'Fast Money' Recap: Tech Frenzy

NEW YORK ( TheStreet) -- Trading was mixed Thursday as weekly jobless claims fell short of expectations.

The Dow Jones Industrial Average pull backed 25.58, or 0.22%, to 11,697.31 and the S&P 500 fell 2.71, or 0.21%, to 1,273.85. The Nasdaq added 7.69, or 0.28%, to 2,709.89.

Joe Terranova said on CNBC's "Fast Money" TV show that this year's Consumer Electronics Show is strikingly different from past shows because it is "innovative" and "impactful" with its focus on the delivery of content on the Internet. He said this trend will affect all sectors in the tech space and drive deal-making.

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 agreed, saying the difference between the old and new guards can be seen in Intel ( INTC), which doesn't have a mobile strategy, and Qualcomm ( QCOM), which does.

Hewlett-Packard ( HPQ) has been mentioned as a laggard large-cap tech stock, but Karen Finerman said she still likes it because it is so cheap. She said the CES is exciting this year, even for Microsoft ( MSFT), which saw $7 billion added to its market cap today.

Joe Terranova noted the prospects of Windows 8 for 2012 and Microsoft's adoption of ARM architecture will lift other chip companies like Texas Instruments ( TXN) and Nvidia ( NVDA).

Craig Berger, an analyst for FBR Capital, said Intel is getting attacked by Microsoft and its move to ARM and Nvidia's pursuit of ARM architecture. He said he especially likes Qualcomm and Broadcom ( BRCM) for their exposure to smartphones and tablets, but his "absolute favorite" is On Semiconductor ( ONNN).

Stephen Weiss said he was staying away from Intel because it is not growing. Antony Scaramucci said he believes Facebook's $50 billion market valuation had something to do with kicking off the frenzy in tech stocks.

Melissa Lee, the moderator of the show, noted that gold reached the lowest point since Dec. 15 and is approaching its 55-day moving average.

Terranova said investors should prudently scale back in gold. He said there's no need to be in gold and the Treasures because of the recovery. Kelly said there will still be incremental demand for gold in China as a hedge against inflation.

Shifting to today's disappointing retail numbers, Finerman said she was disappointed in Macy's ( M) performance but she was not a seller. Terranova thought Limited Brands ( LTD) was a good low-risk trade.

Lee brought in William Brodsky, CEO of CBOE Holdings ( CBOE), to talk about the reasons for low options trading volume in December. He said the volume slowed but not dramatically. He also said CBOE has the ability to do deals that will add value for its shareholders.

Lee noted that Goldman Sachs had downgraded AK Steel ( AK) to a sell from neutral. That prompted Terranova to say that the steel trade is in its later innings.

Lee asked Doug Kass, president of Seabreeze Partners Management, to defend his move to move into cash.

He listed several reasons. First, he noted the "whimpy syndrome in Congress" in which he believes neither political party will display the will power to reduce the budget deficit. Second, the country faces structural job losses due to mega trends that will not be going away for some time.

Third, rising interest rates will challenge the weak housing market. And fourth, the middle class will be hurt by wage deflation, higher costs, 10 years of flat stock prices and three years of lower housing prices.

Taking the other side of the argument, Weiss said wages are increasing, productivity is improving and the cost of hiring is getting lower. He also called Kass' scenario the "base case, " addking the economy can't getting any worst and is going to get better.

Is the amazing bull run in bonds dead? Dennis Gartman said he believes that it's over and that the long bond is heading to 8%. He said money is coming out of debt into equities.

In the show's tweet the street segment, Kelly said there were a lot of tweets on how Freeport McMoRan ( FCX) will fare with the new copper ETF. He said he believes the ETF will have a marginal effect.

Other tweeters asked whether which was a better fertilizer stock: Mosaic ( MOS) or Potash ( POT). He preferred Mosaic for its diversification.

Commenting on Friday's jobs report, Deutsche Bank chief economist Joe Lavorgna said there's been too much optimism about Friday's jobs number and too little optimism for the jobs picture for 2011.

Lavorgna said he believes bad weather will keep the number of new jobs down. He said the Fed needs to see 300,000 newly created jobs a month for three months before it can lay the groundwork for monetary tightening.

Stephen Weiss provided reasons why he is bullish on Qualcomm ( QCOM). He said the company is well positioned in overseas markets like Latin America, China and India, where smartphone adoption and usage are in the early stages.

He said the company is shareholder friendly with buybacks and dividends. He said the company has 30% of the chip space and now 11% of connectivity through the Atheros ( ATHR) deal. And he said its licensing business accounts for 40% of its revenues and is high margin.

He said his price target for the stock is $60, which he considers low.

In the final trades, Kelly liked JPMorgan Chase ( JPM). Scaramucci liked Macy's ( M). Finerman liked Children's Place ( PLCE). Terranova liked General Motors ( GM).

--Written by David Tong in San Francisco.

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