Despite a positive day on Friday, by the close the S&P had lost 1.7% for the week, breaking a three-week streak of gains.
As you likely know, fear that unrest in Libya could spread across the Middle East was largely behind the sell-off; more specifically investors worried about a spike in the price of oil and the wide ranging ripple it could unleash.
However, in many cases investors sold first and asked questions later throwing the proverbial baby out with the bath water.
In fact the Fast Money traders says 3 names were destroyed this week and are now oversold. They follow:
Higher oil is never good for transportation names but Tim Seymour thinks investors may have over-reacted when they sold FedEx.
“I don’t think the stock is terribly expensive and everything we’ve gotten out of the company has been reasonably bullish. It was sold off on a panic,” he explains. “I don’t think it goes to new highs but I do think it has 10%.”
With petroleum the raw material for many chemical products Guy Adami says it's no surprise that Eastman Chemical “got whacked when oil made a big run.”
However, this is another case where investors may have run scared. He says the stock made an all-time high about a week ago around $97.31 and then pulled back about 10%. “If oil has made its high for the short term, EMN is a name I’d look at next week,” he says.
Going downstream a tad, higher prices at the pump suggest consumers have less money in their wallets for other purchases; especially discretionary purchases such as gadgets. But Karen Finerman thinks any pullback in glass-maker Corning is a buying opportunity. “It got hit a lot this week and I bought it a few times,” she says.
Finerman likes this stock as a play on tablets; “you don’t even need to pick a tablet they’re going to be in a lot of tablets. And the balance sheet has excess cash,” she says. What’s the bottom line? “The stock is very cheap,” Finerman says.
TECH STRENGTH – INTEL
The Nasdaq came back strong on Friday, with the chip stocks seeing some of the biggest gains.