Earnings Trade
Gene Munster, an analyst for Piper Jaffray joined the traders to discuss some stocks he would buy ahead of earnings in the tech sector. Munster said he would be long Google (GOOG) ahead of earnings because the Internet advertising market isn’t as bad as people think. He told viewers that Apple (AAPL) could pull back after the tech firm reports earnings. “I’d look to own it going into the summer,” he said. Munster mentioned that Microsoft (MSFT) should report a decent first-quarter, but the company faces pricing pressure from netbooks. Finally, he said chip stocks are starting to improve, but the question remains whether it can be sustained.
POPS&DROPS
POPS- Biogen (BIIB) added 5% on speculation that activist investor Carl Icahn is in talks with Sanofi for a purchase of the company at $75 a share. Finerman said there was big call buying in this stock. Brinker International (EAT) popped 4% after the company beat their third-quarter earnings. Macke told viewers to take gains.
DROPS- Exxon Mobil (XOM) fell 2% after Barclays cut the company’s 2009 and 2010 earnings estimates, due in part to lower nat gas prices. Terranova mentioned that the rally in oil could be dying out. MGM Mirage (MGM) plunged 19% after Jim Cramer said to sell the stock and a Janney Montgomery Scott analyst downgraded the stock to sell from neutral. Macke said lock in gains. Archer Daniels Midland (ADM) fell 11% after Citigroup downgraded the stock to sell from hold. Seymour pointed out the drop was the biggest fall for ADM in about two years. Applied Materials (AMAT) lost 9% after the company saw a major solar contract get cut by $1.65 billion. Terranova said the news wasn’t encouraging if you wanted to buy AMAT. Estee Lauder (EL) dropped 7% after UBS downgraded the stock to sell from neutral. Finerman said not good. ArcelorMittal (MT) traded down 5% after the steel firm said it would cut jobs to fight slowing demand. Seymour mentioned he likes the stock at current prices.
Trader Radar
Shares of Black & Decker (BDK) were among the most active names on the NYSE Tuesday.
Final Trade
Macke said cover the ProShares UltraShort S&P 500 (SDS). Finerman likes American Express (AXP) from the long side. Terranova recommended long Bed, Bath & Beyond (BBBY). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The markets were hit with selling on Monday after a analyst issued a bearish not on the banking sector. The Dow fell 41.74 points, or 0.52%, to 7,975.85, while the S&P 500 dropped 7.02 points, or 0.93, to 835.48. The Nasdaq lost 15.16 points, or 0.93%, to 1,606.71.
Rising Star – Chipotle
During the “Rising Star” segment, the traders highlight Chipotle Mexican Grill (CMG), an operator of a fast casual chain of Mexican restaurants that is known for its tasty burritos and tacos. Macke said the stock is a former cult stock that has plunged 40% and is starting to comeback. “Cult stocks either go to zero or they find a bottom and it looks like a case of the latter,” Macke said.
POPS&DROPS
POPS- Research In Motion (RIMM) added 8%. Terranova explained that investors want back into this stock. Dendreon (DNDN) jumped 10% ahead of data on its prostate cancer drug Provenge. Seymour thinks DNDN will get fast track approval for the drug. General Motors (GM) popped 8% after the car-maker said its sales in Brazil were up 45%. Macke said the stock is going lower.
DROPS- Rio Tinto (RTP) fell 11% off of rumors of a share sale. Seymour said there’s concern the company could do a new rights offering. The Gap (GPS) dropped 5% ahead of same-store sales set for Thursday. Macke said the only retailer worth owning is Wal-Mart (WMT). Agrium (AGU) slipped 2%. Karabell thinks the long-term story at AGU is great. Cisco Systems (CSCO) dropped 3% after Goldman downgraded the stock to neutral from buy. Terranova said they have 29 billion in cash and love to buy companies. Eastman Kodak (EK) fell 6%. Karabell told viewers the company isn’t doing well.
Trader Radar
Shares of DreamWorks (DWA) was among the most active names on the NYSE Monday.
