'Fast Money' Recap: The Economy and the Market

NEW YORK (TheStreet) -- The broader markets finally endured a steep decline, with the S&P 500 falling 1.25%. 

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said the nonfarm payrolls report was truly bad and the Federal Reserve willmost likely continue with its asset tapering plans. 

Tim Seymour, managing partner of Triogem Asset Management, said the employment trend still looks good and the economy hasn't dramatically changed. 

Guy Adami, managing director of stockmonster.com, said equities' move lower mostly appears technical. He added the S&P 500 seems likely to work its way down to 1,750 or so. From there it could continue lower or bounce back to new highs. 

Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said the market is not overbought and was dragged lower by the retail sector. 

Kelly suggested the financial sector will have to report a really strong earnings season to continue higher because it has done so well over the past year. He added that today's selloff in the market is justified. 

For content plays, Seymour continues to like Disney (DIS). 

Charter Communications (CHTR) is interested in bidding for Time Warner Cable (TWC). Kelly suggested there is a "floor" of support near $130 and a target bid price near $160. He was a buyer. 

Brown pointed out the market is in a "good state" as there is competitive buying occurring. Adami added that Blackstone (BX) is a beneficiary of deals like this. He's a buyer of BX. 

Guest Adam Parker, chief U.S. equity strategist and managing director at Morgan Stanley (MS), said the earnings season should be fine. He said there hasn't been a lot of negative pre-releases and the off-season earnings reports weren't bad. He advised investors to calm down because the market is barely off its highs. The risk could be if the Fed continues to taper and the U.S. hits an economic "soft patch" in the spring, he said. 

The group revealed their top earnings trades: 

Seymour is a buyer of Cummins (CMI), which should benefit from higher margins on its diesel and natural gas truck engines. 

Kelly is a seller of Bank of Montreal (BMO), due to the struggling economy. 

Brown likes JPMorgan Chase (JPM) ahead of its earnings report Tuesday. He said the bank has beat EPS estimates for eight consecutive quarters by an average of 14%. 

Adami is negative on International Business Machine (IBM) ahead of the quarter. He reminded investors that IBM reported some terrible quarters in 2013. 

Google (GOOG) announced it will buy Nest Labs for $3.2 billion. Seymour loves the deal, saying Google is in "so many fabulous businesses." 

SodaStream (SODA) plunged 26% on Monday on lower-than-expected guidance. Seymour is not a buyer. 

Brandan Ahern, managing director of KraneShares, was a guest on the show. In discussing the KraneShares CSI China Internet ETF (KWEB) he said it is the only pure play on Chinese Internet and e-commerce stocks. Online retail sales continue to rapidly rise in the nation, due to "urbanization," he said. He said Alibaba did nearly $6 billion in sales on "Singles Day," (Nov. 11). He expects it to IPO in the second quarter of 2014. 

Sales of Ford (F) in China were up 50% in 2013. Kelly said the best way to play the trend is by being long gasoline.

Brown said Target (TGT) "will be fine" regarding its hacking problem. Seymour said the company's fundamentals are "very challenged" but the stock has long-term support near $61. 

Dennis Gartman, editor and publisher of The Gartman Letter, said the United States Natural Gas ETF (UNG) is too costly to own and suggested closed-end natural gas funds or natural gas futures. He added that natural gas should go higher because of colder temperatures. He doesn't see refiners doing as well in 2014 as they did in 2013 and he was recently a buyer of gold and seller of crude oil. 

Adami likes the long gold trade. He suggested that if airline stocks get hit, investors should buy the pullback. 

BlackBerry (BBRY) was the first stock on the show's "Pops & Drops" segment. Brown said there doesn't appear to be a lot of upside from current levels. 

Hain Celestial Group (HAIN) was up 1%. Seymour praised the company, saying it continues to rapidly growth while its competitors are struggling to grow. 

Juniper Networks (JNPR) jumped 7% and Adami said not to chase the stock higher. Instead, he suggested buying Cisco Systems (CSCO). 

Twitter (TWTR) was up 1% and Kelly said he is not a buyer until it declines to $50. Kelly also is not a buyer of Intercept Pharmaceuticals (ICPT), because of the volatility in the stock. 

Lonnie Moulder, co-founder and CEO of Tesaro (TSRO), was a guest on the show. Although down 28% this month, the stock is still up 60% in the past year. Its drug, Rolapitant, eases the effects of chemotherapy. Of the three phase 3 trials, two that have been completed have met the primary end points. Moulder said he hopes to see the drug approved in 2015. 

Adami said the company has no debt and a solid balance. For investors who want to be involved in the name, he suggested they do it from the long side. 

Adami said VF Corp. (VFC) is not overly valued but can likely be bought at a cheaper price. He still likes the stock near current levels. 

For their final trades, Brown is a buyer of F and Kelly is a seller of gold. Seymour is buying Yum! Brands (YUM) and Adami said to buy the iShares 20+ Year Treasury Bond ETF (TLT).

-- 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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