'Fast Money' Recap: Summers' Fall, Market's Rise

NEW YORK (TheStreet) -- While tech closed in the red, the broader market jumped higher on news that Lawrence Summers will not be nominated as chairman of the Federal Reserve by President Obama.

On CNBC's "Fast Money" TV show, Brian Kelly pointed out gold spiked on the Summers news before falling, with equities having a weak close. He added the pace of Fed bond tapering would be important to the market and the coming debt ceiling debate would likely weigh on equities.

Guy Adami said steel has been performing well and U.S. Steel ( X) seems to have gotten off the $17.50 support level. He added that the S&P 500 may have another 15 points of upside, but that the rally is getting long in the tooth.

Karen Finerman said trading around the FOMC meeting is hard because of two things: the actual outcome of the meeting and the perceived outcome leading up to the event.

Kelly does not like the risk to reward ratio for going long big banks. This is despite rising interest rates potentially offsetting a shrinking mortgage and refinance business with improved profitability in lending.

Adami pointed out that Blackstone Group ( BX) was up almost 4% on Monday and thinks there is still a bit more upside.

Outerwall ( OUTR) cut its third-quarter profit and sales guidance. Dan Nathan said he would avoid the name unless investors know that particular market very well.

Finerman said she was done with Apple ( AAPL), even though the valuation is compelling. She said the stock is too volatile and it's too frustrating to own and manage.

Adami said the stock could head to the $425 level after closing below the 50-day and 200-day moving average.

Kelly said he was looking for these levels before the iPhone event this week, but wants to see Apple reverse and go higher before getting long.

Nathan said a deal with China Mobile ( CHL) is the only real, near-term catalyst, but said it will come eventually. He added that he'd rather buy Apple than the S&P 500.

Homebuilders made a strong move higher on Monday and Kelly said he would use the pop to take profits. Adami agreed, saying he would take profits in the SPDR Homebuilders ETF ( XHB) and look to buy a pullback or breakout over $32.

Dan Nathan said for growth reasons he would rather own the homebuilders in the XHB than the retailers in the exchange-traded fund.

Packaging Corporation Of America ( PKG) was the first stock on the show's "Pops & Drops" segment and Adami said he wouldn't chase the move but would look at FedEx ( FDX) instead.

Delta Air Lines ( DAL) jumped 3% on Monday and Nathan said the move was attributed to falling oil prices and that he would not chase the stock.

Under Armour ( UA) fell 4% on an analyst downgrade. Finerman said it's a great company but trades with too high of a valuation.

Barrick Gold ( ABX) jumped but Kelly said he would avoid the miners, because he does not trust the action in gold.

Pandora ( P) announced a 14 million-share secondary offering. Nathan said the stock is fine and called the move "genius."

Kayla Tausche, a CBNC reporter, said big banks have a much stronger balance sheet than in 2007. With increases in cash and liquid securities and decreases in high-risk debt, some banks have even considered the move to be too safe.

Kelly said systematic risk never disappeared, it just transferred to other other holders, such as the U.S. government, insurance companies and hedge funds.

Although Adami said this will stunt the returns for big banks, Finerman said that she actually likes the money centers because the next big crisis will not likely come from them.

Jon Najarian called into the show regarding the 17-minute halt in options trading on Monday. He said his main concern was that these problems are not being identified and need to be handled quickly. He added that the issues should be addressed by the Securities and Exchange Commission and that events like this will continue to weigh on investor confidence.

Nathan said he doesn't expect Congress to take the debt ceiling debacle to the brink of its deadline as it did in December 2012, while wreaking havoc on the stock market.

For their final trades, Adami said to buy FedEx ahead of earnings, Nathan said to sell AT&T ( T), and Kelly and Finerman were buyers of puts because of low volatility and as portfolio insurance.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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