'Fast Money' Recap: Beyond Alcoa

The trading panel looked beyond Alcoa's disappointing earnings to other catalysts that continue the rally.
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NEW YORK (

TheStreet

) -- The

Dow Jones Industrial Average

nudged above 11,000 Monday with the start of the earnings season.

The Dow jumped 8.62, or 0.08%, to 11,005.97, while the

S&P 500

gained 2.11, or 0.18%, to 1,196.48. The

Nasdaq

added 3.82, or 0.16%, to 2,457.87.

Pete Najarian said on

CNBC

's "Fast Money" TV show that inflow of funds from mutual funds on Mondays was pushing the markets higher today.

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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Guy Adami said he wasn't impressed with

Alcoa's

(AA) - Get Report

earnings, noting its revenues and shipments were on the light side. He said he's been bearish on the markets but admitted it's difficult to fight the market action.

Karen Finerman said the "big tell" in the earnings season will be the banks since their performance will reveal how well the economy is doing.

Joe Terranova said it's been an underperformers' rally so far, adding the shape of the recovery is more like a "V" than a "U." "All the names that were underowned in 2009 are the ones that everyone wants want to get in now," he said.

Najarian disputed that point, arguing that quality names like

Intel

TICKER TYPE="EQUITY" SYMBOL="AA" EXCHANGE="NYSE" PRIMARY="NO"/>,

Hewlett-Packard

(AA) - Get Report

,

IBM

(AA) - Get Report

and

Caterpillar

(AA) - Get Report

are near their 52-week highs. He didn't care for Aloca, which he said isn't a quality name and has historically disappointed the markets at earnings.

Gary Kaminsky said he doesn't believe that there will a sell on the news because the markets are healthier now, with functioning capital markets, M&A activity and a lively IPO market.

Melissa Lee, the moderator of the show, shifted the discussion to talk about "deal" stocks, in particular

Palm

(PALM)

which rose 20% today on talk that it is up for sale.

Terranova said he wanted no part of the betting game in the stock. Adami said shorts were adding to their position in the stock.

Kaminsky was leery of a situation where bankers are brought in to explore alternatives for Palm. He said the bankers often wind up the only ones winning from the fees they take in.

Commenting on the merger of energy producers

Mirant

(MIR)

and

RRI Energy

(RRI)

, Finerman lamented the fact that she didn't step in to buy some shares.

Kaminsky said another deal waiting to happen is

Suncor Energy

(SUN) - Get Report

, while Finerman said

Best Buy

(BBY) - Get Report

did not need to get into a deal to pick up

RadioShack

(RSH)

.

In the "under the radar" segment, Najarian focused on chemical names, which are being pushed higher because of their exposure to the ag space and "the rest of the economic recovery."

In particular, he mentioned

Dow Chemical

(DOW) - Get Report

,

Dupont

(DD) - Get Report

and

Eastman Chemical

(EMN) - Get Report

.

Dennis Gartman, with phone in hand, sat in on

Alcoa's

(AA) - Get Report

conference call. He called it a "boring" call. He said the company discussed the decline in the housing and airline industries, a pickup in productivity, growth prospects in China and problems with its exposure to the Australian dollar.

Lee brought in Peter Boockvar, an equity strategist with Miller Tabak, who reiterated his gloomy views of the economy. He fears higher interest rates in a leveraged economy will lead to a double-dip recession. "The economy can't handle higher interest rates," he said.

In a quick analysis of

JPMorgan Chase's

(JPM) - Get Report

upcoming earnings, one expert liked its fundamentals, a chartist liked its long-term prospects, while a third, judging from options activity, didn't think the stock will move much.

Terranova said JPM sets up nicely and believes it will go north of $50. Finerman liked holding it for the long term but thinks the expectations leading into earnings may be too high. Najarian said he would rather put his money in

Bank of America

(BAC) - Get Report

, adding the drop in the shares of JP Morgan was due to its reluctance to deal with the dividend issue.

Setting her sights on BofA, which reports its earnings on Friday, Finerman said she would be watching credit quality issues in the report and likes holding the stock for the long term.

Adami said Intel, which is also reporting earnings this week, could post a great quarter that will lead to an uptick, great volume and a chance to take profits.

Patrick Doyle, CEO of

Domino's Pizza

(DPZ) - Get Report

came on the show to comment on the 50% rise in the company's stock since it started its controversial ad campaign that belittled its own pizzas.

Doyle declined to get into specifics about the company's performance except to say that the "consumer response is all we hoped for."

Shifting to biotech,

CNBC

reporter Mike Huckman talked about three small biotech companies that are working on prescription diet pills that are about to be reviewed by the FDA.

The first,

Vivus

(VVUS) - Get Report

, is scheduled to come before the FDA advisory committee in early July, followed by

Arena Pharma

(ARNA) - Get Report

. The third,

Orexigen Therapeutics,

(OREX)

probably won't have its pill reviewed until next year.

In the IPO market, Kaminsky favored the $500 million IPO of Aeroflex, a wireless communication company that he said Goldman Sachs stood by during the tough times.

In the 30-second pitch, Adami liked

Nuance

(NUAN) - Get Report

, which is working on advances in speech recognition and medical records. He was impressed with its growth prospects, low valuation and buyout chances.

In the final trades, Terranova was long

American Express

(AXP) - Get Report

. Finerman liked

American Eagle Outfitters

(AEO) - Get Report

. Adami and Najarian favored

Yum! Brands

(YUM) - Get Report

.

-- 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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