'Fast Money' Recap: The Profit-Taking Spreads
NEW YORK (TheStreet) -- The S&P 500 sold off again on Monday, closing lower by 1.08%.
On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said profit-taking has found its way beyond the tech sector and into other market leaders such as U.S. Steel (X), AKS Steel (AKS), Home Depot (HD), Lowe's (LOW) and Tractor Supply Company (TSCO).
Guy Adami, managing director of stockmonster.com, said he thinks the market will bottom shortly and begin to bounce from current levels.
Dan Nathan, co-founder and editor of riskreversal.com, is short the Financial Select Sector SPDR ETF (XLF). He argued that financial stocks already have a lot of good news priced in, making it hard for them to rally, while increased regulations will make operations more difficult for individual banks.Karen Finerman, president of Metropolitan Capital Advisors, said she is staying long financial stocks heading into earnings season, with Wells Fargo (WFC) and JPMorgan Chase (JPM) reporting on Friday. She also bought Google (GOOG) on Monday. Nathan pointed out that Starbucks (SBUX) and Nike (NKE) are trying to hold very key support levels. Dan Niles, CIO of Alpha One Capital Partners, said a lot of technology companies have rallied for no reason over the past year. He pointed out Amazon (AMZN) and Google each missed estimates on three of its last four earnings reports. While Google has good growth, the stock was up over 50% in 2013 despite the earnings mishaps. He suggested the stocks that don't report good numbers will be the ones that get hit hard in 2014. He likes Altera (ALTR) and Xilinx (XLNX). Nathan suggested Amazon will decline another 5% to 10% if it misses earnings expectations for next quarter. However, he said if the company can grow earnings, the stock may begin to rally once again. Andrew Wallenstein, editor-in-chief at Variety Digital, was a guest on the show. Regarding Yahoo!'s (YHOO) plan to take on original programming (like Netflix's (NFLX) House of Cards), he said the project will be expensive, roughly $700,000 to $1 million per episode. Yahoo! plans to do 10, 30-minute episodes. He said that a huge "hit" could be significantly positive to be the bottom line but admitted that it would be unlikely.
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