'Fast Money' Recap: Rangebound Treasury Yields

NEW YORK (TheStreet) -- After selling off early in Thursday's session, the S&P 500 regained most of its losses, only closing lower by 0.12%.

On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said the Federal Reserve wants to see wage inflation increase before making any dramatic decisions. He says 10-year Treasury yields are rangebound between 2.5% and 2.9%. 

Guy Adami, managing director of stockmonster.com, said Treasury yields look poised to head lower. Despite the rally in bonds, equities continue trading to the upside, he added. 

Steve Grasso, director of institutional sales at Stuart Frankel, said some of the price action looks odd, but that's likely because of the portfolio rebalancing that comes at the end of each quarter, which is quickly approaching. 

Nike (NKE) beat revenue and earnings estimates. Corinna Freedman, an analyst at Wedbush Securitiessaid it's good the company is focusing on growing its digital business considering revenue grew 40% year-over-year for that segment. 

Freedman added the digital segment also improves the company's margins. Selling, General and Administrative (SG&A) expenses increased significantly in the quarter, something she attributed to marketing for the World Cup. It should pay off, though, as the U.S. team advanced to the next round. Women's apparel was much stronger than expected, she concluded. 

Karen Finerman, president of Metropolitan Capital Advisors, said she is long Foot Locker (FL), which has drastically outperformed Nike since the start of 2014 and has a lower valuation. 

Seymour is long Nike, saying the company has solid earnings growth and improving operating margins. He added that China will be the "make or break" market for Nike in 2015, but admitted that the stock has a lot of resistance near $80. 

Adami also pointed out the resistance at $80 for Nike. If the stock can break through that level and find support near $80, it will likely trade within a new, higher range, he said. 

Shares of Twitter (TWTR) jumped 5% on Thursday. Mark Mahaney, managing director and lead Internet analyst at RBC Capital Markets, has a buy rating on shares of Twitter with a $60 price target. 

Mahaney said Twitter should benefit from the global audience tuning into the World Cup. He also said that sentiment among investors had gotten really bad for Twitter, meaning any good news can help lift it. User growth will improve by the end of the year, he argued, but monthly active users need to reaccelerate to get investors excited again. His top three picks are Facebook (FB), Priceline (PCLN) and Pandora (P). 

Adami said Facebook looks poised to go to $75 ahead of its scheduled earnings report in July. 

Grasso said Twitter is running into resistance near $42 and $44. He suggested that investors who are not long yet, wait for the stock to break over those levels before getting long. 

Seymour suggested that Facebook has more opportunities to monetize than Twitter does. 

Dupont (DD) cut second-quarter and full-year guidance. Seymour said this is "concerning" and investors should have a closer inspection of the report. 

GoPro (GPRO) jumped 30% in its first day of public trading. Michael Pachter, an analyst at Wedbush Securities, was a guest on the show. With roughly one-third of the company's revenue coming during the holiday season, he expects the next two holiday seasons to be extremely strong for GoPro. He added that it has "immense" potential and first mover advantage over its competition. It has created a strong brand, he concluded. 

Grasso and Seymour were not buyers of GoPro, while Adami liked the company. Finerman was on the fence about buying the stock. 

Seymour called Barclays BCS a "no touch" at current levels. 

Bruce Aust, executive vice president and head of global listings at Nasdaq OMX Group (NDAQ), was a guest on the show. Regarding Alibaba choosing the NYSE for its IPO, he said it's fine because the Nasdaq still has GoPro, JD (JD) and Weibo (WB) to show for this year's other big initial public offerings. It's been a "great" year, he added, saying Nasdaq will launch its 100th IPO of the year on Friday. The company has won 62% of its IPO bids this year. 

Grasso said the Facebook debacle really hurt Nasdaq's reputation and is likely one of the key reasons Alibaba chose to go public with the NYSE. Seymour said it's not "devastating" news that Alibaba chose the NYSE, and argued that Nasdaq OMX Group continues to grow its earnings. 

Adami said he would rather be long NDAQ, than short. He called it a long-term hold. 

Bed Bath & Beyond (BBBY) fell 7% and was the first stock on the show's "Pops & Drops" segment. Grasso said the stock has to hold the $54 level. It's "extremely bearish" if it falls below that. 

Alcoa (AA) jumped 3%. Seymour said the company is increasing margins and investors should stay long. 

Elizabeth Arden (RDEN) plunged 17%. Finerman said she "wouldn't touch it." 

Iron Mountain (IRM) climbed 20%. Adami said investors can stay long as the stock appears to have upside to $40.

Dr. Emil Kakkis, founder and CEO of Ultragenyx Pharmaceutical (RARE), was a guest on the show. He said investors expected positive results from its rare bone disease treatment, in which 100% of the patients experienced positive results. He said the treatment will begin Phase II testing for children -- the treatment can be aimed at both kids and adults.

Analysts suggests that this life-changing drug could cost as much as $100,000, but Kakkis said people with rare diseases need treatments and it would be unfair to not develop the treatment because of the price. He added that a price has not been determined for the treatment.

Adami said RARE is too volatile for him to trade. Grasso said investors should avoid hospital stocks at current levels. 

Finerman agreed, saying she is a buyer Wellpoint (WLP) and Molina Healthcare (MOH) instead. 

Adami said investors should buy Tenet Healthcare (THC) with "both hands" if it pulls back to $40. 

When asked if Yingli Green Energy Holding (YGE) is a buy, sell or hold, Seymour said hold. 

Finerman said she likes Target (TGT), but doesn't want to buy it until she knows who the new CEO will be. 

General Motors (GM) announced that it recalling 40,500 Chevrolet Cruze models. Finerman said she is long. Seymour said he is also long and the stock is likely to remain rangebound. 

Adami said shares of GM look okay as the company continues to shake off negative headlines. Grasso questioned why investors would take the risk of owning shares of GM at current levels.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

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