'Fast Money' Recap: Oil Bugaboo

Joe Terranova said high oil prices could be a bugaboo for the U.S. economy.
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NEW YORK (

TheStreet

) -- The markets rallied Monday on encouraging economic data.

The

Dow Jones Industrial Average

rose 46.48, or 0.43%, to 10,973.55, while the

S&P 500

gained 9.34, or 0.79%, to 1,187.44. The

Nasdaq

was up 26.95, or 1.12%, to 2,429.53.

Karen Finerman said on

CNBC

's "Fast Money" TV show that there is a lot of positive economic data, including today's ISM and pending home sales numbers, that paint an encouraging picture of the U.S. economy and should encourage investors to move into the markets from the sidelines.

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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Gary Kaminsky said the market uptrend will continue as money managers realize they cannot afford the risk of not being in the markets. He said the only factor that could stop that momentum would a sustainable move up in interest rates.

Tim Seymour said that the rallies in the U.S. and overseas markets can be sustained if global economic growth can rise half a percentage point above expectations.

Joe Terranova said there will be an impact on equities if is a spike in the 10-year Treasury notes and 30-year Treasury bonds.

Simon Hobbs, the moderator for the show, shifted the discussion to the rapid rise in crude oil, as it nears $90. Terranova advised trading it from the long side. He sees $90 coming quickly as institutional investors step up purchases and demand in emerging markets grows. He also warned that oil could be "bugaboo" for the economy.

Patty Edwards responded to the higher crude prices with a pullback on consumer names. She favors shorting either the

SPDR S&P Retail

(XRT) - Get Report

or

Retail HOLDRs Trust

(RTH) - Get Report

.

Edwards also advising going long in some retail operators like

Aeropostale

(ARO)

,

TJX

(TJX) - Get Report

and

J Crew

(JCG)

.

Hobbs brought in Peter Misek, an analyst with Canaccord Adams, to talk about the first weekend of sales of

Apple's

(AAPL) - Get Report

iPad.

Misek sees a big trend developing among small- and mid-sized corporate clients who, he says, will give up their laptops for the lighter and easier-to-use iPads.

He sees 3.5 million iPads being sold this year and 12 million to 15 million units next year. He said iPhone sales will explode to 50 million units next year.

Kaminsky said

Verizon

(VZ) - Get Report

will face higher customer retention costs with

AT&T

(VZ) - Get Report

after it gets its hands on Apple's iPhone.

Hobbs said casino stocks were hot today. Najarian said options activity was especially heavy in

International Game Technology

(IGT) - Get Report

. Seymour liked

Melco Crown Entertainment

(MPEL)

, which he said understated its earnings.

In the biotech space, CNBC biotech reporter Mike Huckman expects big things from

Celgene

(CELG) - Get Report

which has a research and development day this week for analysts. He said the fact Celgene has only done such a show once in the past five years promises something big may be in the offing.

Is China going to revalue the yuan? Seymour said he expects China to raise the yuan by a couple of percentage points by the third quarter, but he said investors should really be focused on the energy story and strong Chinese demand for commodities such as copper and iron ore. He particularly likes

Ivanhoe Mines

(IVN)

as a commodity play.

Is the bull market fracturing and a stock pickers market? That's the question Hobbs put to Hilary Kramer, who writes for

gamechangerstocks.com.

Kramer said she looks for undervalued stocks with a near-term catalyst. She thinks

Supermedia

(SPMD) - Get Report

fits that description and finds the Internet side of its business very attractive. In addition, she said hedge fund chief

John Paulson

is the largest shareholder of the company.

Her second pick was

Dendreon

(DNDN)

, a biotech play could triple in the next 18 months. She said the FDA will hand down a very important decision on its prostate cancer vaccine on May 1.

Is growth stalling in Brazil? Bill Landers, who manages Blackrock's Latin America Fund, said Brazil's economic outlook actually looks good as fundamentals get better, employment improves, the government moves into a second of funding for infrastructure and the upcoming World Cup and Olympic games.

He agreed with Seymour about investing in the domestic side of Brazil's growth equation. He particularly like

Itau Unibanco Holding

(ITUB) - Get Report

and Cyrela Brazil Realty, the country's largest property developer.

In the daily 30-second pitch segment, Najarian touted

AK Steel

(AKS) - Get Report

as a play on domestic steel after a major change in pricing of iron ore overseas.

Hobbs brought in Tom Ward, CEO of

SandRidge Energy

(SD) - Get Report

, which announced today that it will acquire

Arena Resources

(ARD) - Get Report

in a $6.2 billion deal.

Commenting on the decline in his company's stock after the announcement, Ward said it wasn't necessarily a "no" vote on the industry as it was a move by the company to be more balanced in a very competitor industry.

In the final trades, Seymour was long

Total

(TOT) - Get Report

. Terranova said to short

Estee Lauder

(EL) - Get Report

zliked Petrobras. Finerman liked

Best Buy

(BBY) - Get Report

while Najarian went with

Lowes

(LOW) - Get Report

.

-- Written by David Tong in San Francisco

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

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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