'Fast Money' Recap: Tech Charge

NEW YORK ( TheStreet) -- The markets surged Wednesday led by a strong tech rally.

The Dow Jones Industrial Average jumped 148.65, or 1.38%, to 10,896.91, and the S&P 500 added 15.88, or 1.37%, to 1,171.67. The Nasdaq rose 49.71, or 2.09%, to 2,425.02.

Guy Adami said on CNBC's "Fast Money" TV show said the trade going forward is in tech, especially IBM ( IBM), which he said stood for "Investors Buying More." He said the company, whose CEO is projecting $15 in earnings per share in 2015, is doing "everything right."

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

Melissa Lee, the moderator of the show, added that Big Blue said it will be making acquisitions over the next five years.

Tim Seymour said IBM and Cisco ( CSCO) figure to do well in the next cycle as corporate spending ramps up.

Joe Terranova said that an analysis of Cisco's numbers show that cloud computing, including such names as EMC ( EMC) and VMware ( VMW), is the wave of the future.

Lee noted a Wall Street Journal story that reported that SAP ( SAP) has agreed to buy Sybase ( SY) for $65 a share. Gary Kaminsky said that may be a done deal but to watch for any possible move by Oracle ( ORCL) in this space.

Jim Goldman, a CNBC reporter, said there could be a bidding war if other suitors step up and challenge the deal. He also said Cisco CEO John Chambers may have sent his company's stock lower in afterhours trading when he issued cautious comments about the economic recovery down the road. However, he said it was "a big quarter" for Cisco.

Brian Kelly expressed doubts whether corporations will spend in an uncertain economic climate that was brought home to investors last week with the plunge in the markets and the $1 trillion bailout in Europe.

Seymour took issue with that argument, drawing a distinction between corporate balance sheets and sovereign balances, and the seemingly irreversible trend toward a need for greater bandwidth in the future.

Goldman said Cisco, with $39 billion on its balance sheet, can easily weather any storm.

Adami said there may be profit taking in Hewlett-Packard ( HPQ), the next big tech company to report, but he said HP's diversification and strong balance sheet can weather any storm as well.

Lee noted that gold continued to rally today, up $22. Seymour said the trade is working because gold is perceived as a hedge against currency failure. He also said the miners are finding more gold and getting upgraded.

Lee referred to a report that said $2.3 billion has moved into gold funds in the past six days. She also said that SPDR Gold Trust ( GLD) has become the fourth largest ETF.

Adami wondered whether there were any circumstances gold might fall, while Kaminsky said the gold trade "seems too easy." Seymour, though, was bullish on gold, saying it has been up the past five years.

Lee said Whole Foods ( WFMI) was up 5% after a big beat on the top and bottom lines. Kelly said the stock continues to amaze him because it seems to beat every quarter.

Lee brought in Stephen Weiss, founder of Short Hills Capital Partners, to comment on reports that Morgan Stanley ( MS) had misled investors on mortgage-derivative deals.

Weiss said Goldman Sachs ( GS) will be a bargain after a settlement is reached and there is a change in the management team.

Kaminsky said it will probably be an industrywide settlement and a shakeup at Goldman that will result in the departure of its CEO and a return to its investment banking culture.

Should banks be regulated as utilities? Richard Duncan, chief economist at Blackhorse Asset Management, argued the large banks need to be broken up into tightly regulated utilities before they destroy the economy.

He said the banks have run amok and are putting deposits at risk with their speculation. He said he would choose the FDIC as the regulator.

Lee noted that master limited partnerships have been on fire so far this year. Darren Horowitz, an analyst for Raymond James, commented on the possibility of a dividend tax, saying it shouldn't have an impact on them.

Lee said his two risk picks are Enterprise Products Partners ( EPD) and Plains All American Pipeline ( PAA.).

In the under the radar segment, Adami touted McKesson ( MCK), which made it onto Goldman's conviction buy list. He said it is fairly valued and a buy above $70.

In the final trades, Seymour liked Empresas ICA ( ICA). Adami liked Precision Castparts ( PCP) and Kaminsky liked CBOE Volatility Index ( VIX). Terranova said he liked Costco ( COST).

-- Written by David Tong in San Francisco

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