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'Fast Money' Recap: A Bear Market

The trading panel said the market has taken a decidedly bearish turn.
Author:

NEW YORK (

TheStreet

) -- The markets continued to slide Monday on worries about the global economy.

The Dow fell 115.48, or 1.16%, to 9,816.49, while the

S&P 500

dropped 14.41, or 1.35%, to 1,050.47. The

Nasdaq

lost 45.27, or 2.04%, to 2,173.90.

Pete Najarian said on

CNBC

's "Fast Money" TV show that it's all about preserving profits now after he saw three of his key indices -

Goldman Sachs

(GS) - Get Report

,

Cliffs Natural Resources

(CLF) - Get Report

, and

Freeport McMoRan

(FCX) - Get Report

-- head south, along with the financials.

Joe Terranova agreed, saying it's all about playing defense unless "you have gold."

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 onTV

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Karen Finerman

said she did step in the market today to buy some shares of

Citigroup

(C) - Get Report

. She said the financials are getting clobbered and felt it was overdone.

Terranova said he was staying away from some of the larger financial institutions and going with Canadian banks, which have been performing well. He said he bought some

Visa

(V) - Get Report

last Friday and wanted to buy some

Mastercard

(MA) - Get Report

today.

Melissa Lee, the moderator of the show, referred to a Deutsche Bank note that said that high volatility was good for trading during the quarter but that the outlook for mergers and acquisitions and investment banking was terrible.

Finerman said the financials will improve if the market gets some clarity from Congress on financial regulatory reforms. She also said a quick settlement with

Goldman Sachs

(GS) - Get Report

would be a "great thing." Gary Kaminsky, though, doubted whether a quick settlement was possible.

One of the big stories of the day was Apple's unveiling of a new 4G iPhone that is thinner than its predecessor and comes with 100 new features.

Jim Goldman, a

CNBC

reporter who was at the Apple Worldwide Developers Conference in San Francisco, where it was unveiled, was impressed with the new phone. He said the phone, which has a $199 entry point, has a "cool" relationship with

Netflix

(NLFX)

and promises to increase Apple's hold on mobile advertising.

According to Goldman, Apple is moving quickly to get the new phones out to five countries by June 24 and 88 by mid-September.

Najarian said he liked

Akamai

(AKAM) - Get Report

as a derivative trade.

However, Kelly said he was shorting

Verizon

(VZ) - Get Report

and

TST Recommends

AT&T

(T) - Get Report

after hearing comments about the new phone's video calling potential and the use of wi-fi, to the chagrin of wireless carriers.

Terranova said he sold some shares in Apple because he sees the new iPhone as a challenge to the iPad.

Gene Munster, analyst with Piper Jaffary, said Apple has a winner on its hands. He put a price tag of $330 on the stock. He told the panel it's important to look beyond the phone's features to Apple's position in mobile over the next three years. "It's hitting the sweet spot for what people want in the next three years."

For a contrarian view, Lee brought in David Kirkpatrick, author of "The Facebook Effect." Kirpatrick argued that companies like Apple are most vulnerable when they've reached a stage when there is unanimity of agreement on its future.

However, he said that's not the case. He said

Google

's

(GOOG) - Get Report

Android is duplicating many of the functions of the iPhone. He also said iTunes is vulnerable to many applications being created on the Internet and that a lot of carriers are looking with suspicion as more and more of Apple's traffic shifts to wifi.

Lee noted that both Goldman Sachs and

CME Group

(CME) - Get Report

were down today when the volatility index was up. Kelly said that was the reason why he shorted both stocks.

Chris Mutascio, an analyst with Stifel Nicolaus, said the there won't be a relief rally in the bank stocks until the Senate and House can reconcile their bills on financial reform.

He said these stocks face macro headwinds from the uncertainty over what bank earnings will be, the status of re-regulation and the problems in Europe and China.

Asked for his picks, he noted

Bank of America

(BAC) - Get Report

,

Wells Fargo

(WFC) - Get Report

and

US Bancorp

(UBCP) - Get Report

as "cheap stocks from a macro-perspective."

Commenting on some big moves in biopharma names day, Najarian said it was understandable for investors to like a stock like

Johnson & Johnson

(JNJ) - Get Report

in a volatile, down market because it offers a piece of the biotech world and the stability of the diagnostics and devices market. Terranvova added that health care stocks are appealing because they maintain pricing power in a deflationary environment.

Gartman laughed when Lee told me that an analyst had put a $101 price target on a barrel of oil. "You got to be kidding," he said. He said the oil market is a huge contango and suffering from oversupply.

Terranova said the situation has put money managers in a fix because they want long-term exposure in oil but don't know where to invest. Finerman noted that tanker stock prices were firming as the oversupply of oil has forced it to be stored in tankers.

Lee brought in Irwin Simon, CEO of

Hain Celestial Group

(HAIN) - Get Report

, in which

Carl Icahn

has taken a 12% stake. Simon said he looked forward to working with Icahn on ideas to grow the company.

Gold was up today. Gartman said he continues to be in gold in terms of other currencies like the Sterling and yen. He said it's disturbing that gold was up $25 today and not much attention was paid to that.

In the final trades, Terranova liked natural gas. Gartman liked gold, while Finerman liked

Philip Morris

(PM) - Get Report

. Najarian liked

Heinz

(HNZ)

.

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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