'Fast Money' Recap: Ominous Turn

NEW YORK ( TheStreet) -- The markets took an ominous turn for the start of a new quarter.

The Dow Jones Industrial Average fell 258.08, or 2.36%, to 10,655,30. The S&P 500 dropped 32.19, or 2.85%, to 1099.23. The Nasdaq fell 79.57, or 3.29%, to 2335.83.

Tim Seymour said on CNBC's "Fast Money" TV show that the markets hit new lows for the year despite some good economic data, and are going to head lower. He said the selloff comes amid negative headlines in Europe and rumors of a potential American Airlines ( AMR) bankruptcy.

Seymour said European banks are hoarding cash in a manner similar to what happened in 2008.

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

Guy Adami said he still is firmly in the camp that the S&P is heading to 1020.

Joe Terranova said the market action clearly showed that good economic data didn't matter. He said the market action is telling investors that the assumption of risk is minimal.

Karen Finerman said the financials are getting crushed because the negative perception of them has become reality. Adami said he would short the financials, but Finerman said she would be "scared to death" to short the banks at this time. Terranova said he could see getting in on the long side in names such as JPMorgan ( JPM), Wells Fargo Bank ( WFC) and PNC Financial Services ( PNC).

JJ Kinahan said the financial charts look broken, adding trying to find a bottom would be like catching a falling knife.

Carter Worth, a chartist for Oppenheimer Asset Management, said the S&P's small cap 600, mid-cap 400 and 500 reached a significant juncture today when they fell below their Aug. 9 low.

Melissa Lee, the moderator of the show, brought in Dennis Gartman to comment on the fall of copper to below $3. He said everything seems to be broken, including copper, which he said could fall to $2 easily.

He said the slowdown in China is putting downward pressure on commodity prices. "All the base metals are going down. The global economy is in a precarious position."

He said he is still bullish in gold in euro and sterling terms. He said the dollar wants to go higher and gold could get "very strong." He said it's possible that gold and silver could go parabolic.

Lee turned to Robert McAdoo, of Avondale Partners, to comment on the other major business story of the day: rumors of bankruptcy at American Airlines, which sent the stock down 28.72%.

He downplayed the rumors. He said the airline is sitting on $4.2 billion in cash and has a market cap of $600 million. He said it has also negotiated a $725 million equipment trust certificate.

Guy Adami said JP Morgan's downgrade of Coca-Cola ( KO) to neutral from overweight was "way ahead of the curve." Morgan Stanley cited negative revisions due to foreign exchange, interest income and a harsh macro environment.

Seymour said other companies like McDonald's ( MCD) and Yum! Brands ( YUM) would be affected by the appreciation of the dollar and may be headed in the direction of Coca-Cola.

Shifting to the currency trade, Todd Gordon, co-head of research for the Aspen Trading Group, noted the downward direction of the Aussie dollar. He said it comes amid serious headwinds in China, including the prospects of a real estate crash, moderating inflation and slowing growth. He said the changes going on are significant and more than cyclical. He said he was long the U.S. dollar.

Lee brought in Brian White, an analyst for Ticonderoga Securities, who put out a 12-month price target of $660 for Apple ( AAPL). He said the lofty price target is based on what he called a reasonable 20 multiple.

He said the event is a good buying opportunity of the stock for investors. He said it will be the first product launch event for new CEO Tim Cook. In addition to the iPhone 5, he expects to heard some information on a refresh of the iPod and perhaps some new features for the Mac.

Lee brought in Marissa Mayer, vice president of Local, Maps and Localization for Google ( GOOG) to comment on Google's recent acquisition of Zagat.

Mayer said Google is excited about the acquisition because Zagat offers a "phenomenal" set of editorial reviews and end-user reviews. She also pointed out that the demand for Google's local content is growing much more quickly in mobile devices than in desktop or the Web.

She said people are using mobile devices for reviews, transit functionality and navigational purposes.

In the final moves, Kinahan said he would be a buyer of Intel ( INTC) at $20.50. Seymour said iShares: MSCI Emerging Markets ( EEM) was worth getting in at $33. Adami liked Lorillard ( LO). Finerman was picking up Apple through some out-of-the-money calls. And Terranova said he liked Qualcomm ( QCOM).

-- Written by David Tong in San Francisco.

>To contact the writer of this article, click here: David Tong.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Follow TheStreet.com on Twitter and become a fan on Facebook.