Beginning Dec. 26, Wal-Mart will offer clearance discounts of up to 50 percent on many home holiday items and toys, besides introducing a $50 gift card with an Xbox 360 purchase and offering an eMachine netbook for $228.
Considering all these unprecedented moves, how should you trade the space?
I’m bullish Walmart, reminds Karen Finerman. I’m not concerned about the discounts. Nobody can move traffic like Walmart can.
As a result of competition from Walmart, I expect to see pressure on Best Buy stock, adds Oppenheimer analyst Brian Nagel. The prices of TVs are coming down so quickly margins are getting crushed.
If you're looking at the home improvement names, I like Lowes over Home Depot, adds Nagel. But only because I think Lowe’s grabs market share.
And in all of retail, my two favorite plays are Tiffany and Bed Bath & Beyond, Nagel adds.
______________________________________________________
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 Dec. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman Owns (GLNG); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (MSFT), (WMT), (GLNG); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (BAC), (EEM), (INTC), (POT); Najarian Owns (MS) & Short (MS) Calls; Najarian Owns (MGM); Najarian Owns (HK) Call Spread
For Brian Nagel
Oppenheimer & Co. Inc. makes a market in the securities of (BBBY)
CNBC.com with wires