'Fast Money' Recap: Big Blue Boosts Markets

NEW YORK (TheStreet) -- The broader market closed at another record high as the Federal Reserve began its two-day Federal Open Market Committee meeting. 

On CNBC's "Fast Money" TV show, Josh Brown, a financial adviser at Ritholtz Wealth Management, said the Dow Jones Industrial Average is lagging small-cap and mid-cap indices. He said International Business Machine's (IBM) share buyback announcement boosted the index and the other stocks on Tuesday. 

Dan Nathan, co-founder and editor of riskreversal.com, said it seems unhealthy for earnings per share to continue growing while revenue remain flat. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, said IBM was desperate and needed to do something. He added that the Fed, short-covering and corporate buybacks are all fueling the market gains. 

Guy Adami, managing director of stockmonster.com, said the move higher in IBM seems like a head fake that the S&P 500 could trade down to 1,740 by the end of the week. 

Brian Marshall, senior managing director and head of ISI's technology team, was a guest on the show and said IBM is simply too big to grow. He added that over 50% of the company's earnings growth over the past 10 years is from share buybacks. He concluded the stock could work its way below $150.

Buffalo Wild Wings  (BWLD) beat on the top and bottom lines and Najarian said lower wing prices and liquor sales paved the way for a strong quarter.

Adami said Dreamworks Animation  (DWA) can go to $35 despite its high valuation and big after-hours move higher on a top- and bottom-line earnings beat. 

Brown said Apple  (AAPL) seems likely to work its way lower, down to perhaps $480 in the short term. He added that it should have a good holiday season. 

Gene Munster, senior research analyst at Piper Jaffray, was a guest on the show and said he would be buyer of LinkedIn (LNKD), which beat on the top and bottom lines and provided poor guidance. However, he would avoid Yelp (YELP), which missed earnings estimates. He said LinkedIn has the best "moat" out of all the other social media companies. 

Nathan said he would avoid Yelp, especially with its recently announced secondary offering and Twitter's upcoming IPO. Najarian concurred. 

Brown said he would avoid Angie's List (ANGI). 

Adami said the pullback in LinkedIn seems like a buying opportunity, despite the stock having resistance near $250. He added that it will likely consolidate for a while before moving higher.

Yahoo! (YHOO) jumped 2.5% on positive Alibaba reports. Nathan said he would be a buyer at $30. 

3D Systems (DDD) jumped on solid earnings. Brown continues to own the stock because the company is firing on all cylinders. Adami said the move higher isn't done. 

Tesla Motors (TSLA) continues to struggle. Ben Kallo, senior research analyst at R.W. Baird, was a guest on the show and said the recent news of a Tesla Model S fire isn't really a fundamental reason to not like the stock, but it adds to the list of growing concerns. He added the stock looks to be breaking down and next week's earnings report should be interesting. 

Nathan said he expects the stock to move back up towards the 50-day moving average near $180 ahead of earnings.

Jon Hilsenrath, chief economic correspondent at the Wall Street Journal, was a guest on the show and said he doesn't expect the Fed to announce when it will begin tapering its asset purchasing program in Wednesday's statement. He added that the economy hasn't lived up to the Fed's expectations and the market largely expects tapering to begin sometime in the first quarter of 2014.

Adami said he would be taking profits in Zimmer Holdings (ZMH) and Stryker (SYK). 

For their final trades, Brown is a buyer of 3D Systems and Nathan said to buy Cisco (CSCO). Adami is buying Microchip Technology (MCHP) and Najarian is buying Manulife Financial (MFC). 

-- Written by Bret Kenwell in Petoskey, Mich.

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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.