'Fast Money' Recap: Nowhere to Go
Dylan Ratigan started off
CNBC's
"Fast Money" show Monday with a discussion of how stocks are near new lows in the credit crisis.
Guy Adami said he thought the
Dow Jones Industrial Average
was going to trade above 9,000 today. "If the Dow closes below 7,800, we will see 6,000 next," he said. The Dow fell 223.73, or 2.6%, to 8273.58 at the close of trading on Monday.
Tim Seymour said there is no reason to act with so much policymaking hanging in the balance. He said, "Europe and Japan are in recession for the first time since World War II."
Pete Najarian pointed out that the financials haven't participated in any of the recent market runs. "The
Financial Select Sector SPDR
(XLF) - Get Financial Select Sector SPDR Report
is at its 52-week lows," he said.
Karen Finerman warned viewers of more pain to come for the financials. As a result, she is short on
BB&T
(BBT) - Get BB&T Corporation Report
,
Vornado Realty Trust
TheStreet Recommends
(VNO) - Get Vornado Realty Trust Report
and
Simon Property Group
(SPG) - Get Simon Property Group Inc. Report
.
Najarian noted the
iShares Dow Jones US Real Estate
(IYR) - Get iShares U.S. Real Estate ETF Report
is seeing massive put options activity.
Ratigan reported that the Senate Democratic leadership is proposing $25 billion in aid to bail out the auto sector. Seymour said this is just what the market doesn't want, when there is no volume and no buyers. Adami said shares of
General Motors
(GM) - Get General Motors Company Report
will probably be worthless regardless of the outcome.
Ratigan asked the traders if there is an investment to be made in the oil complex.
Adami said there is no real money to be made in the commodity market. However, he said investors should look at
ConocoPhillips
(COP) - Get ConocoPhillips Report
for a valuation play and a piggyback play off Warren Buffett's recent stake."
Najarian said
Chevron
(CVX) - Get Chevron Corporation Report
and
Exxon Mobil
(XOM) - Get Exxon Mobil Corporation Report
could have more downside if oil continues to plunge.
Ratigan mentioned that
Lowe's
(LOW) - Get Lowe's Companies Inc. Report
beat earnings and traded up 4% in after hours trading.
Jon Najarian said he is watching
Limited Brands
(LMT) - Get Lockheed Martin Corporation Report
for a play on its earnings report.
The traders spoke with
CNBC's
Larry Kudlow about the new auto bailout plan and Barrack Obama's plans for the future.
Kudlow said he doesn't like the $25 billion bailout for General Motors. He said General Motors isn't competitive with
Toyota Motor
(TM) - Get Toyota Motor Corporation Report
and
Honda Motor
(HMC) - Get Honda Motor Company Ltd. Report
. He also said he prefers some type of pre-packaged bankruptcy."
Kudlow told viewers the market is disappointed that Obama hasn't announced the new Treasury secretary and whether he will raise taxes in 2009.
"People wanted to be reassured by a moderate to conservative Treasury appointee, and none was forth coming," he said.
More Auto
CNBC's
Phil LeBeau joined the traders to discuss the proposed aid for the automakers. LeBeau said it's his understanding that the $25 billion is for the auto industry, not just GM.
He explained that under the plan, there will be no bonuses for executives making over $250,000 a year and the government wants assurances the automakers have a viable business plan for the future.
Trader Radar
Shares of
Baidu.com
(BIDU) - Get Baidu Inc. 百度 Report
were among the most actively traded stocks on the
Nasdaq
Monday.
Commodities Talk
The traders talked about where the opportunity will be in the market when equity investors put money back to work.
Adami said the money will go back into a lot of the commodity stocks. He says "the problem is it won't go back tomorrow or next week, but will probably happen in January."
He likes
Agrium
(AGU)
,
Potash
(POT)
and
Archer Daniels
(ADM) - Get Archer-Daniels-Midland Company Report
.
Final Trade
Seymour picked
Aloca
(AA) - Get Alcoa Corporation Report
. Adami recommended
Charles Schwab
(SCHW) - Get Charles Schwab Corporation (The) Report
. Najarian selected
Home Depot
(HD) - Get Home Depot Inc. (The) Report
. And Finerman said likes
Rohm and Hass
( ROH).
This article was written by a staff member of TheStreet.com.