Final Trade
Macke said get long Goldman Sachs Group (GS) with a stop at $110. Seymour likes Unilever (UN). Karabell recommends getting long NVIDIA (NVDA). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The stock market continued to rise on Wednesday after unrest at the G20 meeting had little affect on investor sentiment. The Dow Jones Industrial Average traded up 152.68 points, or 2.01%, to 7,761.60, while the S&P 500 rose 13.21 points, or 1.66%, to 811.08. The Nasdaq advanced 23.01 points, or 1.51%, to 1,551.60. Pete Najarian said he was impressed by the move up in the financials, but he also cautioned investors about volatility index, which is still above 42. Jeff Macke pointed out that Moody’s downgraded both Macy’s (M) and JC Penney (JCP) but the stocks still managed to trade up. He said that’s a market tell. Karen Finerman said the mark-to-market issues is big and we could get some positive news on the issue on Thursday when the Financial Accounting Standards Board meets. She thinks good banks like Valley National (VLY), which have been beating down by mark-to-market, could be ready to trade up. Najarian said the FASB decision could be a game changer if it takes the pressure off of banks with concern to their toxic assets.
RIMM Earnings Trade
Mellisa Lee asked the trades how they would play Research In Motion (RIMM) ahead of its earnings on Thursday. Najarian told viewers to buy RIMM if the earnings aren’t great and the stock pulls back. Adami said wait-and-see with RIMM before jumping in, despite a report out of Goldman Sachs that said buy RIMM ahead of earnings.
Dennis Gartman Chat
Strategic investor Dennis Gartman joined the traders to discuss some trading ideas for the second quarter. Gartman said he likes copper and he would buy copper stocks instead of the futures. Some of the names he favors are Freeport McMoRan (FCX) and Southern Copper (PCU). HE also likes Alcoa (AA) for a play on copper and aluminum, which both go into building. Gartman thinks new housing starts are too low at 400,000 and we’re going to have a shortage in housing soon. He believes that once housing starts go up then copper and other commodities prices will follow. One more play he likes is to short the yen due to Japan’s weakening economy.
Merger Plays
The crew discussed some potential M&A plays that investors might want to put on their radar. Najarian likes Palm (PALM). He mentioned that Dell (DELL) has $9 billion in cash and a merger with PALM could put them in the sweet spot. Adami thinks a solid takeover candidate is Greenhill (GHL). Finerman said she is long some Teradata (TDC) and thinks the stock is going up regardless of if it gets bought out.
POPS&DROPS
POPS- Toyota Motors (TM) rose 7%. Macke told viewers to stay away. Corning (GLW) jumped 6% off a positive note from Bernstein. Adami said look to buy this stock on a pullback. American Express (AXP) traded up 7%. Finerman thinks AXP will benefit from the TALF. Limited Brands (LTD) moved up 5%.. Macke mentioned that retailers have been strong of late. Vodafone (VTD) popped 7% after Goldman Sachs Group added the firm to its “conviction buy” list and Morgan Stanley upgraded it to overweight from equal weight.
DROPS- Stryker (SYK) fell 3% after the FDA rejected approval of the firm’s spinal bone-growth product for expanded use. Najarian explained the ruling hurt SYK. Apollo Group (APOL) dropped 15% after Baird downgraded the stock. Adami thinks the stock looks cheap, but it could continue to trend down for a day or two. Danaher (DHR) lost 3% after JP Morgan downgraded the stock to neutral from overweight. Finerman said the stock is a good place to be if you like the industrial sector.
Trader Radar
Shares of Urban Outfitters (URBN) were among the most active names on the Nasdaq Wednesday.
Final Trade
Macke picked long Mosaic (MOS). Adami suggested long AK Steel (AKS). Finerman said buy Teradata (TDC). Najarian recommended buying Palm (PALM). Join the fastest growing community of small cap investors at Stockhideout.com

Word On The Street
The stock market dropped big on Monday after the U.S. government decided to fire the CEO at the helm of General Motors (GM). The Dow Jones Industrial Average fell 254.16 points, or 3.27%, to 7,5022.02, while the S&P 500 slipped 28.41 points, or 3.48%, to 787.53. The Nasdaq tanked 43.40 points, or 2.81%, to 1,501.80. CNBC’s “Fast Money” TV show was hosted by Melissa Lee. Guy Adami said the market, from a technical perspective, is in no man’s land right now. He thinks the S&P 500 is heading back to 741, and if it holds it will rip back up to 900. Karen Finerman said the market had a big run and it was looking for an excuse to sell. She also questioned a research report out of Goldman Sachs Group (GS) that said the S&P 500 will trade in the range of 700 to 800 for the rest of the year. Pete Najarian told viewers that the rise in the volatility index is about uncertainty. He said nobody is sure of the really or the sell-off.
