'Fast Money' Recap: Rough Market
NEW YORK (
) -- The market sank Wednesday on selling pressures.
The
Dow Jones Industrial Average
was down 72.47, or 0.66%, to 10,897.52, while the
S&P 500
lost 6.91, or 0.58%, to 1,182.53. The
Nasdaq
declined 5.65, or 0.23%, to 2,431.16.
Dennis Gartmann said on
CNBC
's "Fast Money" TV show that it was a "violently mixed" day for commodities, with gold and grains up and crude and copper down.
Tim Seymour said the 10-year Treasury auction was best one he's seen in 16 years.
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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Gary Kaminsky said the market meltup continues, with the financial and retail names leading the way in a raising interest rate environment.
Seymour said investors are getting so complacent that they are not even buy put protection, with the VIX at 16.
Simon Hobbs, the moderator of the show, noted that HCA, the huge hospital chain, is preparing offering the biggest U.S. IPO in two years. Kaminsky said the offering is a sign of a healthy M&A market. Added
: "The financial markets are open for corporate financing, and we are going to see more deals."
Hobbs shifted to the options desk and asked Jon Najarian to comment on the heavy options activity in
Palm
( PALM). Najarian said Palm, which is the subject of takeover rumors, is "on fire," with the stock up 20% and carrying a 40% short interest. He said it's difficult to tell whether the movement in the stock is coming from the takeover talk or short covering.
Restaurant stocks continued to rise during the session. Gartman attributed the rise to an increase in consumer spending, the improvement in the economy and lower input costs for grains. He liked
Darden Restaurants
(DRI) - Get Report
and
Panera Bread
(PNPR)
in particular.
Seymour added another name in the space:
McDonalds
(MCD) - Get Report
. He said McDonald's is cheap in terms of price to cash flow, sports a nice dividend and continues to expand in China. Finerman said
Yum! Brands
(YUM) - Get Report
is another name to get into for its overseas exposure.
Hobbs noted a
New York Times
report that
US Airways
(LCC)
and United Airlines are in merger talks. Kaminsky said such a move would be good because it would take competition out of the market and increase efficiencies and cost savings.
Will rising interest rates have a negative impact on the markets? Peter Boockvar, an equity strategist with Miller Tabak, said rising interest rates will stop the market "dead cold." But Seymour alluded to the success of today's Treasury auction and argued today's rates are not going to knock the markets down.
Shifting to the retail stocks, Deborah Weinswig, a Citigroup analyst, said she liked
Nordstrom's
(JWN) - Get Report
for aggressively putting more fashion in its stores and doing a better job in its direct business. She has a $50 price target for the stock.
Hobbs brought in Jim Taiclet, CEO of
American Tower
(AMT) - Get Report
a favorite wireless play.
Taiclet said his company delivers the network infrastructure that is needed as more technologies are being rolled out. He said that while the company sees the U.S. market as the main driver of its business, it is also expanding overseas to countries such as India and Brazil.
Najarian offered
Cisco
(CSCO) - Get Report
as a derivative play because its advanced routers offer the speed needed to move data.
For the trading around the globe segment, Hobbs invited Richard Kang, CIO for Emerging Global Advisors, to talk about investing in China. Kang said he would definitely get into the commodities trade.
Kang said that trade has changed as China tries to focus on the infrastructure needs of 750 million people in the rural areas.
Seymour said he liked investing in China's unperforming oil companies such as
PetroChina
(PTR) - Get Report
and
China Petroleum and Chemical
(SNP) - Get Report
. He said these stocks will move higher as oil prices rise. He called it an opportunity to buy names "you wanted to own in 2007."
In the daily 30-second pitch, Gartman picked
SPDR Gold Shares
(GLD) - Get Report
for diversification purposes. He said this trade is becoming increasingly attractive as the central banks in China and India get increasingly nervous about holding euros and see gold as a safe alternative.
Kaminsky said newspaper stocks like
Gannett
(GCI) - Get Report
have come back after the industry shakeout. He said a lot of capacity has been removed as newspapers find new revenue streams and look for new ways to compete.
In the final trades, Seymour said to get out of
US Steel
(X) - Get Report
. Kaminsky said he's sticking with the airlines. Finerman liked
American Eagle Outfitters
(AEO) - Get Report
. Gartman reiterated his preference for the restaurant stocks he mentioned earlier in the show.
-- Written by David Tong in San Francisco
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.
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