'Fast Money' Recap: Apple's Date With $500

NEW YORK ( TheStreet) -- Bank of America ( BAC) shares moved higher today on the announcement of a $25 billion settlement involving the nation's five largest lenders.

Joe Terranova said on CNBC's "Fast Money" TV that the worst is over for Bank of America. He said he sees a bullish formation in the stock, which traded for the second consecutive day above its 200-day moving average.

Terranova said the next trade involves the fate of Merrill Lynch and whether it would be sold.

Karen Finerman said the stock is still at a "ridiculously low valuation," while Tim Seymour said he was worried about the possibility of litigation following the settlement.

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

Jon Najarian said the bullish sentiment has returned to what once was the most maligned financial stock.

Gerard Cassidy, of ABC Capital Markets, characterized the settlement as another log off the wood pile, and a definite plus for Bank of America. He said it's good sign for the lenders because most of them have provisions to cover the settlement costs.

He said the next big hurdle for the banks is the Volcker Rule, which would put a ban on most proprietary trading by banks.

Melisssa Lee, the moderator of the show, said Apple ( AAPL) shares finished close to $500. The stock, which closed at $493.49, up 3.53% for the day, is up 22% for the year and has gained $82 billion in market cap.

Finerman, who owns some Apple shares, said she sold a little of her stake. Najarian stressed he still likes Apple's story but got out of the stock today, which he has been trading through weekly options.

Terranova said Apple has become a trader's stock and may be near its top. Seymour said it was prudent to back off the stock because all the good news may have been priced into it.

Lee noted that Nuance Communications ( NUAN) was down after a revenue and EPS miss.

Terranova said the miss wasn't unexpected. He said the relationship between Apple and Nuance is still unknown. He also said 40% of the company's revenue comes from health care. And he said he was disturbed by a statement from the company that its relationship with its mobile customers has become "more comprehensive and complex."

Diamond Foods ( DMND) was down 37% today after announcing plans to restate its financial statements for the past two years.

Still, Tim Ramey, of D.A Davidson, maintained a buy rating on the stock, with a price target of $44. Ramey said the audit committee report is clear that there was no intent to push costs through, adding the walnut costs were close to what should be accrued.

Tamey said Diamond Foods can either continue operating its business or sell off some of its assets. He said he thinks it will continue to run the business, which he maintained was untouched by the scandal.

Lee brought in Stephanie Ericksen, head of authentication product integration for Visa ( V), to discuss Visa, to discuss her company's plans to upgrade its credit and debit cards with chips.

Ericksen said the main purpose of the chip-enabled cards is to make it easier for banks to detect counterfeit fraud. She said there is a roadmap in place for merchants to upgrade their point-of-sale terminals.

Shifting to the Volality Playbook, Najarian said headline risks are behind the move of VIX back up through 20. He said investors are seeking protection and taking profits off the table.

For a technical view of the market, Carter Worth, a chartologist with Oppenheimer Asset management, said the S&P 500 small cap index is reaching its momentum peak. He said investors usually respond when this happens by selling their stocks and booking their profits.

He said the price of gold looks like it's "coming apart." As for individual stocks, he said he liked Genco Shipping & Trading ( GNK), saying it has some more room to run. He said TJX ( TJX) had turned into a crowded trade.

Lee brought in Jerry Howard, CEO of the National Association of Home Builders, which is hosting a trade show in Orlando. He presented a bullish picture of the trade show, with attendance up 10% from a year ago and exhibitors and builders optimistic about a turn in the housing industry.

Lee and some panelists expressed their doubts about the turnaround. Lee noted several appliance makers took a pass on the trade show, while Terranova said housing prices need to stabilize before talk of an industry turnaround.

Shifting to the energy space, Lee noted that Chesapeake Energy ( CHK) announced plans to slash 1 billion cubic feet of natural gas.

Dan Dicker, a senior contributor for TheStreet, said Chesapeake will need to build support from other energy companies before the cuts can make a difference in the demand structure and spark a rise in the price natural gas.

He said he's not sure whether Chesapeake CEO Aubrey McClendon can secure 6.3 billion cubic feet's worth of committements, but if he can, the move might cause natural gas prices to go up 30 to 40 cents. And that, he said, would help higher beta, small cap names like Ultra Petroleum ( UPL) and Cimarex Energy ( XEC).

In the final trades, Seymour said he would fade the solar rally. Najarian liked Take-Two Interactive ( TTWO), noting the aggressive February call action in the stock. Finerman said she would take some money off the table in Apple. And Terranova liked Southwestern Energy ( SWN).

-- Written by David Tong in San Francisco.

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

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