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: Something Isn't Adding Up

NEW YORK (TheStreet) -- In a volatile up-and-down trading session, the S&P 500 ended lower by 0.14%, while the Dow Jones Industrial Average closed up 0.20% and the Nasdaq slipped for the third straight session, ending lower by 0.40%. 

On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, pointed out the Russell 2000 broke below its 200-day moving average. He added the weakness in the Nasdaq and Russell 2000 are not surprising given the high valuations compared to the S&P 500. 

Guy Adami, managing director of, agreed with Seymour. He added the stock market's strong performance over the past year would have investors thinking the economy is doing much better than it is. However, until bond yields go higher to confirm the improved economic activity, something isn't adding up, he reasoned. 

Dan Nathan, co-founder and editor of, agreed with Seymour that at 16 times next year's earnings, the S&P 500 is not expensive. However, he admitted that it could be too expensive, if economic growth slows too much. 

Must Read: 'Fast Money' Recap: Financial Sector Follies

Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, said that it's hard for stocks to move higher when investor sentiment is so bad. It's even harder for certain stocks to rally when the fundamentals are poor. 

Missouri is looking to join Texas, Arizona and New Jersey as states that ban direct auto sales to consumers. The move could be another blow to Tesla Motors (TSLA), which solely relies on direct sales. Matt Hardigree, editor-in-chief of Jalopnick, an auto industry blog, was a guest on the show. 

He said the auto dealers have a "political clout" in their states but no public support. On the other hand, Tesla has plenty of public support but no political clout. He reasoned that Tesla and the auto dealers will meet somewhere in the middle by limiting the number of Tesla showrooms in the state. He argued that customers will find a way to get a Tesla Model S or Model X if they want it, but this infrastructure will hinder the automaker from selling as many vehicles as it hopes in the future. 

Nathan said he would be a buyer of Tesla near $150 or $160. Seymour said he wouldn't buy the stock until it is closer to $80, pointing out the increasing competition in the space. 

Nathan was a seller of Netflix (NFLX), saying that increasing competition will ultimately hurt the stock price.

1 of 3

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 $93.52 -1.40%
FB $116.23 -0.43%
GOOG $691.41 0.06%
TSLA $239.12 -3.50%
YHOO $36.24 -0.96%


Chart of I:DJI
DOW 17,696.50 -134.26 -0.75%
S&P 500 2,054.78 -21.03 -1.01%
NASDAQ 4,750.4690 -54.8220 -1.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs