'Fast Money' Recap: RIM's Bad Vibes

NEW YORK (

TheStreet

) --The market sank again Thursday on a disappointing home sales report.

The

Dow Jones Industrial Average

dropped 41.11, or 0.42%, to 9707.44, while the

S&P 500

was down 10.09, or 0.95% to 1050.78. The

Nasdaq

fell 23.81, or 1.12%, to 2107.61.

Melissa Lee, the moderator of

CNBC

's "Fast Money" TV show, focused on

Research In Motion

(RIMM)

, which was getting slammed in after-hours trading. The stock was down 14%.

Jim Goldman, a

CNBC

reporter said RIM beat expectations on the bottom line but its revenues were lighter than expected. He also said new subscriber growth and unit shipments were below expectations. In addition, the company offered disappointing guidance in the third quarter when it came to earnings per share, revenue, new subscribers and units shipped.

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

Goldman wondered whether the report was a sign of increased competition from RIM's rivals such as

Apple

(AAPL) - Get Report

and

Palm

(PALM)

.

Goldman believes RIM should be OK over the long haul because the smartphone market can "easily support multiple success stories."

Lee noted that RIM's results were sending shares of Apple and Palm down in afterhours. She said RIM could be the "lynchpin" for Friday's session.

Guy Adami said it's too early to get into RIM, adding it could easily go down to a "60-handle." Tim Seymour said RIM was "set up to fail" prior to the earnings report because it had to "beat nicely" to succeed.

Joe Terranova said there might be bigger ramifications from RIM's surprisingly disappointing report. He said there could be a selloff of other beta names, including

Goldman Sachs

(GS) - Get Report

and it could take the S&P down to 1010.

Karen Finerman said any decline in the Nasdaq would be reasonable considering the extraordinary move to the upside in recent months.

In other after-hours tech news, Lee noted that

Hewlett-Packard

(HPQ) - Get Report

reaffirmed its guidance. Adami said H-P, at 11 times forward earnings, looks "very reasonable and cheaply priced."

Looking at the markets in general, Adami, who was not on Wednesday's show, said that Wednesday's down day could be a watershed moment. He sees the S&P heading significantly lower.

Lee shifted the discussion to crude oil, which got clobbered, down another 4% to under $65 a barrel. Terranova said told investors to forget about oil and shift to natural gas and play names such as

Apache

(APA) - Get Report

and

Chesapeake Energy

(CHK) - Get Report

.

Lee said other commodities were getting slammed such as copper. Seymour said it's not surprising to see the selloff in

Freeport-McMoRan

(FCX) - Get Report

, given the increase in inventory levels. Adami said if he were long gold, he would be "terrified." Finerman agreed, added the gold trade is overpopulated and the "door is small getting out." Seymour, too, said he "scared to death" of gold.

Lee referred to a chart that showed the Shanghai Composite index lagging the S&P. Steve Cortes, founder of Veracruz, said China continues to underform. He also expressed concerns about the validity of the banking data coming from the country.

He offered up a pairs trade: sell

iShares: FTSE/Xinhua

(FXI) - Get Report

and buy

SPDRs

(SPY) - Get Report

. He also would short the British pound and euro against the U.S. dollar.

Lee brought in Mark Mahaney, Citigroup U.S. Internet analyst, to comment on

Google's

(GOOG) - Get Report

acquisition strategy. With $16 billion on its balance sheet, he said Google would be looking into acquiring companies in five areas: mobile, video advertising, international expansion, local and geo targeting capabilities and green tech.

He told Lee that Google isn't likely to acquire a publicly held company. He said it much prefers small private companies. He said he would be very surprised if it bought Palm. "They should stay in infrastructure and steer clear of the cutthroat handset selection game," he said.

With the G-20 meeting about to start, former commerce secretary Carlos Gutierrez said the participants should focus on the issue of imbalance in the global economy.

For example, China should get serious about saving less, consuming more and exporting less, while the U.S. should save more, consume less and export more, he said.

He said the Chinese, of course, don't like this discussion because they believe it's broader than just the currency issue.

Lee invited Jim Whitehurst, CEO of

Red Hat

(RHT) - Get Report

, which was up 11.5% today, hitting a new 52-week high. It was the biggest gainer in the S&P.

Whitehurst said his company continues to generate cash and deliver growth ahead of its competitors. He said the company has used the cash to repay debt and buy back a lot of stock. As a result, its operating earings are up 38% year over year, he said.

In its "Street Survivor" segment, Lee took a look at

Citigroup

(C) - Get Report

, which she said has become the "face of government bailout," with the government owning 1/3 of the shares in the bank.

CNBC

reporter Charles Gasparino said its CEO Vikram Pandit is secure in his position in the short term. However, he said things could change if the economy turns sour and another banking crisis ensues.

In the final trades, Seymour said to sell

Newmont Mining

(NEM) - Get Report

. Adami said to short

Abercrombie & Fitch

(ANF) - Get Report

. Karen Finerman liked

Aeropostale

(ARO)

while Terranova said to buy

McDonald's

(MCD) - 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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