NEW YORK (
) -- The three major indices hit 52-week highs on Tuesday on rising consumer confidence.
Dow Jones Industrial Average
jumped 115.49, or 0.93%, to 12,595.99. The
rose 11.99, or 0.90%, to 1347.24. The
gained 21.66, or 0.77%, to 2,847.54.
The trading panel started
's "Fast Money" show with a look at
, which was recovering in afterhours after getting hit for an earnings miss and higher expenses, including a jump of $3 billion in operating costs from a year ago.
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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Joe Terranova said Amazon is doing the right thing in the long term by spending to increase growth, as it drives into the cloud area and boosts the Kindle. He advised investors to wait before buying the stock.
Brian Kelly was encouraged by Amazon's revenue guidance of 34% to 47% on the prospects of stronger economic growth in the U.S. and abroad. He said the company is spending to differentiate itself from "everybody else that has a Website and things to sell online."
Tim Seymour agreed, saying there were no surprises in Amazon's report. "They are growing top line and the guidance is fine."
Terranova said he expects the company will have to tackle margin compression and a sideways trading pattern in the stock.
reporter Jon Fortt said Amazon officials said in the conference call that growth has returned in Japan but not to pre-quake levels. He said the company is spending more on fulfillment centers, servers and content.
Melissa Lee, the moderator of the show, noted silver's precipitous 10% slide in 24 hours. Terranova said investors need to wait to see what path the dollar will take after the FOMC meeting. If it goes lower, it will benefit copper, he said.
Seymour said the silver trade is making investors very nervous, but Kelly said he remains in the trade because of strong investment demand from China, where depositors see it as an alternative to negative real interest rates.
Rich Ilczyszyn, senior market strategist for Lind-Waldock, called the slide in silver a major reversal and sees it going down another 10%.
However, he said it is long-term bullish in silver because of the continued deterioration of the dollar. He said he expects the Fed to say something Wednesday to boost the dollar and knock down commodities
looks very attractive at its current valuation of 4 times EBITDA.
Lee noted that the Dow Jones Transportation Average hit a two-year high. Seymour said the transportation stocks are doing well and want to move higher. Finerman said
was up 8% on a strong report.
Terranova sensed a rotation out of consumer staple stocks into the industrial names like
. Kelly said
should turn in a good quarter, noting there are encouraging signs of self-sustaining economic growth.
Looking ahead to
Chairman Ben Bernanke's press conference on Wednesday, Kelly and several other panelists said they believe Bernanke's comments will be dovish. He said the market believes the Fed can control inflation and nothing substantive will come out of the press conference.
Andrew Busch, of BMO Capital Markets, said Bernanke definitely needs to say something about inflation in this country and abroad.
Lee brought in Craig Martin, CEO of
which was down 3.53% on a narrowed guidance for the current quarter.
Martin said his company is seeing a lot of activity on the energy side, with clients moving ahead with their projects, especially smaller ones.
He said there's a lot of movement toward natural gas, while coal faces a "steeper hill" and nuclear energy remains a problem in the U.S, where it is difficult to get permits and build plants.
Lee noted that
, was down 8% on light guidance for the second quarter. Terranova, who had been in the stock, attributed Broadcom's problems to a sales slowdown in the wireless space. "I can't buy it here. It's trading lousy."
Expect fireworks in Washington when the energy companies report their earnings.
reporter Eamon Javers said White House spokesman Jay Carney already indicated today that the oil companies don't need the $4 billion in government subsidies after they report what is expected to be strong earnings.
Seymour said gas in the U.S. is still cheap compared to other places in the world. And Finerman said the energy companies perhaps should earn less and spend more on exploration.
Commenting on the 9% slide in
, Terranova said the company didn't say anything to reverse the downside momentum. He conceding shorting the stock at this point is expensive.
For a brief outlook on the future of the euro, Kelly said Germany and France are going to make it so painful for Greece, Ireland and Portugal that they will want to opt out of the euro.
In the final trades, Weiss said he was short
. Seymour said he liked
. Kelly said he was buying
Diamond Trust Series 1
. Finerman favored
into earnings. Terranova liked
was worth a look.
--Written by David Tong in San Francisco.
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