NEW YORK (
) -- The markets fell Monday on nagging worries about Europe's sovereign debt problems.
Dow Jones Industrial Average
fell 103.84, or 1,04%, to 9,908.39 while the
lost 9.45, or 0.89%, to 1,056.74. The
dropped 15.07, or 0.70%, to 2,126.05.
Pete Najarian said on
's "Fast Money" TV show that today's drop followed a weekend with no real news and last Friday's rally, which he described as mostly short-covering. He said volatility was low in today's session.
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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Gary Kaminsky said money is not coming in from the sidelines into stocks and equity funds are seeing redemptions. He said a lot of investors are taking out money from the equity funds because they do not want to be caught in a position they were in 2008 when the markets plunged.
Guy Adami said the markets have been behaving badly since
earnings: "good news, bad price action." If
falls below $148, "you're in full bear-market mode," he said.
Dennis Gartman, of the Gartman Letter, said "we're in for a lot more than a 10% correction." He said that the money isn't coming in from the sidelines and there's a "disconcerting" turndown in economic activity. He said almost everything is going to get hit hard except for restaurants and "things like
Procter & Gamble
He had a dim view of copper recovering anytime soon. And he said he doesn't like to be bullish in gold, but he does favor being in gold in foreign currency terms such as the euro, sterling and Canadian dollar.
Melissa Lee, the moderator of the show, said the financials were hit hard today on ongoing global credit concerns and Obama's move to tighten federal regulations of the industry.
Seymour noted credit default swap spreads are widening in Europe as a number of countries are wrestling with their debt problems. Najarian said there is no compelling reasons to be in
. Kaminsky went even further, saying he could see no catalyst to move the financials for some time.
In after-hours trading,
was getting hammered for a weak forecast. Seymour said investors should be wary of getting into Chinese gaming companies, adding that trade is too crowded.
Brian Kelly, founder of Kanundrum Capital, said he favored what he called a digital trade strategy: in essence, a pairs trade that called for buying
, which is involved in products and software related to downloading games, and selling
, which sells packaged good products.
Lee asked the panel for some names of stocks that can do well in down markets. Najarian said he liked
, which is about to hear the results of Phase 3 data in March on a drug for Alzheimer's disease.
Lee brought in Steven Halper, associate head of research at Thomas Weisel, to talk about Karen Finerman's enthusiastic endorsement Friday of
, which jumped today on blowout earnings.
Halper seconded the choice, noting CVS' margins will benefit from the proliferation of generic drugs and its ability to use its leverage to drive down the cost of acquiring drugs. He said there is no reason why the stock, which now trades at a multiple of 12 times, can reach 15 times.
In the "ear to the wall" segment, Seymour commented on a report today from the U.S. holdings of the China Investment Corp., which has some $300 billion in assets. He said the report shows the CIC investing as usual in U.S. banks and commodities. In particular, it has large holdings in
while being heavily weighted in its portfolio to ETFs.
Kelly said lumber futures have been on a tear and that the best way to play that is to pick up
Plum Creek Timber
In the final trades, Seymour said to sell
into earnings. Adami said he liked
, while Kaminsky said to short
. Najarian said he liked
-- Written by David Tong in San Francisco
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