Fast Money Recap: 4/8/08: MEMC on the Sunny Side of New York's Streets

Recap of CNBC's Fast Money, Tuesday April 8. Click on a stock ticker for more analysis.

Tuesday’s Market: Washington Mutual (WM)

Pete Najarian noted the market bounced back on Tuesday from a poor open with agriculture, oil and natural gas driving the upturn. WM retreated from its bounce and financials took a hit. Jeff Macke was surprised the market didn’t react more negatively to quibbling of past and present Federal Reserve members over the economy. He noted Apple along with other momentum stocks performed well.

Dell (DELL) and Dubai

Dell shares jumped on news of a possible deal with Dubai. Karen Finerman doesn’t see why Dell needs such a deal, since the company is not in debt, and thinks the tech company was just agreeing to a the proposal. Guy Adami is not thrilled with Dubai investments, including those in MGM and Citigroup. Concerning the stock itself, Najarian says it is due for a recovery along with Intel (INTC). Macke suspects Dell may be planning a secondary offering, which will be counterproductive.

Procter & Gamble’s (PG) Dividend

PG announced that it is raising its dividend, but Najarian prefers Church & Dwight (CHD) and Johnson & Johnson (JNJ). Macke says he likes defensive plays.

Tech: Hewlett Packard (HPQ), Western Digital (WDC),

Chip stocks fared badly on Tuesday. HPQ is releasing a smaller, less expensive Compaq for students, which may give Apple a run for its money, as Najarian pointed out. Adami likes WDC with a stop out below $26.93. Najarian thinks Morgan Keegan’s downgrade of Apple is just a sign investors should wait before buying the stock.

AMR (AMR), Northwest (NWA), Delta (DAL), Boeing (BA), Kaiser Aluminum (KALU)

AMR is canceling hundreds of flights for maintenance in the next few days, and Najarian comments airlines are a good space because consolidation is eliminating competition, and he is bullish on NWA and DAL. He reported heavy call activity in BA and Finerman would play BA’s Dreamliner through KALU, which she would buy on a dip. Macke didn’t like the way BA reacted when it lost a government contract and thinks the stock will recover with a solid commitment about the release of the Dreamliner.

Chart of the Day: DJ Wilshire REIT ETF (RWR), Corning (GLW)

The group took a look at RWR with reports of a 17% year-over-year increase in online spending. Macke was not impressed given bearishness in the retail sector, and Adami said he prefers Corning. He said the gain could just be a short-covering rally.

MEMC (WFR)

On news New York Mayor Michael Bloomberg plans to require solar panels to be installed on every public building, Adami recommended WFR, which he thinks has bottomed. Najarian predicts the federal government is planning similar initiatives.

UPS (UPS), FedEx (FDX)

FDX declined on UPS’ lowered guidance, and Najarian believes higher oil prices are adversely affecting the companies. Macke says the UPS cited broader economic factors as the reason for the decline.

Housing: Fannie Mae (FNM), Freddie Mac (FRE), Wells Fargo (WFC), Home Depot (HD)

The White House said it would veto a bailout of the housing sector. Finerman was also against such a plan and homebuilders should fuel their own recoveries by issuing equity. She said the news will positively affect WFC, FNM and FRE.

Oil: U.S. Oil Fund (USO), Apache (APA)

Oil approached $110 on Tuesday, and CNBC’s Addison Armstrong predicted if oil exceeds $110, it will reach $120. He would wait until oil breaks the $110 mark before buying, and recommended USO. Adami suggested buying APA on a dip. Armstrong added he is also bullish on natural gas.

Trader Radar: NutriSystem (NTR) traded at seven times its average daily volume on Tuesday.

Final Trade: Macke: Financial Select SPDR (XLF), Adami: USBancorp (USB), Finerman: XLF

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