3 Stocks I Saw on TV
NEW YORK ( TheStreet) -- The markets sank Tuesday over Greece's precarious future in the eurozone. The Dow Jones Industrial Average slid 297.05, or 2.48%, to 11,657.96. The S&P 500 fell 35.02, or 2.79%, to 1218.28. The Nasdaq dropped 77.45, or 2.89%, to 2606.96. Pete Najarian said on CNBC's "Fast Money" TV show that the price action was "brutal" in a wild trading session that saw the volatility index climb above 37 and material names leading the slide down. Guy Adami said he was surprised by the huge selloff, while Joe Terranova said 1183 is now the line in the sand for the market as investors search for a point of reference. For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Karen Finerman said the market was in no man's land. She said she had her shopping list out, noting Google ( GOOG) and Cummins ( CMI) looked interesting. Terranova said MF Global ( MF) roiled the markets, Lee noted that the financials were having a tough time, with the Select Sector SPDR Fund ( XLF) down 5% on contagion fears. Fred Cannon, of Keefe, Bruyette & Woods, said the U.S. financials are tied to the hip to the European financials, adding the MF Global situation only made the situation worse. Cannon said the situation will provide ammunition for the enforcement of the Volcker Rule. He said MF Global was in a regulatory blind spot in terms of its size and broker status. He said the eurozone debt crisis will only change when banks in Europe actually raise capital. Cannon said regional banks offer an interesting value in the otherwise hard hit sector. Turning to the markets, Jim Bianco, of Biano Research, noted the high correlation between the S&P index and S&P stocks. He said the average S&P stock is 85% correlated to the index, a 80-year high. He said it's very difficult to be a stock picker when government intervention overwhelms the markets. He agreed with Adami that there are exceptions to this rule such as McDonald's ( MCD) which continues to trade well after hitting a 52-week high in a down tape.