Word On The Street The stock market put in a solid day Tuesday as investors bid up stocks in hopes the Fed will cut rates tomorrow. The Dow finished up 96 points and the NASDAQ closed up 8 points. Guy Adami explained that the bond markets are looking for 50 basis point rate cut. Karen Finerman thinks the Fed will cut 25 basis points, but the she will be paying attention to the Fed’s language to see what they say about growth, inflation and guidance. In Pete Najarian’s opinion, if the Fed cuts 25 points the Financial Select Sector SPDR Fund ( XLF ) will sell off. Yahoo ( YHOO ) reported a 23% drop in fourth-quarter earnings and the CFO says the search giant plans to cut 1,000 jobs. Najarian thinks this could create an opportunity for Microsoft Corporation ( MSFT ) to buy Yahoo. Adami wonders what this means for Google Inc. ( NASDAQ: GOOG ). Macke says it’s really hard to make a bullish case for Yahoo and he doesn’t know what to do with the stock. He disclosed he currently owns YHOO and he feels eventually it will bounce. Bank stocks and broker stocks lead the market higher Tuesday as trader’s position for another rate cut. Najarian explained that the president of Goldman Sachs Group Inc. ( GS ) sold $6 million in stock and this could be an indication of which way the stock will go from current levels. Adami likes U.S. Bancorp ( USB ) in the financial sector. Lehman Brothers Holdings Inc. ( LEH ) ups its quarterly dividend by 13% and announced it will buyback 100 million shares. Finerman says she is short and isn’t happy about the news. Najarian was impressed about the direction Lehman is going. Macke speculated that things might not be as bad as they seem at LEH. Old economy stocks from sectors like chemical, coal, fertilizer and railroads put in a strong day Tuesday. Adami thinks the play is to buy Buffett name Burlington Northern Santa Fe Corporation ( BNI ) and agriculture play Dupont ( DD ) . Najarian explained that every time BNI goes under $80 Warren Buffett buys more stock. For an agriculture play he would look at The Dow Chemical Company ( DOW ) . Adami and Najarian like coal names Peabody Energy Corporation ( BTU ), Joy Global Inc. ( JOYG ) and Arch Coal Inc. ( ACI ) . Refiner Trade The oil refiner sector was a big winner on Tuesday after Valero Energy Corporation ( VLO ) reported a 52.2% jump in revenue growth and. Is it time to take profits in the sector? Finerman disclosed she sold 75% of her positions in the refiners over the last couple of days. Najarian feels now is the time to sell into the strength and look to buy on pullbacks. His best pick in for the refiners is Marathon Oil Corporation ( MSO ). Adami thinks Tesoro Corporation ( TSO ) can be bought ahead of their earnings on February 1 st . He thinks TSO has room to go higher and has an attractive valuation. Macke advised investors to build positions in the refiners and don’t chase them here. Short Squeeze Plays The “Fast Money” crew highlighted some stocks that could be seeing an artificial bounce from a short squeeze. Finerman explained that IHOP Corp. ( IHP ) has 33% of its float sold short and any news could send the stock higher. Macke says it’s time to get out of Lexmark International Inc. ( LXK ) because the stock went up only due to short squeeze. He thinks the pop in the stock wont last long so investors should use the mechanics of the squeeze to get out. Najarian recommends investors look at buying Crocs Inc. ( CROX ) which has 16 million of its 70 million shares outstanding short. JetBlue CEO Interview JetBlue Airways Corporation ( JBLU ) shares surged 25% after the airline firm reported better-than-expected revenue and its first full-year profit in 3 years. JetBlue CEO David Barger joined the “Fast Money” crew to discuss his firm’s prospects. According to Barger, JetBlue’s success comes from the firm learning how to manage the high cost of oil. Barger explained that 35% of his company’s fuel costs are hedged and he plans to keep hedging into the future. Barger also expressed how excited he is that the Lufthansa deal has finished. He expects to see new synergies from the deal. Michael Steinhardt Interview Former hedge fund manger Michael Steinhardt joined the “Fast Money” crew to discuss his take on the markets. Steinhardt explained that the Federal Reserve has lost a lot of respect in the markets. He feels the Fed is now nothing more than a pedestrian group of guys who meet and try to figure out what to do. Steinhardt explained that there’s two ways to look at the market here. Either the market is in a traditional cyclical downturn, or things could be much worse and this time it’s different because of the extraordinary amount of promiscuous lending around the world. He wouldn’t disclose which category he feels the current market falls into. Trader Radar Phillips Van Heusen Corporation ( PVH ) traded double its average daily volume Tuesday. POPS&DROPS POPS- Sepracor Inc. ( SEPR ) traded up 3%. Najarian explained that SEPR bought two drugs. Zimmer Holdings Inc. ( ZMH ) traded up 13% after the firm reported a 13% rise in profits. Najarian mentioned that Morgan Stanley put out a $86 price target on ZMH. Cardinal Health Inc. ( CAH ) traded up 3% even after the health care provider lowered its full-year guidance. Adami says the stock should have gone down, but if you want to be in the space buy McKesson Corporation ( MCK ) . Smurfit-Stone Container Corporation ( SSCC ) traded up 13% after the firm reported a 76% rise in profits. Finerman thinks this could be interesting for United Parcel Services Inc. ( UPS ) and FedEx Corporation ( FDX ) . Quintana Maritime Limited ( QMAR ) traded up 30%. Najarian says the entire sector is working. DROPS- EMC Corporation ( EMC ) fell 6%. Adami says own EMC for a trade. Clear Channel Communications Inc. ( CCU ) fell 7% as problems in the credit market cast doubts on a possible $20 billion private equity buyout of the firm. Finerman says she wouldn’t own CCU. Amazon.com Inc. ( AMZN ) traded down 3% ahead of the firm’s earnings. Macke thinks eventually AMZN will be interesting. The Walt Disney Company ( DIS ) traded down 2% after Citigroup cut the stock from hold to sell. Macke didn’t agree with Citigroup he thinks DIS is a buy. Final Trade Macke says take gains in the Financial Select Sector SPDR Fund ( XLF ) ahead of the Fed meeting. Finerman favors buying TIPS (Treasury-Inflation Protected Securities). Najarian recommends Crocs Inc. ( CROX ) . Adami recommended buying Merck & Co. Inc. ( MRK ) after they report earnings Wednesday.