'Fast Money' Recap: Referendum on July

NEW YORK ( TheStreet) -- The markets ushered in August with a solid start on Monday.

The Dow Jones Industrial Average jumped 208.44, or 1.99%, to 10,674.38, while the S&P 500 was up 24.28, or 2.20%, to 1,125.86. The Nasdaq added 40.66, or 1.80%, to 2,295.36.

Tim Seymour said on CNBC's "Fast Money" TV show that the reinforcements for today's rally came from the moves in the pound, dollar and oil and the acceptance of second-quarter numbers while looking ahead to third-quarter earnings.

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

Brian Kelly said investors were shorting China's PMI numbers, which he interpreted as a good sign because it means the Chinese government will tinker with its monetary policy to get the economy on track again.

Joe Terranova said money managers were using the first of the month to allocate capital, with the euro stabilizing, the dollar declining and the FOMC basically saying "cash will earn you nothing for an extended period of time."

Tim Seymour said the commodity space was strong today. He said he was bullish on Alcoa ( AA) because it has reached a point where its pricing is at the level of the cost of production.

Melissa Lee, the moderator of the show, said oil rose above $80 a barrel. Terranova said the rise in oil prices is a testament to the strength of the emerging markets, which he said have been strong and resilient. He sees the next stop for oil at $90.

Seymour said oil is getting a lift from the reports of oil disruptions in different parts of the world as well as the coming hurricane season.

The gold trade drew mixed views from the panel. Steve Grasso said he was lightening up on gold to raise money to get into other assets. Meanwhile Seymour said it was good time to buy the miners and Terranova said September and October are big months for appreciation for gold.

Looking at the broader market, Jon Najarian said the string of strong earnings helped calm investor nerves and volatility. He said the next catalyst for the markets will be the mid-term elections, adding a Republican victory will lead to gridlock, a "great thing for the markets."

In the under the radar segment, Lee touched on the rise in ag stocks. Seymour attributed the rise in such stocks as Potash ( POT) to the drought in Russia and extremely wet conditions in Brazil. Terranova added that the ag stocks will go higher as oil moves higher.

Lee noted that Herbalife ( HLF) was up a hefty 8.7% after beating estimates and raising its forecast and dividend. Patty Edwards said the company can't go wrong as it enjoys growth in both the established and emerging markets.

Chartologist Carter Worth noted that both the S&P and Nasdaq are close to recovering to their 150-day moving average levels. He said that's about the time the investors who lost money in the last selloff emerge to sell. He said he doubts whether the market can tack on another 9% to the rally.

Looking ahead at Tuesday's headlines, Najarian liked Research In Motion's ( RIMM) push to innovate, with its release of a new operating system, 9800 slider smartphone and a black Pad.

Kelly didn't like Procter & Gamble's ( PG) chances of doing well in its earnings considering how the consumer staples sector has underperformed.

Lee brough in Itay Michaeli, a Citigroup, to talk about the auto sector. He was bullish on the sector, noting July auto sales are up to a seasonally adjusted 12 million units. He particularly liked Borgwarner ( BWA) which said its operating margins will exceed 9% next year.

Lee brought in Tony Holcombe, CEO of Syniverse Holdings ( SVR), which provides technology services to wireless telecom companies. The stock was up more than 5% on soaring revenues and raised guidance.

Holcombe said the company was doing well in its roaming and messaging service business. He also said the company serves two big companies, Sprint ( S) and Verizon ( VZ), and enjoys a customer retention rate in the high 90 percent.

David Riedel, of the Riedel Research Group, put a positive spin on China's CMI numbers. He said China has done a good job of gliding the economy down while avoiding a meltdown. He said he is staying away from the energy space and sticking with consumer-related companies like China Mobile ( CHL).

In the final trades, Seymour liked Exxon ( XOM). Kelly liked Citigroup ( C) while Grasso liked Kohl's ( KSS) . Terranova liked Akamai ( AKAM).

-- 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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