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'Fast Money' Recap: Yuan Winners and Losers

The trading panel discussed the impact of the news from China on a shift in policy in its currency.
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NEW YORK (

TheStreet

) -- The markets closed down Monday after getting an early boost from the news about a hint of a yuan appreciation.

The

Dow Jones Industrial Average

fell 8.23, or 0.08%, to 10,442.41, while the

S&P 500

lost 4.31, or 0.39%, to 1,113.20. The

Nasdaq

dropped 20.71, or 0. 90%, to 2,289.09.

Joe Terranova said on

CNBC

's "Fast Money" TV show said he spent the afternoon paring down positions and reducing his long positions.

Melissa Lee, the moderator of the show, said the market started to sag after tech weakened and

United States Natural Gas

(UNG) - Get Report

rolled over.

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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Guy Adami noted noted bank analyst Meredith Whitney's comments about an increase in foreclosures and a potential for a double dip in housing.

Karen Finerman said the positive reaction of retail stocks to the news about the yuan, which he said was unclear, was overdone.

Anthony Scaramucci said the news about the yuan created market tensions because U.S. companies would face higher costs for imported goods.

Adami wondered what will happen to U.S. Treasuries if the yuan does appreciate. "It can't be good."

David Reidel, president of Reidel Research Group, agreed with Finerman, saying China's yuan move was just political theather, with little information on the timing and size of the move. "It's nothing."

Reidel said China can make the move because it's comfortable with the direction of economy. He said any yuan appreciation would help China tackle its biggest problem: inflation.

He particularly likes these names in China:

China Mobile

(CHL) - Get Report

,

Baidu

(BIDU) - Get Report

and

Zhongpin

(HOGS)

.

Finerman said the negative reaction to

J Crew

(JCG)

, which sagged on the news of the yuan appreciation, was overdone.

Patty Edwards said she believes

Wal-Mart

(WMT) - Get Report

will get hurt less than other retailers.

Shifting to the fall in natural gas prices today, Terranova accounted for the decline by what he believes in a shift in asset allocation from natural gas, which has been on a run, to oil and copper. Scaramucci noted hedge fund traders have been caught in the last couple of trading days by a squeeze in natural gas. Adami said he believes

Apache

(APA) - Get Report

, which closed just above $95, still works best in the natural gas space.

Lee said there was a selloff in tech today, with a reveral in big cap names like

Microsoft

(MSFT) - Get Report

and

TheStreet Recommends

Apple

(AAPL) - Get Report

, which rolled over after hitting a 52-week high.

Gene Munster, an analyst with Piper Jaffray, analyst, said

Amazon.com's

(AMZN) - Get Report

decision to cut the price of its Kindle to $189 from $259 is long overdue as it counters competition from Apple's iPad. He said the company must find some way in its media business to bridge the gap between its print and digital platforms.

Lee asked Terranova to comment on

Alcoa

(AA) - Get Report

, which was up 5% on heavy volume. He said Alcoa had signed a deal with the Russia and has the very commodity that China needs.

Commeting on tomorrow's headlines, Mike Khouw said the decline in shares of

Research In Motion

(RIMM)

is mirrored in the bearish options activity in the stock, which has been bearish, and a sell rating by a Goldman Sachs analyst.

He said RIM has to come up with a new strategy to compete with the fast-charging iPhone and Droid phones. He said the good news is that RIM has a lot of cash and is trading at a cheap multiple.

With the prospects of a financial regulations bill getting wrapped up by the end of the week, Douglas Sipkin, an analyst with Ticonderoga Securities, said the biggest headache will be for retail brokerages which could face new fiduciary standards. "It's bad news were it to happen," he said.

He said the company that is best positioned in the asset management industry in

Black Rock

(BLK) - Get Report

.

Scaramucci said he was confident that the retail brokerages would find a way to reinvent the wheel to make money.

Lee said one stock that has done well in the troubled energy space is

McDermott International

(MDR) - Get Report

, which she said plans to break up its operations in two: one to handle oil gas and construction and the other to focus on power generation for government operations. John Fees, CEO of McDermott, said the company has done well because it hasn't been hurt by BP's huge Gulf spill. He said only 5% of its business is in the Gulf of Mexico and 80% in other parts of the world.

In celebration of health week, Terranova said he liked

Teva Pharmaceuticals

(TEVA) - Get Report

while Scaramucci liked

Pfizer

(PFE) - Get Report

.

In the final trades, Terranova liked

Walt Disney

(DIS) - Get Report

and its exposure to Pixar. Adami liked McDermott while Finerman liked

JPMorgan Chase

(JPM) - Get Report

. Scaramucci liked

Apple

(AAPL) - Get Report

as a short-term trade.

-- 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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