Financial Talk
Lee asked the traders to comment on the decision on Thursday by the Financial Accounting Standards Board to change the mark-to-market accounting rules. Finerman said the decision was huge due to the size of mark-to-market portfolios at the banks. She explained now the banks can get some relief that will help their capital. Brad Hintz, a brokerage analyst at Sanford Bernstein, said the changes will reduce the risk of surprise losses for the banks and allow them to keep their assets. Najarian said if you want a trade idea in the space look at Northern Trust (NTRS) and Visa (V). He also told viewers to watch Wells Fargo (WFC). He noticed some huge put buying in the stock with over 100,000 April 11 puts trading hands. Adami reminded investors that Warren Buffett has a big position in WFC.
Steel Trade
Lee mentioned that U.S. Steel (X) lost 12% after a UBS report said steel was down 50% in 2009 and they think more pricing pressure is head into 2010. Najarian said watch Freeport McMoRan (FCX), because if copper goes up so will the stock. Tim Seymour thinks FCX can pullback to $36 a share. He also said that Steel companies have a lot of debt on their books. Adami likes Nocor (NUE).
Transport Trade
Lee mentioned that Goldman Sachs upgraded Burlington Northern (BNI) to buy from neutral and downgraded Union Pacific (UNP) to neutral from buy. Najarian mentioned that Buffett is long BNI.
Pharma Trade
The traders discussed some trades in the pharma sector. Najarian said he is keeping an eye on Amylin (AMLN) for a takeover play. He also is watching Humana (HUM) because of heavy call buying. Adami likes Abbott Labs (ABT) in the sector.
Oil Take
Joe Terranova joined the crew to discuss the drop in oil today. Terranova said the reflation trade is going to give investors opportunities to  buy some attracitve companies like Flowserve (FLS), Exxon Mobil (XOM) and ConocoPhillips (COP). Seymour likes Tenaris (TS) in the space.
Chartology With John Roque
The traders spoke with John Roque, a technical analyst for Natixis Bleichroeder about how the charts look for the U.S. equity markets. Roque said the pattern in the S&P suggests it has further to fall, but he doesn’t think it will retest bear market lows. He explained that all of the major averages are suspect because the 50-day and 200-day moving averages are trending downward. He said if you want to find the next leaders of any rally look at the energy and consumer discretionary sectors.
POPS&DROPS
POPS- Amazon (AMZN) rose 2% off a positive Barron’s article. Najarian had bullish comments for the future of e-tailing. Fifth Third Bancorp (FITB) jumped 5%. Netflix (NFLX) soared 6%.
Drops- Alcoa (AA) plunged 14%. Seymour said the dollar’s move to the upside is pressuring commodities. BB&T (BBT) lost 8% after Stifel Nicolaus downgraded the stock to sell from hold. Finerman said BBT will need more loan loss provisions. CBS (CBS) tanked 18% after UBS downgraded the stock to sell from neutral. Adami thinks the stock could fall more. DryShips (DRYS) traded off 16% after auditors said the company could have problems meeting debt covenants. Seymour told viewers DRYS will follow commodities. Manitowoc (MTW) plunged 33% after first-quarter earnings missed Wall Street estimates. Najarian said not good. Dow Jones US Real Estate ETF (IYR) fell 5%. Najarian said there is more downside in commercial real estate to come. Ameriprise Financial (AMP) lost 9% after Fitch downgraded the company to negative from stable due to equity exposure.
Rising Stock Star – Axsys
During the rising stock star segment, Finerman made bullish comments on Axsys Technologies (AXYS), a firm that makes night vision lenses, thermal imaging systems and water telescopes. “It’s not expensive on a P/E basis. They have a great balance sheet and have been growing revenue nicely,” said Finerman. She also thinks the company is a takeover target.
Final Trade
Adami picked long Abbott Labs (ABT). Finerman likes long Axsys (AXYS). Najarian said buy iShares NASDAQ Biotechnology Index (IBB). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
Stocks took off on Tuesday following an unexpected spike up in housing starts and a surge in technology shares. The Dow Jones Industrial Average soared 178.73 points, or 2.48%, to 7,395.70, while the S&P 500 added 24.23 points, or 3.21%, to 778.21. The Nasdaq surged 58.09 points, or 4.14%, to 1,462.11.
