'Fast Money' Recap: Looking for Relief

NEW YORK ( TheStreet) -- Stocks ended softer again Thursday, pressured by disappointing pending home sales and a bigger-than-expected jump in initial jobless claims, ahead of Friday's highly anticipated nonfarm payrolls report.

The Dow Jones Industrial Average was lower by 41 points, or 0.4%, at 9733. The S&P 500 fell 3 points, or 0.3%, to 1027 and the Nasdaq lost 8 points, or 0.4%, to 2101.

Despite the weak showing, Guy Adami said that he's a happy guy because the market had bounced off lows. He thinks that there could be a relief rally coming up soon. Meanwhile, Tim Seymour said he thinks that China will be growing 8% to 9% this year despite worries that its economy is cooling.

Furthermore, Guy agrees with Tim, who said the euro looks like it wants to bounce. Tim believes that the euro has been "a technical call."

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

On Thursday, gold softened, and Tim thinks that it had to do with unwinding at global macro funds who have been in "very crowded trades."

Joe thinks that more money will go into equities.

Steve Grasso of Stuart Frankel said the most of the market action of late has come from hedge funds; mutual funds, on the other hand, haven't been doing much. He thinks the momentum next week will be down.

In light of all this, Joe thinks that Goldman Sachs ( GS) is a trade here.

Melissa also mentioned that retailers have been seeing some big gains, agreeing that valuations are reasonable in retail shares. Still, Joe said to be on the safe, to go with the Master Cards ( MA), Visas ( V) and Pricelines ( PCLN) for defensive positions.

Jobs data will be coming out on Friday and Joseph LaVorgna of Global Markets thinks that "tomorrow will be a dud." But being a "macro guy, I still think the fundamentals are very supportive of growth, particularly on the corporate side ... we can get a fresh start," he thinks. Still, Grasso reasserted his belief that the markets are headed lower, especially after seeing a selloff following news headlines stating that Moody's was considering a downgrade for Spain.

Circling back to Goldman Sachs again, Joe said he thinks the firm could buy back shares. "They have the cash to do it." But Grasso countered that financial regulation still has "lots of open ends, but no answers, so it's premature" to own financials right now.

In the middle of the show, there was breaking news about the government making $10 billion off its investment in Citigroup ( C) -- which can be seen as good news for both Citi and the taxpayer. Joe said, " Morgan Stanley's doing a good job executing the sales on this," and that Citi is going to get north of $5.

Guy was a little less enthusiastic about the news, saying that if the government had structured its investment more similarly to a Warren Buffet-type deal, it could have gotten closer to $100 billion. Likewise, Tim asked Joe, "how can you feel comfortable," when there's still a "big overhang on the stock?" He also wondered where the money made will be going. "Is the money just going to go back in the system?" he asked.

Grasso's response to Tim was, "yes, there are headwinds," but we have to "look more long term."

Melissa said that weaker-than-expected manufacturing data out of China has caused investors to worry that its economy is slowing. Joining the show to comment was Richard Kang of Emerging Global Advisors. Joe said that China is a "better capitalist" than the U.S. right now, so "what's left on the downside?" Tim said he was more worried about inflation in the country. "Can they control it?" he asked.

Kang's response to all these question was that he thinks China's long-term story is "really good," while noting that "all the political risk is here" and the mayhem occurring in the euro zone. On the other hand, China, India and Brazil are "cooling their economy in an intelligent way." He predicts that China, in order to control inflation and social unrest between the haves and have nots, will begin moving more jobs into the country's interior.

Still, he warned that if fear grips the global markets, there could be a pull-out from the emerging markets.

Kang's stock picks include Aluminum Corp. of China ( ACH), which he feels is an interior structure play and Suntech Power ( STP), in part given Obama's emphasis on energy efficiency.

Melissa mentioned that media could be a hot sector in the second half of the year, and brought in guest Richard Greenfield of BTIG to comment. He likes Disney ( DIS) right now, citing a "big turn" at its theme parks, the "fantastic" world cup ratings, and "huge numbers" for "Alice in Wonderland" and "Toy Story," for example. "But the market's not giving it much credit," he lamented.

What he hasn't been impressed with lately is the way he thinks Hollywood is alienating moviegoers with huge increases in IMAX ( IMAX) ticket prices. "They are charging more regardless of whether the movie's good," citing the highly rated "Avatar" and poorly rated "The Last Airbender" as examples.

During the show, Grasso offered a quick investment tip. He said that an increase in longer-term dividends is more important than share buybacks because "when you come out with a buyback, you only have to complete 50% of it."

Constellation ( STZ) has announced a $300 million stock buyback. Its CEO Rob Sands was brought on the show Thursday to deliver good news. He sees the wine market being "very buoyant," with growth in the mid to double digits. He said that operating margins were down in the first quarter due to high promotional spending -- which he said has paid off by driving a lot of growth -- and that they will be normalized for the rest of the year.

The CEO said that Constellation's best growth will be in the U.S. and North America -- they will be the most buoyant market for wines. Sands said the U.S. wine market remains relatively immature. "We're pretty bullish on North America."

After Sands left the show, Tim said that Constellation's valuation "is actually very good, at nine times compared with its peer group," while noting that their business is not "high end stuff."

Tesla Motors ( TSLA) had its IPO this week, and Joe said the excitement over the event shows that private investors are eager to get involved in clean energy; "another reason to own Tesla."

Another much-anticipated auto IPO is that of GM, which is expected to occur later this year. That said, Melissa wondered, "should you keep your focus on Ford ( F) or has the fast money been made? She also mentioned that Ford may reinstate its dividend.

Guy still prefers Ford as a trade. "They're doing everything right. I don't think GM is their competition," he said. GM was its competition a few years ago, but not anymore, he believes.

On the home-improvement retailer front, Melissa mentioned that BMO analyst Wayne Hood has raised both Home Depot ( HD) and Lowe's ( LOW) to market perform from underperform. He was on the show to comment.

Hood said that for the two to have a new beginning, it would require a low single-digit increase in comparable-store sales. "Consistent low single-digit growth could deliver above-average growth," he said, noting that they have some of the best business models in the industry.

Toward the end of "Fast Money," Melissa asked the other commentators about any lousy trades they've made recently. Guy thought of Qualcomm ( QCOM), surprised that this bellwether stock hasn't done much in the market. Joe said that his XLY ( XLY) puts have cost him a lot of money. On BP ( BP), Grasso said "don't catch a falling knife. Don't be a hero."
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-- Written by Andrea Tse in New York

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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