'Fast Money' Recap: Tech Fizzles - TheStreet



) -- The markets started the week on the upside Monday.


Dow Jones Industrial Average

jumped 56.53, or 0.56%, to 10,154.43, while the

S&P 500

gained 6.37, or 0.60%, to 1,071.25. The


was up 19.18, or 0.88%, to 2,198.23.

Guy Adami said on


's "Fast Money" TV show that he was more bearish than ever after he saw



(IBM) - Get Report

earnings, which were light on revenues and signings. "They are going to take this stock out to the woodshed tomorrow because the earnings weren't there."

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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Joe Terranova said the weak link in the report was its revenue from the eurozone, which was down 6%. The revenues from that region account for 33% of IBM's revenue.

Anthony Scaramucci, though, pointed out there will be "a ton of pent-up demand" in the second half from business tech spending in the second half for IBM and other tech stocks. Looking at fundamentals and valuations, he expects tech stocks to rally into earnings toward the end of the year.

Melissa Lee, the moderator of the show, wondered whether expectations were too strong for IBM and other tech companies going into earnings.

Scaramucci said the combination of positive political news and a couple of good earnings in third quarter could propel a rally at the end of year.

Adami said

Texas Instruments

(TXN) - Get Report

earnings also was discouraging, especially with signs of an inventory buildup.

But Jon Najarian said he liked what he saw in Texas Instruments' earnings, including what he called an "amazing" 42 percent jump in revenue and raised guidance going forward. "I didn't see anything bad in these numbers."

Terranova said he liked the fact that Texas Instruments was well diversified across the chip space and not concentrated only on PC sales.

Brian Kelly questioned the comments about a pent-up demand if the company's signings were off.

Lee shifted the discussion to


(AMZN) - Get Report

which announced that Kindle sales were up after a cut in price. Scaramucci said Amazon still has to find what Apple has found in the iPhone: an iTunes business model.

Mark Mahaney, an analyst for Citigroup, said he was "stumped" by Amazon's announcement, saying he had never seen this before. Nonetheless, he was impressed with the growth rate of Kindle sales and the fact that Amazon's digital media product sales have exceeded hardbound book sales.

As for



, Mahaney said he was neutral to positive on its earnings, adding its display and search revenue look positive for the quarter.

In a 360-degree look at Apple, all three experts rated it a buy. Maynard Um, a UBS analyst, said Apple, which usually guides conservatively, will beat estimates, adding he expects continued strong demand for its iPhones and iPads. Carter Worth, a chartist for Opphenheimer, said Apple should respond well to earnings, while Pete Najarian commented on the strong volatility and volume in options trading, leading to expectations of a jump in the stock.

Adami took the devil's advocate view, saying Apple did not perform well today on a decent tape and may face a recall problem with its iPads. Meanwhile, Karen Finerman, who owns Apple, was more concerned with what Apple has to say in its earnings and outlook. Scaramucci expressed his longheld view that Apple, with its $250 billion market cap, has to have everything going for it to rise.

Lee brought in Victor Sperandeo, president of Alpha Financial Technologies, to talk about the threat of hyperinflation. He said that situation will arise as government borrowing accounts for an increasing percentage of the government's gross expenditures.

The scenario is not pretty: There will be a run on the bank as deflation, insufficient tax revenue and lower growth burden the economy. He said the way to prevent that from happening is to reduce government spending and produce more economic growth.

What's the trade in this environment? Precious metals and managed futures to the upside and downside, he said.



shares were down 4% on reports of leakage from the temporary Gulf cap. Joe Petrowski, CEO of the Cumberland Group, said the worst is behind BP but cautioned against the impact of the government's moratorium on drilling in the Gulf.

He said the moratorium is not good for an economy that is oil-based in the short term. If the moratorium is not lifted, oil prices will rocket to $100 a barrel and gas prices will explode.

He said natural gas is a natural alternative but there are not enough compressed natural gas vehicles to support the industry. He said the government needs to step in guarantee demand or subsidize the construction of natural gas stations.

There were no final trades.

-- Written by David Tong in San Francisco

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