'Fast Money' Recap: BP Conundrum - TheStreet

'Fast Money' Recap: BP Conundrum

The trading panel heard different opinions as to whether the company was a buy or on its last legs.
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NEW YORK (

TheStreet

) -- The markets recovered some ground Tuesday on a late rally in blue-chip stocks.

The Dow added 123.49, or 1.26%, to 9,939.98, while the

S&P 500

gained 11.53, or 1.10%, to 1,062. The

Nasdaq

lost 3.33, or 0.15%, to 2,170.57.

Guy Adami said on

CNBC

's "Fast Money" TV show that the bearish sentiment has been too overdone and expects the market to be up the next couple of days. Still, he remains bearish overall.

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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Joe Terranova said it's all about trading in defensive names like

Blackstone

(BX) - Get Report

and

Pfizer

(PFE) - Get Report

, some of which he picked up today.

Anthony Scaramucci agreed, saying hedge fund managers were sticking to low-multiple, defense names in this environment.

Adami said

JPMorgan

(JPM) - Get Report

was more of a tell on the financials than

Goldman Sachs

(GS) - Get Report

, which was down today. He said JPMorgan rose 3% after Rochdale Securities analyst Dick Bove lowered his price target on the stock to $47 from $55.

Terranova said he was encouraged by the strength of the transportation stocks and the intraday reversals in the energy and financial stocks.

Jon Najarian said he was encouraged by the robust consumer spending he saw in Europe. Brian Kelly, though, said that spending will soon be cut back after a number of European governments impose their austerity budgets.

Najarian said the current quarter figures to be a miserable one. He said he is going to continue buying stocks at the 1,040 level of the S&P and stop when it hits 1,100. He figures the S&P will gain 20% by the end of the year.

Scaramucci said there is still a lot of macro-economic uncertainty weighing on the market.

Melissa Lee, the moderator of the show, said the Gulf crisis continues to drag the market, with

BP

(BP) - Get Report

,

Transocean

(RIG) - Get Report

and

Diamond Offshore Drilling

(DO) - Get Report

big losers.

Terranova said oil service companies are looking outside the Gulf for opportunities. Adami said natural gas is one of two commodities that are breaking out.

Scaramucci said there is a lot of pressure on BP's board to cut the dividend. He said the stock appears cheap on a cash-flow, valuation basis but he was worried about the unknown risks facing the company in the short term.

Lee noted that Whitney Tilson, founder of T2 partners had said its company is long on BP, calling it cheap and wildly profitable.

However, Matt Simmons, chairman emeritus Simmons & Co. International, said he thinks BP, with all of its problems, will not survive the summer as a public company.

Does the British pound face a crisis similar to that of euro? Tim Seymour said that although there is a lot of pressure on the pound, it is not in the same ballpark as the euro because the British government can come up with the money to deal with the problem.

Kelly, though, said he was shorting the pound because he doesn't believe the British can weather the crisis.

Lee shifted the discussion to the Nasdaq, which was in the red today. Chris Caso, an an analyst with Susquehana Financial Group who recently downgraded

Intel

(DO) - Get Report

, said the weak euro is resulting in a weaker PC environment.

Because PC components are denominated in dollars, the cost of those pieces is going to rise and PC makers will have to raise prices. That, he said, is going to affect unit demand.

He agreed with Adami that Intel might see peaking margins if demand rolls over in the second half. It's a "slippery slope" in Europe, he said.

Lee noted that Goldman Sachs hit an intraday low of $135. Scaramucci said that although the settlement issue weighs on the stock, Goldman looks "like a buy to a lot of people" because it has a great management team, profitable and trading close to book value, he said.

Finerman concurred, saying she liked its book value and price-to-earnings level.

With copper on a tailspend, sliding 23% from its April highs, David Threlkeld, president of Resolved Inc., said it will continue to fall because of oversupply. He said copper is the victim of speculation and overabundance. He said the cost of production is $1 a pound and production is currently exceeding consumption by 10%. "Who is going to buy the residual surplus?"

Lee asked the panel what catalysts might help turn around the bear market. Finerman said more M&A activity is needed, while Scaramucci noted more clarity is needed in the financial regulatory reform effort, the impact of austerity budgets on the euro and pound and more visibility on next year's taxes.

Scaramucci said macro economic headlines remain a concern for the market, although earnings are spring-loaded for the second half .

Terranova said the revaluation of China's yuan could make a difference by sending the dollar lower.

Kelly, though, doused cold water on all the comments, saying it's unlikely any of those catalysts will happen.

Will

Apple

's

(AAPL) - Get Report

new iPhone take away market share from

Research In Motion

's

(RIMM)

Blackberry business?

Colin Gillis, an analyst with BGC, was bullish about the iPhone's growing appeal in the enterprise space. He said the new operating system is going to make the iPhone more secure, help it access corporate networks and make it more compatible with corporate exchange servers.

Indeed, he said enterprises like the iPhone so much that they are building applications for it.

Lee brought in Glenn Tellock, CEO of

Manitowoc

(MTW) - Get Report

, whose stock has been down 20% in the past four weeks as the fears of a global slowdown have affected its crane and lifting equipment business.

Tellock acknowledged the company's excess supply of cranes but said it's being offset by the food service side of its business.

In the final trades, Terranova liked

Visa

(V) - Get Report

. Adami liked natural gas and

Apache

(APA) - Get Report

. Finerman liked

Corning

(GLW) - Get Report

while Scaramucci said Goldman Sachs was a buy.

-- 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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