'Fast Money' Recap: Perplexing Market
NEW YORK (
) -- The markets weakened again Tuesday on European debt worries.
The
Dow Jones Industrial Average
fell 46.47, or 0.42%, to 11, 006.02 and the
S&P 500
lost 7.22, or 0.61%, to 1,180.54. The
Nasdaq
sank 26.99, or 1.07%, to 2,498.23.
Tim Seymour said on
CNBC
's "Fast Money" TV show that the market wants to go lower with 1,155 being the next test level, although he held out hope for a rally by year's end.
Steve Grasso concurred, saying the S&P may head down to 1,150 before rallying to end the year at 1,200. Guy Adami said he didn't like the way the market is trading and wouldn't be surprised if it breaches 1,170 on the way down.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV |
var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 692530219001; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8); |
Joe Terranova said the depreciating dollar trade is gone and along with it the tech trade and names such as
(GOOG) - Get Report
and
Apple
(AAPL) - Get Report
.
In a bit of turnabout, some of the panelists sounded optimistic about the U.S. economy. Seymour said the fundamentals of the U.S. markets are still strong. Adami said he would not be surprised if
Federal Express
(FDX) - Get Report
raised its guidance in its upcoming earnings report.
And Terranova said the markets could get a boost later this week from a report from the ISM and a favorable jobs report. Seymour said China's PMI report tonight will also be an important factor.
Despite the gloom in Europe, Seymour there are some stocks like
Telefonica
(TEF) - Get Report
that are doing well and not tied to the banks.
Terranova remained bullish on copper and
Freeport McMoRan
(FCX) - Get Report
as he sees shortages of the metal in 2011. Brian Kelly had the most upbeat perspective on the U.S. markets, saying he likes what he sees in the U.S. economy and expects China's PMI to be OK.
Melissa Lee, the moderator of the show, shifted the conversation to
(GOOG) - Get Report
, which slumped today following news of an impending EU antitrust probe and its $6 billion acquisition of online discounter Groupon.
Seymour said the market fears Google may be overspending again on an acquisition.
Commenting on the buzz today over
Bank of America
(BAC) - Get Report
being the latest target of WikiLeaks, Barry Ritholtz, CEO of FusionIQ, said he couldn't imagine what new information it could have that could embarrass the bank any further. He said he would not short BAC. He also said he was long
Citigroup
(C) - Get Report
.
Lee brought in Herb Greenberg,
CNBC
senior stocks commentator, who said that Peter Waller, the CEO of
Corinthian Colleges
(COCO)
had resigned immediately and was replaced by former CEO Jack Massimino.
He said the college attributed the resignation to a personality issue and a matter of style that had been brewing for the past four to five weeks. He said the executive turmoil masks serious problems the for-profit college is facing regarding new gainful employment rules and the need to reset its business model.
In the call of day, Peter Misek, an analyst with Jefferies, upgraded
Research In Motion
( RIMM) to a buy from a hold.
He said he was excited about the operating system QNX has created for RIM's playbook tablet, which he said will run two to three times faster than the iPad and provide a great browsing experience.
He said the new playbook will put RIM back in the thick of competition with Apple and Google. He expects RIM will sell 2 million to 5 million units in 2011 and 10 million units in 2012.
Lee segued to
CNBC
reporter Katy Kelly who said Wall Street compensation could be down 22% to 28% this year according to a consultant's report.
She said equities compensation could be down as much as 20%. She also said fixed income and derivatives trading were down.
Seymour said the smaller boutique banks will continue to do well and gain market share. Grasso noted that producers will continue to be paid.
In a follow-up on Doug Kass' call on ag stocks on Monday, Kelly said he sees continued strong corn exports. He said the trade here is with
Monsanto
(MON)
, which makes genetically modified seeds. He placed a $77.25 price target on the stock.
In a segment on the debate over the extension of the Bush tax cuts, Alan Zafran, of Luminous Capital, said he would come down on the side of dividend-yielding stocks. He had two recommendations:
Vanguard Dividend Appreciation ETF
(VIG) - Get Report
and
Yacktman
(YAFFX) - Get Report
.
He also liked
Abbott Labs
(ABT) - Get Report
and its 3.8% dividend yield and
Johnson & Johnson
's
(JNJ) - Get Report
3.5% yield.
In the final trades, Seymour liked Telefonica. Adami liked
Federal Express
(FDX) - Get Report
. Grasso liked
US Steel
(X) - Get Report
. And Terranova liked
GM
(GM) - Get Report
and
Ford
(F) - Get Report
--Written by David Tong in San Francisco.
To contact the writer of this article, click here:
David Tong
.
To follow the writer on Twitter, go to
.
To submit a news tip, send an email to:
.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
.
Follow TheStreet.com on
and become a fan on