NEW YORK (
) -- The markets were flat Monday as tech stocks showed signs of life.
Dow Jones Industrial Average
lost 1.14, or 0.01%, to 10,302.01. The
added 0.13, or 0.01%, to 1,079.38, while the
rose 8.39, or 0.39%, to 2,181.07.
Joe Terranova said on
'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
agreement to buy
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
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
, 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
has a 4.4% dividend yield compared with a 1.9% yield for its 5-year corporate bond. Likewise,
is offering a 6.2% dividend yield compared to a 3% yield on its corporate bond.
Finerman agreed, adding
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
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
In a segment on whale watching, Lee noted that David Einhorn, who runs the Greenlight Capital hedge fund, had doubled his stake in
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
Meanwhile, John Griffin, of Blue Ridge Capital, was establishing new positions in
In addition, John Paulson, was picking up
Bank of America
warrants, while adding to his positions in
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
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
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
, 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
. Grasso liked
. Najarian favored
Don't Miss Feds Failed on For-Profit Schools
-- Written by David Tong in San Francisco
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