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'Fast Money' Recap: Riding on a Market High

NEW YORK (TheStreet) --The S&P 500 closed at all-time highs as traders and investors cheered the short-term debt deal in Washington. 

Steve Grasso of Stuart Frankel said he remains long Google (GOOG) but did not like the technicals heading into its earnings -- which it beat on the top and bottom lines. He is looking to pare back some of his position.

Karen Finerman, president of Metropolitan Asset Management, said it was good to finally see the company beat on revenue, but was disappointed by the falling cost-per-click (CPC). 

Josh Brown, a financial adviser at Ritholtz Wealth Management, said Google's cloud business will be much bigger going forward and that while CPCs have been falling, the volume has been increasing and offsetting the negativity. 

Mark Mahaney of RBC Capital Markets was a guest on the show and said his price target for Google is $1,020. Along with international growth he thinks the stock should appreciate on valuation expansion. Other stocks he likes include: Amazon (AMZN), Priceline.com (PCLN) and Facebook (FB)

Jon Najarian, co-founder of OptionMonster and TradeMonster, noted that Facebook made another new high on Thursday and big out-of-the-money call buyers continue to come into the stock, suggesting that it still has a lot of upside potential.

Turning to the overall economy, Finerman said consumers have been waiting for the drama in Washington to blow over before making any large purchases, and that could fuel a very strong fourth quarter.

Brown said that because so many hedge funds are severely lagging the broader markets, they will have to chase stocks higher into year's end. He added that the bearish points are quickly starting to fade. 

Najarian said the Federal Reserve may refrain from tapering until June of next year. Because of this, he likes Toll Brothers (TOL), D.R. Horton (DHI) and Trulia (TRLA).

Tom Lee, chief U.S. equity strategist at J.P. Morgan  (JPM), was a guest on the show and said the S&P 500 should get to at least 1,775 by the end of 2013. His favorite sectors are technology, industrials and cyclicals.

SFX Entertainment (SFXE) was the first stock on the show's "Pops & Drops" segment. Finerman said she doesn't like it and prefers Live Nation Entertainment (LYV).

American Express (AXP) jumped 5% and Mike Khouw, managing director and primary strategist at DASH Financial, said the company's strong earnings represent an improving economy with increased spending. 

United Rentals (URI) popped 4% and Grasso said he would sell into the strength. 

eBay (EBAY) dropped 4% due to weak guidance. Najarian said he likes the stock near $50, but acknowledged it would be a slow grower in the intermediate term. 

Sandisk (SNDK) leaped 9% and Brown said the stock can go higher because of the earnings beat and strong guidance.

Las Vegas Sands (LVS) beat on earnings and Grasso said he is a buyer.

International Business Machine (IBM) was the first stock on the show's "Top Trades." Najarian said he would be a buyer of the stock by Monday after letting a bottom form for a few days. 

Goldman Sachs (GS) missed on revenue estimates, but Finerman said the stock seems good on a valuation basis and would be a buyer. 

UnitedHealth Group (UNH) beat on earnings but didn't meet analysts' estimates on guidance. Grasso said he would avoid the name for now. 

Freeport-McMoRan (FCX) was the featured company on the show's "Street Fight" segment. Brown defended the stock, saying it has been hated for years but is starting to break out, technically. He added the company has a 3.7% dividend yield and earnings expectations are low. 

Najarian disagreed, arguing that the time to buy was in the summer when the stock was much lower. He added that central banks have not been buying as much gold, FCX' oil and gas businesses have been underperforming and there is uncertainty over operation costs going forward. 

John Brynjolfsson, managing director at Armored Wolf, said gold provides solid portfolio insurance at its low price. As for bonds, he said the yield in 10-year Treasuries should fall to 2% and he wants to be long. Aside from gold and 10-year bonds, he likes WTI crude and the U.S. dollar.

Intuitive Surgical (ISRG) fell on Thursday after cutting its guidance. Najarian said that despite all the negatively surrounding the stock, it's at a good level to starting buying. 

Regardless of the whether the trader was buying or selling, Khouw said the activity in the Phillips 66 (PSX) January $72.50 calls was likely bullish, which caused its daily average call volume to increase twelve-fold. 

Grasso added that Valero Energy (VLO) would benefit the most should the Keystone pipeline get approved. He cautioned that HollyFrontier (HFC) and Marathon Petroleum (MPC) would benefit the least.

Najarian said he would wait before buying Red Hat (RHT) since it will likely continue lower.

Finerman said investors who think rates will go higher could look to buy Chubb (CB), but cautioned that it's expensive in terms of valuaton. 

Brown said the Guggenheim Solar ETF (TAN) is well diversified, but he prefers First Solar (FSLR) and SunPower (SPWR).

Khouw said Stanley Black & Decker (SWK) is now fairly valued after the fall, but is not a compelling buy.

Grasso said there are several stocks he prefers over SandRidge Energy (SD), including Pioneer Natural Resources (PXD) and EOG Resources (EOG).

For their final trades, Grasso was a buyer of Yahoo! (YHOO) while Finerman was buying Bank of America (BAC). Brown said to buy the Vanguard Materials ETF (VAW) and Najarian was a buyer of Cole Real Estate Investments (COLE)


-- 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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