SDS): Macke Owns (ERTS) Calls: Finerman's Firm Owns (DNA) & (DNA) Call Spread: Finerman's Firm Owns (MSFT), (TYC), (IBB), (XBI), (TBT): Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (BBT): J. Najarian Owns (WFC) Preferred; J. Najarian Owns (BAC) Preferred; J. Najarian Owns (C) Preferred; J. Najarian Owns (FCX) & (FCX) Long Calls; J. Najarian Owns (GDX); J. Najarian Owns (JPM) Preferred; J. Najarian Owns Gold Futures; J. Najarian Owns (ISRG) Call Spread