Fast Money Recap - Is Anyone Buying Retail? (3/4/09)

Recap of CNBC's Fast Money, Wednesday March 4.

Retail: Reason to Be Bullish? Macy’s (M), The Gap (GPS), Nordstrom (JWN)

Same-store sales numbers are coming in on Thursday, and many analysts are expecting carnage in the retail sector along with 8-10% declines for many stores. Retail analyst Deborah Weinswig of Citigroup may be the one optimist and thinks the numbers may be better than expected. She says the numbers since November have progressively improved and seem to be stabilizing. She singled out Nordstrom as better than the rest and thinks J.C Penney will benefit from the closing of competitors’ stores. A mild February might also have helped retail sales, says Weinswig.

Fast money Bank of America (BAC), Wells Fargo (WFC), ACM (ACM)

News that China’s stimulus plan is increasing demand for infrastructure and commodities broke the Dow’s 5 day losing streak. Some believe China could lead the U.S. out of the recession whereas another view is that there can be no true recovery for the U.S. until housing is fixed and financials are stabilized. Guy Adami said he wasn’t overly excited about the news on Wednesday and thinks a close above 740 might be worthy of note. Tim Seymour thinks oil and metals have further to go, whereas Jeff Macke said he isn’t giving up his cautious stance. Karen Finerman thinks that while there are opportunities in the market, stocks can still go lower. She is long preferred shares of Bank of America and short their common stock. Adami says he likes the valuations of ACM.

Gold Dips: Barrick (ABX), Harmony (HMY).

Gold declined on Wednesday, and Adami cautioned that bullish sentiment in the market can cause a decline in the yellow metal. “If you’re short I’d take back those shorts. Next, I think gold tests $885.”

Mark-to-Market Hearing

On March 12, the U.S House Financial Services subcommittee is going to hold a hearing on mark-to-market accounting rules, and Jon Najarian thinks there might be a decision to relax the rules, a policy that could move the markets. Karen Finerman thinks a mark-to-market hiatus will be a good thing and will help banks recapitalize. “Right now to get rid of mark-to-market is a concession that there is no market place for those toxic assets,” commented, Jeff Macke, “But to keep it means banks suffer. It's a catch-22.”

GE (GE) Lowest in 18 Years

Concerns over a possible downgrade, uncertainty over GE’s financial unit and a lawsuit over the dividend cut sent GE down 16% on Wednesday. Karen Finerman thinks the company’s balance sheet is “a gigantic question mark.” Guy Adami thinks GE’s problems indicate how far-reaching the financial crisis is.

Will Foreclosure Relief Work?

Obama’s new $75 billion foreclosure relief plan which will enable people to retain their homes will not work, according to Macke, as long as people aren't working. Tim Seymour agreed and added people who don’t have jobs can’t pay their mortgages, even at modest rates.

China Saves the Day: Sohu (SOHU), Baidu (BIDU) China ETF (FXI)

Everyone is talking about China’s new stimulus plan and how its economy seems to be turning around. Tim Seymour commented that China seems to be more interested in stimulating the consumer than exports and would look at Sohu and Baidu. He suggested looking at FXI for more diversity; 35% of the ETF is made up of banks.

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