'Fast Money' Recap: Tech to the Rescue

Joe Terranova said tech stocks rescued what would have been a down day.

Author:: Scott Rutt
Publish date:: Sep 21, 2009 8:07 PM EDT

NEW YORK (

TheStreet

) -- The markets ended mixed Monday with some light profit taking.

The

Dow Jones Industrial Average

fell 41.34, or 0.42%, to 9778.86, while the

S&P 500

dropped 3.64, or 0.34%, to 1064.86. The

Nasdaq

rose 5.18, or 0.24%, to 2138.04.

Joe Terranova said on

CNBC

's "Fast Money" TV show that technology stocks rescued a trading session that had been moving to the downside. He said Tuesday's session may rest on what happens in the emerging markets.

Tim Seymour said the markets once again showed their resiliency, especially in the emerging-market commodity space, which was able to eke out gains.

Karen Finerman said the next short-term catalyst will be a good jobless claims number.

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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Looking ahead to the G-20 meeting in Pittsburgh this week, Seymour said the U.S. and China will have to work out a more balanced approach toward growth with the less developed nations. Meanwhile, Terranova said he expects the dollar to remain strong going into the global summit.

Commenting on gold retreating for a third day, Terranova said he was going to wait until gold hits $1,034 an ounce before getting back in. Guy Adami put out a cautionary note on gold mining stocks, especially

Newmont Mining

(NEM) - Get Report

, which he said is overvalued.

Melissa Lee, the moderator of the show, shifted the panel's attention to

Dell's

(DELL) - Get Report

acquisition of

Perot Systems

(PER) - Get Report

for $3.9 billion and a 68% premium based on last Friday's closing price.

Terranova said it was a "good" acquisition. He said Dell had to do it to get into computing services. Adami said he preferred

Hewlett-Packard

(HPQ) - Get Report

, while Seymour said

IBM

(IBM) - Get Report

was ahead of both of them

Seymour characterized Dell's move as "too little" and "too late." Finerman concurred, saying it was "too much, too little and too late."

Toni Sacconaghi, an analyst with Sanford Bernstein, said Dell made the move because it wants to beef up its enterprise capability. "This was the first step," he said.

Sacconaghi said Dell ideally wants to get into software and higher-margin business like storage.

The analyst said investors looking for beta names and a recovery theme might go with Dell and

NetApp

(NTAP) - Get Report

while more cautious investors might go with

IBM

(IBM) - Get Report

and H-P.

Lee noted some breaking news about the Securities and Exchange Commission saying it will aggressively go after

Bank of America

(BAC) - Get Report

and its bonus deal with Merrill Lynch. A trial on the matter is set for February.

Finerman questioned the wisdom of the move, saying it will wind up with BofA shareholders paying BofA shareholders. She said it might make a little more sense if there were a class-action suit against the insurance companies for BofA and Merrill Lynch.

Jon Najarian said options activity on

AIG

(AIG) - Get Report

was heavy after its former chairman Hank Greenberg made comments to a congressional committee that would have the effect of easing the terms of its government bailout package. The proposal called for cutting back interest rates and reducing the government's stake. The stock was up 21% today.

Lee shifted the discussion to a huge banking IPO, with Spanish banking giant Santander proposing to sell $7.2 billion worth of shares in its Brazilian banking unit. Seymour said the IPO could be part of a catalyst along with housing and retail to send the Brazilian economy to the next level.

Seymour said the offering will attract crossover investors who are looking at global banking and need a core anchor play in Latin America.

Lee and Finerman commented on the rise of female buying power and the $20 trillion women control in spending. Finerman said her favorite plays off this theme are

Children's Place

(PLCE) - Get Report

and

Wal-Mart

(WMT) - Get Report

Intel

(INTC) - Get Report

holds its developers forum tomorrow. Craig Berger, an analyst for FBR Capital Markets, said he expects a "very positive tone" at the forum. He said his channel checks show a very robust PC market. He said Intel could wind up at the higher end of its guidance for the current quarter.

He said Intel will offer updates on its product road map and comment on some process technologies, the health of the PC market and trends toward mobility.

Berger expects fourth-quarter revenues to be close to $10 billion compared with $7 billion in the first quarter. He said Intel is doing well in the hot netbook market and that the PC market is "exploding" this year.

In the final trades, Seymour liked

US Steel

(X) - Get Report

; Adami was for

Fairchild Semiconductor

(FCS)

and Finerman reiterated her preference for Children's Place. Terranova said he would short

Alcoa

(AA) - Get Report

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC

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