Fast Money Recap - Fourth Day's a Charm (11/26/08)

Recap of CNBC's Fast Money program, Wednesday November 26.

Good News? GM (GM), Capital One Financial (COF), Toyota (TM)

The Dow was up four consecutive days in its best performance since 1932. Proposed government aid to Citigroup and GM are thought to have influenced the Dow’s rise, but Karen Finerman is still skeptical the plan will be carried out, and that the proposals won’t make the economic situation worse. She is short Capital One Financial. Jeff Macke declared he is “long GM and long socialism but short Toyota,” which he feels is “not going to get money dumped on them by the Federal government.” Joe Terranova said the fact the banks are finally starting to turn is a good sign and the market is oversold.

Black Friday: Kohl’s (KSS), JC Penney (JCP), Macy’s (M), Wal-Mart (WMT), Gap (GPS)

Although the consumer has been avoiding the malls lately, retailers are gearing up for Black Friday, which kicks off the biggest shopping weekend of the year. There is talk that Kohl’s and JCP are the names to watch, since they are offering discounts of around 50% off. Finerman discussed the “disconnect” going on in retail; “If you look at Macy’s debt, it will yield you over 18%. Either the equity is too expensive or the debt is too cheap.” Macke says all retail is problematic and while he owns Wal-Mart he wouldn’t buy it here. Guy Adami says Gap’s stores are better-run than Wal-Mart’s.

Who’s Wrong? Obama’s Picks

President-Elect Obama has selected former Federal Reserve Chairman Paul Volcker to chair a new panel advising Obama on bringing stability to the markets. While some applaud Obama’s picks, celebrated investor Jim Rogers had this to say:

"Dr. Albert Einstein has a definition of insanity. He said if you try the same thing over and over again, expecting different results you’re insane. I mean Paulson’s been wrong 100 weeks in a row, Bernanke’s been wrong 300 weeks in a row. And now they’re bringing in a guy – what’s his name? Geithner? – he’s been wrong 750 weeks in a row! What is wrong with America!?"

Guy Adami says the markets like Obama’s selection of Volcker and Geithner, and Joe Terranova says he is not going to put too much credence in what Jim Rogers has to say, because Rogers has been wrong for 17 straight weeks about commodities.

It Was the Worst of Times, It Was the Worst of Times: Centex (CTX), Ryland (RYL) Yamana (AUY)

While this past year has been terrible, Jon Najarian expects the market to trade up for the rest of the year, although the Dow will stay in the 8,000-10,000 range. Aid for Fannie and Freddie may make Centex and Ryland smart buys, because Najarian sees unusual volume in options contracts. Meanwhile, institutional money is flowing to gold miners, said Najarian would buy Yamana because it is trading 70% below the price of gold. Also he suggested selling short when the Dow is around the 9400 range.

Apple’s Sale (AAPL)

Apple has announced a huge Black Friday sale in which it will offer generous 15% discounts on Macs, iPods and accessories. Is Apple desperate? The stock price, which bounced on JPMorgan raising profit estimates for 2009 and 2010 and bullish remarks from Oppenheimer, doesn’t indicate the company is panicking. Gene Munster of Piper Jaffray says sales of Apple’s major products such as iPod and Macbooks are going to be in line with The Street’s expectations and added, “in a tough economy this stock should do better than most.”

Thankful that Gas is Cheap: Transocean (RIG), USO (USO)

Even thought the markets have been battered in the worst bear market since 1930, there is still a reason to give thanks- lower gas prices! With gas at $1.93 per gallon, more shoppers will be able to afford to go to the mall on Black Friday and spend. Finerman said “I’m long oil service stocks such as RIG and short the USO against it.” She likes oil service stocks because they have contracts going out for years and are primary beneficiaries of an increasing demand for oil.

Seeking Alpha is not affiliated with CNBC or Fast Money

Comments

[costello:]

Smart move from apple. Instead 10% they give 5 more, for more switch thinking people, and just about sunrise of W7.

2008 Nov 27 11:17 AM

[drone:]

Rogers if you'd get your butt back here from Singapore, maybe Obama could hire you to help us out.

2008 Nov 27 01:42 PM

[SM_PG:]

Hmm…..not personally convinced.
I think business like Wal-mart is absolutely solid in any time. Sure enough you may have profit ups & downs but in the long run I’d say it’s quite safe.
But again everyone has own opinion.

2008 Nov 28 12:47 AM

[Eze:]

I quite agree with Terry Huerbert, Rogers is a genius to the core and is fit for the Obama job. What are we likely to expect from the market next week? any predictions for now or do we wait till then?

2008 Nov 28 01:58 PM