NEW YORK (
) -- The markets ended on the upside Monday after staging a late reversal.
The Dow Jones Industrial Average
rose 68.99, or 0.63%, to 11,061.12. The
added 8.04, or 0.70%, to 1162.27. The
rose 27.10, or 1.10%, to 2495.09.
Guy Dinmore, the
correspondent in Rome, who broke the story about China's interest in buying Italian bonds and investments that triggered today's late reversal, said on
's "Fast Money" TV show that conversations have been going on for some time.
Dinmore said there is an urgency to the talks because Italy will be rolling over $100 billion of debt by the end of the year. He said another round of talks is expected in a few weeks.
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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Tim Seymour said the report is no surprise because Italy is caught in the middle of a credit squeeze. Guy Adami said the markets have already baked in Greece's default but are more concerned with cumulative effects of Europe's debt problems.
Joe Terranova said the U.S. equities markets is trading off the currency markets and the euro's decline. He said the equities markets won't stabilize until they see some stabilization in the currency markets.
Melissa Lee, the moderator of the show, shifted to the bank trade, which saw
rising above $100. Seymour said Goldman is still the "best pure brokerage play out there.
Jon Najarian held to his call last week that the market has bottomed, saying both the action of the
Financial Select Sector SPDR
and broader markets held today.
Terranova said he would be watching the financials Tuesday and would move to own names such as
PNC Financial Services
on a reversal.
Scott Nations noted that there have been heaving buying of puts in
Seymour predicted the markets will have shrugged off the Financial Times story when trading begins Tuesday in the Asian markets. He said hedge funds have been bearish about the markets.
Lee shifted to the gold trade, which was down today. Adami said nothing has really changed in the gold trade with all the reasons for owning it still in force. Terranova said he would continue to own silver puts, adding cash is king. Seymour said the dollar is the pure play now, though he stressed the need to have gold in the portfolio.
Lee alluded to a Bank of America Merrill Lynch report that the S&P could be headed for a 20% correction to 900. Adami, whose own target is 1020, said that could happen if the S&P overshoots to the downside. Nathan said the index could easily be off 15%.
Carter Worth, a chartist with Oppenheimer & Co., said 950 is just not in the cards. He said the index has already seen the lows and highs for the year, and has found support and stabilization after hitting a low on Aug. 9.
In the Money in Motion currency trade, Todd Gordon, Aspen Trading co-head of research and trading, said the U.S. dollar has asserted itself as a safe haven currency. He said the resignation of Jurgen Star as German's representative to ECB will open the door to interest rate cuts, making the euro a sell. He said the euro may see 132 in a week.
Lee noted the strength of consumer stocks today's trading session. Terranova said
performed well. Nathan said
, will be tested when it reports its earnings Tuesday because of its challenging business model. Terranova said it doesn't bode well for Best Buy with the weakeness in the PC and TV markets. Terranova said the short trade is over and sees Best Buy as a $25 to $26 stock.
Seymour cautioned that there may be a dropoff in the electronics component of
Adami, who considers Best Buy a longer-term short, said he would sell on any good news Tuesday.
Is history repeating itself? Lee put that question to Lawrence McDonald, Newedge senior director, about the train of events that led to the fall of Bear Stearns and Lehman and the events unfolding in Europe.
McDonald said the markets realize that a "stinger missile" will be needed to prevent Europe from pulling the U.S. economy into a double-dip recession. He said the worst case scenario would be a befuddled Lehman-like situation marked by a political breakdown and parties to act on their self-interest.
In the casino space, Najarian noted that
won approval to build a second casino in Macau. He said that is good news for the company that is doing well in its Las Vegas operations.
Moving to tech, Terranova said he's keeping an eye Tuesday on
developers conference. He said investors want to know what Intel's mobile strategy is and he expects it will be favorable, a good sign for chip stocks.
He also said
will benefit from the launch of iPhone. He said
customers have been eagerly waiting for the phone.
In the final moves, Najarian said to keep an eye on
if economic conditions in Europe improve. Terranova liked
Written by David Tong in San Francisco.
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