'Fast Money' Recap: Winners and Losers Off Fed's Move

The trading panel discussed what the Fed did and how to trade it.
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NEW YORK (

TheStreet

) --The markets fell Tuesday wiping out the gains from the previous day.

The

Dow Jones Industrial Average

lose 54.50, or 0.51%, to 10,644.25, while the

S&P 500

fell 6.73, or 0.60%, to 1,121.06. The

Nasdaq

lost 28.52, or 1.24%, to 2,277.17.

Tim Seymour said on

CNBC

's "Fast Money" TV show, said the

Fed

's actions today to buy Treasuries means "the risk is back on" and that it will do whatever preemptive steps are necessary to battle deflation. He said the economy is still showing 3 percent growth, a far cry from those who have been saying that the economy is slipping into a double-dip recession.

Joe Terranova said he was buying some gold as a hedge against the Fed's efforts to monetize the debt.

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 she didn't think much happened in today's Federal Open Market Committee's report. Pete Najarian echoed that sentiment, saying that today's low volatility index reading of 23 confirmed that many investors have already digested the news and moved on.

Brian Kelly said what the Fed essentially did was sacrifice the strength of the dollar for the economy. For that reason, he said he was selling dollars and getting into the Swiss franc and going long on gold.

Seymour said the Fed's move shouldn't be interpreted as "quantitative easing 2." Rather he said the Fed is going into the long end of the curve but "they are not throwing additional money at it."

Joe Lavorgna, chief economist for Deutsche Bank, said the Fed's action was largely symbolic. He said the Fed would have been better off leaving the economy alone instead of creating the impression that something is wrong by tinkering with it.

Peter Boockvar, a Miller Tabak equity strategist, was much more upset. He said the Fed took the road of "outright easing," "monetizing debt" and "forcing" interest rates down. He said the cost of such a misguided policy will be rising commodity prices, misallocation of capital and more borrowing and spending at a time when borrowers should be tightening its belt and paying off debts.

Boockvar said the trade in this situation would be to buy gold and other hard assets.

Lee asked the panel to assess the impact of the Fed's decision. Dennis Gartman said the Fed did the right thing by targeting its balance sheet and providing clarity on when it's going to ease or tighten.

Gartman said this action will result in bullish conditions for the bond market. However, he said it may mean more support for gold. He said five-, seven- and 10-year government securities will benefit the most from today's report.

He said he liked gold to move sideways for five weeks. Unlike many in the panel, Gartman took a cautious view of what the Fed did today. He said the Fed opened up the possibility for the monetization of debt without having taking any actual action.

Lee noted that oil prices were down. Terranova said he believes oil prices will be going up to $90 a barrel, with integrated names and refiners benefitting.

Lee noted that

Walt Disney

(DIS) - Get Report

moved higher on an earnings and revenue beat in its latest quarter. Terranova sees the stock going to $40 as Disney continues to do well with its entertainment studio, ESPN and theme parks.

Looking at tomorrow headlines, Lee said one of the big winners was the utilities, in particular the

Utilities Select Sector SPDR

(XLU) - Get Report

.

Hugh Wynne, an analyst with Sanford Bernstein, said utilities can offer yields of 3% in an environment of low inflation and low economic growth. His pick:

American Electric

(AEP) - Get Report

and a dividend yield of 4.67%. Terranova said he liked

PG&E

(PCG) - Get Report

, while Seymour said he liked

Telefonica

(TEF) - Get Report

.

Lee noted that

Cisco

's

(CSCO) - Get Report

shares were up today. Simon Leopold, an analyst with Morgan Keegan, said the stock trades at a low multiple while sporting a 10% growth rate. He said the chances are remote that CEO John Chambers will entertain serious thoughts about a dividend.

Intel

(INTC) - Get Report

shares got wacked 4% on a pair of downgrades and reports of lower PC orders. Kelly said he is long Intel for its 3% dividend yield. Najarian also liked Intel at these levels, though he expressed concerns about the threat the company faces from

Apple

(AAPL) - Get Report

.

In a segment on cloud computing, Herb Greenberg talked about the proliferation of companies in the sector and the difficulties in defining what "cloud" means to the various companies in it.

Lanham Napier, CEO of

Rackspace Hosting

(RAX)

said his company, which specializes in hosting cloud clouding, has seen stable pricing. He said the company is planning a new services rollout and wants to move into Europe.

Kelly agreed with Najarian about the stock's high valuation but he said it's understandable for a company involved in a paradigm shift.

In the final trades, Kelly liked

iShares Silver Trust ETF

(SLV) - Get Report

. Seymour liked

Mechel Steel

(MTL) - Get Report

while Terranoval liked

Baxter International

(BAX) - Get Report

. Finerman said to sell

Phillip Morris International

(PM) - Get Report

. Najarian continued to like

Akamai

(AKAM) - 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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