NEW YORK (
) -- The markets meandered Tuesday finishing the worst August in nine years.
Dow Jones Industrial Average
added 4.99, or 0.05%, to 10,014.72 and the
gained 0.41, or 0.04%, to 1,049.33. However, the
dropped 5.94, or 0.28%, to 2,114.03.
It was a poor month for August, which saw the S&P dropping 4.8% for its biggest loss for that month in nine years. Meanwhile, the Dow was off 4.31% while the Nasdaq slid more than 6%.
Tim Seymour said on
's "Fast Money" show that he's looking for the markets to bounce back in the next several days. He expects the battered financial and tech stocks to show some life and is encouraged by the M&A activity.
Joe Terranova said that the markets are still positive for the quarter after an equity rally in July and a correction in August. He believes the downside is limited in the equities because "all the leverage is in fixed income."
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 the market can bounce back, and if it does, he liked
, which recently gave good guidance and trades at a fair valuation.
Peter Schiff, head of Euro Pacific Capital, said the global economy is recovering while the U.S. economy is weakening as government spending is putting the nation deeper in debt. He said the government's misguided policies are continuing to drive gold stocks higher.
Terranova said gold futures historically have tended to appreciate over the next three months of the year.
Simon Hobbs, the moderator of the show, shifted to some of the poorest performing sectors in August. He started off with the financials, which were down over 8% for the month.
Terranova said the financials were hurt by a flattening yield curve and increasing pressure in the capital markets. He said the one stock he liked was
Adami said the banks are in a difficult situation because they need to recapitalize and are hoarding their cash. Steve Grasso said pension funds and mutual funds stepped away from the financials two months ago.
Technology stocks also performed poorly in August, down 7%. Still, Seymour said he would be a buyer of
for its acquisition of Infineon and good outlook. Adami said he liked
and its "great" balance sheet.
Hobbs brought in David levy, an economist with levyforecast.com, who had a gloomy view of the economy. He sees corporate profits deteriorating in the third and fourth quarters as the country slips into a recession in 2011.
Hobbs said September has tended to be the worst month of the year for investors. Grasso, though, said August might have been this year's September, adding he expects a market rally into the year's end that will be boosted by the midterm elections.
Shifting to the headlines for Wednesday, Hobbs brought in Colin Gillis, an analyst with BGC Financial, to talk about Apple's much talked about press conference on Wednesday.
Gillis said the highlight of the show will be an iPod Touch with video chat that will use all the Apple apps and allow users to communicate with each other.
The analyst said Apple will probably refresh its iTunes and display what it is doing in TV. He acknowledged the big question for investors is whether
is picking up the iPhone. He said Apple needs the carrier to compete against the Google Android, which is growing in popularity.
Gillis has a price target of $350 on Apple stock. His other favorite stock in tech is
For headline No. 2, Hobbs referred to China's PMI report, which comes out Wednesday. Seymour expects the report to show manufacturing on the upswing.
Hobbs brought in Farha Aslam, an analyst with Stephens Inc., to talk about the soft commodities like corn and wheat. She said the corn crop looks good in key growing states and that she would be buyers of users of corn like ethanol and protein producers.
Given what happened in August, Gary Kaminsky said one area investors may be wrong in the fourth quarter is discretionary retail. He said they should lighten up retail stocks like
Abercrombie & Fitch
In a segment on the passions of the traders on the panel, Terranova talked about his passion for eating right and sticking with organic foods. His favorite organic stocks? They're
Whole Foods Market
In the final trades, Seymour liked
. Adami said to keep an eye on
. Grasso liked
. And Terranova liked
--Written by David Tong in San Francisco.
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