Last Stock Standing – Financials
The  panel discussed the financial stocks they feel will survive once the dust clears. Adami thinks Raymond James (RJF) and Jefferies (JEF) will be the winners. “Raymond James had a better than expected quarter back in January,” he said “And I like their valuations.” As for Jefferies, Adami said they’re hiring when most are firing, and that speaks volumes.

3 Stocks To Sell

Jeff Mack thinks investors should look to lock in profits on three stocks. He said right now Apple (AAPL) and Goldman Sachs Group (GS) are approaching $100 and he thinks it will be difficult for both to break above that level.
POPS&DROPS
POPS- Exxon Mobil (XOM) added 3%. Terranova thinks its a better trade to be in the integrated names over the oil futures. Home Depot (HD) rose 6% after Jefferies upgraded the stock to buy from hold. Adam thinks the stock goes to $24, but he wouldn’t chase it. Wal-Mart (WMT) jumped 2%. Macke said the only retail stock he likes is WMT. AT&T (T) shot up 4% despite negative comments from S&P. CME Group (CME) soared 13% after the company secured backers for its new credit default swap clearinghouse. Terranova thinks CME warrants a closer look.
Trader Radar
Shares of Costco (COST) were among the most actively traded names on the NYSE Tuesday.
Final Trade
Macke said take profits in Goldman Sachs Group (GS). Adami likes Gilead (GILD) on the long side. Najarian recommended the Industrial Select Sector SPDR (XLI). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The four-day rally came to an end on Monday as Wall Street traders booked profits in the financial stocks. The Dow Jones Industrial Average dropped 7.01 points, or 0.10%, to 7,216.97, while the S&P 500 lost 2.66 points, or 0.35%, to 753.89. The Nasdaq traded off 27.48 points, or 1.92%, to 1,404.02. Guy Adami told viewers that some investors took money off the table. However, he also mentioned that some people closed their short positions off of Bernanke’s comments. Joe Terranova said a few days of consolidation won’t hurt the market. He thinks the level to watch on the S&P 500 is 740. Jeff Macke thinks the Fed will continue to throw money at out problems and the Fed is more afraid of deflation than anything else. Zach Karabell said there’s much more upside from current levels. Macke mentioned that he took some profits in Morgan Stanley (MS) and Goldman Sachs Group (GS). The host of the show, Melissa Lee, pointed out that Alcoa (AA) was down 11% in after-hours trading after it announced plans to cut its dividend, issue stock and convertible notes worth $1.1 billion and cut its 2010 spending to fight the falling demand for aluminum. Terranova said the best play in the space is in copper with Freeport McMoRan (FCX).
Rude Crude Talk
Crude oil rose $1.10 to $47.35 a barrel after OPEC announced over the weekend it would hold production at current levels. Adami said oil looks to be heading north of $50. Terranova said if you want a play on oil look at Hess (HES).
Tech Talk
Lee brought up the Nasdaq which fell 2 today. Adami reminded viewers that Oppenheimer’s Carter Worth has been bullish on the semis. He thinks now might be a good time to get in SMH (SMH). Terranova said he would buy Intel (INTC) and Broadcom (BRCM) on a pullback. Macke disagreed, and said now is the time to get out of Intel and Microsoft (MSFT), which he feels are value traps.
Nouriel Roubini Take
The traders commented on Nouriel Roubini’s prediction that last week’s rally was just a dead-cat-bounce. Terranova said investors shouldn’t focus on Roubini’s comments, but instead look at what traders are doing. Karabell said experts like Roubini rarely do a good job calling a market recovery.
Coal Trade
The “Fast Money” traders talked about some coal trades. Terranova said coal prices are under pressure due to the possibility of cap-and-trade initiatives and from the large decline in nat gas, which is now cheaper for energy companies to switch to over coal. He told  viewers to get long nat gas producers like Apache (APA) and EOG Resources (EOG), and short coal. Adami said he likes Joy Global (JOYG) because 80% of its coal plants are outside the U.S. Karabell said Joy Global will benefit in places like India and China which rely on coal as a cheap source of energy.
