'Fast Money' Recap: Slippery Oil

The U.S. stock market gave up an early market surge Monday. The Dow finished up 0.3%, the S&P 500 was up 0.1%, and the Nasdaq gave up 0.5%. Sandisk (SNDK) made bearish comments toward the end of the day, which helped prompt the selloff.

Pete Najarian said that he is concerned about the impact of high oil prices on the overall economy. He pointed out that airline stocks got "decimated," and volatility in the market spiked today.

Jeff Macke said the market was looking for an excuse to roll over today. He said the action was fairly typical of Monday summer options expiration.

Karen Finerman said that if it's true that oil prices are affecting demand in the economy, she believes the price of oil will go down.

Najarian said he thinks oil will roll over at some point because consumers will eventually be hurt by $4 a gallon for gasoline. He said that when the government's stimulus checks run out, it will be harder for the consumer to continue to spend.

Guy Adami said he believes oil will roll over. He pointed out that the transportation sector performed very well today despite historic oil prices. He said that a second-half recovery and pricing power will continue to help the transportation stocks.

3 Stocks I Saw on TV

Macke pointed out that the S&P 500 has run into its 200-day moving average, a previous resistance level. He said this is a chance to get long the market.

Safety First

Najarian said that if investors buy transport stocks, they should buy puts to protect themselves from potential downside. He suggested Burlington Northern Santa Fe (BNI). He said Norfolk Southern (NSC) is the cheapest in the space, with a price-to-earnings ratio of 17. Demand from the coal and agriculture sector for transportation is real, he said.

Adami suggested viewers check out Wabtec (WAB). He said the brake maker wouldn't have bought another company unless it believed the uptrend in transport would continue.

Merger Scorecard

Microsoft (MSFT) proposed a partial takeover of Yahoo! (YHOO) today. Finerman said this is a bad deal for Yahoo!.

Macke said that Microsoft is suggesting that Yahoo! sell all the good parts of its business, and Microsoft will let it keep the bad parts. He said he likes the odds of a deal between Microsoft and Yahoo! more than those of Electronic Arts' (ERTS) acquisition of Take-Two (TTWO).

Finerman said she likes the Electronic Arts deal better, saying it will probably close more quickly than the Microsoft-Yahoo! deal.

Najarian said that a recent deal that makes the most sense is Hewlett-Packard's (HPQ) acquisition of EDS (EDS). He observed that H-P shares are already back where they were when the company announced the deal.

The Shipping News

DryShips (DRYS) had a tough day today. Najarian said that the company is a spot-rate shipper, meaning its prices can change, and right now the company is getting more money per day for its services. He said Excel Maritime (EXM) reported good earnings today. He said as long as these companies have pricing in their favor, their stocks are cheap.

From a trading perspective, Adami said investors should wait for DryShips to pull back a little bit. Macke also pointed out that Genco (GNK) is offering secondary shares. He said that when insiders are selling, investors should be cautious.

Big-Box Blues

Lowe's (LOW) reported disappointing earnings today and shares fell. Finerman said that she predicts a similar decrease in same-store sales from Home Depot (HD). She said she owns Home Depot stock and puts.