'Fast Money' Recap: Oil Jitters

NEW YORK ( TheStreet) -- The price of oil topped $108 a barrel on Thursday while gas prices moved closer to $4 a gallon.

Brian Kelly said on CNBC's "Fast Money" TV show that the 50-cent jump in the price of gas since the start of the year will start to impact profit margins in a month or so.

Karen Finerman said retailers like Walmart ( WMT) must find that rise disconcerting.

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

Melissa Lee, the moderator of the show, noted the economic impact of higher energy prices. According to Lee, the Schork Report noted that a $10 rise in crude causes a 0.5% drop in GDP and a 10-cent increase in gas translates to a $11.7 billion drop in personal income.

Tim Seymour said it's not panic time for consumers, but he acknowledged luxury retail names like Tiffany ( TIF) and Coach ( COH) will be tested.

Seymour said the high price of oil is more a reflection of supply disruption issues than demand issues. He said he wasn't ready to bake in the impact of these prices onto stocks.

Paul Sankey, an analyst with Deutsche Bank, said he's most worried about the rise in Brent crude and the supply disruption in non-OPEC countries like Syria, Yemen and Somalia.

He said the next phase of this troubling trend will be the extent high oil prices will hurt emerging market growth. He said oil might rise to $130 to $140 a barrel before it rolls over.

He said his favorite picks in this situation are Marathon Oil ( MRO), Occidental ( OXY), SM Energy ( SM) and ConocoPhillips ( COP).

Kelly said Japan is especially vulnerable to oil shocks because it relies heavily on oil and natural gas imports since the Fukushima nuclear disaster.

Lee shifted the discussion to Apple ( AAPL)'s shareholder meeting in which the big news was the lack of a dividend announcement.

Finerman said Apple's handling of the dividend was "really ridiculous" for an issue that "isn't that complicated." She said Apple is doing a disservice to shareholders by not doing anything.

Connor Browne, a portfolo manager with Thornburg Investment Management, said Apple could jump to $900 if it raised its dividend. He said it is very underowned by value and yield managers. Kelly said Apple is vulnerable because there are a lot of disappointed investors who bought the stock on expectations of a dividend announcement.

Salesforce.com ( CRM) was up more than 11% on a solid earnings report. Adami advised not chasing the stock on Friday because of the big short interest. Mike Khouw noted the options markets had suggested a sharp move up but added the valuation didn't make much sense.

Deckers ( DECK) was sharply lower on a worrisome guidance and talk about rising costs. Seymour said the 50% decline in EPS guidance signified a major letdown on its growth story.

Meanwhile IBM ( IBM) surged to another 52-week high today. HP ( HPQ) CEO Meg Whitman referred to IBM in an interview earlier in the day, saying that the changes she envisions for HP will take time as it did for Big Blue's turnaround.

Shawn Wu, an analyst with Sterne Agee, also said HP has a lot of work to do and needs to focus on software and services. He said the stock reminded him of where Cisco ( CSCO) and Dell ( DELL) was a year ago before their turnaround. He said HP is a favorable investment opportunity at this price level.

Asked if it might be a takeover target, he said it's unlikely for a company with $120 billion in revenue.

In the Volatility Playbook, William Lefkowitz, of Vfinance Investments, said the market feels very comfortable to investors as reflected in the VIX at 16.80 and down 28% year to date. He said it's about this time something happens that will drive volatility up.

In the "Next Big Thing" segment, Lee interviewed Abe Reichental, president and CEO of 3-D Systems ( DDD), whose stock was up 12.4% today on an earnings beat and favorable outlook.

He said his company makes printers that can any digital file and print it in plastics and metals. He said company offers a range of printers that range in price from $1,300 to $500,000.

He said 3-D print technology allows users to bypass traditional craftsmanship and engage in innovative printing.

In a segment on investing in art auction companies, Finerman said she loves the trade, calling it a "very pure play" that is dominated by a duopoly: Christies and Soethebys ( BID).

Of the two, she said she liked Sothebys and its excellent balance sheet and captive audience of the global wealthy and their interest in art.

In the final trades, Khouw liked HP. Seymour liked Freeport McMoRan ( M). Adami said he would pick up JCPenney ( JCP) on a dip after it reported earnings. Finerman liked Pacific Drilling ( PACD) and Kelly liked iShares Barclays 20 Year Treasury Bond Fund ( TLT).

-- Written by David Tong in San Francisco.

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

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