Retailer Winners
The crew discussed some retail stocks that could survive the worst downturns in recent memory. Macke said there is only one name in retail to consider and that’s Wal-Mart (WMT). He told viewers to avoid Target (TGT). “Target is seeing problems in its credit card division and their real estate isn’t worth anything,” he said. Karabell said he likes Amazon.com (AMZN) as one of the better consolidated retail companies.
Rising Star – Borgwarner
During the Rising Star segment, Adami selected Borgwarner (BWA). The company is the largest producer of automatic transmissions and fuel-efficient dual clutch technology. “This was a great story a year and a half ago and now it’s gotten crushed with the rest of the sector,” he explained. “They were a rising star 18 months ago and I believe they will be again,” he said.
POPS&DROPS
POPS- Barclays (BCS) traded up 20% after rumors made the rounds that the UK Bank could sell its I-Shares ETF business. Karabell said he isn’t so found of them selling the iShares division. DuPont (DD) popped 4% after the chemical maker announced a new production plant in Spain to expand its fiber capacity. Terranova said take some profits off the table. Fortress Investment Group (FIG) added 6% after the company reported a fourth-quarter loss but beat Wall Street expectations, and said it expects redemptions to bottom this year.
DROPS- Pfizer (PFE) dropped 3% after the world’s biggest drugmaker said it plans to sell additional notes to finance its purchase of Wyeth. Adami said this is one health care stock he doesn’t like. Apollo Group (APOL) fell 5% off of Obama’s policies that could hurt private lending for student loans. Adami told viewers it doesn’t look good for this stock. Sandisk (SNDK) dropped 11% after Bank of America reinitiated coverage of the stock with an underperform rating. Terranvoa said don’t sell this stock just yet. General Motors (GM) lost 7%. Karabell said he is surprised anyone even talks about this stock because its going to go bankrupt and the shares will be worthless.
Trader Radar
Shares of Newell Rubbermaid (NWL) was was among the most active names on the NYSE Monday.
Final Trade
Macke said buy Mosaic (MOS) around $40 a share. Adami likes Transocean (RIG) because of recent bullish options activity. Karabell said get long Monsanto (MON) in the high $70s and low $80s. Terranova recommended Broadcom (BRCM). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

AG Takeover Take
Ratigan asked the traders to talk about the deal making activity in the agriculture sector. Najarian said the three-way takeover battle with CF Industries (CF), Terra Industries (TRA) and Agrium (AGU) shows the willingness of ag companies to buy undervalued assets in the space. Finerman said AGU will have to raise their bid to get CF. Seymour mentioned that Mosaic (MOS0 and Potash (POT) have the best pricing power in the sector.
POPS&DROPS
POPS- Geron (GERN) jumped 16% off of Obama’s announcement to lift the ban on stem-cell research funding. Najarian reminded viewers that you’re playing something that could happen well into the future. Rohm & Hass (ROH) added 17% on the news that Dow Chemical (DOW) would go through with its purchase of the company. Finerman said that explains the stocks rise. General Electric (GE) rose 5%. Karabell said the stock is making a comeback. Wells Fargo (WFC) ripped 16% higher after the bank said it’s cutting their dividend by 85%. Finerman said its profitable to be a bank right now. Halliburton (HAL) jumped 4% after FBR raised its rating on the stock to outperform. Seymour told viewers that if  oil moves up HAL will follow. Caterpillar (CAT) popped 3%. Karabell speculated that business could be getting better at CAT. JetBlue (JBLU) rose 3% after Morgan Stanley upgraded the stock to overweight. Najarian said he liked the call. Pro-shares 20+ YR Treasury ETF (TBT) climbed 1%. Finerman thinks  the supply of Treasures is going to increase and she said she plans to stay long TBT.
DROPS- HSBC (HBC) fell 5%. Seymour explained the company is doing bad due to US housing loan issues. Procter & Gamble (PG) lost 3% after their president of global business retired. Najarian reminded viewers the stock is near a 52-week low.
