NEW YORK (
) -- The markets retreated Monday during a choppy trading session.
Dow Jones Industrial Average
rose 1.06, or 0.01%, to 11,952.97. The
added 0.85, or 0.07%, to 1271.83. The
fell 4.04, or 0.15%, to 2639.69.
Melissa Lee, the moderator of
's "Fast Money" TV show, noted a breaking news story involving
and an executive shuffle that included the resignation of chief information officer Randy Mott and a shift in responsibilities for Ann Livermore, who heads the company's enterprise business.
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 on TV
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Karen Finerman said the executive moves won't be enough to convince investors. She said the company needs to put up some decent numbers in the next two quarter and improve its anemic P/E ratio.
Joe Terranova said he was sticking with his pairs trade of going long on HP while shorting
, which he said was performing well.
Guy Adami said he didn't see any reason getting into HP despite compelling valuations.
Steve Grasso said he was perplexed by the tech space and would rather stick with sectors that are working like health care through the
Consumer Staples Select Sector SPDR
and utilities through the
Adami said he would go with
ahead of its earnings and
if it dips to $155.
Finerman said she owned HP puts and was putting more money in
Brian Kelly said it was noteworthy that gold and silver sold off today even though the dollar was declining. He said he would be watching the numbers overnight from China to see if inflation rears its head and the country moves to tighten interest rates.
Lee brought in Dennis Gartman to comment on the growing price gap between West Texas Intermediate oil and Brent oil that has grown to $20. Gartman said he didn't know when the spread is going to stop growing, but he agreed with the panel that Brent has become the accepted marker for crude and that the play for investors should be in international oil companies.
Lee brought in Doug Kass, a RealMoney Silver contributor at
, to talk about what he called "screwflation." He said the term applies to the dire situation the middle class finds itself it in with very little progress in real wages, surging food and energy prices and an unprecedented drop in home prices.
He said most of the focus unfortunately has been on the U.S. economy that has doubled in the past 30 years, and corporate profits, which are expected to peak sometime in the third or fourth quarters.
He said the average investor should be bracing for disappointing real growth in the economy and a turndown in retail sales and personal consumption expenditures.
He said the facile trader would be shorting consumer stocks. He said he is shorting Treasures by buying the
ProShares UltrShort Lehmnan 20+ Year Treasury ETF
Kass said the country needs a definitive jobs policy and Marshall plan for housing. He said he was in favor of extending the payroll tax cut and allowing tax-free repatriation of U.S. corporate earnings made abroad if they are earmarked for job creation.
In the "Take Your Position" segment, Kelly said he expects China to report an uptick in inflation to which the markets will react negatively. He said commodities, with the exception of grains and agriculture, will take it negatively.
Lee noted the credibility problem Chinese stocks are encountering in exchanges around the globe as a result of the controversy over the accounting practices of Chinese companies.
Finerman said the fear for investors is that the game is rigged. She said she expects to see more reports of fraud. As a result, she said she would rather be in
, a multinational that does business in China and abides by U.S. accounting standards.
Amplifying on Nouriel Roubini's about a possible perfect storm of economic troubles for the U.S. in 2013, Gina Sanchez, director of asset allocation for Rubini Global Economics, said that fear is grounded on a convergence of factors.
She said it could happen if the Bush tax cuts expire, the eurozone crisis gets more pressing and China suffers a hard landing from its unsustainable growth model.
She said she see some value in equities in relation to Treasuries if the macro numbers don't get worse.
Andy McOrmond, managing director for WallachBeth Capital, said it may be time for investors to consider fixed income investments. He particularly favored
iShares Barclays 1-3 year Credit Bond
iShares Barclays Aggregate Bond
In a segment on centennial companies that are still innovating, Grasso chose
for its "tremendous" buyback, great yield and ability to stay competitive and innovative over the years.
In the final trades, Kelly said he subscribed to Kass' thesis and was buying some shares of the ProShares UltraShort Lehman 20+ Year Treasury ETF. Dan Nathan said those inclined to seeing an earnings bounce in
should define the risk by buying a July call spread. Grasso said he would add to
if it falls below its 200-day moving average. Adami said he liked
Kinder Morgan Energy Partners LP
and wanted to see how it trades off its secondary. Finerman said she would be a seller of S&P June puts if the market sells off from "hot" data from China. Terranova provided a game plan for buying
in increments of a quarter each Tuesday over the next four weeks.
--Written by David Tong in San Francisco.
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