SEC Selloff - Fast Money (5/7/08)

Recap of CNBC's Fast Money, Wednesday May 7. Click on a stock ticker for more analysis.


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Financial Select Sector SPDR (XLF), Fannie Mae (FNM), Freddie Mac (FRE)

An announcement from the Securities and Exchange Commission that investment banks will have to disclose more information about their assets was an excuse for a selloff in financials, said Karen Finerman. Adami noted 1410 is a resistance point for the Dow and Macke said financials needed to drop anyway. Najarian noted XLF fell after reaching $27, and FNM and FRE gave back their gains from yesterday. Finerman would sit on the sidelines for a day, and Adami thinks the decline will last for the remainder of the week, but predicted a rally by next Wednesday. Macke would buy on drops but said it is not worth shorting the market.

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Cisco (CSCO)

Adami is not worried about CSCO since he predicted the stock would be okay and it was, although it led other stocks lower. He would buy on any decline. Najarian agreed that there is future upside for Cisco.

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