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TheStreet Open House

'Fast Money' Recap: Taper Talk

Stock quotes in this article: CSCO, TSLA, FB, JASO, TSL, PXD, DF, MDLZ, CLNE, UPS, XONE, X, AAPL, GOOG, URI, EEM, HNI, BAX

NEW YORK (TheStreet) -- The broader market reversed early morning losses and closed near session highs. 

On CNBC's "Fast Money" TV show, the group was discussing the Federal Reserve's monetary policy. Tim Seymour, managing partner of Triogem Asset Management, said falling inflation is more important than the unemployment rate, which is distorted by labor participation. 

Guy Adami, managing director of stockmonster.com, said the Fed will not taper in March, going against the popular belief held by many market participants. 

Dan Nathan, co-founder and editor of riskreversal.com, questioned how the economy would react to higher rates in 10-year Treasuries and tapering from the Fed. 

Karen Finerman, president of Metropolitan Capital Advisors, said the Fed is likely to taper in March and that as long as the economic data supports it, it should be viewed as a good thing. 

Cisco Systems (CSCO) provided terrible guidance in its earnings report and sold off violently in the after-hours trading session. Adami said the stock needed to hold the $21.50 level and Nathan said he would be a buyer at $21. 

Jon Hilsenrath, chief economics correspondent for the Wall Street Journal, was a guest on the show and said that market-moving news (if any) from future Federal Reserve chairwoman Janet Yellen would come in the question and answer segment of her confirmation hearing scheduled for Thursday. He added that economists are unlikely to change their tapering estimates. 

Adami said traders could buy Tesla Motors (TSLA) and use $135 as their stop-loss.

Snapchat rejected Facebook's (FB) bid of $3 billion and Adami said the deal is likely to get done at some point. He added that shares of Facebook successfully held $46.50 and could rally to the mid-$50's on a completed deal. 

Nathan added that Facebook appears desperate to be chasing Snapchat for that much money, likely over fears of losing the young users on its platform. 

Gordon Johnson, managing director and senior research analyst at Axiom Capital Management, was recently bullish on a previous "Fast Money" segment, but has now decided that he is bearish on Chinese solar companies after several earnings releases. He added that the government no longer seems to be supporting the companies. He suggesting short-selling JA Solar Holdings (JASO) and Trina Solar (TSL) into earnings.

Chegg CHG plunged 22% and was the first stock on the show's "Pops & Drops" segment. Nathan said investors should avoid the stock. 

Pioneer Natural Resources (PXD) jumped 7% and Adami said investors could still buy the stock based on valuation. 

Dean Foods (DF) dropped 1% and Mike Khouw, managing director and primary strategist at DASH Financial, said the stock is fairly valued after being downgraded on Wednesday by Credit Suisse. 

Mondelez (MDLZ) popped 3% and Seymour said he was a buyer. 

Andrew Littlefair, CEO of Clean Energy Fuels (CLNE), was a guest on the show to discuss the company's recent agreement to supply liquified natural gas to two United Parcel Service (UPS) stations in Texas, as well as open three retail locations of its own. 

He said the deal will be accretive to earnings, due to its size. He added that the company certainly has enough money for building out more infrastructure in 2014 and 2015. Littlefield said natural gas makes shipping and driving much cheaper, especially for vehicles that can't be powered electrically. He concluded that the market potential is huge. 

ExOne (XONE) fell following its earnings report and Nathan said the stock seems like a buy in the low $50's. 

U.S. Steel (X) could go to $30, Adami said. However, he added that now is the time to be cashing out if you've been long during the big upside move. 

Nathan said Apple (AAPL) is his top pick for the next "S&P 500 King." Seymour argued that holiday sales will be under pressure this year and instead picked Google (GOOG)

Adami said he would be a buyer of Apple, and Finerman said she would be a buyer of Google. 

For their final trades, Nathan said to buy February call options in CSCO, Finerman was a buyer of United Rentals (URI) and Seymour was buying the iShares MSCI Emerging Markets ETF (EEM). Adami said to buy HNI Corp. (HNI) and Khouw was buying Baxter International (BAX).

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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