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'Fast Money' Recap: Retail's on Fire

The trading panel said investors are chasing consume stocks.
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) -- Shares of

(AMZN) - Get, Inc. Report



(MSFT) - Get Microsoft Corporation Report

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


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


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

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Karen Finerman

said on


'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

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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


(SBUX) - Get Starbucks Corporation Report



(JWN) - Get Nordstrom, Inc. Report

show that the consumer "feels good."

Jim Goldman, a


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 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 Cheesecake Factory Incorporated 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


(CLX) - Get Clorox Company Report



(AAPL) - Get Apple Inc. Report


Lee asked Adami to comment on


(QCOM) - Get Qualcomm Inc 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 Bank of America Corp Report

, which he said can easily approach $20.

Two opposing views of

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. 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



, 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


(ADSK) - Get Autodesk, Inc. 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 Walt Disney Company Report

. Adami liked


(CELG) - Get Celgene Corporation Report

. Finerman liked



and Grasso liked

Louisiana Pac

(LPX) - Get Louisiana-Pacific Corporation 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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