'Fast Money' Recap: Tech Stays Hot

NEW YORK ( TheStreet) -- The markets were mixed today ahead of January jobs report.

The Dow Jones Industrial Average was down 11.05, or 0.09%, to 12,705.41. The S&P 500 was up 1.45, or 0.11%, to 1,325.54. The Nasdaq rose 11.41, or 0.40%, to 2859.68.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, led off the discussion by focusing on the success of large-cap stocks such as Microsoft ( MSFT), which hit another 52-week high.

Brian Kelly said Microsoft has a chance to take an advantage of an imbedded opportunity in enterprise and get Windows 8 on mobile.

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

Kelly, though, has reservations about the ability of Microsoft's management to execute, having seen them beaten in previous situations by Google ( GOOG) and Facebook.

Joe Terranova was impressed with Microsoft's chart, saying it is now trading close to its 50-day moving average, something not seen "since men wearing vests was in style."

Ron Insana said he had telegraphed the move in large-cap stocks, adding large-cap tech remains inexpensive.

Carter Worth, a chartologist with Oppenheimer Asset management, said he sees a pullback and some profit-taking in Microsoft after its move from $24 to $30.

On the other hand, he said Google has the potential to rebound to the upside, and that the Powershares QQQ Trust ( QQQ) is poised for a breakout.

Kelly said he expects a market melt-up the next few months, with a solid jobs report number being a catalyst for the next move up.

Lee noted that Zynga ( ZNGA) was up 16.79% today after Facebook said in its filing that the social gaming company accounts for 12% of its revenue.

Richard Greenfield, co-head of BTIG Research, said Facebook needs Zynga to be successful because it relies heavily on the success of the social gaming category. He said Zynga is driving ad dollars to Facebook's platform and is working hard to come up with new games in its portfolio.

Lee referred to a Credit Suisse report that S&P companies expect a 36% pension shortfall this year. AK Steel ( AKS) was on the top of the list of vulnerable companies, with a pension liability amounting to 99% of its market cap.

John Ehrhardt, a principal with Milliman, said record low interest rates are producing historically high liabilities, adding without returns from assets, the only remaining lever is employer contributions.

Ehrhardt said companies will need 20% to 30% returns to fill the gap.

Moving on to the Volatility Playbook, Jon Najarian said the VIX has dropped below 18. He said he was surprised to see such a low number ahead of the jobs report.

Lee brought in Gene Munster, an analyst with Piper Jaffray, to talk about the arrival of the Apple iTV in late 2012. He told the panel that he got confirmation from a component supplier that Apple had contacted.

He said the iTV could add $2.5 billion in revenue for 2012, $4.08 billion in 2013, and $6.04 billion in 2014.

He admitted the margins won't be much, but he said the iTV represents a new era of product innovation.

Munster said Apple is long overdue to pay a dividend and expects one to come up this year.

Lee brought in Dan Dicker, a senior contributor for TheStreet, to talk about widening spread between the WTI and Brent, which is now at $14.10.

Dicker attributed the spread to a large supply of oil and gasoline in the U.S. and an Iranian threat to shut off of the supply of oil.

He said he was getting out of his most of his positions, except for some speculative ones like Sandridge Energy ( SD ), which he said is not as bad as the market makes it out to be after acquiring a shallow-water driller.

In the final trades, Najarian sees a jobs report beat. If that were the case, Insana said he likes the U.S. dollar over the euro, and Kelly said he would go with Mohawk ( MHK). Terranova liked American Express ( AXP).

-- Written by David Tong in San Francisco.

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

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