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'Fast Money' Recap: Consumer Woes

The trading panel discussed the plunge in the latest consumer sentiment report and its effect on the market.
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) -- The markets were down Tuesday on a plunge in consumer confidence sentiment.

Joe Terranova said on


's "Fast Money Halftime Report" that the market is down because there is a change in momentum resulting from


chairman Ben Bernanke's decision to shift from public spending to private spending. "The consumer is basically saying we're not ready for that handoff."

Guy Adami agreed, saying that the trade going forward is to short overpriced specialty retail stocks.

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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Pete Najarian said the numbers for

Radio Shack


weren't that bad and advised getting into the stock on the pullback. He said investors should take advantage of cheap volatility to buy puts in stocks.

Adami liked

TheStreet Recommends

Home Depot

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, which was up today on a good earnings report, but he said it could go down if the market continues to drift lower.

Melissa Lee, the moderator of the show, said

Goldman Sachs

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was one of the few bright spots for the financials.

Gary Kaminsky said investors may be favoring Goldman because "you know there's not going to be a crazy surprise" as opposed to the European banks "where you don't know what's going to come out." Terranova said the today's rise in Goldman was "nothing more than short-covering."

Adami said he would be taking profits in Goldman as it bumps up against the $160 level.

Najarian said investors looking at the financials should look at


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for its exposure to the consumer in emerging markets.

Lee noted that four of Greece's largest banks were downgraded today. That prompted Kaminsky to say he remains short the European markets. Adami said the situation in Europe will continue to deteriorate.

With the dollar rallying today, Lee said the commodities have been in retreat. Terranova admitted he's been clearly wrong about copper and noted the heavy selling in commodities, including oil and gold. "People are looking for the exits in commodities," he said.

For a pulse on the global economy, Lee brought in Richard Adkerson, CEO of

Freeport McMoRan

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. Adkerson told the panel he was not in a position to talk about short-term movements in the price of copper because of the many factors involved.

Rather he said he was more prepared to talk about the long-term fundamentals of his company, which he described as "extraordinarly good" because of the prospects for global growth, especially in China and Asia.

He said the challenge for his company has been to develop new supplies of copper to meet demand. He said the company is waiting for the day for the U.S. and European economies to recover.

Adami said Freeport has always been considered a proxy for global growth and advised investors to use $75.45 as a pivot point in the stock: stay with it if goes above that level and get out of it when it falls below it.

Lee brought in David Barse, CEO of Third Avenue Management, which has a stake in Brookfield Asset Management, which was reportedly preparing a bid for

General Growth Properties



Barse declined comment on the story in the

Wall Street Journal

but did say that it made sense for Brookfield to be interested in General Growth Properties since it got involved in the distressed debt of General Growth Properties.

He also told Kaminsky that he liked


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, calling it one of the best financed financial institutions that is trading at a discount to its tangible book value.

-- Written by David Tong in San Francisco

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