Word On The Street The stock market saw a healthy rally on Monday as investors bid up stocks ahead of the Fed meeting set for Tuesday. The Dow closed up 101 point and the Nasdaq finished up 12 points. Guy Adami explained that a UBS AG ( UBS ) write down of $10 billion helped the market go up on Monday. He thinks bad news is good news until the market shows investors otherwise. Karen Finerman said the market keeps rallying off the same news of a Fed rate cut. She thinks the rate cut is already in the market. Jeff Macke thinks the market is trading off of technicals with the break above 1490 on the S&P 500. Texas Instruments Incorporated ( TXN ) trades up 5% after hours off a positive mid-quarter update. Najarian says this is a great opportunity to sell TXN. Adami mentioned that he likes Intel Corporation ( INTC ) above $26 in the semiconductor sector. Washington Mutual Inc. ( WM ) cuts its dividend to 15 cents a share, slashes jobs and sets capital infusion. Finerman wasn’t the surprised with the dividend cut. She mentioned that her firm went short MBIA Inc. ( MBI ) on Monday and she expects more bad news to come. Adami says he loves U.S. Bancorp ( USB ) for a bank play because Warren Buffett holds a big stake and the company has no exposure to subprime. Finerman thinks that Citigroup Inc. ( C ) could be the next bank to cut its dividend. Housing stocks put a in a strong performance Monday as short sellers cover ahead of the Fed meeting. Najarian mentioned that he is seeing bullish options activity in Pulte Homes Inc. ( PHM ) and D.R. Horton Inc. ( DHI ) . Adami thinks The Home Depot Inc. ( HD ) is cheap on valuation and will be the stock of 2008. Finerman likes Lowe’s Companies Inc. ( LOW ) for their strong balance sheet. McDonald’s Corporation ( MCD ) hit an all time high on Monday after the burger giant reported that monthly sales went up 8.2%. Macke thinks investors need to own McDonald’s. Adami says as long as McDonald’s can hold onto global growth in Asia, the Middle East and Africa the stock will keep going higher. News out of the American Society of Hematology Conference was moving biotech stocks on Monday. Najarian explained that Celgene Corporation ( CELG ) had disappointing news at the conference and the stock plunged 14%. On the flip side, Millennium Pharmaceuticals Inc. ( MLNM ) traded higher after the firm reported positive results for their drug Velcade. Najarian thinks the selling on Celgene was overdone and the stock is presenting a buying opportunity at these levels. Lafarge ( LFRGY ) announced plans to buy a cement unit from Egypt’s Orascom for $12.9 billion. Finerman thinks a takeover could happen for Texas Industries Inc. ( TXI ) . Najarian also likes TXI and he said keep an eye on Martin Marietta Materials Inc. ( MLM ) . Adami says he loves Jacobs Engineering Group Inc. ( JEC ) for the firm’s strong backlog. More than two-thirds of US non-cash payments last year were made electronically. Adami says the play here is MasterCard Incorporated ( MA ) . WORD ON THE STREET VIDEO America On The Cheap Foreign companies are quickly moving in to buy American companies off the weak US dollar. What company will be the next target of the overseas buyers? What is the trade? Macke thinks the next plays will be in the entertainment sector. He would look to buy Take-Two Interactive Software Inc. ( TTWO ) and THQ Inc. ( T HQI ) for potential takeover plays. Adami mentioned that rumors floating around Wall Street are saying that the mining sector is in play. His pick is United States Steel Corporation ( X ) for a takeover opportunity. Finerman says her most interesting idea is Tiffany & Co. ( TIF ) for an acquisition play. Najarian mentioned that Big Pharma firms like Sanofi-Aventis ( SNY ) and Novartis AG ( NVS ) could be looking to buy biotech companies to improve their pipelines. He also likes Alpha Natural Resources Inc. ( ANR ) for a takeover play in the energy sector. AMERICA VIDEO Entertainment Stock Plays No end appears to be in sight for the writer’s strike in Hollywood. Which entertainment firms are best positioned to weather the storm and what is the trade? CNBC’s Julia Boorstin joined the “Fast Money” crew to discuss the entertainment stocks. Boorstin explained that if the strike continues through the winter, television programming will start to fell the negative effects for the first quarter of 2008. She thinks The Walt Disney Company ( DIS ) and News Corporation ( NWS ) are diversified the best to weather the storm and CBS Corporation ( CBS ) could be hurt the most by the strike. Najarian says consumers are going to the internet for entertainment and his play is Google Inc. ( NASDAQ: GOOG ) . Finerman says play internet advertising with ValueClick Inc. ( VCLK ). Adami and Macke both like Disney. ENTERTAINMENT STOCKS Happy 52-Week High The Bank of New York Mellon Corporation ( BK ) POPS&DROPS POPS- Caterpillar Inc. ( CAT ) traded up 3% after Bear Stearns made some positive comments on the equipment maker. Adami thinks CAT is cheap and a buy. Cadbury Schweppes plc ( CSG ) traded up 1% after Nelson Peltz announced he is teaming up with Qatar to increase his stake in the company. Finerman says Peltz has deep pockets and she likes this news and the stock. LDK Solar Co. Ltd. ( LDK ) traded up 29% after the Chinese solar company signed a 10-year deal with a German solar cell maker Q-Cells. Najarian says take some profits. Rite Aid Corporation ( RAD ) traded up 9% after Lehman Brothers reiterated its $7 price target. Adami explained RAD is a lottery ticket that will pay off. NYSE Euronext ( NYX ) traded up 3% off a positive Barron’s mention. Najarian says the exchanges are “money printing machines.” Nasdaq Stock Market Inc. ( NDAQ ) traded up 3%. Finerman says deals keep happening for the exchanges and Nasdaq has momentum. Bankrate Inc. ( RATE ) traded up 20% after the company reported higher than expected 2008 revenues. Macke says cover your shorts in Bankrate. The Allstate Corporation ( ALL ) traded up 3% after Barron’s said the firm is undervalued. Adami thinks $50 is the floor for Allstate. DROPS- Overstock.com Inc. ( OSTK ) fell 22% after CEO Patrick Byrne said fourth-quarter gross margins might be lower then previously expected. Macke says run away from OSTK. Myers Industries Inc. ( MYE ) fell 31% after Goldman Sachs delayed its $800 million acquisition of the plastic and rubber firm. Finerman says it’s a good company but she wouldn’t touch it here. Palm Inc. ( PALM ) fell 2%. Macke says run away from this stock. POPS&DROPS VIDEO Final Trade Macke recommends THQ Inc. ( THQI ) . Adami likes U.S. Bancorp ( USB ) for a play on Warren Buffett. Najarian favors EMC Corporation ( EMC ) . Finerman picked Saks Incorporated ( SKS ) . FINAL TRADE VIDEO