'Fast Money' Recap: Consumer Plays

The trading panel offered a variety of picks in the retail sector.
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NEW YORK (

TheStreet

) -- The market rebounded Thursday on pickup in consumer spending.

The

Dow Jones Industrial Average

was up 29.55, or 0.27%, to 10,927.07, while the

S&P 500

gained 3.98, or 0.34%, to 1,186.43. The

Nasdaq

added 5.65, or 0.23%, to 2,436.81.

Steve Grasso said on

CNBC

's "Fast Money" TV show that investors should be buying some of the financials ahead of the earning season, including

Goldman Sachs

(GS) - Get Report

,

JPMorgan

(JPM) - Get Report

and Morgan

Stanley

(MS) - Get Report

, which have been lagging. "This is where you are going to be making the money."

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 the way to play the "consumer recovery" is to be in a stock like

American Express

(AXP) - Get Report

.

Jon Najarian agreed, saying the consumer hasn't backed off from pay more for gasoline, airline fares and rental cars.

Tim Seymour said some of the retail stocks like the

Gap

(GPS) - Get Report

and

TJX

(TJX) - Get Report

have had their run and investors should get out of them.

Patty Edwards advised investors to be selective in their approach to the retail sector and put their bets on stocks like

J. Crew

(JCG)

and

Buckle

(BKE) - Get Report

.

Najarian said casino stocks are continuing to do well but he's less anxious to get in them now because he feels they are "a bit long in the tooth." Tim Seymour said he would rather in the casino stocks with exposure to Macao as well as some of the online gamers.

Grasso said investors should be in the retail and casino names, adding the markets, based on valuation, seem have room to move up.

Terranova said he feels short squeezes have responsible for much of the move up so far. He said he's looking for the transition to quality names during the earnings season for the next leg of the rally.

Najarian said it was a bad sign for

Amazon.com

(AMZN) - Get Report

to be selling its Kindle in

Target

(TGT) - Get Report

stores. Edwards agreed, comparing the iPad and the Kindle to a "computer to cave drawings."

Terranova listed three overlooked stocks that investors should pick up:

Yahoo!

(YHOO)

,

Potash

(POT)

and

EOG Resources

(EOG) - Get Report

.

Steve Cortes favored picking two underperformers in the financial sector: Morgan Stanley and Goldman Sachs. He said their stock prices have been depressed by the low trading volume, which he said will change.

For a gloomy view of the markets, Robert Prechter, author of

Conquer the Crash,

told a disbelieving panel that there was no reason to be in stocks. He said investors should be in cash. He said the market is extremely overbought and losing momentum.

Simon Hobbs, the moderator of the show, brought in Anthony Scaramucci, who favored shorting

Wal-Mart

(WMT) - Get Report

. Scaramucci said the strengthening of the yuan will crimp Wal-Mart's operating margins, which are already as "tight as a drum."

He also said its earnings will be "light relative to consensus estimates." Patty Edwards disagreed, noting Wal-mart's contracts in China are denominated in dollars.

Seymour said the appreciation of the yuan will be gradual and benefit the Asian economies and the dollar.

Shifting to the tech sector, Heather Bellini, an analyst for ISI Group, favored buying

Microsoft

(MSFT) - Get Report

ahead of earnings.

Bellini, who has put a $38 price tag on the stock, sees a lot of upside in its numbers in its upcoming earnings report. She said Microsoft will benefit from another enterprise upgrade cycle, Windows 7, PC shipments and an improvement in deferred revenues.

Seymour agreed, saying Microsoft should do well in its earnings report because of low expectations for a stock that has been disappointing.

Hobbs brought in Michael Odell, CEO of

Pep Boys

(PBY) - Get Report

to talk about his company's auto parts business. He said his company is well positioned to service customers whether they have used or new cars. He said the service market is fragmented with plenty of opportunities for growth.

In the "under the radar" segement, Hilary Kramer, of A&G Capital, offered two picks for a market that is about to make a 7% to 10% pullback. Her first pick:

Evercore Partners

(EVR) - Get Report

, a boutique investment bank, which she said ranks No. 1 in merger-acquisition activity amongst its peers. She has a price tag of $40 on the stock.

Her second pick:

Geoeye

(GEOY)

, a satellite imaging company that has seen 80% revenue growth quarter over quarter and great management. She said the company is benefiting from the fight against terrorism and could be a takeover target.

For the 30-second pitch, Scaramucci focused on

Intel

(INTC) - Get Report

for three reasons: $10 billion in free net cash flow, $10 billion in net cash, and 70% of its sales outside the U.S. He also called the pick an

Apple

(AAPL) - Get Report

derivative play, adding tech spending is going a lot higher.

For the trading the globe segment, Hobbs brought in Luciano Siracusano, chief investment strategist for Wisdom Tree, to talk about India, the second fastest growing economy in the world. Siracusano downplayed the idea of a bubble in India, where the market has doubled the past year.

Siracusano said the India market has actually been flat over two years, because it was down 50% the previous year. He advised making investing decisions that focus on the consumer and to "own the equity market."

Seymour added he liked

Tata Motors

(TTM) - Get Report

and

Infosys Technologies

(INFY) - Get Report

.

In the final trades, Seymour liked

Vodafone

(VOD) - Get Report

. Edwards liked J. Crew, while Grasso liked

Citigroup

(C) - Get Report

. Terranova said he liked being in gold and Najarian liked

Tyson

(TSN) - 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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