'Fast Money' Recap: July to Remember

NEW YORK (TheStreet) -- The markets sputtered to a close Friday completing what has been a good month for the markets.

The Dow Jones Industrial Average was down 1.22, or 0.01%, to 10,465.94, while the S&P 500 was up 0.07, or 0.01%, to 1,101.60. The Nasdaq added 3.01, or 0.13%, to 2,254.70.

Joe Terranova said on CNBC's "Fast Money" TV show that July was surprisingly strong for the markets, with the Dow, up 7%; S&P, up 6.8%; and Nasdaq, up 6.9%. He said a weaker dollar and a stabilizing euro contributed to the rally.

However, looking ahead to August, Steve Grasso warned the quality names could be thrown out with the trash if the market turns south.

Karen Finerman disagreed, saying investors will react to a quiet, stable market by coming back in.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Guy Adami said the markets will be watching China's PMI numbers Sunday night. He said a lot of things could unravel if they fall below 50.

Patty Edwards said investors seem to be gravitating toward companies with good earnings and revenue. She said they happen to be those with international exposure, specifically in China, Brazil and Latin America.

Terranova said the markets will looking next week toward the ISM report as well as the jobless report on Friday.

Melissa Lee, the moderator of the show, said Research In Motion(RIMM) was up 3.25% ahead of Tuesday's announcement of a so-called "iPad killer." Finerman said the new device looks pretty impressive, and Terranova said it's exactly the kind of catalyst RIM needs to play some offense against Apple.

John Stephenson, author of The Little Book of Commodity Investing, said he expects China to turn in a PMI number north of 50. He said that would be good news for commodities, which he said is the one asset that would be working in the market in the short and long run.

His favorite stocks were Freeport McMoRan(FCX), Cliffs Natural Resources(CLF), Alcoa(AA), Chevron(CVX) and Cenovus Energy(CVE) .

Lee pointed out that Goldman Sachs(GS), was on a tear this month, up 16% as it outperformed the financial sector. Terranova said Goldman, on a technical and psychological basis, has found the trough.