NEW YORK ( TheStreet) -- The markets steadied Friday, ending a great run in July.

The Dow Jones Industrial Average added 17.15, or 0.19%, to 9171.61, while the S&P 500 rose 6.72, or 0.07%, to 987.42. The Nasdaq fell 5.80, or 0.29%, to 1978.50.

For the month, the Dow was up 8.6%, the S&P up 7.4% and the Nasdaq, up 7.8%. The Dow enjoyed its biggest July gain ever.

Still, Guy Adami said on CNBC's "Fast Money" TV show, that he was wary of the markets. During the week he expressed his doubts about the S&P rally, which jumped more than 100 points in the past couple of weeks. On Friday, he reiterated that sentiment and expressed his doubts that it would go higher.

Joe Terranova said the wise course of action would be to shift to the sidelines, expecially with the unemployment report coming up next week.

For a breakout of stock from a recent "Fast Money" show, see Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Shifting to the commodities, Terranova said he doesn't believe oil will continue to move up until contango is removed from the markets.

And Seymour said once that contango is removed, investors need to look at Chevron ( CVX) and Exxon ( XOM) because they are doing a good job in production.

Will the success of the cash for clunkers program lift the auto stocks? Adami said it is way too late to get into Ford ( F).

Melissa Lee, the moderator of the show, asked the panel whether the auto stocks are at their peak. Seymour reminded the panel that auto recovery extends beyond the U.S. to the rest of the globe. For example, he said Volkswagen ( VOW.DE) is selling an "enormous" number of cars in Brazil and China.

Lee shifted the discussion to the industrial sector which enjoyed a good month, with Caterpillar ( CAT) up 33% and General Electric ( GE), up 13%.

Seymour said he once thought GE at $13 was "unthinkable" but has come around to thinking the company is in better shape than he expected after he got a a "better insight" their balance sheets. Adami thinks Honeywell ( HON) is a better play because it's GE minus GE Capital.

Terranova said there was a misconception that GE didn't want GE Capital. He said GE actually considers GE Capital a plus because it has $585 billion worth of performing assets.

Lee asked Seymour to comment on China's volatile week. He said the situation was scary because of the talk that China might cut back its lending by a third - a move that would impact commodities. Seymour, though, doesn't believe China will rein in liquidity.

Greg Trocolli, director of technical research for Opalesque, agreed with Adami's opening remarks of the show, saying the S&P is hitting a psychological resistance level at 1000. He expects the market to move sideways next week. "It's time for the market to take a breather and do some retracing," he said.

He said gold needs to get above $985 before there's a breakout to $1100 or higher.

Cisco ( CSCO) reports its earnings next week. Adami said the trade will depend on where the S&P heads. If the index is up, the stock makes sense because the valuation is fair. However, if the index "gets heavy," take money off the table, he said.

Terranova said Cisco, a bellwether stock, moves in tandem with the GDP. He said the stock will head up if there is a "good move" in the GDP in the next quarter.

Lee brought in David Dewalt, CEO of McAfee ( MFE), which reported better-than-expected revenue.

Dewalt said his company is benefitting from the need of consumers, companies and governments for security software against cybercrime and terrorists.

He said the company has enjoyed double-digit revenue growth for 14 quarters. He also said it is trying to strike a balance between the consumer and corporate sides of the business. He said he thinks the corporate numbers will improve in the third and fourth quarters.

Shifting to the travel and leisure industry, Jane Wells, a CNBC reporter, said a lot of companies in this sector are doing a good job of managing their costs during the recession. She said cruise companies are starting to see discounting ease.

Lee brought in David Pyott, CEO of Allergan ( AGN), which beat the second-quarter earnings estimates of analysts although there was a slippage in its Botox drug sales.

Asked to comment on an initiative in Congress to tax Botox, the CEO said the initiative is already losing momentum.

In the final trades, Seymour liked Campanhia Braileira de Distribuicao ( CBD) while Adami liked Raymond James ( RJ). Mike Khow liked Chevron ( CVX). Terranova said he didn't like the price action on Google ( GOOG) and sees it heading lower.

-- Written by by David Tong in San Francisco.

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