Fast Money Recap - A Trader's Market (3/13/09)

by: Miriam Metzinger

Recap of CNBC's Fast Money, Friday March 13.

Bullish Week

The S&P 500 had its strongest performance since November with a four day rally. Tim Seymour thinks there is risk ahead with a weak dollar and doesn't see the rally continuing into Monday. Joe Terranova sthinks there is at least a feeling of a bull market. Zach Karabell notes stocks are way off last fall's highs and would concentrate on safety sectors such as commodities, healthcare and tech. Pete Najarian comments it is a traders market, whether bullish or bearish.

Banks up 36%: Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS)

News of a profitable start to the year brought up Citigroup, Bank of America and JP Morgan, however Tim Seymour advised caution; bank stocks are likely to be down this quarter because of mark-to-market. Joe Terranova likes Goldman Sachs and Morgan Stanley. Zach Karabell says amid all the talk about mark-to-market, where are questions about loans and freeing up necessary capital?

General Electric (NYSE:GE)

General Electric's performance was strong in the past week, with the stock rising 36%. Joe Terranova doesn't think it is problematic that the company lost its AAA rating; Berkshire Hathaway suffered the same fate. He adds the bad news about GE is priced in, and under $10 the stock may be worth buying. Tim Seymour thinks the ratings cut is a seal of approval, and thinks the company may be good for 6 months to 2 years.

Mergers and Acquisitions: Gilead (NASDAQ:GILD), CV Therapeutics (CVTX), Apple (NASDAQ:AAPL), Cisco (NASDAQ:CSCO), ExxonMobil (NYSE:XOM), ConcoPhillips (NYSE:COP), United Technologies (NYSE:UTX)

The secret is out about great M&A deals in the biotech sector, such as Gilead's billion dollar merger with CV Therapeutics, but the mergers don't stop there. Relaxation of Mark-to-Market rules and good news in the financial sector may mean that companies may be out shopping for bargains. Apple is flush with cash and Cisco has raised capital. The semiconductors are still undervalued. Exxon has $40 billion in cash, and may look for deals to expand its production among undervalued names in the sector. Jon Najarian would look at United Technologies, which has cut costs, slashed jobs and stated that it may be on the lookout for an acquisition.

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