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'Fast Money' Recap: Bank Stocks Gaining

The trading panel looked at the financials, which are showing the best action so far in today's trading session.
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NEW YORK (

TheStreet

) -- The markets were slightly down in trading Monday with financial stocks showing the best action so far .

Gary Kaminsky said on

CNBC

's "Fast Money Halftime Report" that financials are doing well because investors see much more stability in U.S. banks than in those in Europe, where several countries are mired in a debt crisis.

Kaminsky said the European banks are not only dealing with off-balance sheet financing problems but also a slowdown in European economies.

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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Tim Seymour agreed in part with the analysis, but he said that U.S. and European banks are both implicated in what is happening in Europe. He said "no one knows" what is going to happen in the long run.

Mike Khouw also agreed generally with Kaminsky's views but he said today's options activity suggests there may be a cap to the move up in the financials.

Melissa Lee, the moderator of the show, observed that bank stocks may be going up because the yield curve is up, especially in the 10-year note.

Joe Terranova attributed the rise in financial stocks not to the capital markets but to improving consumer credit quality. For that reason, he likes names such as

Bank of America

(BAC) - Get Report

and

JPMorgan Chase

(JPM) - Get Report

. He was cautious about

Goldman Sachs

(GS) - Get Report

.

Khouw said he would focus on the regional banks, saying a certain number could benefit from the acquisition of the large number of banks that are expected to be "taken out" this year.

Shifting to the Europe, Lee noted the euro was moving higher today. Seymour painted a mixture picture of the continent, with Greece apparently working its way out of its problems but persistent political and economic problems dogging Spain and Turkey.

Looking at this week's retail earnings, Khouw said that the implied moves in options activity suggest Macy's may be the least attractive of a select group of stocks he was watching while

TJX

(TJX) - Get Report

may be the best.

Lee brought in Vic Gundrota, an engineering vice-president for

TST Recommends

Google

(GOOG) - Get Report

to talk about his company's mobile search efforts. He said there's been a explosion in search activity, which he said is up five times in the past two years. He said the rapid growth of smartphones will key the growth of mobile search.

Commenting on the $6 billion bid by

Thermo Fisher Scientific

(TMO) - Get Report

for

Millipore

(MIL)

today, Kaminsky said a derivative trade would be

Pall

(PLL) - Get Report

, an industrial infiltration company and a long rumored takeover target.

Lee brought in Christine Day, CEO of

Lululemon Athletica

(LULU) - Get Report

, which has been on a tear, up 500% since March. Lee asked Day whether the company can sustain that pace of growth.

Day said the company is happy with the decisions it made last year when it decided to push ecommerce growth, slow down the growth of retail stores and put more showrooms in place. She said the prospects for the growth in its U.S. stores are good.

Kaminsky said he was shorting the stock because he doesn't believe that kind of growth can be sustained in the U.S. He said the company has saturated the market with its customer profile, adding he sees a stall ahead for the company.

In the last calls of the show, Khouw advised investors to check out implied moves in earnings for trade opportunities. Seymour said to stick with ore and coal. Terranova said the market is in for a period of consolidation, and Kaminsky reiterated his short of Google.

-- Written by David Tong in San Francisco

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.

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