'Fast Money' Recap: Awaiting the Jobs Report

NEW YORK (TheStreet) -- The broader market traded lower for the fifth straight session in a data-loaded week that ends with the nonfarm payrolls report (NFP) on Friday. 

Guy Adami, managing director of stockmonster.com, still thinks the S&P 500 will decline to 1,760. He said today's GDP number looked good but when the report was studied, nearly half of it was from inventory builds, something that could come back to haunt the economy. 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, said a lot of investors are betting on a decline in bonds, meaning the Street is anticipating a strong NFP result. 

Stuart Frankel & Company's Steve Grasso said a good, but not great, NFP result would be perfect, showing that the economy is recovering but not a pace that warrants tapering by the Federal Reserve. 

Dan Nathan, co-founder and editor of riskreversal.com, said the NFP whisper number is getting as high as 250,000, which could send the S&P 500 down 20 points if it were true. He admitted that the dip would likely be bought, however. 

Turning to individual stocks, Nathan said he would be a buyer of Apple (AAPL) on a pullback to the $550 level, because it still has upcoming catalysts and a likely deal with China Mobile Limited (CHL). Adami concurred. 

Najarian had a slightly longer-term view and suggested that in three months the stock will be closer to $625 than $550. 

Adami was a buyer of Celgene (CELG) because of its strong business, margins and balance sheet. 

Grasso said he didn't like Walter Energy (WLT) or the coal sector, but Adami suggested investors could own it as a potential M&A candidate. 

Najarian said he liked Netflix (NFLX), but not at its current levels. He suggested investors wait for a pullback to the $320 level. 


Nathan said the risk-to-reward in NFLX wasn't good, with 10% upside versus 20% downside. 

Michael Burns, vice chairman of Lions Gate Entertainment (LGF), was a guest on the show who said he is optimistic on Divergent, a successful book series that will eventually be turned into a motion picture. With the additional free-cash flow, the company is exploring a share buyback or possible dividend. 

Lyndon Rive, cofounder and CEO of SolarCity (SCTY), was a guest on the show and backed the safety of Tesla Motors' (TSLA) batteries. His company is working with Tesla. He added that tax credits aren't just prevalent in the solar industry but the entire energy sector, and acknowledged his company would struggle without them. He concluded that fossil fuel costs continue to climb while solar costs continue to drop. The solar industry also has very little penetration, meaning it has much more potential, he said. 

Grasso said investors could buy the stock and use $49.45 as their stop-loss.

Grasso also suggested investors could continue to own Abercrombie & Fitch (ANF) with support at $30. 

For their final trades, Adami is buying Nuance Communications (NUAN) and Nathan said to buy Wal-Mart (WMT). Najarian is buying Broadcom (BRCM) and Grasso likes Yahoo! (YHOO) on the long side.

-- 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.

If you liked this article you might like

What to Watch From Samsung, Google and Others at the Mobile World Congress

What to Watch From Samsung, Google and Others at the Mobile World Congress

Warren Buffett Is Sticking to His Strengths By Selling IBM and Buying More Apple

Warren Buffett Is Sticking to His Strengths By Selling IBM and Buying More Apple

Buffett Letter to Shareholders May Detail How He Intends to Spend $109 Billion

Buffett Letter to Shareholders May Detail How He Intends to Spend $109 Billion

General Mills Buying a Natural Pet Food Company for $8 Billion Makes Sense

General Mills Buying a Natural Pet Food Company for $8 Billion Makes Sense

Apple's HomePod Is No Amazon Echo-Killer, But It Doesn't Need to Be

Apple's HomePod Is No Amazon Echo-Killer, But It Doesn't Need to Be