Rising Star
In the “Rising Star” segment, Karabell mentioned Thomson Creek Metals (TC), one of the largest publicly traded pure molybdenum producers in the world, which is used to make high-end steel for airplanes and buildings. Karabell said despite the fact that prices of molybdenum have dropped, there will still be future demand because it’s an irreplaceable input for high-end steel. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The stock market plunged on Monday after the government continued its bailout path by injecting more money into American International Group (AIG). The Dow dropped 299.64 points, or 4.24%, to 6,763.29, while the S&P 500 fell 34.27 points, or 4.66%, to 700.82. The Nasdaq traded down 54.99 points, or 3.99%, to 1,322.85. Dylan Ratigan, the host of CNBC’s “Fast Money” TV show said the market was brought back to the beginning of the financial crisis with another bailout of American International Group (AIG). Ratigan said history is unfolding before our eyes. AIG is basically insuring $500 billion in credit but almost keeping nothing in collateral.  Joe Terranova said his emotional instinct is to be a buyer of stocks in the morning. Zachary Karabell said the data is starting to get positive when you consider the uptick in consumer spending and the income numbers in January, plus a bottoming in the purchasing mangers’ index. He told viewers that the real world will lead us out of this mess instead of the markets this time. Jeff Macke said investors should have lots of cash and shorten up their swing. Tim Seymour said his firm only has a couple of longs and is short some high beta names.
Dollar Strength
Ratigan mentioned that the dollar is trading at 3-year highs. Seymour said there are big problems in Europe and Asia. He told viewers he continues to go long the dollar and thinks it goes higher. Macke explained that a strong dollar is bad for mutli-nationals such as Hewlett Packard (HPQ), McDonald’s (MCD) and Pepsi (PEP) which all do large amounts of business abroad.
Short Squeeze Trade
Jon Najarian joined the crew to talk about some short squeeze candidates. He said put Wells Fargo (WFC) on your radar for a short squeeze candidate – the stock has dropped from $30 to $10 in the past month as the short interest has risen big. “Fourteen million more shorts have joined the party and they are going to be ones chasing this one up,” he said. Another name he thinks could squeeze is Vale (RIO). “The short interest in this stock is something like 35% and I’d be on the other side of that,” he added. Moving on to the gold sector, Najarian said the play is to buy the Miners ETF (GDX) and sell the Gold ETF (GLD) against it. A mining name he likes is Ivanhoe Mines (IVN).
Technical Take
The crew spoke with Louise Yamada, of Louise Yamada Technical Research Advisers for her take on the markets direction. She said the markets look to be heading lower now that the 2002 lows have been broken. She pegged the first target on the Dow at 6,000 and 600 for the S&P 500, and the second being 4,000 on the Dow and 400 for the S&P 500. Yamada explained that the real wealth destruction during the Crash of 1929 didn’t occur until after the market bounded in 1930 and then crashed again for the next several years. Yamada advised viewers to hold cash and if you take a position to do it with trailing stops.
Heath Care Trade
The traders spoke to CNBC’s Mike Huckman about the impact of Obama’s health plans on big pharma and biotech. Huckman said the President wants greater rebates to Medicaid on the popular drugs and that will bring down margins at Big Pharma. He explained that the biotech sector is under pressure because Obama is trying to create a road map for generic versions of biotech drugs. Huckman told viewers to watch Genentech (DNA) which is set to release Avastin risk data soon. He said if the results are strong the stock could go to $100, or put it our of reach for Roche’s takeover attempt. He also said keep an eye on Dendreon (DNDN), for their prostate cancer results.
Trader Radar
Shares of Wendy’s Arby’s Group (WEN) were among the most active names on the NYSE Monday.
POPS&DROPS
POPS- FTI Consulting (FTI) soared 13% after the firm beat their fourth-quarter earnings and issued a strong full-year outlook. Ratigan explained that the company makes their living off of restructuring.
DROPS- PNC Financial (PNC) fell 4% after the company cut its dividend by 85%. Terranova said don’t go near this stock. Morgan Stanley (MS) dropped 8%. Macke said he bought some MS today. Emerging Markets Index ETF (EEM) fell 6%. Seymour pointed out that emerging markets are outperforming global markets this year. Prudential (PRU) fell 10%. Karabell explained that the entire insurance sector is under pressure. Dell (DELL) lost 1%. Terranova told viewers he bought some DELL today and thinks a big short squeeze is coming. MGM Mirage (MGM) traded down 13% after the stock was downgraded by a top credit ratings agency. Macke said its a bad time to be a casino. UBS (UBS) fell 8%. SLM (SLM) plunged 18% after Obama’s first budget called for an end to loan subsides for school lenders. Karabell doesn’t think the change to student loans will pass Congress. Exxon Mobil (XOM) dropped 4%. Terranova said the stock is a buy here with a tight stop.
Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The markets continued to fall on Friday. The Dow Jones Industrial Average fell 119.15 points, or 1.66%, to 7,062.93, while the S&P 500 dropped 17.74 points, or 2.36%, to 735.09. The Nasdaq dropped 13.63 points, or 0.98%, to 1,377.84. Dylan Ratigan, the host of CNBC’s “Fast Money” TV show said the markets showed some signs of life despite some very bad news like the worst GDP numbers since 1982 and General Electric’s (GE) first dividend cut since 1940. Pete Najarian said its amazing the market only fell 100 points with all the bad news. Jeff Macke mentioned that the S&P is right at support. Joe Terranova said there’s so much pessimism in the markets that contrarian investor Doug Kass is bullish.
Citigroup Nationalized??
Ratigan shifted the conversation to the biggest news story of the day, which was the deal between the U.S. government and Citigroup (C). The deal will have the government converting $25 billion of its preferred shares in C into common stock which will bring their stake to 36% of the company. Karen Finerman said the news was a homerun for Citigroup preferred shareholders. She said her trade going forward is long bank of America preferred and short Bank of America (BAC) common stock against it. Joe Terranova said an alternative way to play  this is to buy Morgan Stanley (MS) and Goldman Sachs Group (GS). Jeff Make thinks Citigroup did the deal with the government to avid a credit rating downgrade.
General Electric Talk
Ratigan asked Finerman what her thoughts were on the news that General Electrc (GE) cut its dividend. She said the move was smart and the company can use the $9 billion saved for other things.
Tech Talk
Ratigan moved the discussion to the technology sector. Terranova said he’s long Dell (DELL) and thinks the stock could trade up to $11 or $12 a share easily if the large shorts in the stock cover. Najarian said he doesn’t like Dell because he sees no growth. He told viewers to consider IBM (IBM).
Commodity Chat
The traders talked about the recent strength in the commodities sector. Terranova said nat gas looks to be turning around. He told viewers he is long ConocoPhillips (COP) $35 calls. Najarian pointed out that ag stocks like Mosaic (MOS) are strong and the stock saw 85,000 calls trade today. He also mentioned that a catalyst for next week in the AG space is a Credit Suisse conference.
Credit Crisis & Bank of America
Sean Egan, managing director of Egan-Jones Ratings, joined the traders to talk about the state of the credit markets. Egan said credit conditions are bad but will get better once the Federal Reserve figures out how to get credit flowing again. Moving on to Bank of America (BAC), Egan said the company is not doing well after buying out Merill. He thinks BAC will need $100 billion in equity in the next 100 days. Egan also thinks BAC CEO Ken Lewis will be replaced over the next 6 to 12 months.
TARP Pay Back
CNBC’s Steve Liesman said Louisiana bank IberiaBank (IBKC) has become the first bank to return TARP funds. The bank took $90 million from the government in late 2008 in exchange for preferred stock through a program  called Capital Purchase Program. However, now the rules have changed after Senator Dodd added new restrictions to the money as part of the stimulus  package. “Thanks but no thanks,” says CEO Daryl Byrd, President & CEO IberiaBank. “The rules are changing and we’re concerned that it could put our company at a competitive disadvantage.”
ETF Debate
Ratigan mentioned that ETFs have become so popular that almost a quarter of all investors at Schwab use them as their primary way to trade. Jon Najarian said the major gold ETFs like the GLD (GLD) now hold more reserves of gold than Switzerland. Macke said investors should use ETFs cautiously. He explained that they’re not for buy and hold and ETFs like the SDS (SDS) are like dating a stripper. “It’s fun but it’s not going to end well. Don’t hold them overnight,” he said.
Obama’s Healthcare Plan
The traders spoke with Jonathan Bush, CEO of Athenahealth (ATHN) about Obama’s health care plan. He said Obama’s plan should benefit the company despite the 22% drop in the stock on Friday. Bush said he didn’t understand why the stock fell so much because his company’s software helps to organize medical records. Obama has said he plans to make immediate investments into the computerizing of all US medical records within five years while protecting individuals’ privacy. “We are positioned for an unbelievable future. Investors will be back because things have never been better at Athena,” he said.
