Fast Money Recap, 4/1/08: Gold Takes the Elevator

Recap of CNBC's Fast Money Program, Tuesday April 2. Click on a stock ticker for more analysis.

Financials: JP Morgan (JPM), Morgan Stanley (MS)

Karen Finerman discussed Tuesday’s rally and said it seemed that investors were flocking to financials. Pete Najarian bought puts in financials because he believes volatility is decreasing. Jeff Macke observed how the upsurge in the sector affected the entire market and suggested taking gains; "You gotta be a dip-buyer on the financials," he said. The group saluted JPM CEO Jamie Dimon who kept the bank out of the subprime crisis and was the right candidate to buy Bear Stearns. They noted the stock is trading at 1.2 times book value. Najarian and Adami also like Morgan Stanley.

DuPont (DD), Home Depot (HD), FedEX (FDX)

Guy Adami said DD, HD and FDX are early-cycle recovery stocks and have done well.

Tech: Microsoft (MSFT) and Yahoo (YHOO), Oracle (ORCL), Hewlett Packard (HPQ)

Macke approved of MSFT’s decision not to raise its bid for YHOO and is bullish on MSFT, since he thinks it will go higher than Yahoo. Finerman owns shares in both tech stocks. Najarian likes ORCL and HPQ on their software acquisitions. He is short Yahoo because he thinks the deal will drag on too long.

Commodities: StreetTracks Gold Shares (GLD), Monsanto (MON), U.S. Oil Fund (USO)

Adami remarked gold takes the stairs up and the elevator down, falls faster than it rises, and will continue to fall further. He would sell GLD. Najarian is bullish soft commodities and likes MON and DuPont. Macke noted USO is trading in the $100 to $110 range and would set a stop at $95.

Healthcare: Merck (MRK), Schering-Plough (SGP), AstraZeneca (AZN), Genzyme (GENZ), Isis (ISIS), GlaxoSmithKline (GSK)

MRK and SGP have recovered from the beating they took on Monday concerning the anti-cholesterol drug, Vytorin. Najarian says AZN will ultimately benefit and likes GENZ and ISIS for their steady pipelines. Adami is interested in GSK because Buffett is bullish on the stock. Finerman would take a look at Merck, but Najarian commented it is a value stock and it is better to wait before getting in.

Autos: General Motors (GM), Borg Warner (BWA)

Adami said the rise in autos was a classic “relief rally” and prefers BWA to GM.

Bernanke’s Testimony and iShares Lehman TIPS (TIP)

Diane Swonk, chief economist at Mesirow Financial says she hopes the Fed Chairman will show some backbone as he testifies before Congress. Finerman predicts he will not focus so much on inflation and suggested buying TIP against inflation.

Paul Jacobs, CEO of Qualcomm (QCOM) with Research in Motion (RIMM) China Mobile (CHL) The leading chipmaker for mobile devices has seen demand remain strong in spite of waning consumer confidence because such devices are considered by many to be necessities rather than luxuries, said Jacobs. While some have been worried about litigation and overhang, the company is repurchasing shares and sees a strong future with the possibility of developing devices with HD-TV like cable services. Najarian would buy RIMM before its earnings and Macke said watching TV on phones is not a necessity, but RIMM’s business products are more essential. Adami likes CHL which is far from being saturated.

Trader Radar: Philip Morris (PM) was one of the most actively traded stocks on Tuesday.

Final Trades:Macke: Microsoft (MSFT), FedEx (FDX), Finerman TIPs, Najarian: puts on Financial Select SPDR (XLF)

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