'Fast Money' Recap: Financial Distress - TheStreet

'Fast Money' Recap: Financial Distress

A trader still considers gold a safe haven -- despite a consensus that says the opposite.
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On Monday night, Dylan Ratigan started the "Fast Money" show commenting on how volatile today's trading session had been. He also mentioned how there is still huge concerns over

Freddie Mac

(FRE)

and

Fannie Mae

(FNM)

.

Jeff Macke is still bearish on financials. He said "nobody believes in the bank stocks!"

Karen Finerman said, "I don't know what to say on the Freddie Mac and Fannie Mae bailout."

Ratigan said

Washington Mutual

(WM) - Get Report

was down about 28%. He also mentioned how

National City

(NCC)

shares' were halted so the company could release a press release to assure investors, but the stock still ended down about 14%.

Finerman commented that she does not believe all financials are going to go under. She feels there are good ones to buy, but said, "I don't know which ones."

Seymour added that he does not believe a lot of the regional banks are in good financial standing and will continue to worsen.

Terranova pointed out the failure of

IndyMac

(IMB)

and said "investors feel more bank failures are to come." He states this is one of the major factors affecting the overall financial banks.

Terranova said with the financial distress currently ongoing, he believes Gold has potential to continue rising even at its current levels. He said more and more people place money there considering it as a safe heaven and because of the fears with the dollar. He believes gold will go up, despite the consensus of the trading community that it will go down.

Finerman brought up

Potash

(POT)

and sees a lot of downside risk in the stock.

Terranova added he believes investors right now want diversification. And one way they are doing it is buying companies in the agricultural sector.

Ratigan announced breaking news that

Kimberly-Clark

(KMB) - Get Report

lowered it's profit forecast for the year due to inflation costs.

Finerman said she would rather be in a company such as

Procter & Gamble

(PG) - Get Report

since she does not believe Kimberly-Clark is big enough where it can pass along the expenses to its consumers.

Ratigan announced more breaking news, stating

Genentech

(DNA)

just reported earnings that missed analysts' expectations.

Ratigan mentioned how

Apple

(AAPL) - Get Report

sold 1 million iPhones quicker than expected, yet the stock was up less than a 1% to $173.88.

Mack is not bullish on Apple. He feels this is the phone the company should have released in the first place.

William Fleckenstein, president of Fleckenstein Capital, joined the program and was asked by Ratigan about the Freddie and Fannie bailout announced today. He starts by saying "there was no Freddie Mac and Fannie Mae bailout but a bailout concept." He continued by saying how he is currently shorting

Capital One

(COF) - Get Report

and does not see any reason to be long on any of the financials.

Ratigan stated how

Intel

(INTC) - Get Report

will be reporting earnings tomorrow.

Tim Luke, an analyst from Lehman Brothers, came on the show to discuss Intel. He believes the company will report good earnings tomorrow and "has a lot of things going for them." He released a report earlier today stating many other reasons as to why he is bullish on the company.

Luke said that Intel is trading near its lows and feels the "negativity is pretty much built in" the stock. So he doesn't see much downside risk in the stock right now.

Mike Darda, chief economist from MKM Partners, came on the show to discuss the future economic prospects of the economy. When asked about what Ben Bernanke needs to discuss tomorrow in the FOMC meeting, he said he "needs to talk tough tomorrow in the meeting." Darda perceives there will be "very weak growth and elevated inflation," which are the two major issues Darda feels Bernanke needs to be quite firm in addressing in the meeting.

Ratigan asked his fellow panelist for some ways they would set themselves up from elevated inflation and possible interest rate hikes in the future.

Terranova says sticking with alternative energy is the way to go.

Seymour says to simply look for companies that are not sensitive to interest rates.

Finerman said she would hedge herself while buying value play stocks.

After hours, Kimberly-Clark was down about 7% to $55.00 after lowering its profit forecasts. Genentech is up after hours after raising its outlook.

Finerman believes

Cisco

(CSCO) - Get Report

is the right name to own in this environment for many reasons. She said the company is in a strong financial position, has a large market share of about 52%, and its valuation is quite attractive at 12 times earnings.

Seymour is also bullish on Cisco since it is a strong and fierce competitor globally.

Carter Worth, Chief Market Technician Oppenheimer, mentioned how he likes mid-cap technology firms. The two companies he likes are

Skyworks Solution

(SWKS) - Get Report

and

F5 Networks

(FFIV) - Get Report

.

The entire crew of traders were not convinced tech is the way to be right now.

Final Trade

Macke says stay away from

Intel

(INTC) - Get Report

Terranova likes

Nike

(NKE) - Get Report

.

Finerman picks

Pride International

(PDE)

.

Seymour picks

Empresas ICA

(ICA)

.

This article was written by a staff member of TheStreet.com.