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"Fast Money" Recap: Market Powers Ahead

CNBC's Charlie Gasparino joins the show to talk financials.

The Dow Jones Industrial hit new highs on Monday as the market shook off a warning from Citigroup (C) - Get Report. The S&P 500 is within 9 points of a record and the NASDAQ hit a 6 year high. The team at CNBC's "Fast Money" asks, "Is the bad news out of the markets, or are stock investors overly bullish?"

Karen Finerman was surprised with the market strength on Monday. Pete Najarian suggested that these are investors who sat on the sidelines during the summer. They are now putting money back into the markets in sectors like technology, commodities and financials

Once again, financial stocks saw a strong day on Monday even with an earnings warning from

Citigroup

, which reported a 60% drop in earnings for the current quarter. The stock surprisingly traded higher on the bad news.

CNBC's

Charlie Gasparino joined the crew to give his opinion on the financial sector.

For Gasparino, the worst is over for the financials. He feels Citigroup traded up Monday because someone will be held accountable, ala CEO Chuck Prince. Gasparino doesn't understand why the largest shareholder of Citigroup, Saudi Prince Alwaleed bin Talal, defends CEO Chuck Prince. Gasparino says investors that talk to him think Chuck Prince must go. (

RealMoney

Take: Jim Cramer said recently, "I am astounded that, after this miserable preannouncement, Chuck Prince doesn't simply announce that he is stepping up to executive chairman to promote new people. How can this guy have such a hammerlock on this company?" To read more on what Cramer said,

click here.)

Wireless Revolution

The wireless universe is making the news with

Nokia

(NOK) - Get Report

buying

NAVTEQ

(NVT) - Get Report

for $8 billion. Najarian says this takeover suggests to him that M&A is not done. (

RealMoney

Take: Jim Cramer said recently, "Nokia's taking on everyone with this buy of Navteq." To read more on what Cramer said,

click here.)

Research In Motion

(RIMM)

is set to report earnings on Thursday. Adami says if you're not already in Research In Motion don't buy it now. He says hope for an earnings miss in RIMM, and then would buy the stock on a pullback.

Palm

(PALM)

reported earnings after the bell Monday and traded lower after-hours. Najarian notes that Morgan Stanley is predicting that wireless revenues will go up 3 fold over the next 5 years. Najarian likes the new Centro smart phone that Palm is introducing. He thinks the future is bright for PALM. (

RealMoney

Take: Tero Kuittinen said recently, "Palm is going where the smartphone market needs to go -- before the leading smartphone vendors want to go there." To read more on what Kuittinen said,

click here.)

Finerman declares the valuation on NAVTEQ is over done. She also thinks the deal makes

Garmin

(GRMN) - Get Report

over valued andrecommends buying puts on the GPS maker. Macke agrees with Finerman that Garmin is topped. (

RealMoney

Take: Steven Smith said recently, "Garmin saw heavy put volume, likely much of it buying, which caused implied volatility to increase some 20% on the day, as investors were forced to pay for protection." To read more on what Smith said,

click here.)

Go Global

The global growth plays continue to explode with big runs in ETF names like

Materials EFT

(XLB) - Get Report

,

Tech ETF

(XLK) - Get Report

and

Energy ETF

(XLF) - Get Report

.

Guy Adami points out that companies like

Fluor Corp

(FLR) - Get Report

are up 87% in 9 months,

McDermott

(MDR) - Get Report

up 120% since January and

Jacobs Engineering

(JEC) - Get Report

is up 100% since January. He suspects these stocks are due for a pullback and taking profits in these names isn't a bad idea. Investors have to chase these stocks according to Macke. Finerman prefers

Flowserve

(FLS) - Get Report

TST Recommends

, but erring on the side of caution she advises selling calls against it for a hedge.

Micron Trade

Micron

(MU) - Get Report

is set to report earnings on Tuesday. Najarian noticed that last week someone bought 27,000 call options on Micron, so keep an eye on it. He also wants investors to put

SanDisk

(SNDK)

on their watch list after the firm just opened up a plant in China. Adami suggests that Micron is a buy. (

RealMoney

Take: Bob Faulkner said recently, "The real catalyst for Micron's quarter will be commodity DRAM prices, and today's Wall Street Journal article about Hynix speaks volumes about conditions in that market." To read more on what Faulkner said,

click here.)

Conference Calendar

Investment conferences at Deutsche Bank, Jefferies and William Blair will catch investor's attention this week. Najarian announces the stocks to watch off these conferences are

OSI Systems

(OSIS) - Get Report

,

Cepheid

(CPHD)

and

Manitowoc

(MTW) - Get Report

. (

RealMoney

Take: John Hughes said recently, "Manitowoc is another way to play this space. This maker of heavy cranes has recently recovered back to its previous highs after a corrective decline. This recovery is suggestive of continued demand for the stock" To read more on what Hughes said,

click here.)

Earnings Warnings

The warnings season is officially under way on Wall Street. How can investors profit from the volatile time ahead for company earnings? Macke devised a three point checklist to watch as a warning sign from a firm's earnings reports. Any company that points the finger outside of things they can't control, doesn't have a solution, or has a warning that is 10% below estimates should be avoided. Case in point,

Walgreen's

(WAG)

gave all three of these today and that's why the stock fell apart. Macke recommends investors not buy the dip on Walgreen's.

Happy 52-Week High

IBM

(IBM) - Get Report

Pops & Drops

Pops-

Time Warner

(TWX)

traded up 2% after an analyst made comments calling for changes in management. Adami could see the stock moving from $18 to $28, if the CEO is ousted.

BorgWarner

(BWA) - Get Report

popped 4% off a bullish Barron's article. Adami reveals he still likes BWA.

Electronic Arts

(ERTS)

popped 4%. Macke says the entire video game sector is going higher into the holidays.

AMR Corp

(AMR)

traded up 12% off a positive Barron's article. Adami says sell.

First Solar

(FSLR) - Get Report

traded up 8%. Najarian continues to point investors to

Cypress Semiconductor

(CY) - Get Report

as the safest play in the solar space.

Drops-

SuperValu

(SVU)

fell 6% after Bank of America downgraded the stock to a sell. Macke likes SVU right here and right now.

Acxiom

(ACXM)

plunged 20% after a $2.25 billion takeover offer fell through. Finerman wonders if something could be wrong at the company with this deal being canceled.

Final Trade

The "Fast Money" crew gives investors their best ideas of the day.

  • Macke advises buying Caterpillar (CAT) - Get Report.
  • Adami prefers Tesoro (TSO) .
  • Finerman recommends YUM! Brands (YUM) - Get Report.
  • Najarian would go long Terra Industries (TRA) .

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