'Fast Money' Recap: Tech Trades
NEW YORK (TheStreet) -- The markets remained unchanged late on Monday, as tensions between North and South Korea heated up.
The
Dow Jones Industrial Average
fell 0.1%, to 11,478.13, while the
S&P 500
rose 0.3%, to 1,247.08. The
Nasdaq
was also up 0.3%, to 2,649.56.
The technology sector saw some of the biggest gains on Monday, with
Oracle
(ORCL) - Get Report
gaining 0.7%, to $31.67, off strong earnings. Guy Adami said the valuation is justified and Oracle is a different company than it was last year, with growth opportunities on the horizon.
Amazon
(AMZN) - Get Report
gained 3.2%, to $183.29, but Wall Street has started to question its valuation. Guy Adami believes the company's growth rate justifies its valuation. "There is nothing to indicate that there is a selloff on the horizon," he said.
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 |
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Joe Terranova says the real tech trade will be in January, as equity will flow into the sector ahead of earnings next month, similar to moves made last year.
"There's no reason to be selling here," said Tim Seymour.
Seymour recommends
MercadoLibre
(MELI) - Get Report
, which saw its bottom line grow 80% and revenue surge closer to 90%. "It's Amazon plus
eBay
(EBAY) - Get Report
," he said.
The sector could also see a massive initial public offering with
Groupon
, Terranova predicts, which today named former Amazon executive as its chief financial officer.
In commodities, Seymour says investors can make money on oil and copper during the last week of the year. He is also a fan of steel, and says coal prices are going higher.
Terranova predicts that natural gas, which is up 24% for the year-to-date period, won't stay at these levels for long.
Gasoline will be on the radar, and Adami expects to once again start hearing how prices at the pump will affect the consumer.
Adobe
(ADBE) - Get Report
reported strong earnings results on Monday, and its projection signaled that this momentum is sustainable. "From a valuation point, it's getting a little bit toppy; I'm not sure how long it can hold up above $31," said Pete Najarian.
Jabil Circuit
(JBL) - Get Report
also rallied on its first-quarter earnings report. "The valuation is fair here; growth rate justifies a much higher multiple and the stock could push above $20," Adami said.
American Express
(AXP) - Get Report
was the biggest loser on the Dow following a downgrade by Stifel Nicolaus.
But Seymour does not agree with the downgrade, since American Express "owns" the luxury market, which is currently seeing strength. As a result, Seymour recommends buying American Express on the dip.
Adami agrees, saying this is a prime opportunity to buy a name like this on a pullback, which Wall Street hasn't witnessed in some time. He says he wouldn't be surprised to see Warren Buffet get in on American Express.
But Terranova warns that a lot depends on what happens with its anti-trust lawsuit.
Doug Kass made some shocking predictions. First he forecast that gold will be the worst asset class in 2011, briefly trading under $1,050. Due to some wide swings in sentiment and price, he says, gold will end 2011 between $1,100 and $1,200.
Kass also predicted that the next
Securities and Exchange
target will be the technology sector.
On Tuesday, the Federal Communications Commission will rule on net neutrality. Rich Greenfield, analyst at BTIG, said the risks to the ruling are overblown and suggests owning cable stocks.
He recommends
Walt Disney
(DIS) - Get Report
, which is seeing an improvement in its content and theme parks, as well as
Viacom
(VIA) - Get Report
.
Greenfield would short
Dreamworks Animation
(DWA)
, saying the DVD is in trouble since consumers do not need to own content due to companies like
Netflix
(NFLX) - Get Report
. He predicts
Regal Entertainment
(RGC)
can fall to $10 over the next six to 12 months.
Nike
(NKE) - Get Report
hit a new all-time high during today's session, ahead of its earnings report on Tuesday. Seymour is bullish on the stock as the athletic footwear and apparel retailer continues to grow and take market share internationally.
Guest Joe Lavorgna, chief economist at Deutsche Bank, said in 2011 he is betting on America. He expects the S&P will do well, the dollar will stand up strong against the euro, and a healthier consumer and job market will bode well for discretionary consumer stocks.
For final trades, Seymour recommends
VimpelCom
(VIP)
, Terranova is a buyer of Nike, Najarian likes American Express and Carter Worth picks
Wal-Mart
(WMT) - Get Report
.
--Written by Jeanine Poggi in New York.
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