'Fast Money' Recap: Looking at Financials

NEW YORK (TheStreet) -- The S&P 500 closed near session lows as the government shutdown continues to weigh on equities.

The financial sector was the topic of discussion on CNBC's "Fast Money" TV show. Pete Najarian said that after a slightly deeper pullback, a lot of stocks will become attractive. Specifically, he likes Blackstone Group ( BX) and also J.P. Morgan ( JPM) below $50.

Karen Finerman said the legal issues surrounding J.P. Morgan have weighed on the stock, but any resolution will likely be positive.

Guy Adami also likes Blackstone Group, which reports Oct. 17, and the valuation is reasonable.

Steve Grasso likes Bank of America ( BAC) because it has support near the 100-day moving average and investors have put its negative housing data in the past.

Andres Garcia-Amaya, global market strategist at J.P. Morgan, was a guest on the show and said a pullback in financials presents a good buy for long-term investors. He likes industrials and is bullish on the U.S. dollar.

Najarian said he was long National Bank of Greece ( NBG), citing upside potential in 2014 and strong call buying in the options.

Goldman Sachs downgraded Toll Brothers ( TOL) and upgraded Realogy Holdings ( RLGY).

Adami said that Toll Brothers has an attractive entry, with the stock holding support near $30. Finerman continues to like Realogy Holdings, which is much more levered toward housing prices.

Adami said ConocoPhillips ( COP) has quietly been making its way higher, hitting new 52-week highs on Monday and still looks attractive.

Grasso added that refiners should continue to benefit from falling crude oil prices.

Paul Hickey, co-founder of Bespoke Investment Group, was a guest on the show and said Netflix ( NFLX) is one of the most volatile stocks around earnings. He also said investors should be cautious on First Solar ( FSLR) and Green Mountain Coffee Roasters ( GMCR).

Grasso said Monday's pullback in Deckers Outdoor ( DECK) is giving investors a good opportunity to get into the stock before the winter season.

Northrop Grumman ( NOC) was the first stock on the show's "Pops & Drops" segment. Adami said it's still a buy, along with Lockheed Martin ( LMT).

Intuitive Surgical ( ISRG) jumped 4%. Najarian said the company has had some publicity issues, but likes it around these levels.

Fifth & Pacific ( FNP) popped 5% and Finerman said the company's done a great job turning around its Juicy Couture brand, which will be sold for $195 million.

Abercrombie & Fitch ( ANF) fell 3%. Grasso said the stock is not a good investment at these levels.

Macy's ( M) was the featured company on the show's "Street Fight" segment. Finerman defended the stock, saying it's the premiere operator in the business with the largest ability to scale. She added it has the cheapest valuation among its peers and is well below its own historical PE ratio.

Adami argued that the consumer has been strapped, driving down comparable sales. Margins have also been suffering, inventories have been increasing and EPS estimates are coming down. He concluded the stock has not traded well since mid-summer.

Dennis Gartman, publisher of The Gartman Letter, was a guest on the show and said crude oil appears to be near a bottom and that support exists around $102. He added that temporary lows might have been made for gasoline, but could still go a little lower. He went on to say that global economies appear stronger than many had thought, which should bode well for demand of crude oil. He also likes the shipping stocks.

Adami said he prefers Pepsico ( PEP) over Coca-Cola ( KO) because of its product diversity. Najarian thinks the company has a good yield and strong buyback program.

Grasso would not be a buyer of Microsoft ( MSFT) based on the next CEO announcement. He does not think that person will be Ford's ( F) CEO Alan Mulally.

Najarian said there will be a lot of demand from investors for the Twitter IPO, but options will not be available on the first day of trading.

Finerman said she has not bought back any shares of Apple ( AAPL), but the upcoming earnings report might be the catalyst to get her to do so.

Grasso said Micron ( MU) will continue to move higher so long as DRAM prices continue go higher.

For their final trades, Adami was a buyer of Costco Wholesale ( COST), Najarian said to buy U.S. Silica ( SLCA), Finerman was buying Macy's and Grasso likes Google ( GOOG).

-- 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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