'Fast Money' Recap: U.S. Markets the Place to Be

NEW YORK ( TheStreet) -- The markets retreated Monday on concerns about eurozone contagion.

The Dow Jones Industrial Average fell 39.51, or 0.36%, to 11, 052.49 and the S&P 500 lost 1.46, or 0.14%, to 1,187.76.35. The Nasdaq went down 9.36, or 0.37%, to 2,525.22.

Joe Terranova said on CNBC's "Fast Money" TV show that oil, cloud computing and retail names performed well today. He said the only bugaboo was the systemic risk posed by the troublesome debt problems in Europe.

Tim Seymour said the U.S. markets are turning out to be the best place to be, with China tightening and Europe wallowing in debt problems.

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

Terranova cited a string of possible strong reports this week to back up his belief that the U.S. economy is improving. They included the upcoming Institute of Supply Management report, auto sales and a Friday jobs report that could push the number of jobs created in November to above 180,000.

Steve Weiss said he believed the U.S. market should have been up all day long from the strong retail results over the weekend.

Terranova blamed the weakening euro on the lack of competitiveness in debt-ridden countries such as Ireland, Portugal and Greece. He said the only country in Europe that is growing is Germany.

Melissa Lee, the moderator of the show, noted some confusing data that showed crude, copper and gold up despite a rise in the U.S. dollar. Brian Kelly said that the movement of gold is not always correlated with the dollar, while Seymour said he expects oil to stay higher as investors move from gold to crude.

Pete Najarian said the financials held up pretty well throughout out the day and was largely responsible for generating momentum in the final stage of the trading session.

In the retail space, Karen Finerman said she liked Saks ( SKS), Target ( TGT) and Wal-Mart ( WMT) for the holiday season. Kelly added Digital River ( DRIV) to the list.

Terranova said the big winner was ecommerce, especially the shippers: Fedex ( FDX) and UPS ( UPS).

Lee brought in Doug Kass, president of Seabreeze Partners Management, who provided two more predictions for 2011.

Kass predicted that a global scarcity of water will boost ag prices. He said the scarcity has been brought on by a combination of factors including global warming, swifter economic growth, normal population growth and accelerated industrialization and pollution. He said water scarcity will lead to a power keg between India and China.

In his second prediction, he said the impact of the water shortage will cause food companies like General Mills ( GIS) and Kellogg ( K) as well as fast food chains like McDonalds ( MCD) to be the poorest performers of the S&P because they will have to pass on higher input costs to consumers.

In the call of the day, Jordan Rohan, managing director with Stifel Nicolaus, said he downgraded eBay ( EBAY) as it is losing ground to rival Amazon ( AMZN). He said Amazon is going after eBay in Germany and Korea, and he said eBay has been on the losing end of the free-shipping trade that Amazon is winning.

Shifting to the debate over Bush tax cut extensions, CNBC political reporter John Harwood said President Obama will be meeting with Republican and Democratic leaders. Harwood said each side will be operating in a new calculus that could lead to an extension of the tax cuts for all for two to three years.

Commenting on the strong start of the holiday shopping season, Stephen Weiss said the big winner was Amazon.com ( AMZN), up 25%. He said the best way to play Amazon's success to go with the shippers: Federal Express ( FDX) and United Parcel Service ( UPS). He predicts Federal Express will outperform Amazon over the holiday season.

What was behind the drop in natural gas prices today? Terranova attributed it to a rotation from natural gas, which is in plentiful supply, to oil futures.

Picking on that point, John Stephenson, an author of a book on commodity investing, predicted oil will hit $147 a barrel in two years and $200 in the next three years. He said China's thirst for crude will increase dramatically from 6 million barrels a day to as much as 11 million barrels a day.

In the final trades, Weiss said to short Seagate ( STX) above $13. Seymour sees Rio Tinto ( RIO) going higher. Kelly liked Freeport McMoRan ( FCX). Finerman liked BP ( BP). And Terranova liked the auto trade, specifically Ford ( F) and General Motors ( GM).

--Written by David Tong in San Francisco.

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