Stocks in the U.S. kicked off the week with a bang Monday. The Dow added 1%, the S&P 500 climbed 1.1%, and the Nasdaq jumped 1.8%.On CNBC's "Fast Money" TV show, the traders observed that bullish action in Merrill Lynch ( MER) and Apple ( AAPL - Get Report) helped lead large-cap technology and financials higher. A relief from surging oil prices also helped drive the rally in stocks today, they said. Guy Adami said that the large-cap technology story is real. He said Microsoft ( MSFT - Get Report), Cisco ( CSCO - Get Report) and Intel ( INTC - Get Report) behaved appropriately in today's market. Jeff Macke said that investors should respect today's price action. He pointed out that there were many reasons to sell stocks today, but buyers came out and brought the market higher. He said the shorts who hate this market are on the wrong side of the trade. Pete Najarian pointed out good news from Research In Motion ( RIMM). He said Apple is riding the coattails of RIM's rise. He said Apple's price action looks strong and the stock may be cheap on the basis of its forward price-to-earnings ratio.
Adami said IBM is bullish and is the trade off this news. Macke said that the EDS acquisition is a one-off deal, and it doesn't mean there will be a huge rollup in the technology space.
Macke said a rally in dollar prices will put an end to an earnings boost for U.S. multinationals who benefit from a weak dollar. Seymour said investors can short the CurrencyShares Japanese Yen Trust ( FXY) or the CurrencyShares Euro Trust ( FXE) as a trade off this news. Fluor ( FLR - Get Report) delivered an earnings beat, and shares jumped after hours. Adami said that the company raised guidance. Some have been concerned about the valuation, but he thinks the story is still strong, he said. Najarian said that Foster Wheeler ( FWLT) delivered similar news last week. He said that the global power play is still strong. Cablevision ( CVC) announced it will buy Newsday. Macke said that the deal was a bad move. He lambasted the Dolans, which control Cablevision, for spending shareholder money on "vanity projects that don't make sense."
Seymour observed that 24% of Wal-Mart's income comes from international sales. He said that he likes Wal-Mart's international story and that investors shouldn't discount the impact of the economic stimulus package on Wal-Mart's earnings. Macke said that it's difficult for a retailer to succeed overseas, and that Wal-Mart's international success indicates how strong it really is. Najarian said he believes that Wal-Mart, like McDonald's ( MCD), is ahead of itself. He said Target ( TGT) can make up some ground against Wal-Mart. Adami observed that Target sports a cheaper valuation than Wal-Mart, but he said he still believes Wal-Mart will go higher.
Adami recommended Zimmer Holdings ( ZMH). He said the company is well run and is cheaper than Stryker ( SYK). An earthquake in China brought the country to the attention of the traders. Seymour said the country still faces large inflation problems and social turmoil. He said he still likes Chinese Internet companies like Baidu ( BIDU), Sohu.com ( SOHU) and Giant Interactive ( GA).