NEW YORK (
) -- The selloff continued Thursday with gold posting its biggest gain in eight weeks.
Dow Jones Industrial Average
dropped 58.88, or 0.57%, to 10,319.95, while the
fell 5.86, or 0.54%, to 1,083.61. The
lost 18.36, or 0.83%, to 2,190.27.
Joe Terranova said on
's "Fast Money" TV show, that said it's imperative to focus on a defensive strategy that includes gold, fixed income, ultilities and health care.
Guy Adami said
becomes an interesting play on a pullback when it hits $66. He said that would represent a 50% correction off its May 6 high.
Karen Finerman said she was looking at some health care names including
, while Jon Najarian said he was selling his puts in
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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Adami was opposed to being in gold. Having traded gold for 14 years during a down market, he said he learned how fast gold prices can head down. Terranova said $1,225 an ounce will the critical point for gold if it is to break out and move toward $1,300.
Melissa Lee, the moderator of the show, shifted the discussion to a shareholder suit against the board of
for failing to inform them of the press release on the resignation of its former CEO Mark Hurd.
Finerman defended the board's action, saying it it performed its fiduciary duty when it investigated the claims. Gary Kaminsky said the larger issue is the loss of the Hurd premium from the board's action.
Adami suggested that
, which was down 9% today, was one tech name to look at.
Terranova said the tell from the earnings of
could be a signal that the corporate spending cycle is coming to an end. Patty Edwards said she picked up some Cisco shares at these levels, saying it's "definitely worth picking up."
For his hedge fund pick of the week, Anthony Scaramucci chose
. He said the defensive tobacco play is fundamentally attractive, trading at 18 times earnings, sporting an earnings cash yield of 8.3% and providing a 5.3% dividend yield. "It's the second leading brand in cigarettes in the U.S."
Finerman and Edwards liked the pick but said they would favor the international tobacco plays like
Lee noted that
was down 4.83%. Edwards said the retailer's inventories were higher than they should be, in yet another sign of the consumer slowdown.
In the "tomorrow's headlines" segment, Stephen Weiss, a Short Hills Capital partner, advanced the argument that quality dividend yields may be a better play than corporate bonds, citing
Johnson & Johnson
as an example.
David Riedel, president of Riedel Research Group, said he would stick with products that people will buy in Japan. He said companies that sell tobacco and alcohol along with the utilities have been outperforming in Japan's bear market.
Lee noted that John Paulson & Co. had a rough June, with its Advantage Plus Fund down 7%. Finerman said Paulson might take smaller positions in
Bank of America
. Adami said it might be a good time to get into BAC when it is trading at tangible book.
Toni Saccognahi, a Sanford Bernstein analyst, criticized
for sitting on $43 billion in cash and getting a paltry 0.76% return. He said the company should consider paying a dividend or a buyback, two suggestions Finerman roundly endorsed.
Despite the battering in the tech sector, Tom Gillis, an analyst with BGC Partners, said he still likes tech names such as
and a high yield name like
Lee shifted to Microcity whose stock has fallen 17% since its IPO in June. Lee asked Ryan Wurch, CEO of
, a mobile Internet service provider, if it was vulnerable because 70% of its revenues come from two customers.
"great" customers and said his company was expanded aggressively overseas.
16% stake in the company, he called Icahn a "great friend" of the company who is interested in seeing it grow.
In the final trades, Terranova liked
SPDR S&P Biotech
while Terranova liked NetApp. Finerman liked
Barnes & Noble
. Najarian liked
-- Written by David Tong in San Francisco
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