Word On The Street
The stock market continues to see wild volatility on Monday. The Dow falls 100 points in early trading, but rebounds to close up 50. Pete Najarian thinks the trading range on the market is going to be very large and the swings will get bigger and bigger. Jeff Macke says we had a textbook bounce on Monday and the all clear signs are far from here. Apple Inc. (NASDAQ: APPL) crushes Wall Street estimates reporting a 67% jump in profits. Najarian says it’s an amazing number and everything is working. He also mentioned that Morgan Stanley is now projecting a $225 price target for Apple. Najarian recommends looking for any pullback in Apple to get long. He owns it and says he will continue to stay long. American Express Company (AXP) beats expectations and traders higher after hours. Finerman likes American Express and she would like to buy it on a pullback. Adami likes the name and he thinks it’s a sea change stock. Texas Instruments Incorporated (TXN) shares dip on the chip maker’s outlook was below Wall Street estimates. Najarian says Texas Instruments isn’t managed as well as Apple Inc. (NASDAQ: AAPL) and he would rather own Apple. Adami says buy Intel Corporation (INTC) off the TXN numbers. Crude oil and gold both fell 1% Monday as the dollar gains strength. Adami thinks crude is over extended up here and the next $8 to $10 is down. He also thinks gold will fall if the dollar continues to reverse higher. Najarian still likes the oil service sector. Merck & Co. Inc. (MRK) reports a 62% jump in third quarter profits and the stock trades higher. Macke continues to be bullish on Merck. Najarian says he is now concerned about the P/E on Merck Adami says look at Pfizer Inc. (PFE) on a valuation basis. The homebuilding stocks were strong on Monday with the SPDR S&P Homebuilders ETF (XHB) trading up 3%. Finerman mentions that a private equity group Hellman & Friedman bought Goodman Global Inc. (GGL) for $2.65 billion She would trade off that news by going long M.D.C. Holdings Inc. (MDC).
WORD ON STREET VIDEO
Retail Trade
Amazon.com Inc. (AMZN) is set to report earnings Tuesday after the bell. What is the trade? Macke loves the stock and thinks they will blow out the earnings. Finerman likes Target Corporation (TGT) and Wal-Mart Stores Inc. (WMT) and she hopes they trade lower so she can buy more for her hedge fund. Finerman thinks there is value in the right retail stocks at these levels. Adami likes United Parcel Services Inc. (UPS) ahead of earnings for an online retail play. He explained that if Amazon is doing well then UPS will benefit.
RETAIL VIDEO
Merrill Take
Merrill Lynch & Co. Inc. (MER) is set to report earnings on Wednesday. What is the trade? CNBC’s Charlie Gasparino joined the “Fast Money” crew to discuss his take on Merrill. Gasparino says people are expecting a $5 billion write-down for the 3^rd quarter. His sources are also telling him that this same sized write-down could happen for the 4^th quarter. He explained that insiders at Merrill are calling for CEO Stan O’Neal’s head. He says even outside shareholders want him out. Macke says why bother buying this stock, who knows where the bottom is. Gasparino is now giving O’Neal 8-to-1 odds of being removed as CEO.
MERRILL VIDEO
Oil Trade
Higher oil prices may actually cause BP p.l.c. (BP) and Exxon Mobil Corporation (XOM) to report a decline in profit for the first time in 5 years. What is the trade? Finerman wants to short tanker stocks like Teekay Corporation (TK) because of declining tanker rates. Najarian thinks shorting tanker stocks could be a good idea. Adami thinks Exxon is going to miss on November 1^st and will trade to $86 by the end of the week.
OIL VIDEO
SanDisk Take
SanDisk Corporation (SNDK) co-founder, president and COO Sanjay Mehrotra joined the “Fast Money” crew to discuss his firm’s prospects. Mehrotra says demand remains strong especially for the mobile phone segment of the business. He sees continued growth for SanDisk in 2008 and higher profitability. Mehrotra refused to comment on speculation that the company could be bought out. Najarian doesn’t like SNDK on valuation, but he sees a takeover candidate at play here. Adami likes it for a short-term trade.
SANDISK VIDEO
Happy 52-week high Cypress Semiconductor Corporation (CY)
POPS&DROPS
POPS- Altria Group Inc. (MO) trades up 1% after a UBS upgrade. Finerman is bullish on Altria. Kimberly Clark Corporation (KMB) trades up 5% after posting strong profit numbers. Macke likes the management and performance out of KMB. ExpressJet Holdings Inc. (XJT) trades up 16% after the firm announced possible plans of going private. Adami says Monday’s action was just a short squeeze and he would let it run a few more points and then sell it. LDK Solar Co. Ltd. (LDK) traded up 13%. Najarian likes SunPower Corporation (SPWR) and Cypress Semiconductor (CY). Coldwater Creek Inc. (CWTR) traded up 8% after insiders bought some stock. Macke says don’t bottom fish in specialty retail. Sears Holdings Holdings (SHLD) popped 4% after a positive mention in Barron’s. Finerman says she would rather be long Target Corporation (TGT). Royal Caribbean Cruises Ltd. (RCL) traded up 8% after reporting strong profits. Macke says the stock is working. Radiation Therapy Service Inc. (RTSX) exploded higher by 44% after Vestar Capital Partners took the company private. Najarian says this was a serious pop. Zebra Technologies Corporation (ZBRA) popped 10% after reporting higher profits. Finerman had nothing important to say. Lululemon Athletica Inc. (LULU) traded up 5% after the firm raised third-quarter estimates. Adami says he would buy it.
POPS&DROPS VIDEO
Final Trade
Macke says buy Short Dow30 ProShares (DOG). Adami likes Intel Corporation (INTC). Finerman recommends Covidien Ltd. (COV). Najarian likes Yahoo! Inc. (YHOO) for a play on Aliba
FINAL VIDEO

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