'Fast Money' Recap: Warning Signs
NEW YORK (
) -- The markets closed mixed Tuesday despite a deal to extend tax cuts and jobless benefits.
The
Dow Jones Industrial Average
fell 3.03, or 0.03%, to 11, 359.16 while the
S&P 500
added 1.08, or 0.09%, to 1,224.20. The
Nasdaq
gained 3.57, or 0.14%, to 2,598.49.
Guy Adami said on
CNBC
's "Fast Money" TV show that the departure of
Netflix
(NFLX) - Get Report
CFO Barry McCarthy will lead to a selloff and provide a "tremendous" opportunity to get back in at some point.
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> = 701259987001; 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 it was rather interesting that McCarthy, who will be leaving Dec. 10, sold 100,000 shares of stock at above $200 on Nov. 4. He said the momentum has clearly changed for the company with his departure.
Herb Greenberg,
CNBC
senior stocks commentor, noted also that McCarthy had sold more than $40 million worth of Netflix shares in the past two months compared to $58 million for the past 12 months.
Nonetheless, Anthony Scaramucci said Netflix should be able to continue to do well because it has a great management team. However, he said the company lost an important executive in McCarthy.
Melissa Lee, the moderator of the show, moved on to another afterhours story in
Texas Instruments
(TXN) - Get Report
, which was down after offering moderate guidance for the fourth quarter.
Terranova said the stock got caught up in today's market reversal as investors took profits.
Guy Adami said he liked
Intel
(INTC) - Get Report
more at 11 times forward earnings and a higher dividend than that of Texas Instruments, at 13 times forward earnings.
Shifting to the general market, Adami said silver may be duplicating what it did a month ago, when it reached a high, only to drop. Terranova noticed some institutional buyers were selling oil, gold, silver, cotton and grains, adding when that formation comes along, it's time to get out. Terranova said he did just that, when he got out of his position today in
Freeport McMoRan
(FCX) - Get Report
.
Scaramucci was still bullish, saying the long-term macros indicate that market is undervalued by as much as 20%. He said the
Fed
, president and Congress are working together to stimulate the economy. He said the reversal in the commodities is just short term.
Seymour said he noticed a flow from bonds to equities today. He also said it appears the dollar wants to go higher, a good reason, he said, to stay short the gold mining names.
Brian Kelly said he sold his position in
Citigroup
(C) - Get Report
a day after the government said it was selling off its stake. He said he was taking profits after a strong run in the stock and after seeing signs of a market reversal today.
In a quick take on
Apple
(AAPL) - Get Report
and
Research In Motion
(RIMM)
, Kelly said Apple definitely has the upper hand with its new iPad2, which, he said, will have more features than RIM's Playbook. RIM was down nearly 2% after it received two downgrades.
Nevertheless, Scaramucci still liked Research In Motion, saying the stock will have better days ahead.
Will the deal to extend tax cuts boost the economy? Peter Boockvar, A Miller Tabak equity strategist, applauded the tax cuts as a boost to the economy but said Bernanke's quantitative easing policy could mess up the situation by raising interest rates. He said QE2 has failed to stem a rising in the cost of living.
Kelly went to the charts to argue that Fibonacci extensions of the S&P project higher market levels in 2011. For that reason, he said he would be a buyer on pullbacks.
For the top three trades of 2011, Nick Calamos, of Calamos Asset Management, singled out
Oracle
(ORCL) - Get Report
. He said it's well-positioned in cloud computing and generates high returns on capital.
His second choice was Autonomy, which trades on the London Exchange and is a software company that does unstructured digital searches on digital data like email. He said this kind of information is coveted by businesses and government agencies like Homeland Security. His third choice was
Altera
(ALTR) - Get Report
, which he didn't have time to get into.
Lionsgate Vice Chairman Michael Burns came on the show to rebut Carl Icahn who's been fighting for control of the company. He insisted the company does have a strong pipeline of movies and accused Icahn of flip-flopping on positions and not acknowledging what Lionsgate has built.
In the final trades, Seymour said to sell
Trina Solar
(TSL)
. Adami liked
H&R Block
(HRB) - Get Report
Scaramucci liked
Lorillard
(LO)
. And Terranova liked
CBS
(CBS) - 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