NEW YORK (
) -- The markets were buoyed Thursday by a strong showing in the tech sector.
Dow Jones Industrial Average
jumped 68.78, or 0.67%, to 10,405.83, while the
added 6.41, or 0.58%, to 1,102.35. The
edged up 7.13, or 0.33%, to 2,190.86.
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> = 55914272001;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);
Pete Najarian said on CNBC's "Fast Money" TV show, that options activity was heavy in tech stocks, with expectations of more upside in stocks like
in the telecom sector.
Guy Adami said his best tech stock is
at 11.5- to 12 times forward earnings.
Tim Seymour said he's not surprised to see investors jumping at the opportunity to get back into tech stocks after the recent pullback.
Najarian said there has been heavy options activity in
Research In Motion
in the past two days.
Melissa Lee, the moderator of the show, said consumer and business demand seems to be picking up for tech products. Adami, though, said that recent figures showing a decline in consumer credit make it difficult to be bullish for certain retailers.
Lee shifted to health care issues and the possibility that the Senate's omnibus health care reform bill may be in jeopardy after Sen. Olympia Snowe said she would not vote for the bill if it has a Medicare buy-in option.
Finerman said the snafu is just of a lot of hurdles to come before the deal is finally done. Adami was cautious about
, saying not is not the time to get in. He said the shorts are getting squeezed.
Najarian said he liked
Johnson & Johnson
for its exposure to medical devices and dividend. He also said
continues to perform without the drag of toxic elements that affect other stocks in the sector.
Natural gas was a hot trade today on word of declining inventory. Seymour said natural gas has been up 18% since the lows in early November. He said some of the rise has to do with colder weather and the rotating trade going on between oil and natural gas.
Adami said his favorite name in this space remains
, which closed slightly above $70 today. He said Morgan Stanley has initiated coverage on the stock with a price target of $80. He said the stock still has upward momentum.
Lee asked the panel to comment about
decision to hand out stock bonuses to its top executives instead of cash.
Najarian liked the idea and thinks it will go a long way to rein in risk-taking. Seymour said the strategy is "pretty smart" since it's limited to the top 30 executives and gives the company the latitude to raise pay for those below.
Carter Worth, a chartologist with Oppenheimer, said that if it history repeats itself, 2010 will be very much like 2004: a dud, with the market moving sideways in a tight, narrow range for most of the year.
At the prop desk, Lee talked about the troubles at
, whose stock was down 4% on market dissatisfaction with its long-term guidance.
biopharma reporter Mike Huckman said Eli is facing the lost of four of five top-selling drugs in 2010 that will be going generic. He said the company is trying to compensate for that by emphasizing 25 drugs in mid- to late-phase development.
Huckman said the company is open to parternships to fill the pipeline but is reluctant about taking the mega-merger route.
Huckman sad the next big catalyst for the sector might come from
if its board decides on raising the dividend. He said the next big event after that is the JPMorgan Chase health care conference in mid-January.
Lee brought in David Joyce, an analyst with Miller Tabak, to comment on
which closely slightly up in its first day of trading. Joyce has a buy rating on the stock because he thinks AOL is undervalued at 2.5 times next year's operating profit. He said the stock, which closed at $23.67 today, should be worth $30 to $34.
Lee brought in Steve Cortes, founder of Veracruz, who was portrayed as a Christmas "grinch." Cortes discussed again his reservations about the retail sector and the reason why he has been shorting the
SPDR S&P Retail
He said he's been adding to the position for three reasons: Retail stocks are underforming, stores have no pricing power, and
stock has been lagging.
Looking ahead to 2010, Lee said smart -grid technology figures to play a big role. Najarian said the best play on that theme is
In the final trades, Seymour liked
. Adami said those investors who are long
should take profits Friday. Finerman liked
United States Oil Fund
. And Najarian said he would buy
-- Written by David Tong in San Francisco
To watch replays of Cramer's video segments, visit the Mad Money page onCNBC
"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.
Follow TheStreet.com on
and become a fan on