'Fast Money' Recap: Unsettling Selloff - TheStreet

NEW YORK (

TheStreet

) -- The markets sank Friday on a disappointing earnings report from

JPMorgan Chase

(JPM) - Get Report

.

Although JPMorgan beat earnings estimates, its revenue fell below expectations and it had to set aside nearly $2 billion to cover credit card losses.

At the close of trading today, the

Dow Jones Industrial Average

fell 100.90, or 0.94%, to 10,609.65, while the

S&P 500

lost 12.43, or 1.08%, to 1,136.03. The

Nasdaq

was off 28.75, or 1.24%, to 2,287.99.

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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Melissa Lee, the moderator of

CNBC

's "Fast Money" show, said

Kraft

(KFT)

was moving higher in after-hours trading after William Ackman, founder of Pershing Square Capital Management, disclosed taking a 2% stake in the company.

Karen Finerman said Ackman likes Kraft's bid for

Cadbury

(CBY)

but wants more cash in the final offer. The deadline for offers is Tuesday.

Finerman said the rise in Kraft shares makes the offer worth more. "It's going to be interesting for Kraft on Tuesday," she said.

Shifting to the other big stories of the day, Lee said both JPMorgan and

Intel

(KFT)

fell today. Adami said Intel's revenues were light while JPMorgan just got ahead of itself.

Tim Seymour agreed, saying the expectations for JPMorgan were just too high. Finerman said JPMorgan's consumer credit problems could be telling for

Bank of America

(BAC) - Get Report

, when it reports its earnings on Wednesday.

Narjarian wanted to know when JPMorgan is going to reinstate its dividend. He said the stock, which closed at $43.68 today, could get attractive again when it gets to $40. Adami agreed, saying there's more room to the downside for the stock.

Lee said technology took it on the chin, a day after Intel's impressive earnings report. Adami, referring to an earlier Goldman note, said Intel's gross margins may have peaked in August. He said he investors could either short the stock or get out of it if they were long.

Seymour said the stock looks tired and Intel needs some fantastic earnings to lift the stock higher. Najarian said there are other chip stocks to look at besides Intel, including

Qualcomm

(QCOM) - Get Report

and

Texas Instruments

(TXN) - Get Report

.

Lee said

Amazon.com

(AMZN) - Get Report

continues to hand tough. Najarian said it's been the beneficiary of Internet growth, but Finerman said all that has been baked into the stock.

Seymour said investors are just sick of the stock. "Its momentum is gone and its valuation offers nothing," he said.

From the option desk, Brian Stutland, president of Stutland Equities, said some options traders believe there could be some big moves in some stocks next week ahead of earnings. He said the traders believe Texas Instruments could possibly jump 7%,

eBay

(EBAY) - Get Report

8% and Amazon.com 12%.

Seymour said investors have overreacted to Google in recent days over the cyberattack controversy in China, adding he would buy it at $550.

Adami said he liked

IBM

(AMZN) - Get Report

but had concerns about its growth going forward. He said it was not as easy a trade to make now as it was in April. Najarian, however, said he thinks IBM has a chance to go to $150 if it can break through $132.

As the health care reform bill heads to the finish line, health care stocks have been on the rise. Jon Najarian said

Humana

(HUM) - Get Report

,

Aetna

(AET)

and

UnitedHealth

(UNH) - Get Report

could go higher.

Seymour, who likes

Glaxo Smith Kline

(GSK) - Get Report

in this space, said the growing interest in health care stocks is part of a market rotation to that sector.

In the Fast Funds segment, Jon Najarian said inverse ETFs could offer investors a better job of protection than puts in the event of selloffs. He mentioned two such ETFs:

ProShares UIS:QQQ

(QID) - Get Report

for protection against tech stocks and

Direxion Daily Financial Bear 3X Shares

(FAZ) - Get Report

for protection against bank stocks.

Todd Gordon, a senior technical strategist for Forex.com, referred to several charts to buttress his conclusion that the markets are showing very little volatility and are very complacent.

In the final trades, Seymour liked

Vimpel Communications

(VIP)

. Adami liked

L-3 Communications

(LLL) - Get Report

; Finerman liked

Bank of America

(BAC) - Get Report

; and Najarian said he liked

Humana

(HUM) - Get Report

.

-- Written by David Tong in San Francisco

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

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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