'Fast Money' Recap: Like Japan
NEW YORK (
) -- The markets sagged Friday on continued angst about the economy.
The
Dow Jones Industrial Average
lost 16.80, or 0.16%, to 10,303.15. The
S&P 500
fell 4.36, or 0.40%, to 1,079.25, while the
Nasdaq
dropped 16.79, or 0.77%, to 2,173.48.
Jon Najarian said on
CNBC
's "Fast Money" show that it was a "lousy" trading week, with very little volume and very little to trade.
Tim Seymour said he was discouraged by the negative data coming from overseas in countries such as China and Australia. Joe Terranova said investors are waiting for a reallocation away from corporate and government debt to equities.
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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Guy Adami said the move to the bond markets is accelerating, setting up for what he believes will be a "critical" period for the technicals next week.
Patty Edwards said next week will be the "big tell" for some big retail earnings coming out.
Najarian said the S&P seems to be in a range of 1,020 to 1,120 with a possible breakout on Labor Day.
In the deal of the day, Melissa Lee, the moderator of the show, said
Blackstone
(BX) - Get Blackstone Inc. Report
has agreed to buy
Dynegy
(DYN)
for $4.7 billion. The deal calls for Blackstone to sell Dynegy's natural gas plants in California to
NRG Energy
(NRG) - Get NRG Energy Inc. Report
.
Terranova called it an excellent deal for Blackstone, which is putting up $540 million and assuming $4 billion in debt, and NGR Energy, which will be getting exposure to natural gas on the West Coast.
Lee turned the panel's attention to what worked this week: gold, which was up 1%; the
iShares Barclays 20+ Year Treasury Bond ETF
(TLT) - Get iShares 20+ Year Treasury Bond ETF Report
, up 2%; and the U.S. dollar, up 3%.
Dennis Gartman said the U.S. is in a disinflationary environment like Japan's and that Treasuries and corporate debt securities are going to do well under these circumstances. He said the situation won't turn around until there is an expansion of the monetary base, gold moves to $1,300 an ounce and copper gets stronger.
Turning to GM's long-awaited IPO, Lee referred to a
Reuters
dispatch that said that the automaker is considering opening up 20% to 30% of the offering to retail investors.
Seymour sees a good reception for the IPO for an automaker that is coming back "lean and mean" and expanding globally. Gartman doubts whether it will be a "blowout" IPO but said it's a good idea to let the public in on the offering.
Shifting to tech, Lee said
Research In Motion
's
( RIMM) launch of its Torch this week came with little fanfare and tepid reviews. Adami said it may be time to get into the stock.
Looking ahead to next week, Michael Block, chief equities strategist for the Phoenix Partners Group, said he's staying away from companies with weak guidance like
Cisco
(CSCO) - Get Cisco Systems Inc. Report
and
Hartford Group
(HIG) - Get Hartford Financial Services Group Inc. (The) Report
.
Edwards said she was looking with trepidation at next week's retail earnings. She said
Target
(TGT) - Get Target Corporation Report
has issues with its credit cards, and
Wal-Mart
(WMT) - Get Walmart Inc. Report
needs to plug some vacancies in management.next week retailers.
Dan Greenhaus, a chief economics strategist with Miller Tabak, said it's tough to make any fixes in the economy when the private sector is busy deleveraging. He said the
Fed
has done what it can and stressed the need for changes in fiscal policy and spending.
He said he believes the Bush tax cuts will be extended to lower income consumers.
In the final trades, Seymour liked
Gol Linhas Areas Inteligent
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. Adami liked
Anheuser-Busch InBev
(BUD) - Get Anheuser-Busch Inbev SA Sponsored ADR (Belgium) Report
while Terranova liked
Visa
. Najarian favored
Intermune
(ITMN)
.
-- Written by David Tong in San Francisco
To watch replays of Cramer's video segments, visit the Mad Money page onCNBC
.
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