NEW YORK (

TheStreet

) -- The markets retreated Monday on profit taking.

The

Dow Jones Industrial Average

dropped 48.22, or 0.44%, to 10,812.04. The S&P 500 lost 6.51, or 0.57%, to 1,142.16, while the

Nasdaq

fell 11.45, or 0.48%, to 2,369.77.

Jon Fortt said on

CNBC

's "Fast Money" show that

Research In Motion

's

( RIMM) announced today at a developers conference a new tablet called "PlayBook" that features a 7-inch touchscreen, high-resolution cameras and Bluetooth connectivity. He also said it is lighter than

Apple

's

(AAPL) - Get Report

iPad.

The technology correspondent said the PlayBook can connect to the user's Blackberry and store information like email on an external server. He said the tablet will go sale in the first quarter of 2011.

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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Joe Terranova said that RIM is merely trying to use the PlayBook to "buy some time" and get a foot in the door in a market dominated by the iPad. He said the Playbook strategy is to emphasis everything that the iPad isn't including features like

Adobe's

(ADBE) - Get Report

flash and being more suitable for enterprise use.

Kelly was unconvinced. He said the iPad is getting popular with business users, while Adami didn't think much of the product offering, adding the value of the stock might be closer to analyst Colin Gillis' price target of $38. The stock closed today at $48.36, down 1.04% for the day.

Melissa Lee, the moderator of the show, said it was a big day for M&A activity with $10.5 billion in deals announced although there was little market reaction.

Kelly said he didn't want to be in the Treasury market after the

Fed

has signaled its intent on inflation. He said he would rather be in TIPs.

Terranova said the market is in an corrective mode and looking ahead to China's PMI and the U.S.'s ISM reports.

Anthony Scaramucci applauded

Wal-Mart

(WMT) - Get Report

for using cheap federal capital to expand in South Africa, a fast-growing economy, by buying Massmart Holdings.

Terranova said the move won't do much for Wal-Mart stock, but it will give it a footprint in Africa.

Stephen Weiss said he was not a buyer of bonds, preferring instead higher-yielding equities.

In the second big deal of the day,

Unilever

(UL) - Get Report

picked up

Alberto-Culver

(ACV) - Get Report

for $3.7 billion. Terranova said the acquisition provides Unilver a key piece for global expansion.

In the third deal of the day,

Southwest Airlines

(LUV) - Get Report

agreed to acquire

AirTran

( AAI) in a deal worth $1.46 billion in cash and stock.

Terranova said the deal gives Southwest the Atlanta hub and strengthens its position in the industry. "The market loved the deal."

Adami said he liked

Jetblue

(JBLU) - Get Report

after reading a

Barron's

article on it over the weekend. Scaramucci called Southwest the best capital allocator in the airline industry and said the deal represented a bet on commerce and travel and growth.

Lee turned to banking sector, which Adami said was not performing along with the rest of the market. Kelly said banks need more capital and sensed a need for consolidation in the industry.

Scaramucci said he was bullish on the sector for the long term, in which he sees banks growing prudently. Terranova said he's staying on the sidelines until he hears what

Goldman Sachs

(GS) - Get Report

and

JPMorgan Chase

(JPM) - Get Report

have to say in their earnings.

Lee brought in Dennis Gartman to comment on silver closing on a 30-year record. He said silver has become an emerging market trade, with heighten interest in the metal in countries such as China and Malaysia. He said the only thing that might derail gold in another round of quantitative easing.

Is the bond bubble bursting? Richard Volpe, RBS head of USD Rates Trading, said the Fed's push toward inflation will set off a race to low rates around the globe and a bearish dollar in the short term.

Weiss said he's a buyer of

Home Depot

(HD) - Get Report

as low interest rates will make housing more affordable. Kelly liked

Plum Creek Timber

(PCL)

and Adami liked

Louisiana- Pacific

(LPX) - Get Report

.

Gary Kaminsky said three guests will be coming on his show Tuesday to make the case that interest rates will head lower, equities will continue to rally and M&A activity will continue.

Kaminsky, though, expressed doubts about the forecasts on interest rates and market rally.

Lee said for-profit education stocks may be in for a rough time if federal regulators cut off $30 billion in funding for the industry. Kelly said he had no trades, while Adami said he sees the shorts winning in these stocks.

For the hedge fund of the week, Scaramucci went

with Carter's

(CRI) - Get Report

. He said it has a market cap of $1.5 billion, trades10.7 times 2010 earnings and a 20% core rate of return on equity.He has a price target of $35.50 on the stock.

In the final trades, Weiss liked

Mosaic

(MOS) - Get Report

. Kelly liked Plum Creek Timber, while Adami liked Jetblue. Scaramucci liked

Bank of America

(BAC) - Get Report

. Terranova liked

Juniper Networks

(JNPR) - Get Report

.

--Written by David Tong in San Francisco.

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David Tong.

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