'Fast Money' Recap: A Crude Issue

NEW YORK (TheStreet) -- The broader market closed at session highs as WTI crude oil prices hit a 4-1/2 month low. 

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said it seems to be a supply issue for crude oil. He is still short Pioneer Natural Resources (PXD) and says weakening crude prices could be bad for Texas banks. 

Tim Seymour, managing partner at Triogem Asset Management, said airlines should benefit from lower fuel prices and he likes natural gas plays such as Sempra Energy (SRE) and Cummins (CMI). 

Guy Adami, managing director of stockmonster.com, said Exxon Mobil (XOM), which recently formed a bullish double-bottom, should benefit from lower crude oil prices, as will  JetBlue Airways (JBLU). 

Karen Finerman, president of Metropolitan Capital Advisors, said lower energy prices should benefit retailers such as Wal-Mart (WMT). 

Dennis Gartman, publisher of The Gartman Letter, was a guest on the show and said WTI crude oil could work its way down to $85 per barrel. He added the drop is from oversupply and it is not a reason to worry about the overall economy. He concluded that lower oil prices could hurt solar- and wind-powered energy. 

Tim Seymour said he would not worry about solar stocks as there is no longer a glut of supply and many of the companies have strengthened their balance sheets. 

Kelly is concerned about Marathon Oil's (MRO) exposure to Libya, but for now the stock looks good for more upside action. 

BlackBerry (BBRY) plunged 16% on news its potential buyer is backing out and CEO Thorsten Heins would be stepping down. Adami said there's no reason to buy the stock unless it's solely for a bounce play. Finerman and Kelly concurred. 

Seymour said he would be a buyer of Nokia (NOK) because of its profitability and strong software business.

Goldman Sachs issued a bullish report on steel stocks but Kelly said he would be taking profits instead. Adami added that investors should take profits in U.S. Steel (X) because it could trade back down to $23.

Realogy Holdings (RLGY) was the first stock on the show's "Pops & Drops" segment and Finerman said that rising mortgage rates didn't slow down sales as many investors had expected. 

J.C. Penney (JCP) jumped 3% and Kelly said investors should avoid the stock and take profits if they have any. 

Agrium (AGU) popped 4%. Seymour said the stock and many of its peers are oversold and can be played on the long side. 

TripAdvisor (TRIP) was up 6%. Adami said it has been good but his top pick is Priceline.com (PCLN). He added that traders should not consider shorting this industry.

Tesla Motors (TSLA) was the featured company on the show's "Street Fight" segment. Adami defended the stock, saying it grew sales roughly 1,000% year over year and should double its vehicle production in 2014. He added Tesla has international expansion and the Model X, an SUV, should help its product diversification. 

Seymour disagreed, arguing the valuation is too high and the company is overhyped. He added that 2015 revenue targets are unreachable. Although he would not be a buyer of the stock, he called it too risky to short as well. 

Kelly said he would be a seller because the stock seems to be breaking down, which is never good for a momentum stock. 

Jeremy Seigel, professor of finance at Wharton, was a guest on the show who said he is sticking with his 16,000 to 17,000 year-end target for the Dow Jones Industrial Average. He added that 17,000 will likely be surpassed sometime in 2014. With tapering off the table, there are no direct market threats. Despite the slow growth, earnings have been doing well, he concluded. 

Hain Celestial Group (HAIN) reports earnings on Tuesday. Despite really liking the management, Finerman said she cannot buy the stock after its big move higher in 2013. 

Zillow (Z) also reports earnings on Tuesday and Adami said investors could stay long with a stop-loss at $80.  

William Lauder, executive chairman of Estee Lauder (EL), was a guest on the show and said his company is focusing on fragrances this year. He added that its growth opportunities are in emerging markets, particularly China, e-commerce, and its mens line. 

Finerman said it's unlikely Jos. A. Bank Clothiers (JOSB) and Men's Wearhouse (MW) will come to an acquisition agreement by Nov. 14, so JOSB should use its cash to buy back shares. 

Adami said investors should avoid Green Mountain Coffee Roasters (GMCR) until after it reports later this month. 

Finerman said that while she likes J.P. Morgan (JPM), Citigroup (C) appears to have more upside potential. 

Kelly said shares of Vale SA (VALE) are likely to remain stagnant, but suggested investors could take a small, speculative, long position in the stock. 

Seymour said he wants to be long the iShares MSCI Emerging Market ETF (EEM), which needs to break through $44.50 to go significantly higher. 

For their final trades, Finerman is buying Foot Locker (FL) and Kelly is shorting PXD. Adami said to buy KAR Auction Services (KAR) and Seymour is buying Delta Air Lines (DAL). 

-- 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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