This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

'Fast Money' Recap: Watching Washington

NEW YORK ( TheStreet) -- The broader markets initially sold off due to worries over the government shutdown, but closed flat by the end of the day.

On CNBC's "Fast Money" TV show, Guy Adami said the stock market will react in the same manner, regardless of whether the political issues are from Republicans or Democrats. He added that the market's inability to fall has not pressed any urgency on Washington.

When President Obama said, "Wall Street should be worried," Adami admitted those were powerful words that concerned him. He stressed that 1,670 is still an important level for the S&P 500.

Karen Finerman said the shutdown could last for a while, but isn't as important as the upcoming debt ceiling debate.

Tim Seymour said gold finally reacted to what's going on in the world, but he would be a seller of this rally because of the eventual taper by the Federal Reserve. He added that he would buy weakness in the U.S. dollar for the same reason.

Chris Krueger, senior policy analyst at Guggenheim Securities, was a guest on the show and said the shutdown will probably last through the weekend and possibly even until the debt ceiling debate on Oct. 17. He added that there's a 40% chance Congress will fail to raise the debt ceiling, but admitted it will likely end up raising it at the very last minute.

Mike Khouw said there was a huge play put on Microsoft (MSFT) via options. Specifically, he noted that a buyer sold 50,000 of the Jan. $31 puts (a bullish play), and used those proceeds to buy 50,000 Jan $34 calls (also a bullish play).

Adami said that traders playing this name because of the rumors regarding Ford's (F) CEO Alan Mulally going to Microsoft, should take profits with the stock near resistance of $34. He added that $31.50 has acted as decent support.

With a 3.5% dividend yield and trading at 3.5 times book value, Seymour said the stock is cheap and that investors should forget about the new CEO for now.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs