'Fast Money' Recap: A Relief to Have Another Rally

NEW YORK (TheStreet) -- The S&P 500 climbed 0.85% as WTI crude oil nearly touched seven-month lows. 

On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said the U.S. stock market wants to move higher and so long as the geopolitic tensions do not rise, the S&P 500 seems likely to break through 2,000. 

Steve Grasso, director of institutional sales at Stuart Frankel, said the markets seem poised to go higher over the short term, but the "high beta" stocks like Twitter (TWTR) need to continue higher for the S&P 500 to breach 2,000. 

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Karen Finerman, president of Metropolitan Capital Advisors, said it's good to see the financial sector rallying. It seems like the path of least resistance is higher for the U.S. equity market. 

Guy Adami, managing director of stockmonster.com, said a slowdown in corporate earnings seems like the only thing can truly derail the market. However, earnings have been good while biotech stocks continue to soar.

Dennis Gartman, editor and publisher of The Gartman Letter, said coal supplies 41% of U.S. electricity and 43% of global electricity. The sector has been beaten up, but Gartman suggested buying a basket of coal stocks. He argued that coal seem poised to move higher; with a basket of stocks, some will do well, some will do really well and some may go bankrupt, but that's what the reason for diversification. 

Najarian said there has been bullish options activity in the December and January expirations for multiple coal stocks. However, he is a buyer of Caterpillar (CAT) , which has been doing well due to construction. However, if the mining business improves, Caterpillar should do really well, he said. 

Finerman said the corporate debt (bonds) for these coal companies are trading at major discounts. She recommended that interested investors do what Gartman suggested, and buy a basket of stocks. 

Grasso said shares of Aeropostale (ARO) are moving higher due to positive management changes and more importantly, a high short interest, which is forcing short-sellers to cover their position. 

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Finerman said investors should "look elsewhere" when deciding whether to buy Aeropostale. She likes shares of Macy's (M) and Urban Outfitters (URBN) more. 

Adami suggested that rallies in Aeropostale have generally presented better opportunities for investors to sell, rather than buy. 

Nik Ramen, co-founder and COO of uSell.com, was a guest on the show. In the company's recent survey about the new Apple (AAPL) iPhone, he said customers are "overwhelmingly" looking for the stronger, scratch- and break-resistant sapphire glass. They also care about battery life over a larger screen. He expects Apple to have a large upgrade cycle. 

Adami said it feels like shares of Apple will continue to move higher. He suggested that investors who are not long, wait for a breakout over $101 before getting long. Najarian continues to see bullish options activity for Apple. 

Grasso said shares of GT Advanced Technologies (GTAT) could rally higher if shares of Apple continue to move higher as well. 

Najarian cited bullish options activity in shares of Steel Dynamics (STLD) , specifically in the November $22 call options. 

Adami said investors can stay long shares of Home Depot (HD) if it rallies following its earnings report, or buy more shares if it pulls back. 

Grasso said the downside in KB Home (KBH) seems limited to $16. He added that comparable sales should be easy to top in the upcoming quarter. 

Najarian said shares of Procter & Gamble (PG) could continue to move higher if the company spins off its underperforming brands and sticks with its best ones.

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Scott Wingo, CEO and chairman for ChannelAdvisor (ECOM) , was a guest on the show. Based on the channel checks and information his company monitors, Amazon (AMZN) , Google (GOOGL) and eBay (EBAY) saw same-store sales for the month of July climb 40%, 40% and 10%, respectively. He attributed eBay's slump to the recent data breach. In regards to his company, he said it is focused on the long-term growth and recently reported record bookings. 

Shares of ChannelAdvisor have struggled in 2014, falling 62% on the year. 

Adami said Yahoo! (YHOO) traded really well on Monday and the company doesn't get enough credit for its core business. As the Alibaba IPO approaches, the stock should continue higher, possibly to $44, a price target that analyst Gene Munster recently targeted, he said. 

Najarian added that Yahoo! should easily be able to climb to $44 heading into the Alibaba IPO. Finerman said she is still long Google and that it is reasonably priced. 

Grasso likes shares of Amazon (AMZN) , which continues to demonstrate incredible revenue growth, considering the size of its market cap.

SeaWorld Entertainment (SEAS) jumped 1% and was the first stock on the show's "Pops & Drops" segment. Najarian said to avoid the stock. 

General Electric (GE) climbed 2%. Adami said the stock should be trading closer to $30, but Honeywell International (HON) is the go-to play in the sector. 

Monster Beverage (MNST) dropped 5%. Finerman said the stock is just pulling back following its huge move higher, but is too expensive for her to buy, based on valuation. 

Family Dollar (FDO) popped 5%. Grasso said the stock is tough to buy at this point, but continues to move higher day after day. 

CNBC's Phil LeBeau was a guest on the show. A recent Massachusetts Institute of Technology survey suggested that up to 50% of global auto sales could be made up of electric vehicles by 2039. For 2014, it is projected that electric vehicle production of 142,500 will be just a fraction of the 85 million vehicles produced globally. He added that autonomous driving technology is here, but "the question is, when do the regulators feel comfortable putting this technology out there?" 

Najarian said Ford (F) continues to be his top auto pick because it continues to gain market share in China. Low implied volatility in the options for Tesla Motors (TSLA) make it easy for investors to hedge their position or be long via options. 

Adami's top auto pick is BorgWarner (BWA) . The stock could be a takeover target if there is consolidation in the industry and the company could outperform over the next three years. 

Read More: 10 Stocks George Soros Is Buying

For their final trades, Najarian is a buyer of Hewlett-Packard (HPQ) and Grasso is buying Apple. Finerman is a buyer of Macy's and Adami is a buyer of Michael Kors (KORS) . 

-- 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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