'Fast Money' Recap: Fleeing to Safety

NEW YORK (TheStreet) -- Equities picked up steam into the close, with the S&P 500 closing higher by 0.37%. However, the index ended the week nearly flat, down 0.03%. 

Dan Nathan, co-founder and editor of riskreversal.com, said investors continue to look for safety trades in large-cap U.S. equities and Treasury bonds. 

Jim Lebenthal, CFO and CIO of Lebenthal & Company, pointed out there won't be much activity next week, with a lack of earnings reports, economic news and no real trend in the broader market. If equities sell off, he considered it a buying opportunity, specifically for stocks in basic materials, old technology and retail. 

Steve Grasso, director of institutional sales at Stuart Frankel, said the S&P 500 could be on its way to the 200-day simple moving average at 1,786.

Karen Finerman, president of Metropolitan Capital Advisors, said she pays more attention to her investments in individual value stocks than to the broader market. She likes banks at current levels. 

Nathan argued that too many companies are only beating earnings estimates due to financial engineering, not sales growth. 

For their "back from the grave" trades, Nathan was a buyer of Cisco Systems (CSCO) and Grasso was a buyer of Twitter (TWTR). Lebenthal was buying International Business Machine (IBM) and Finerman was a buyer of ADT Corp. (ADT). 

Adam Parker, chief U.S. equity strategist at Morgan Stanley, was a guest on the show. He thinks the S&P can reach 2,014, 7% higher from current levels. He also said small-ap stocks are becoming attractive because the companies have more growth and M&A takeover potential. He said the biggest risk to equities is an economic slowdown. 

Finerman likes financial stocks based on a continued U.S. recovery and cheap valuation. She is long Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM). Lebenthal said he is a buyer of JPM. 

Pinterest is being valued at $5 billion. Nathan pointed out the company has no revenue but is still a platform that Twitter or Facebook (FB) should have bought a few years ago. 

General Motors (GM) was hit with a $35 million fine, the maximum the Department of Transportation can levy, over its failure to report its ignition switch defect. Finerman said she's tempted to get back into the stock on the long side. 

Chesapeake Energy (CHK) fell 5% and was the first stock on the show's "Pops & Drops" segment. "I wouldn't be a buyer," Grasso said.

Nordstrom (JWN) popped 15%. Finerman said the company had a good earnings report and called its management "great" at execution. 

Rackspace Hosting (RAX) soared 18%. Nathan said he would not "chase" after the stock at current levels. 

Pepsico (PEP) climbed 1%. Lebenthal said he was not a buyer of the stock. 

For their final trades, Nathan was a buyer of Cisco Systems and Lebenthal was buying Citigroup. Finerman was a buyer of Hertz Global Holdings (HTZ) and Grasso said to buy Aqua America (WTR). 

-- 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.

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