This Day On The Street
Continue to site
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

'Fast Money' Recap: Big Blue Boosts Markets

NEW YORK (TheStreet) -- The broader market closed at another record high as the Federal Reserve began its two-day Federal Open Market Committee meeting. 

On CNBC's "Fast Money" TV show, Josh Brown, a financial adviser at Ritholtz Wealth Management, said the Dow Jones Industrial Average is lagging small-cap and mid-cap indices. He said International Business Machine's (IBM) share buyback announcement boosted the index and the other stocks on Tuesday. 

Dan Nathan, co-founder and editor of, said it seems unhealthy for earnings per share to continue growing while revenue remain flat. 

Jon Najarian, co-founder of and, said IBM was desperate and needed to do something. He added that the Fed, short-covering and corporate buybacks are all fueling the market gains. 

Guy Adami, managing director of, said the move higher in IBM seems like a head fake that the S&P 500 could trade down to 1,740 by the end of the week. 

Brian Marshall, senior managing director and head of ISI's technology team, was a guest on the show and said IBM is simply too big to grow. He added that over 50% of the company's earnings growth over the past 10 years is from share buybacks. He concluded the stock could work its way below $150.

Must Read: 'Fast Money' Recap: Amazon, FedEx Push the Market Up

Buffalo Wild Wings (BWLD) beat on the top and bottom lines and Najarian said lower wing prices and liquor sales paved the way for a strong quarter.

Adami said Dreamworks Animation (DWA) can go to $35 despite its high valuation and big after-hours move higher on a top- and bottom-line earnings beat. 

Brown said Apple (AAPL) seems likely to work its way lower, down to perhaps $480 in the short term. He added that it should have a good holiday season. 

Gene Munster, senior research analyst at Piper Jaffray, was a guest on the show and said he would be buyer of LinkedIn (LNKD), which beat on the top and bottom lines and provided poor guidance. However, he would avoid Yelp (YELP), which missed earnings estimates. He said LinkedIn has the best "moat" out of all the other social media companies. 

Nathan said he would avoid Yelp, especially with its recently announced secondary offering and Twitter's upcoming IPO. Najarian concurred. 

Brown said he would avoid Angie's List (ANGI)

Adami said the pullback in LinkedIn seems like a buying opportunity, despite the stock having resistance near $250. He added that it will likely consolidate for a while before moving higher.

Yahoo! (YHOO) jumped 2.5% on positive Alibaba reports. Nathan said he would be a buyer at $30. 

3D Systems (DDD) jumped on solid earnings. Brown continues to own the stock because the company is firing on all cylinders. Adami said the move higher isn't done. 

Tesla Motors (TSLA) continues to struggle. Ben Kallo, senior research analyst at R.W. Baird, was a guest on the show and said the recent news of a Tesla Model S fire isn't really a fundamental reason to not like the stock, but it adds to the list of growing concerns. He added the stock looks to be breaking down and next week's earnings report should be interesting. 

Nathan said he expects the stock to move back up towards the 50-day moving average near $180 ahead of earnings.

Jon Hilsenrath, chief economic correspondent at the Wall Street Journal, was a guest on the show and said he doesn't expect the Fed to announce when it will begin tapering its asset purchasing program in Wednesday's statement. He added that the economy hasn't lived up to the Fed's expectations and the market largely expects tapering to begin sometime in the first quarter of 2014.

Adami said he would be taking profits in Zimmer Holdings (ZMH) and Stryker (SYK)

For their final trades, Brown is a buyer of 3D Systems and Nathan said to buy Cisco (CSCO). Adami is buying Microchip Technology (MCHP) and Najarian is buying Manulife Financial (MFC)

-- Written by Bret Kenwell in Petoskey, Mich.

Follow 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs