'Fast Money' Recap: Whale Watching
NEW YORK (
) -- The markets were flat Monday as tech stocks showed signs of life.
The
Dow Jones Industrial Average
lost 1.14, or 0.01%, to 10,302.01. The
S&P 500
added 0.13, or 0.01%, to 1,079.38, while the
Nasdaq
rose 8.39, or 0.39%, to 2,181.07.
Joe Terranova said on
CNBC
's "Fast Money" show that said the laggard tech stocks over the past five days have been unfair for a sector that has shown good fundamentals, enterprise spending and signs of M&A spending such as
Dell
's
(DELL) - Get Dell Technologies Inc. Class C Report
TheStreet Recommends
agreement to buy
3Par
(PAR) - Get PAR Technology Corporation Report
for $1.15 billion.
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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Steve Grasso, though, said traders are still wary after the gloomy outlook provided by
Cisco
(CSCO) - Get Cisco Systems Inc. Report
CEO John Chambers.
Karen Finerman said she could not get on the Dell bandwagon despite its move to acquire 3Par and Dell's low valuation.
Jon Najarian said his opinion of tech spending hasn't changed since Chambers' comments. Najarian said tech spending remains weak despite today's "nice" rebound in Cisco.
Commenting on the 5% decline today in
Research In Motion
(RIMM)
, Finerman acknowledged the underwhelming debut of the Torch smartphone. "I continue to be a nervous" holder of the stock, she said.
Steve Grasso said the 1,087 becomes the new resistance level for the S&P, with 1,065 and 1,056 the near-term support levels. Terranova added that the risk is in fixed income as money shifts to equities.
Brian Kelly said the market looks confusing, with new 52-week highs mixed in with new 52-week lows.
Anthony Scaramucci said it's been a long time since stock yields have looked this attractive relative to bond yields. He noted
Pfizer
(PFE) - Get Pfizer Inc. Report
has a 4.4% dividend yield compared with a 1.9% yield for its 5-year corporate bond. Likewise,
Altria
(MO) - Get Altria Group Inc. Report
is offering a 6.2% dividend yield compared to a 3% yield on its corporate bond.
Finerman agreed, adding
Kraft
(KFT)
to Scaramucci's list.
Melissa Lee, the moderator of the show, noted a report today that China is about to overtake Japan as the second largest economy in the world. Terranova said the best way to play that news is to get into
Freeport McMoRan
(FCX) - Get Freeport-McMoRan Inc. Report
and
Joy Global
(JOYG)
.
Grasso added that steel names are strong now that iron ore prices have bottomed. Terranova said he's hanging on with other ag names like
Potash
(POT)
and
Mosaic
(MOS) - Get Mosaic Company (The) Report
.
In a segment on whale watching, Lee noted that David Einhorn, who runs the Greenlight Capital hedge fund, had doubled his stake in
Microsoft
(MSFT) - Get Microsoft Corporation Report
.
Finerman said it's interesting to see investors like Einhorn go long on a stock like Microsoft for its long-term story.
Lee noted that hedge fund manager Bill Ackman had taken a new position in
Automatic Data Processing
(ADP) - Get Automatic Data Processing Inc. Report
.
Meanwhile, John Griffin, of Blue Ridge Capital, was establishing new positions in
Goldman Sachs
(GS) - Get Goldman Sachs Group Inc. (The) Report
and Pfizer.
In addition, John Paulson, was picking up
Bank of America
(BAC) - Get Bank of America Corporation Report
warrants, while adding to his positions in
Hartford Financial
(HIG) - Get Hartford Financial Services Group Inc. (The) Report
,
Mylan Labs
(MYL) - Get Viatris, Inc. Report
and
Pfizer
(PFE) - Get Pfizer Inc. Report
.
Lee noted that gold hit a six-week week high. Terranova said it will soon be hitting $1,265 an ounce.
Shifting to a segment that looks at tomorrow's headlines, Dennis Gartman said he was not going to be shorting Treasury securities when the
Fed
steps in to buy them Tuesday. He said he was reducing his long position but not selling. He also said he was "agnostic" when it comes to gold, preferring to own just a little.
Commenting on Wal-Mart's earnings Tuesday, Neil Currie, an analyst with UBS, said he was not expecting any surprises. He expects the retail giant to post negative 1% comps that would be in line with consensus estimates. He said Wal-Mart's customers are in the depths of the recession and are trying to cut back on spending.
Finerman said she expected other retail stocks like
Target
(TGT) - Get Target Corporation Report
to move in line with Wal-Mart. Grasso said his clients have grown tired of WMT's attempts to break out of its trading range.
Lee brought in Bob Wetenhall, an analyst with RBC Capital Markets, to comment on the drubbing in education stocks today. He said
Strayer Education
(STRA) - Get Strategic Education Inc. Report
, which was down 18% today, took a big hit when it reported student loan repayment loans of 25% instead of the 35% that had been expected.
As a result, Strayer is in jeopardy of failing to qualify for federal student loan programs, he said.
In the final trades, Terranova liked
Parexel International
(PRXL)
. Grasso liked
Altria
(MO) - Get Altria Group Inc. Report
. Najarian favored
TJX
(TJX) - Get TJX Companies Inc. (The) Report
Don't Miss Feds Failed on For-Profit Schools |
-- 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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