'Fast Money' Recap: Wrigley Deal Could Get Sticky

On a strong day for Verizon (VZ), Macke said slow and steady wins the space in telecom. He pointed out that Sprint (S) is still applying pricing pressure, but recommended buying Verizon on dips.

Seymour recommended America Movil (AMX). He said the company is a bellwether for emerging market cellular plays and is overdone to the downside. He said that Sohu (SOHU) is a Chinese online gaming play, and Baidu (BIDU) is outperforming the Chinese market.

The traders talked to Jon Najarian about action in the oil refiners. He said someone bought the equivalent of 1.6 million shares through options of Tesoro (TSO), selling calls against the position. He said this purchase indicates that the stock is setting up for a big move. He noted that sector buddy Valero (VLO) reports earnings tomorrow. He said getting long Tesoro may be a nice play. Seymour said that there may be a short-covering rally in Tesoro.

Najarian also said Motorola (MOT) looks ready for a breakout to the upside. He also recommended that viewers take a look at Masco (MAS). Adami said Masco's earnings will offer a good view into how Home Depot (HD) is doing.

The crew then turned to Frank Aquila, a partner at Sullivan and Cromwell, to discuss merger and acquisition activity. He said that the financing markets are starting to firm up, meaning the market will see more deals like the Mars acquisition of Wrigley. He said low-risk companies that can get equity backing like that offered by Berkshire will see mergers happen. He said private equity will begin to do more deals but will not approach the same levels seen in 2007.

U.S. Steel (X) reports earnings this week. Seymour recommended Posco (PKX), which he said has lagged the rally in steels for the wrong reasons. He recommended buying integrated steel companies.

Adami noted strong pricing power in Arcelor Mittal (MT). He said viewers ought to hope U.S. Steel misses. He also noted Nucor (NUE) hit a 52-week high.

The traders then talked to CNBC TV show host and former Disney (DIS) CEO Michael Eisner about media companies. He predicted softness in advertising and said CBS might be better off rejoining Viacom (VIA). He said the company needs a massive marketplace like others in its sector.

Trader Radar

IHOP (IHP) traded on unusual volume today.

The traders discussed plays on a possible rally in the dollar. Finerman said she thinks the pound is overvalued, and she is short the CurrencyShares British Pound Sterling (FXB).

Seymour said that he doesn't believe the European Central Bank will be easing rates any time soon. He said in the long term he wants to be long the dollar against the euro but he doesn't think there's going to be a stampeding rally in the dollar. He said he'd rather be short commodities as a play on a strengthening dollar.

Macke recommended getting short gold, which he said is "done."

TheStreet.com's Dan Fitzpatrick joined the show to offer some technical analysis of the S&P 500. He said the S&P is meeting resistance at current levels. He said he believes Google (GOOG) is poised for a breakout and recommended buying Research In Motion (RIMM) "right here, right now."

Macke said that a rally on the Federal Reserve's action is likely priced in. Seymour said the S&P may sell off on the Fed news.

Final Trade

Macke selected the U.S. Oil Fund (USO). Adami recommended the Short Dow30 ProShares (DOG) with a tight stop. Finerman picked Kaiser Aluminum (KALU). Seymour said he would be short Petrobras (PBR).

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