'Fast Money' Recap: Apple's Hot New iPhone

NEW YORK ( TheStreet) -- The markets rallied Monday ahead of the jobs report at the end of the week.

The Dow Jones Industrial Average rose 45.50, or 0.42%, to 10,895.86, while the S&P 500 added 6.63, or 0.57%, to 1,173.22. The Nasdaq was up 9.23, or 0.39%, to 2,404.36.

Pete Najarian said on CNBC's "Fast Money" TV show that JPMorgan Chase ( JPM) will provide a lot of clarity for the second quarter if it can show some earnings power.

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 on TV

Joe Terranova said he expected quality names in the emerging markets to be a force in the second quarter.

Anthony Scaramucci liked IBM ( IBM) and Johnson & Johnson ( JNJ) as safe defensive plays for the quarter. He sees stocks starting "to accelerate" on strong corporate earnings in the second quarter as the government overhang from the health care reform battle starts to lift.

Najarian said he expects action in the commodities space, especially in copper and coal. He said there is "real demand" in China for metallurgical coal.

Terranova said he liked the global recovery theme in the coming quarter, adding shipping, coal and copper names should perform well. Najarian said he expects the rail stocks to do well, including names such as Burlington Northern Santa Fe ( BNI) and Kansas City Southern ( KSU).

Karen Finerman said she was not into commodities per se as she was in commodity-related equities like Transocean ( RIG), Pride International ( PDE) and Schlumberger ( SLB).

With oil at $82.50 a barrel, Finerman said consumers would be able to handle a gradual rise in crude, adding she liked stocks in the retail space like Target ( TGT) and TJX ( TJX).

Najarian expressed concerns about crude at $82, saying it usually fails at that level. But Terranova said he believes crude is heading to $85 before it drops to $79.

Scaramucci, after making a number of calls to hedge funds, downplayed rumors that hedge funds may be buying up shares of Citigroup ( C) and dumping them at $5. In his estimation, Citigroup is a good, long-term speculative play, although there is the worry about the impact of financial regulatory reform to consider.

Is the Dow heading to the downside? Carter Worth, chief market technican for Oppenheimer Asset Management, thinks the Dow's move toward 11,000 has been a bit stretched and sees it heading to the downside.

Lee noted some breaking news from the Wall Street Journal which reported that Apple ( AAPL) is working on a new iPhone and a model with CDMA technology for Verizon ( VZ).

Jim Goldman, a CNBC reporter, said the Verizon offering is significant because it will give Apple increased market penetration and deliver a blow to Research In Motion ( RIMM).

Najarian said investors should used any pullback in RIM to get into the stock. Brian Kelly said the CDMA phone would be a big leap for Apple because it will make the iPhone a "world phone."

Peter Misek, director of research at Canaccord Adams, said mobility is the biggest driver of Apple stock. He said iPhone expansion provides Apple with a much bigger growth opportunity than the PC market. He said that if the reports are true about the Verizon launch, analysts will have to raise their numbers for the stock.

He said the launch could come as early as June. He said sources at Verizon are telling him the company could get its hands on the new phone in nine to 12 months.

Scaramucci said he met with Austan Goolsbee, chief economist for President Obama's economic recovery advisory board. According to Scaramucci, Obama will make a big push on financial regulatory reform a day after the recess and have it done by Memorial Day.

In addition, the Obama administration will tax more but not crimp economic growth. Scaramucci also said the White House fears a double-dip recession more than inflation and that it wants to pass an immigration bill to keep smart foreign PhDs to stay in the U.S.

Lee came back to Worth, who said he believes Alliancebernstein ( AB) and Chubb ( CB) are about to break out of their trading ranges as they catch up with other stocks in their sectors.

As an alternative investment to stocks, Finerman mentioned pick up Ford's 7.45% bond that matures in 2031. She said the bond, which provides a 8% yield, provides investors some exposure in a stock that has enjoyed a big run so far. "It's a nice way to play it," she said.

In the final trades, Kelly liked Ultra Petroleum ( UPL). Terranova liked Expedia ( EXPE) while Scaramucci liked Nike ( NKE). Finerman liked TJX and Najarian liked Micron ( MU)

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

"Check out "'Fast Money' Portfolios of the Week" on Stockpickr every Thursday.

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