The stock market experienced some wild swings and increased volatility on Monday. The Dow finished the day up 27 points while the Nasdaq fell 5 points. The crew at CNBC's "Fast Money" brought in technical analyst Andrew Burkly to discuss patterns in the market. Plus, interviews with corporate leaders of Garmin and DaVita.
Karen Finerman was relieved that the stock market didn't fall off a cliff on Monday. Guy Adami explained that Goldman Sachs was out talking up a recession and that had a lot of investors scared. Jeff Macke wasn't impressed that the market hit the 10% correction point and could barely put together anything meaningful on the upside. He feels this market continues to be sick.
Reading the Charts with Andrew Burkly
Brown Brothers Harriman technical strategist Andrew Burkly joined the "Fast Money' crew to discuss his take on the markets. Burkly mentioned that he is bullish on the stock market for the second half of the year. However, he thinks the S&P 500 will break below 1370, which is a technically significant area of support. He also mentioned it's too early to buy the financials after the
Financial Select Sector SPDR
broke $28. He would wait till the XLF builds a base before looking to buy the financials. Burkly likes the uptrending chart on the
Energy Select Sector SPDR
and he thinks it's a buy in the mid-$70's. Najarian cautions investors to stay away from the financials.
(Here's a portfolio based on technician Dorsey Wright's strategy on Stockpickr.com
Garmin CFO Interview
Shares of GPS maker
have been under tremendous selling pressure over the past month. Can a new line of products set to be released this week at CES, return the stock back to an uptrend? Garmin Chief Financial Officer Kevin Rauckman joined the "Fast Money" crew to discuss Garmin's prospects. Rauckman explained that Garmin is set to introduce 7 new products that are either next generation or brand new products at CES. He went on to say that GPS products have hit the mass market and with that comes lower prices. Rauckman feels the way to stay ahead of lower prices is to come out with new technologies like their speech recognition products. None of the traders want to touch this stock right now.
DaVita CEO Interview
Chief Executive Kent Thiry joined the "Fast Money" crew to discuss his take on DaVita's prospects. Thiry explained that DaVita is under a lot of scrutiny about their drugs right now, but he is confident the company will thrive despite the scrutiny. He explained the scrutiny isn't hurting their business at all, because decisions on how their drugs are used are made by physicians.
Health Care Conference Update
Healthcare stocks put in a strong day Monday as the JPMorgan Health Care Conference kicked off. Najarian believes that
is a name that a lot of investors are looking at right now because the stock is trading at a P/E of 10. He also mentioned that a lot of people are excited about
soared 47% after the biopharmaceutical company announced a strategic licensing deal for a Lipid-lowering treatment with
. Najarian remarked that this could be an annual $2 billion drug for ISIS, however he cautioned investors to sell some if they owned it.
(Check out this portfolio of healthcare stocks on Stockpickr.com
The NASDAQ fell for the seventh day in a row Monday. Shares of
Research In Motion
all took a hit as investors continued to dump tech shares. Adami , though, continues to like
. Macke disclosed he is still long half of his position in
but he isn't buying more because the stock behaves horribly. Najarian suggests Apple is a buy on Friday going into Macworld on Monday.
A Cup of Joe
announced plans to install coffee bars at its 14,000 U.S. locations starting this year. While
traded up 4.5% after hours Monday when former CEO Howard Schultz said he will return as CEO to help the coffee chain focus on international growth. Macke made a sea change on Starbucks and he is now bullish on the stock for the next six months.
A string of Wall Street firms are now coming out and warning investors that a recession and correction for the stock market might be in the cards. Morgan Stanley issued its 2008 outlook report titled "There Will Be Blood" which highlighted stocks to own or sell in the event of a recession. Morgan Stanley suggests investors should short
, consumer electronics and cyclical building materials and be long
Finerman loves Phillip Morris and she agrees with Morgan. Adami also likes Phillip Morris, but he wouldn't short Caterpillar. Macke explained he wouldn't short Best Buy, instead he would just walk away from the stock. He also favors Phillip Morris. Najarian recommends owning Cokes, smokes, drugs and
is set to start the earnings season on Wednesday after the close. Dylan Ratigan highlighted three things that investors should look for this earnings season: Watch for health care to live up to its defensive role, more writedowns, but they are priced in and words will matter more than numbers.
Najarian mentioned he likes
. Adami thinks that financials like
Goldman Sachs Group
should be rewarded for not having to do any writedowns. Finerman predicts we will see more writedowns from
Pops & Drops
traded up 7% after the student loan lender hired a new chairman and CFO. Finerman advises getting out of SLM.
traded up 10% after the Mumbai-based bank said they might IPO out their mortgage business. Najarian likes IBN.
traded up 2% on no news. Macke sees no reason to bother with HD.
traded up 11% after the donut maker's CEO Daryl Brewster resigned and will be replaced by Chairman James Morgan. Macke commented that the stock will never look good to him.
fell 3%. Adami maintains that HPQ is attractive.
fell 14% on reports of slowing business. In Finerman's opinion, the selloff is overdone.
Goldman Sachs Group
fell 3% on no news. Adami still thinks that GS is a buy.
fell 12%. Najarian disclosed that he bought some NetSuite on Monday.
fell 16% as oil sold off Monday. Finerman warns investor to stay away.
The team passes along trades that they think will be profitable.
- Macke thinks it's time to get long Starbucks (SBUX) - Get Report.
- Adami would buy Johnson & Johnson (JNJ) - Get Report.
- Finerman favors Comcast (CMCSA) - Get Report.
- Najarian recommends Millennium Pharmaceuticals (MLNM) .
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