NEW YORK (
) -- The markets retreated Tuesday on disappointing housing data.
Dow Jones Industrial Average
lost 50.71, or 0.50%, to 10,041.48, while the
dropped 6.85, or 0.62%, to 1,091.06. The
fell 12.85, or 0.59%, to 2,163.47.
Despite strong earnings from
, the market slid on housing permit and new home construction numbers that fell short of expectations.
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
's "Fast Money" TV show noted
was up more than 3% in after-hours trading on an earnings beat and encouraging search-ad estimates.
Pete Najarian said the market was encouraged by the comments about how the search ad market is stabilizing. Guy Adami said Yahoo! is a stock investors should get into on a pullback. "Carol Bartz got it right. It should be a $20 stock," he said. The stock closed at $17.17 today.
Tim Seymour said investors are still waiting for the company to come up with a comprehensive growth plan.
Jim Goldman, a
reporter who is in on the conference call, said the report leaves investors wondering where the growth is going to come from. He said the company's growth in its earnings is more a reflection of an improving economy and than anything fundamentally happening at the company.
Goldman said Yahoo! is trying to execute a plan that will monetize all the various parts of its Internet business.
Lee shifted the panel's attention to the general market. Karen Finerman said she sensed no panic in the market with the volatility index at a very low level. Seymour noted the S&P was 20% above its 200-day moving average on a day when the economic data wasn't that great.
Lee switched to a tape showing Jim owens, CEO of
talking about how his company's prospects look good in other parts of the world such as China, India, Southeast Asia and South Asia. He said the domestic economy is also showing signs of recovery.
Najarian said he liked those stocks that are most heavily exposed to copper and coal mining, including names such as
Adami said he thinks Caterpillar is overvalued. He said the company's third-quarter profit is down 36% from a year ago while the stock has jumped from $41 to $59.61, "There's a disconnect there," he said.
Seymour countered, arguing that Caterpillar is just starting to benefit from this country's stimulus program and overseas growth.
With Apple closing $5 higher today after a robus earnings report, Lee asked the panel for the trade. Adami said he would short it with a defined stop. He said there's an outside chance the stock may pull back to $180. Najarian said he liked Apple's growth story but would wait to get in on a pullback.
For the "Bull Market or BS" segment, Lee brought in Richard Bernstein of Richard Bernstein Capital Management. Bernstein said he likes to focus in on a portion of the Producer Price Index called the "core crude material ppi" because it has the highest correlation to earnings.
He said that portion of the PPI is indicating a turn in the profit cycle. He said he is a fan of consumer discretionary stocks. He also said he would favor a portfolio comprised of low-quality equities and Treasuries in a bond portfolio.
Lee brought in Chris Mutascio, a Stifel Nicolaus analyst, to discuss
upcoming earnings report. He said he would be looking at Wells' mortgage banking income because that will play a crucial role in the bank's ability to pay for a lot of ills like its credit losses.
He also said he'll be checking to see if there is some stabilization in loan delinquencies and loss rates in the consumer portfolio. He has a price target of $33 for the stock. Wells closed at $30.46 today.
In a followup on Monday's story about the price wars over first-run releases, Lee said that
Barnes and Noble
will begin shipping a new ereader of its own for $259 in late November.
Finerman said the Nook, as it is called, joins a crowded field. She said she's shorting the stock because she's not a fan of a brick-and-mortar company in this space. Adami shook his head at the entire discussion, saying it's difficult for him to embrace the idea of electronic readers because he likes the feel of "real books." That prompted Najarian to reply that Adami was also the one who said he had no interest in the iPhone.
Lee shifted the discussion to the options activity in casino stocks. Seymour said he was bullish on
Las Vegas Sands
because hotel occupancies are up in Macau and the company has demonstrated an ability to raise money to take the "mothballs" off its projects in Macau.
set to report earnings Wednesday, Eric Schmidt, an analyst with Cowen & Co., said the attention on the company's new osteoporosis drug, Denosumab, is misplaced. He said he would be more concerned with the company's top line figure and whether the its base business has stabilized.
He said Amgen's track record in the first two quarters has been inconsistent, lurching from a lousy first quarter to a good second quarter. He said he would "feel good" if the company hits $3.8 billion on the revenue side in its earnings report.
Lee brought in Gregory Boyce, CEO of
, which hit a 52-week high after an earnings beat. He said he expects higher sales of metallurgical coal to be strong in China and India. He also said sales also bode well in Europe, Japan and Korea where there's been a return to steel production.
He said the vast majority of Peabody's sales went to China, which he said has been very effective in spending its stimulus dollars to raise GDP growth to a target rate of 8%. He said India has been a big importer of thermal coal.
Did Brazil kill the golden goose with its presidential decree to impose taxes on foreign investment in stocks and bonds? The Bovespa fell 3% on the news. Seymour said there's a chance the move will be reconsidered but he said investors should realize that's the price they have to pay when they invest in emerging markets: The rules can change unpredictably.
In the final trades, Seymour like
; Adami liked
; Finerman liked
; and Najarian liked Peabody .
-- Written by David Tong in San Francisco
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