'Fast Money' Recap: Tech Trade

NEW YORK ( TheStreet) -- The markets rallied Monday as tech stocks showed continued strength.

The Dow Jones Industrial Average gained 108.68, or 0.92%, to 11,980.52. The S&P 500 added 7.49, or 0.58%, to 1,290.84. The Nasdaq rose 28.01, or 1.04%, to 2,717.55.

Guy Adami said on CNBC's "Fast Money" TV show that Texas Instruments' ( TXN) earnings were fine but that the stock had run up 20% since its third-quarter earnings. He said he was looking for a pullback to buy it cheaper.

Joe Terranova said the chip company is vulnerable to any hiccup in Asia, which accounts for 60% of its revenues.

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 Texas Instruments' earnings, combined with VMware's ( VMW) comments on corporate spending gave a good read through the rest of the tech space.

Adami said IBM ( IBM) has the most reasonable valuation in the tech space.

CNBC reporter Jon Fortt said VMware noted data center modernization has been driving its business. He said the margins, at 29.6%, were in line.

Kelly recommended a derivative trade such Teradyne ( TER) which is receiving orders from larg -cap companies for its chip testing equipment.

In after-hours trading, American Express ( AXP) was trading lower after its profits missed estimates.

Weiss said the credit card company is bogged down by regulatory issues. He said he would rather move on an invest in other companies that are participating in the consumer revival. "There's nothing exciting to generate alpha in a portfolio."

In an interview with CNBC reporter Mary Thompson, AIG ( AIG) CEO Ben Benmosche said doctors had told him that the chemo treatment he's been taking for cancer has worked well. He said he expects to stay on the job for another 12 to 18 months until a successor is chosen. He said the company has to do a better job of promoting itself.

Noting CSX's ( CSX) revenue beat today, Kelly said the rail company has been helped by higher auto shipments. Seymour said the numbers of CSX has been so so good that it's hard to see them getting any better.

Weiss added that while CSX crushed earnings, the stock is at the upper end of its valuation.

Commenting on today's terrorist bombing of the Moscow airport, Seymour said that incident should not deter investors from investing in Russia. He said he would stay in the oil and gas space, adding he liked stocks like Gazprom ( GAZP) and Vimpelcom ( VIP).

The panel had little to say about Yahoo! ( YHOO), which reports its earnings Tuesday. Adami said it could surprise, but Kelly said there is a little reason to invest in a company whose best options are a break-up of its businesses or being taken over.

Verizon ( VZ) will be reporting earnings ahead of the bell Tuesday. William power, analyst, Robert W. Baird & Co., said his company has a neutural rating for the near to medium term. Over the long term, the iPhone will help it, he said.

He said the best place to play the wireless space is with Apple ( AAPL), whose numbers continue to go higher, and the variety of Android devices that are gaining in popularity.

For the currency trade of the week, Amelia Bourdeau, UBS director of foreign exchange strategy, recommended going long the U.S. dollar and short the Swiss franc. She said improving U.S. data will strengthen the dollar while the Swiss franc risks getting weaker. She said any hawkish comments from new members on the FOMC will send the dollar higher.

On Tweet the Street, Kelly said McDonalds ( MCD) was the big topic and the worry over input costs, with meat costs rising 3.5%. He said he would stay away from the stock and shorting Chipotle ( CMG) on higher input costs.

In a quick 360-degree look at Qualcomm ( QCOM), two experts had buys on the stock, saying it was fundamentally strong and had attracted active call buying in the options market. One expert said the stock was range bound. Adami said he believes the company is in a sweet spot and should head higher, if it breaks above $50.

In the final trades, Weiss liked Peabody. Seymour liked Gold Fields ( GFI) while Adami liked McDonald's. Kelly liked Teradyne, while Terranova said to get into General Motors ( GM), which is enjoying strong sales in China.

--Written by David Tong in San Francisco.

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