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'Fast Money' Recap: Poor Price Action

The trading panel discussed the poor price action for some stocks despite good earnings reports.
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NEW YORK (

TheStreet

) -- The market managed to eke out some gains Thursday in a volatile session.

The

Dow Jones Industrial Average

added 38.60, or 0.35%, to 11,146.57, and the

S&P 500

gained 2.09, or 0.18%, to 1,180.26. The

Nasdaq

rose 2.28, or 0.09%, to 2,459.67.

Brian Kelly said on

CNBC

's "Fast Money" TV show that

Amazon

(AMZN) - Get Amazon.com, Inc. Report

was probably a good buying opportunity on the pullback after a decent earnings report and light guidance.

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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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Steve Cortes said Amazon is an incredibly well run company that is reaching the right kind of consumer and making it easy to buy goods.

But Joe Terranova said investors are worried about the company's margin pressures and advised buying the stock at $150.

Guy Adami, who noted the "disappointing" operating margins of 5.3%, said he was afraid of bottom picking here because the stock could easily overshoot to the downside.

Stephen Weiss attributed the margin pressures to the increased measures Amazon is taking to compete against the iPad and other e-readers.

Jon Fortt,

CNBC

tech correspondent, said Amazon said in its conference call that it was a soft quarter for music and video. He said the company issued a conservative guidance for the fourth quarter because of the uncertainties in the economy and currency exchange rates.

Colin Gillis, an analyst for BGC Financial, said he was worried about Amazon's declining growth rate trend. He said its expenses are growing faster than revenue, with a big part of that tied to marketing expenses and its fulfillment centers.

Dan Niles, co-CIO of Alpha One Capital Partners, offered what he called a less sexy approach to this space. He said his company is focusing on plays off the smartphone that touch on video and storage, include names such as

Netapp

(NTAP) - Get NetApp, Inc. Report

and

Brocade

(BRCD)

.

Melissa Lee, the moderator of the show, shifted the discussion to

American Express

(AXP) - Get American Express Company Report

, which was trading higher after an earnings beat. Kelly liked the company because it serves high-end consumers, but Cortes was wary of the stock because it has underperformed for the past six months.

Looking at the markets overall, Adami used

Caterpillar

(CAT) - Get Caterpillar Inc. Report

to illustrate a pattern developing in the price action. He said Caterpillar endured an interday reversal even though it had a "fantastic quarter." He said it might be time to take profits in the stock.

Terranova said

Freeport McMoRan

(FCX) - Get Freeport-McMoRan, Inc. Report

also did not trade well. He said the market is shaky because of the uncertainty over the timing and size of the second round of quantitative easing. There are reports that QE2 may be around $500 billion.

With gold and crude not trading well, it's a good time to get into gold as reserve currency trade, Cortes said.

Kelly said the dollar will move higher as U.S.-China tensions increase.

Anthony Scarmucci said China and the U.S. can choose between protectionism or cooperation. He said it would be destructive for Congress to retaliate against China with protectionist tariffs. He also said the Fed's QE policy will lead to global currency devaluation.

He implored both governments to cooperate to avoid what he fears will be a double-dip recession and possibly a depression.

Lee spoke with David Berger, CEO of

Jetblue

(JBLU) - Get JetBlue Airways Corporation Report

which closed lower after missing earnings estimates.

Berger said the company is doing well with its strategy of organic growth and partnerships. He said the airline is working on adding frequency and used Boston as an example where it is the largest airliner there.

He said the company is rewarding its shareholders with record earnings and strong bookings. He said the airline has done a good job of hedging its fuel costs.

Lee brought in Mark Smith, CEO of

Molycorp

(MCP)

whose stock has soared 30% in the past month as China takes steps to cut exports of rare earth elements.

Smith clarified a misconception from Wednesday's show that the company is not in production mode yet. On the contrary, the company has been producing 3,000 tons a year and will be in a position to ramp production to 20,000 tons annually in a few years, he said.

Smith warned about a bubble in the space as investors speculate on the rise in rare earth elements.

In the final trades, Weiss was long managed care. Kelly said he would short

Green Mountain Coffee

(GMCR)

. Adami liked

Dupont

(DD) - Get DuPont de Nemours, Inc. Report

. Cortes liked

Tyson

(TSN) - Get Tyson Foods, Inc. Class A Report

. Terranova liked

Consumer Staples Select Sector SPDR ETF

(XLP) - Get Consumer Staples Select Sector SPDR Fund Report

.

--Written by David Tong in San Francisco.

To contact the writer of this article, click here:

David Tong

.

To follow the writer on Twitter, go to

http://twitter.com/davidtong

.

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.

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

.

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