NEW YORK (
The markets managed to finish on a positive note Friday for the second consecutive week.
Dow Jones Industrial Average
added 47.60, or 0.46%, to 10,462.84 and the
gained 5.46, or 0.49%, to 1,109.64. The
rose 6.28, or 0.28%, to 2,242.48.
Joe Terranova said on
's "Fast Money" show that investors should go long energy equity names because oil prices have reached a bottom.
He pointed to such bullish signs as a shutdown in a pipeline that is affecting Midwest refineries, a massive contango in the market and how North Sea Brent trades at a premium to West Texas International.
Steve Cortes said the markets looked kind of tired this week and advised investors to take profits.
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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Karen Finerman said the today's market action was pretty good but that the rally is a bit long in the tooth. "I won't be surprised to see a bit of a pullback."
She said her hedge fund bought some puts in the Russell 2,000 today because volatility is coming in.
Terranova reiterated his belief that September is "all about maintaining field position." As evidence, he noted a reversal in the Treasury market as yields begin to rise, with the 10-year Treasury bond challenging its 50-day moving average.
The trading panel discussed the implications of Basel III and the efforts of European banks to raise capital. Brian Kelly said the banks would be looking to shore up their capital base with U.S. Treasuries. Patty Edwards pointed out the effort could lead to an economic slowdown that would impact small businesses and consumers.
Melissa Lee, the moderator of the show, shifted the discussion to the selloff in
following a ruptured pipeline accident in San Bruno, Calif. that killed at least one person and destroyed many homes.
Terranova said he would stay away from the stock because of the uncertainty over how saddled the utility will be from potential liabilities. Cortes went further and said he would stay away from natural gas.
Lee noted that shares of
were up after it tapped Stephen Elop, the head of Microsoft's business division, to be its new CEO. Terranova said Nokia has a lot of catching up to do, as it has seen its market cap decline 60% since the introduction of the iPhone in June 2007.'
Research In Motion
is another phone company trying to regain momentum. Lee referred to a
and UBS were allowing its employees to use iPhones and Android devices.
Terranova said he was buying some RIMM on a valuation basis even though its momentum is on the downside. Kelly said Research In Motion clearly needs a new strategy.
That's not the case with
Philip Morris International
. Finerman said PM offered value to investors, with a dividend that yields 4.67%. She also referred to comments from its CEO that it was going to deliver cash back to its shareholders.
Lee brought in Brent Hill, an analyst for UBS, to talk about takeover candidates in the tech sector. High on Hill's list are
for their critical roles in cloud computing.
He said all the established vendors including
would be interested in them.
Cortes liked the names but said they would be very expensive takeovers because of their high market caps.
In the final trades, Terranova said to be overweight in energy names like
. Cortes said to sell gold, while Finerman liked Philip Morris International. Kelly liked
iShares Barclays 20+ Year Treasury Bond ETF
--Written by David Tong in San Francisco.
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