'Fast Money' Recap: Market Reversal
NEW YORK (
) -- The markets reversed direction toward the close Thursday of a volatile trading session.
The
Dow Jones Industrial Average
rose 5.06, or 0.05%, to 10,841.21, while the
S&P 500
dropped 1.99, or 0.17%, to 1,165.73 and the
Nasdaq
was down 1,35, or 0.06%, to 2,397.41.
Gary Kaminsky said today's market reversal was more of an aberration caused by sell programs and exhausted buyers toward the end of the trading session. He said he didn't see today's market action as anything that would cause a trend to the downside.
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 technicals on
Apple
(AAPL) - Get Report
, which closed down today, were pointing downward and that it would be advisable to take profits.
Tim Seymour said Apple and other stocks that had been working this year got thumped today.
Joe Terranova said the bulls are going to have to step up Friday morning for the market to move higher.
Melissa Lee, the moderator of the show, brought in Steve Liesman,
CNBC
reporter, who commented on the two weak Treasury auctions. He said the amount of supply on the long end has doubled as yields move higher.
Kaminsky, though, saw nothing new in the developments and wondered why it should have an impact on the market.
Lee shifted the discussion to some "classic" short squeezes that have lifted a number of stocks, including
Citigroup
(C) - Get Report
.
Adami said
Lululemon
(LULU) - Get Report
had a fine quarter but its valuation didn't make a lot of sense. He said short squeezes have moved the stock higher. Kaminsky said it's going to "end very ugly."
Lee asked the panel to comment on the euro, which was declining despite reports of a bailout deal for Greece. Seymour said the reality is that Greece is going to try to deal with the situation on its own before the EU and IMF step in.
In after-hours trading, Oracle reported an inline quarter. Patty Edwards, founder of Storehouse Partners, said the earnings results were short of the whisper number, but she said the stock seemed to be coming back on better-than-expected licensing revenue in North America. She also said Sun Micro made a significant contribution to earnings.
Adami pointed out that what was important here was not so much Oracle's earnings but the market's reaction to it. He said investors will get a better feel for the stock Friday.
Shifting to tech, Lee noted that
Best Buy
(BBY) - Get Report
was up 3.45% on better-than-expected earnings and strong sales of netbooks and TVs.
Seymour said a good derivative play would be
AU Optronics
(AUO)
, a Taiwan firm that makes flat TV screens for Samsung and LG. He said as much as 90% of its sales will be coming from emerging markets.
Adami offered up another derivative trade:
IMAX
(IMAX) - Get Report
, which he said makes no sense valuation-rise but is riding a "sea change" from the rapid adoption of 3D movies.
Lee brought in Anthony Scaramucci, managing partner with Skybridge Capital Partners, to comment on the stock picks of the "best" hedge funds. His pick:
Atlas Pipeline
(APL)
, a liquid natural gas play, which he believes could double in the next six months.
Lee brought in Paul Sagan, CEO of
Akamai
(AKAM) - Get Report
, which is up 24% this year. The company recently hooked with
Netflix
(NFLX) - Get Report
to become its preferred provider for the distribution of movies online.
Sagan said the Netflix deal is a natural fit because one of Akamai's three main goals is to have ties with companies with "serious business models" in the online video market.
Sagan said Akamai is working hard to convince companies that it is better to outsource their Web content delivery work to it than to do it themselves.
In a footnote on the
Lion Gate's
(LGF)
battles with
, Lee noted a
Wall Street Journal
report that Lion's Gate had dropped out of the bidding for MGM Studio.
Scaramucci said Michael Burns, the vice chairman for Lions Gate, did well against Ichan in Wednesday's debate on the show. Scaramucci told the panel that he sees more dealmaking ahead in such areas as the fertilizer industry, commodities, banks and entertainment space.
In the final trades, Seymour said to take parts in
Mechel
(MTL) - Get Report
. Adami liked Akamai, while Kaminsky said to short Lululemon. Terranova said to sell
Qualcomm
(QCOM) - Get Report
.
-- Written by David Tong in San Francisco
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.
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