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) -- The markets sank Tuesday as a clash in the Korea peninsula was added to the list of uncertainties weighing on investors.


Dow Jones Industrial Average

fell 142.21, or 1.27%, to 11, 036.37 and the

S&P 500

lost 16.81, or 1.40%, to 1,181.03. The


dropped 37.07, or 1.46%, to 2,494.95.

Joe Terranova said on


's "Fast Money" TV show said he didn't see any need for panic. He said he didn't see a deep correction in the works and he was buying cheap put protection. He said it made sense to buy protection for such good stocks like


, which was up 1.9% for the day.

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Finerman also said she was not paring back on her portfolio. She said she actually wanted to get longer on



. She said she hasn't seen the stock this cheap on a P/E basis since the low's of 2008. "The risk-reward is attractive."

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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She said she was focused on the GDP data today, which she considered the most important element of the market today. She said the other "noise" will recede.

Pete Najarian said he liked the picks in the chip sector, including stocks like




Texas Instruments






Terranova, though, said money managers would probably dump Microsoft by the end of the year when they do their final accounting of what to hold and sell off.

Melissa Lee, the moderator of the show, shifted the discussion to safe-haven bets, including gold which was up today for the second consecutive session.

Richard Ilczysyn, senior market strategist for Lind-Waldock, said gold has a long way to go. He sees it testing $1,425 an ounce and moving toward to $1,600 an ounce in 2011. "Investors need to have some of this in their portfolio."

Asked about the decline in copper prices, he said copper is correlated with stocks and would step in to buy it if it pulled back to $3.50 per pound to $3.60 per pound.

Terranova expressed caution about the gold trade, saying the institutional investors may be one of the first to liquidate their positions if there is a global margin call.

Is this a time to get into South Korean stocks? Seymour expressed some caution about the move. He said this incident was different from those in the past because it involved civilians and louder saber rattling. He said China is another important dynamic that will complicate the political situation.

He said he would wait until next week to buy a stock like Samsung on weakness.

Seymour also expressed concerns about China and its fight to rein in inflation and how that situation has resulted in a lot of uncertainty in the region.

Kelly, though, said he was buyer of China through the

iShares FTSE/Xinhua China 25 Index ETF


on dips, noting $42 would be a good entry point.

Kelly was encouraged by the revised GDP of 2.4% as being bullish sign for China because of the prospects of new orders. Seymour added a strong U.S. consumer means a strong China.

Shifting to M&A activity in the retail space, Finerman commented on a private equity group's $3 billion bid for



. She called it a "home-run" deal for TPG Capital if it can get CEO Mickey Drexler to stay.

She said it's still possible for someone else to bid for JCrew because it's a premier retail name that's currently in a lull but still has a fine balance sheet.

Jeffrey Klinefelter, an analyst with Piper Jaffray, said the proposed deal certainly puts on notice some other heavy retail names. He said eight of 11 major retail names, including







American Eagle


are trading below the takeout range of a 7.8 times multiple.

Finerman said the timing of the acquisitions may be difficult because of an improving sales trend.

For the hedge fund pick of the week, Anthony Scaramucci dipped into the retail space and chose



. He said Macy's has the highest cash flow in its peer group, trades at 11.9 times forward earnings and is paying back $1.2 billion of debt this year. He said it also sells great brands.

Finerman said it would not be shocking if Macys did a leveraged buyout because it has a good management team.

Lee noted there was a runup today in

Nuan Communcations


on rumors that it was going to be purchased by


. She said the rumor was later denied.

Shifting to the European contagion, Peter Boockvar, Miller Tabak equity market strategist, said the situation appears to be getting out control, with the bailout of Greece and Ireland, spiraling funding costs and credit default swap markets saying that these countries need to restructure before the crisis hits Spain.

He said the ECB, EU and IMF must come up with a plan to replace the existing emergency loan facility.

In the final trades, Seymour liked

Banco Santander


. Terranova liked

Abbott Labs


. on a dip. Grasso liked

Breakwater Resources


. And Terranova liked




--Written by David Tong in San Francisco.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC


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