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
TheStreet Open House

'Fast Money' Recap: Is the Economy Improving or Not?

Stocks in this article: CSCOFIGSEASDISMSSODASNECLVSGWPHTLTCSH

NEW YORK (TheStreet) -- The S&P 500 slid 0.47% while the Russell 2000 tumbled 1.62%.

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said investors are beginning to divide into two groups: One group says the economy is improving and bond yields are going higher while the other group argues the economy is not improving fast enough, therefore bond yields are going lower. 

Kelly expects yields to fall. He said it all comes down to one question: "How strong is the economy?" 

Guy Adami, managing director of stockmonster.com, said the economy doesn't appear as strong as many investors once thought. He agreed bond yields are going to go lower and he has stood behind this thesis for many months on Fast Money

Jon Najarian, co-founder of optionmonster.com and trademonster.com, said consumers have not been as strong as many investors had hoped, meaning they need interest rates to stay low and possibly go lower. The selloff in equities helped bonds rally on Wednesday as well, he added. 

Cisco Systems (CSCO) reported better-than-expected earnings results and guidance. Adami called it a "solid quarter" and said the stock looks likely to retest its 52-week high near $26.50. 

Kelly agreed, saying he is a buyer. He argued that investors will pile into the stock because of its valuation and revenue growth -- albeit, slow revenue growth. 

Najarian suggested that investors were pleased by CEO John Chambers' comments regarding the company's embracement of software-defining networking.

Kelly told investors to avoid SeaWorld Entertainment (SEAS). He called the earnings report "not great" and said the company has publicity issues. For those who want exposure to theme parks, buy Disney (DIS)

Michael Novogratz, director and principal of Fortress Investment Group (FIG), was a guest on the show. He  said the market has been very hard to trade, with the S&P 500 and Treasury yields remaining in such a tight trading range. He suggested investors keep positions small until a trend emerges. 

Novogratz reasoned here is no credit bubble forming -- bubbles usually gets started from over-leveraged banks. This is not the case. He said the rising bond market suggests the economy is not improving as fast as many economists had previously thought. He concluded that momentum stocks will have renewed life sometime in 2014 and M&A activity should remain strong.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs