NEW YORK (
) -- The markets retreated Tuesday after a three-day run.
Dow Jones Industrial Average
fell 17.90, or 0.15%, to 12,018.63. The
dropped 4.61, or 0.36%, to 1,293.77. The
was down 8.22, or 0.31%, to 2,683.87.
Joe Terranova said on
's "Fast Money" show that oil prices were on a bullish run after "optimistic" news from Japan, which approved the release of 22 days of its oil reserves to meet shortages. The country will also need more oil when it embarks on a huge reconstruction program following the disaster.
With the dollar still on the decline, oil could hit $106.50 a barrel, he said.
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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Steve Cortes said the rise in oil is linked to the geopolitical risks in places like Libya and Yemen. He said the impact of higher oil prices could be seen in the trading of
, which was down more than 1% today.
Terranova stressed the demand side of the equation, saying China reported its oil imports in Febuary were the second highest level ever. He also said the gasoline market is tight as refiners are running at very low rates of operation while countries are competing for limited supplies of oil.
Brian Kelly said that scenario has led him to be bullish on natural gas as an alternative energy source.
Picking up on that point, Stephen Weiss said both coal and natural gas are gaining traction as nuclear energy ebbs. '
But Steve Cortes said he didn't like natural gas because there's no need to import any to the U.S., which has an abundant supply of it.
Melissa Lee, the moderator of the show, said rising oil prices has the automakers on the skids. Still, Seymour said he loves the global auto trade. He said he hasn't seen the demand destruction in the consumer and doesn't expect to.
He said it's difficult to be pessimistic about global economic growth when there's no inflation, low interest rates and global growth at about 4%. "What's wrong here?"
Cortes, though, said rising oil prices prompted him to short
. He also noted that
had fallen today below its pre-IPO price.
Shifting to the buzz over tablets at the CTIA conference in Orlando, Lee noted that
Research In Motion
will be selling its BlackBerry Playbook for the same price as the iPad 2 and delivering it in mid-April.
tech correspondent, said from the Orlando conference said RIM not only has to deal with competition from Apple but also Samsung, which has come out with a new tablet that is thin and light, features a high-resolution screen and has two cameras.
Fortt said it will be difficult for anyone to unseat Applet in the tablet space because of its domination in three areas: components, distribution and apps.
In a Street Fight segment over the fate of
, Sandeep Shyamsukha, a USA analyst for Auriga, took the bullish side.
He said the bad news has been more than priced into the stock. He admitted the company faces a lot of challenges but said those problems were self-inflicted and can be resolved by the end of the year. Foremost is the operating system transition for switches and routes, which he believes will be solved by the end of the year and allow the company to regain its edge.
On the bearish side, Weiss said Cisco has struggled with flat earnings in 2010 and 2011. He said its dividend announcement should be seen as a "white flag" that it lacks any killer apps to drive growth.
Terranova said investors will be better served owning
shares were down on a disappointing revenue outlook that is due in part to the crisis in Japan. Cortes said the stock's performance symbolizes the problems of tech, which has been underperforming this year.
Seymour chided the other panel members for being too pessimistic about their global economic outlook. He said he sees no signs of double-dip recession despite the disaster in Japan and the soverign debt problems in Europe. Kelly, though, the signs of a slowdown are readily apparent and has led him to short equities.
Looking at the markets from a technical perspective, Carter Worth, key market technician with Oppenheimer, said the market is in a phase where it is favoring large cap names over small cap names. He is playing out that them with this trade: long
SPDR S&P 500 ETF
and short the
iShares S&P SmallCap 600 Index ETF
Barry Riholtz, CEO of Fusion IQ, remained skeptical of the market, saying he believes the new resistance level for the S&P is 1,310. He said he expects the markets to resume declining after Japan's disaster subsides. He said he is currently 70% I in cash and 30% long in stocks.
He told Lee that he liked
for its valuation and expects the stock will start moving after it gets above $15.
Calling coal the trade of the year, Lee brought in Nicholas Deluliis, president of
, largest producer of coal in the U.S.
Deluliss painted a growth story for the company, saying it expects to ship 10 million tons of coal this compared to 7 million tons last year. Europe remains a growth market, as it expects to increase its shipments from 1.5 million tons of coal last year to 2.5 million tons this year.
He also is optimistic that stronger global and domestic demand in the coming years will lead to higher natural gas prices and provide an incentive for the company to step up drilling.
Following the comments, Cortes wondered whether the coal trade is a bit extended, while Seymour said he liked
better than Consol Energy. Kelly said he liked natural gas more than coal, while Terranova said he was selling his shares of CNX because he didn't like what he had just heard about the lack of acceleration in rig drilling for natural gas.
In the final trades, Seymour liked
. Cortes said he was buying the dollar. Kelly liked
. Terranova liked
--Written by David Tong in San Francisco.
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