'Fast Money' Recap: Stay Put

NEW YORK ( TheStreet) -- The markets fell again Wednesday on continuing worries over the economy.

The Dow Jones Industrial Average dropped 21.78, or 0.18%, to 12,048.94. The S&P 500 fell 5.38, or 0.42%, to 1279.56. The Nasdaq lost 26.18, or 0.97%, to 2675.38.

Joe Terranova said on CNBC's "Fast Money" TV show there was not much going on in the markets today. He said the small-caps led the markets lower and tech was "very weak." He said money was gravitating to the big balanced- sheet tech players like Apple ( AAPL) and Google ( GOOG). He said the best play might be inaction.

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

Stephen Weiss was disappointed in today's market action after thinking there might be a semblance of a rally.

Karen Finerman noted that the VIX started to pick up at the end of the day. She said the "puke-out day" might be coming.

Steve Grasso advised individual investors who were long, to stay long, and average down as the market declines. He said it's difficult at this point to pick up a bottom.

Terranova said the defensive plays continue to be health care, consumer staples and energy. He said investors will feel the bottom when stocks like McDonald's ( MCD) and Pepsico ( PEP) decline.

Terranova said the catalysts for the market might be economic growth and resilient earnings in July. Brian Kelly said the economy can get moving again if the Fed releases $1.5 trillion in excess reserves into the economy.

Others on the panel questioned whether the economy needs more liquidity after two rounds of quantitative easing.

Melissa Lee, the moderator of the show, said Texas Instruments ( TI) was off 5%. CNBC reporter Jon Fortt attributed the slide to one factor: Nokia's ( NOK) warning last week. "It's having a huge impact on TI."

Terranova said TI is trying to navigate away from the handset portion of its business. Brian Stutland said the stock might turn around at $5 to $6. Weiss said Nokia's woes brings into question Microsoft's ( MSFT) decision to partner with Nokia.

Lee said crude moved above $100 a barrel today. Terranova said the noticeable drop in global oil production offers an opportunity for domestic production and stocks such as Exxon Mobil ( XOM) and Occidental ( OXY) and Hornbeck Offshore Services ( HOS).

Weiss said natural gas prices were picking up, the beneficiary of a movement by utilities away from coal.

Lee brought in CNBC reporter Jane Wells, who was attending the World Pork Expo in Des Moines, Iowa. Wells said farmers there anticipate Thursday's USDA crop report will show a reduction in acreage and at least a reduction in acreage yields.

She said pork farmers are facing higher corn prices as inventories have reached 15-year lows. Kelly said he was getting into PowerShares DB Agriculture Fund ( DBA) on Thursday.

Is Apple ( AAPL) in discussions on a partnership with Intel ( INTC)? Glen Yeung, a Citigroup chip analyst, said the discussions began earlier in the year.

He believes the genesis of the talks has do with Intel's Tri-Gate technology. And he said the value of the partnership for Intel won't be so much revenues and earnings as much as it is a validation of its manufacturing prowess and the potential for its x86 chip for handsets and tablets.

Lee brought in Brocade ( BRCD) CEO Michael Klayko to comment on acquisition rumors involving Dell's ( DELL).

Klayko said he found the reports "flattering" but he stressed that his company's focus is on its innovation strategy and and its go-to-market plan so that it can remain independent.

Oppenheimer Asset Management chartologist Carter Worth noted how several indices along with ConocoPhillips ( COP) are at or near their 150-day moving averages. He took this as a sign for "buyers here for a rebound."

In the Web extra final trades, Kelly favored PowerShares DB USD Bull ( UUP). Grasso said he would take on new long positions if the S&P holds at 1275. Weiss liked Qualcomm ( QCOM), while Finerman said she would be a buyer of the CBOE Volatility Index ( VIX) if it goes above 20. Terranova advised buying Lululemon ( LULU) ahead of Friday's earnings.

--Written by David Tong in San Francisco.

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