'Fast Money' Recap: Retail's on Fire

The trading panel said investors are chasing consume stocks.
Author:
Publish date:

NEW YORK (

TheStreet

) -- Shares of

Amazon.com

(AMZN) - Get Report

and

Microsoft

(MSFT) - Get Report

were declining in after-hours trading on Thursday despite strong earnings reports.

The

Dow Jones Industrial Average

was up 9.37, or 0.08%, to 11,134.29, while the

S&P 500

gained 2.73, or 0.23%, to 1,208.67. The

Nasdaq

added 14.46, or 58%, to 2,519.07.

Karen Finerman

said on

CNBC

's "Fast Money" TV show, that the decline in Microsoft and Amazon isn't surprising because the theme of this earnings season has been the same as last season: namely, that stocks are getting hit despite reporting good numbers. "The story isn't dramatically different. It wouldn't be a reason to go out and dump things."

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

varconfig = new Array(); config<BRACKET>"videoId"</BRACKET> = 79531545001;config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player";config<BRACKET>"autoStart"</BRACKET> = false;config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF";config<BRACKET>"useOverlayMenu"</BRACKET> = "false";config<BRACKET>"width"</BRACKET> = 265;config<BRACKET>"height"</BRACKET> = 255;config<BRACKET>"playerId"</BRACKET> = 1243645856;createExperience(config, 8);

Steve Grasso said there's been a little bit of profit taking going on in the markets except for one space, retail, which he said is "on fire." He said the year-over-year comparisons are easy to make, and "guys want to buy that space."

Joe Terranova picked on that point and emphasized the improvement in consumer credit and along with it, the rise in consumer discretionary and specialty retail stocks. He said it's "illogical," give the nation's high unemployment.

Grasso said he sees the market is going higher on the lift from retail stocks. Terranova said the market action on stocks such as

Starbucks

(SBUX) - Get Report

and

Nordstrom

(JWN) - Get Report

show that the consumer "feels good."

Jim Goldman, a

CNBC

reporter on the Microsoft conference call, said the market overreacted to the company's earnings. He said the reaction ignores the company's huge opportunity to profit from an upgrade cycle that is valued at $75 billion.

Jon Najarian, who was listening in on the Amazon.com conference call, said executives were saying they were selling a lot of Kindles and generally optimistic about their sales growth.

Steve Grasso was bearish on Amazon, saying it will get hit in a bearish market. Terranova said he expects the stock to open $7 to $8 lower when the market opens Friday.

Karen Finerman said she liked the

Cheesecake Factory

(CAKE) - Get Report

, which was down on its forecast despite beating profit estimates.

Gary Kaminsky said the market is healthy as investors rotate to companies that are exceeding expectations like

Clorox

(CLX) - Get Report

and

Apple

(AAPL) - Get Report

.

Lee asked Adami to comment on

Qualcomm

(QCOM) - Get Report

, which was down on a cautious outlook. Adami said the company has done a poor job of managing its expectations since the beginning of the year.

Shifting to President Obama's address on financial reform today, Dennis Gartman said he believes "absolutely nothing" will be accomplished. He said investors can probably pick up financial stocks such as

Bank of America

(BAC) - Get Report

, which he said can easily approach $20.

Two opposing views of

Goldman Sachs

(GS) - Get Report

were offered on the show.

Lee referred to comments from John Roque, of WJB Capital, who believes Goldman may heading down to $100. He said the stock is facing heavy resistance at $175 to $200 and is below its 50- and 200-day moving averages. Furthermore it is bearish relative to the S&5 500 and S&P Financials.

On the other side, Hilary Kramer, chief market strategist at A&G Capital, argued the stock is very undervalued and poised to rise as high as $210. She said she recently visited Goldman's offices and found the company focused on clients, customer service and building shareholder value.

Lee brought in Bob Greifelt, the CEO of Nasdaq OMX, for his reaction to Obama's major address on financial reforms. Greifelt said the address was concise and addressed the major areas of financial reform.

He said his company will benefit from the reforms as it relates to derivatives and the need for transparency, clearinghouses and exchanges. He said his company should do well in the market for interest-rate swaps.

In the under the radar segment, Lee brought in Daniel Hamburger, CEO of

Devry

(DV)

, which was falling in after-hours trading after its earnings report.

Hamburger said the company has a proven track record and is well diversified to continue to perform well. Adami, though, wondered whether enrollment will drop as the unemployment picture improves.

In celebration of Earth Week, Zachary Karabell, president of River Twice Research, singled out

Autodesk

(ADSK) - Get Report

. He said the company's autocad design software will be in demand in China as manufacturers seek help in clean tech designs for their buildings.

In the final trades, Terranova liked

Walt Disney

(DIS) - Get Report

. Adami liked

Celgene

(CELG) - Get Report

. Finerman liked

Polycom

(PLCM)

and Grasso liked

Louisiana Pac

(LPX) - 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.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.