The Dow Jones Industrial hit new highs on Monday as the market shook off a warning from Citigroup ( C). The S&P 500 is within 9 points of a record and the NASDAQ hit a 6 year high. The team at CNBC's "Fast Money" asks, "Is the bad news out of the markets, or are stock investors overly bullish?"Karen Finerman was surprised with the market strength on Monday. Pete Najarian suggested that these are investors who sat on the sidelines during the summer. They are now putting money back into the markets in sectors like technology, commodities and financials Once again, financial stocks saw a strong day on Monday even with an earnings warning from Citigroup, which reported a 60% drop in earnings for the current quarter. The stock surprisingly traded higher on the bad news. CNBC's Charlie Gasparino joined the crew to give his opinion on the financial sector. For Gasparino, the worst is over for the financials. He feels Citigroup traded up Monday because someone will be held accountable, ala CEO Chuck Prince. Gasparino doesn't understand why the largest shareholder of Citigroup, Saudi Prince Alwaleed bin Talal, defends CEO Chuck Prince. Gasparino says investors that talk to him think Chuck Prince must go. ( RealMoney Take: Jim Cramer said recently, "I am astounded that, after this miserable preannouncement, Chuck Prince doesn't simply announce that he is stepping up to executive chairman to promote new people. How can this guy have such a hammerlock on this company?" To read more on what Cramer said, click here.)
Wireless RevolutionThe wireless universe is making the news with Nokia ( NOK) buying NAVTEQ ( NVT) for $8 billion. Najarian says this takeover suggests to him that M&A is not done. ( RealMoney Take: Jim Cramer said recently, "Nokia's taking on everyone with this buy of Navteq." To read more on what Cramer said, click here.) Research In Motion ( RIMM) is set to report earnings on Thursday. Adami says if you're not already in Research In Motion don't buy it now. He says hope for an earnings miss in RIMM, and then would buy the stock on a pullback. Palm ( PALM) reported earnings after the bell Monday and traded lower after-hours. Najarian notes that Morgan Stanley is predicting that wireless revenues will go up 3 fold over the next 5 years. Najarian likes the new Centro smart phone that Palm is introducing. He thinks the future is bright for PALM. ( RealMoney Take: Tero Kuittinen said recently, "Palm is going where the smartphone market needs to go -- before the leading smartphone vendors want to go there." To read more on what Kuittinen said, click here.) Finerman declares the valuation on NAVTEQ is over done. She also thinks the deal makes Garmin ( GRMN) over valued and recommends buying puts on the GPS maker. Macke agrees with Finerman that Garmin is topped. ( RealMoney Take: Steven Smith said recently, "Garmin saw heavy put volume, likely much of it buying, which caused implied volatility to increase some 20% on the day, as investors were forced to pay for protection." To read more on what Smith said, click here.)
Go GlobalThe global growth plays continue to explode with big runs in ETF names like Materials EFT ( XLB), Tech ETF ( XLK) and Energy ETF ( XLF). Guy Adami points out that companies like Fluor Corp ( FLR) are up 87% in 9 months, McDermott ( MDR) up 120% since January and Jacobs Engineering ( JEC) is up 100% since January. He suspects these stocks are due for a pullback and taking profits in these names isn't a bad idea. Investors have to chase these stocks according to Macke. Finerman prefers Flowserve ( FLS), but erring on the side of caution she advises selling calls against it for a hedge.
Micron TradeMicron ( MU) is set to report earnings on Tuesday. Najarian noticed that last week someone bought 27,000 call options on Micron, so keep an eye on it. He also wants investors to put SanDisk ( SNDK) on their watch list after the firm just opened up a plant in China. Adami suggests that Micron is a buy. ( RealMoney Take: Bob Faulkner said recently, "The real catalyst for Micron's quarter will be commodity DRAM prices, and today's Wall Street Journal article about Hynix speaks volumes about conditions in that market." To read more on what Faulkner said, click here.)
Conference CalendarInvestment conferences at Deutsche Bank, Jefferies and William Blair will catch investor's attention this week. Najarian announces the stocks to watch off these conferences are OSI Systems ( OSIS), Cepheid ( CPHD) and Manitowoc ( MTW). ( RealMoney Take: John Hughes said recently, "Manitowoc is another way to play this space. This maker of heavy cranes has recently recovered back to its previous highs after a corrective decline. This recovery is suggestive of continued demand for the stock" To read more on what Hughes said, click here.)