POPS&DROPS
POPS- IBM (IBM) jumped 4% after the company reaffirmed its outlook for 2009 and announced a share buyback. Terranova thinks the stock can trade to $100. CF Industries (CF) rose 14% after Agrium (AGU) made a $3.6 billion bid for the firm. Najairan said its a big deal. Sears Holdings (SHLD) rose 4% after reporting fourth-quarter earnings that were better than Wall Street had expected. Macke said get out. The Blackstone Group (BX) soared 23%.
DROPS- WellPoint (WLP) fell 18%. Finerman thinks the sell-off is overdone. Currencyshares Japanese Yen Trust (FXY) dropped 3% after the yen had its worst monthly decline against the dollar since 1995. Terranova told viewers to avoid the FXY.
Final Trade
Macke said get long Toyota (TM). Terranova likes IBM (IBM). Finerman went with Foot Locker (FL). Najarian recommended McDonald’s (MCD) as a buy. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Word On The Street
The markets sold off in the last hour of trading after President Obama failed to offer any details on the bank plan. The Dow Jones fell 80.05 points, or 1.09%, to 7,270.89, while the S&P 500 dropped 8.24%, or 1.07%, to 764.90. The Nasdaq lost 16.40 points, or 1.14%, to 1,425.43. Dylan Ratigan the host of CNBC’s “Fast Money” TV show, said the stress tests will be used to look at the capital cushion of the 19 largest banks in the country. He explained the results will be used to figure out how much money the banks will need if their toxic assets continue to fall. Karen Finerman said she doesn’t get the stress test because details are missing. Jeff Macke said the stress test is nothing but the U.S. government buying time. Pete Najarian said the trade is to buy the regional banks (KRE) that have been beaten-down with the entire financial sector.
Oil Talk
Ratigan mentioned that crude oil rose 6%. Najarian mentioned that oil took off after it traded through $40 a barrel. He said the best name in the sector is Exxon Mobil (XOM). Macke questioned why Exxon is a good play, since the stock did nothing as oil surged on Wednesday. Zach Karabell explained that $40 a barrel is a good price for oil producers because their break-even price is $15. He told viewers to look at Petrobras (PBR) which has big reserves.
Casino Chat
Ratigan said Wynn Resorts (WYNN) fell 16% today after the company reported fourth-quarter losses due to declines in profits at Macau and Las Vegas. Macke said he doesn’t think all the bad news is priced in the casino stocks yet. Karabell thinks WYNN is being hurt by there huge amounts of debt more than the drop off in their business.
Apple & Dell
The traders welcomed Toni Sacconaghi, senior research analyst for Sanford Bernstein to discuss Dell (DELL), which is going to report its earnings tomorrow and Apple (AAPL). Sacconaghi said investors are nervous about Apple because its the ultimate consumer stock at a time when consumer spending is down. He said the stock is cheap at 7 or 8 times cash flow. Moving on to Dell, he said investors are spooked about tech spending and the company is primarily a PC firm. He said the short term outlook for Dell is tough, but if you have a long term horizon you can buy the stock, which is at $8 a share. He explained the stock is at lows last seen in 1998 and its very cheap trading at four times earnings.
POPS&DROPS
POPS- JPMorgan (JPM) rose 3%. Proshares Ultrashort Lehman 20-year ETF (TBT) added 3%. Najarian thinks it goes higher. General Motors (GM) popped 15%. DineEquity (DIN) popped 13% after the restaurant operator reported fourth-quarter earnings that beat Wall Street estimates. Finerman told viewers that there is a big short interest in this stock.
DROPS- Deere (DE) fell 5%. Karabell said there are a lot of reasons to like this stock longer term. Transports (.DJT) dropped 4%. Najarian explained that when oil trades up the transports fall. Allstate (ALL) lost 6% after the insurer said it will cut its dividend to 20 cents a share from 41 cents a share in a effort to save money. Finerman said that cutting the dividend was the right thing to do, but the rest of their business isn’t good. First Solar (FSLR) plunged 22% after the company predicted 2009 sales will fall below estimates. BHP Billiton (BHP) dropped 4%. Karabell said it will be hard for BHP to raise their prices with demanding dropping.
Final Trade
Macke likes Apple (AAPL). Karabell picked Sohu.com (SOHU). Finerman told viewers to get long Wells Fargo preferred and short Wells Fargo (WFC) common stock against it. Najarian recommended Visa (V) for a buy. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!