NEW YORK (
) -- The markets closed down Wednesday on worries about the heightened pace of European Central Bank lending.
Dow Jones Industrial Average
was down 139.94, or 1.14%, to 12,151.41. The
dropped 15.79, or 1.25%, to 1249.64. The
declined 35.22, or 1.34%, to 2589.98.
Brian Kelly said on
's "Fast Money" TV show that the market started to decline after a disappointing turn in the euro. He said investors will be playing close attention to Thursday's 10-year bond auction in Italy.
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 on TV
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Anthony Scaramucci also was disappointed in today's market action. He thought a better day was in the offing with the Santa Claus rally and the year-end mark-up by mutual funds.
Pete Najarian was concerned about the fade in the financials and rise in the fear index.
Melissa Lee, the moderator of the show, shifted the discussion to what she called the "50%-off club," or stocks like
Research In Motion
that are down more than 50% year to date.
Najarian pointed out that
Alpha Natural Resources
is down 75% year to date. He said the struggling company is trading at half of its book value and has a P/E close to single digits. He said the company is getting so cheap that it's either going to be bought out or make a move.
, which is down 55% year to date, needs a big surprising idea to turn around its operations. He suggested having Sears offer
some space in the showrooms to draw traffic back into the stores.
Kelly didn't have much to offer in the way of ideas for
Bank of America
, down 59% year to date. He said he wouldn't touch the stock until it stops selling assets and starts expanding its businesses.
And Weiss considered Netflix, which is down 60% year to date, a short.
On the other side of the coin, the 50%-plus rebate club, there's
, up 60% year to date. Weiss likes the company, which he says is benefiting from the trend toward managed care.
Another winner has been
Chipotle Mexican Grill
up 59% so far this year. Kelly likes Chipotle's story and the company's ability to raise prices in a tough economy.
Treasuries bucked today's downward trend. Indeed, it's been one of the winners this year, with the
iShares Barclays 20+ Year Treasury Bond ETF
up 25% this year.
Kelly said he bought some TLT today, along with 30-year futures. He said they should do well in a deflationary environment. Insana added that it would be foolish to short the Treasuries when the
is sitting on the long and short ends of the curve for another couple of years.
For a technical perspective of the markets, Jeff Weiss, of Tejas Securities, gave the edge to the bulls even with today's decline if the S&P can maintain a weekly close between 1210 and 1220. He also said the Russell 2000 Index will start to perform better once it turns in back-to-back weekly closes of 760.
Shifting briefly to tech and
iTV, Shaw Wu, a senior tech analyst with Sterne Agee, said the major hangup with the iTV is with the content providers and the partnership needed to provide compelling content.
He said Apple, with $85 billion in net cash, should be in a strong position to forge a partnership. Insana said it would be a bad idea for the content providers to pick a fight with Apple.
Nick Pope, of Dahlman Rose & Co., didn't offer much optimism for a turnaround in natural gas prices, which are down 29% in 2011. He said the bellwether companies are struggling in terms of economics, adding the U.S. is still four to five years away from exporting liquid natural gas.
One company he does like is
for its strong balance sheet and great growth potential in the coming years.
With gold down nearly 2%, Gregory Zuckerman, a senior reporter at the
Wall Street Journal
, said many top fund hedge managers like David Einhorn and Thomas Kaplan have stuck to their bets on gold mining stocks despite sustaining heavy losses.
Scaramucci took out his crystal ball and offered five surprising predictions for the new year. First, there will be some form of fiscal unity in europe as concrete steps are taken to improve the euro situation. Second, the dollar will strengthen on the Wyden-Ryan Medicare plan. Third, gold will drop 30% as the dollar strengthens. Fourth, Iran's government will be toppled. And fifth, Occupy Wall Street will become a musical.
Lee spoke with commodity guru Jim Rogers in a telephone call from Asia. Rogers said he was buying ag commodities because he see shortages of everything in the years ahead. He said he is short the emerging markets, U.S. technology and European stocks. He said he couldn't see any value holding stocks when you can hold commodities.
He acknowledged there may be a substantial correction in gold and silver but he would use any pullback to buy the metals.
In the final moves, Insana liked the homebuilders. Brian Stutland said he liked the small caps if the
iShares Russell 2000 Index ETF
breaks above $75. Kelly liked the regional banks through the
SPDR S&P Regional Bank ETF
. Scaramucci liked
And in the Web Extra, Weiss was short the Aussie dollar through the
CurrencyShares Australian Dollar Trust Research
, and Najarian liked
Written by David Tong in San Francisco.
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