'Fast Money' Recap: Wait-and-See Market

NEW YORK ( TheStreet) -- The markets closed mixed Wednesday on reports of a second eurozone bailout fund.

The Dow Jones Industrial Average was up 46.24, 0.38%, to 12,196.37. The S&P 500 rose 2.54, or 0.20%, to 1261.01. The Nasdaq was down 0.35, or 0.01%, to 2649.21.

With the European summit meeting looming at the end of the week, Joe Terranova said on CNBC's "Fast Money" TV show that the markets have taken a wait-and-see look. Still, he was positive about the chances for the S&P breaking through its 200-day moving average and moving higher.

Brian Kelly characterized the market as underinvested and filled with headline risks coming out of Europe.

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

Dennis Gartman said he believes European leaders will succeed in "kicking the can down the road."

Joe Terranova said the euro is trading well because it has become the proxy for the deutsche mark. He said Germany will prevail as the strongest country in Europe in mid-2012 while Greece and Portugal will exit the eurozone.

Melissa Lee, the moderator of the show, brought in Patrick Doyle, CEO of Domino's Pizza ( DPZ), which was up 5% in the past week and 109.78% year to date.

She said the pizza delivery company took 1 million online orders the week after Thanksgiving. Doyle said his company hopefully will see one day digital orders exceed brick-and-mortar orders.

He said the trend is positive because those who order online order more, the tickets are higher and the operating costs lower. He said commodity costs have eased, noting the price of cheese has declined to $1.68 a pound from $2 a pound.

Lee noted that the financals were one of best performers of the day. Kelly attributed the rise to the alleviation of European pressure, chatter about some movement in the housing sector and signs that the economy is starting to turn.

Jeff Palma, a global equity strategist for UBS, said his firm is predicting a deep recession for Europe in 2012 that will have a limited impact for the rest of the globe.

He said global economic growth and earnings growth will slow. He said the emerging markets should do well, adding China can resort to a policy stimulus to spur growth. He said UBS is overweight in tech and health care for 2012 and sees a weakening Europe and slowing growth in China in the first half of next year.

He said the European summit needs to produce some credible policy answers in the form of actual plans, numbers and time frame to deal with the continent's debt problems.

Lee shifted the discussion to the impact of MF Global ( MF) on farmers. Gartman said the impact has been severe because farmers have used the derivatives markets to price their production, and they can't do that now.

David Greenberg, of Greenberg Capital, said MF Global officials were breaking rules that should never have been broken. He blamed the ignorance and stupidity of regulators. In the case of the CFTC, there were commissioners who didn't have a trading background, clearing experience or understanding of position limits.

Lee asked the panel for their top trades for next year. Gartman said he was long gold and equities and short the euro.

Kelly went with JPMorgan ( JPM) as a great place to play the financial space, especially if it gets some help Fed action.

Mike Murphy went with Titan International ( TWI) for his top trade. He said the company is entering Latin America looking for an acquisition and has had mounting blacklogs.

Terranova's top pick was IBM ( IBM).

Staying in the tech space, Michael Graham, an analyst with Canaccord Genuity, assessed a number of stocks. He said investors need to be patient with Amazon.com ( AMZN) because it is investing for future growth. He said the road will be rocky next year, especially in the first two quarters, but that the stock will ultimately pay off for patient investors.

As for Google ( GOOG), Graham said CEO Larry Page is off to a good start. He said Google's growth will hinge on mobile monetization and reworking YouTube.

Graham said it's highly unlikely that Netflix ( NFLX) will be sold. He said rumored suitors like Google and Amazon.com are more interested in developing their own content.

Lee noted in a followup to a story earlier this week that India has now suspended plans to let Wal-Mart ( WMT) enter the country. Seymour said the move is understandable because of fears that the retail behemoth would force local farmers and retailers out of business. He said Wal-Mart has had a difficult time getting into Russia and China, adding Wal-Mart's plans for India isn't dead.

For a technical view of the markets, John Bollinger, president of Bollinger Bands, is bullish on the market and that "no one is heeding the signs." He said the markets are entering the best part of the year and the best part of the presidential cycle. He also noted the Dow 30 buy signals, adding the transports and industrial averages have turned up and cleared resistance. "It's a net positive environment."

Lee brought in Peter Schiff, head of Euro Pacific Capital, for his take on what European leaders should do later this week. He said the ECB shouldn't do anything and force European nations to cut spending. He said printing money isn't going to solve the problem. He also said it's better to let the weaker nations out of the eurozone now.

The panel ran out of time, but in the Web Extra, they noted their picks. Brian Stutland liked Valero ( VLO). Murphy liked Cummins ( CMI), and Seymour liked Gol Linhas Aereas Inteligentes ( GOL). Gartman reiterated his preference for gold and equities. And Terranova said Visa ( V) has a date with $100.

-- Written by David Tong in San Francisco.

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

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