'Fast Money' Recap: Global Uncertainty Can Be Profitable at Home

NEW YORK (TheStreet) -- The S&P 500  closed down 0.25% Monday but was up from its session low. 

On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said that despite geopolitical issues such as the unrest in Hong Kong, certain segments of the U.S. equity market remain strong including semiconductor companies, financials and large-cap technology. 

Tim Seymour, managing partner of Triogem Asset Management, said the U.S. dollar is likely to remain strong and will weigh on emerging markets stocks. He called the selloff in Brazilian equities "overdone." 

Dan Nathan, co-founder and editor of riskreversal.com, said the volatility in the U.S. stock market is likely to continue. U.S. companies that have exposure to South America will suffer from currency swings. 

Guy Adami, managing director of stockmonster.com, said today's price action in the S&P 500 and Russell 2000 was good for investors who remain bullish. He says the iShares Russell 2000 ETF (IWM) still seems likely to decline to $108 and bonds seem poised to rally.

Dennis Gartman, editor and publisher of The Gartman Letter, said the unrest in Hong Kong and other parts of the world will drive interest in safe-haven plays such as the U.S. dollar and short-term U.S. Treasury bills. He added that he likes Indian stocks over Brazilian stocks and prefers exposure in Singapore over China.

Adami said investors have a buying opportunity in Alcoa (AA) and U.S. Steel (X) after the recent pullback. 

Nathan is a seller of PepsiCo (PEP) , which trades at 19 times next year's earnings, which seems expensive. 

Ford (F) issued lowered-than-expected guidance for fiscal 2014 as well as a larger-than-expected loss in Europe for 2015. Seymour said the stock looks interesting but September auto sales results, which will be released later this week, could put pressure on the stock and present a better buying opportunity. 

Nathan said investors should wait to see if Ford holds this year's lows before getting long the stock. Adami said investors should "wait and see" to see how Ford trades over the next few sessions. 

Matt Harrigan, securities analyst at Wunderlich Securities, said that over the next two to three years there could be increased interest in content companies such as Lions Gate Entertainment (LGF) and Dreamworks Animation (DWA) . They could be outright takeover targets or possibly draw the interest of a large strategic investor. Lions Gate has an impressive portfolio of content, he said. While Dreamworks does have shaky fundamentals, its content potential makes it hard to be too negative.

Adami said Lions Gate Entertainment seems likely to reach its prior highs near $38. Seymour said that if Softbank does acquire Dreamworks Animation, it only reaffirms the valuations for Time Warner (TWX) and Disney (DIS) . 

Nathan said GoPro's (GPRO) $11.5 billion market cap gives the stock a valuation that is too expensive. The stock seems like it will hit $100, though, he said. Seymour agreed, calling GoPro overvalued. 

Adami said investors can stay long McDonald's (MCD) . 

Gerard Cassidy, managing director of equity research at RBC Capital Markets, said the banks have started to show decent year-over-year loan growth of around 7%. He likes Citigroup (C) , Bank of America (BAC) , Morgan Stanley (MS) and SunTrust Banks (STI) . 

Seymour said he likes Citigroup because of its low valuation. Najarian likes Citigroup, too, as well as Bank of America. 

SunEdison (SUNE) climbed 2% and was the first stock on the show's "Pops & Drops" segment. Seymour said the company's spinoff continues to add value for investors. 

Intel (INTC) popped 2%. Najarian said PCs, mobile and big data continue to do well and the stock is headed higher. 

Jack In The Box (JACK) jumped 3%. Adami said the stock is poised to move higher. 

InvenSense (INVN) dropped 4%. Nathan said investors should wait for a larger drop in the stock before getting long.

Chad Bartley, an analyst at Pacific Crest, has a buy rating on Amazon (AMZN) with a $460 price target. He said the company is a "sleeping giant" when it comes to its potential for working in digital advertising, given the amount of customer data it has. It could be a multi-billion-dollar business for Amazon and could potentially add $2.60 in earnings per share in 2018. The digital ad business has high margins, too.

Adami said this news doesn't make him bullish on Amazon. He said the stock seems likely to trade down to $285. If it holds, investors should buy the stock there. 

Nathan said investors in Amazon would be pretty happy to see the company's gains from digital advertising passed on to the bottom line, although that seems unlikely given Amazon's history of spending. 

Nathan took a look at Alibaba's (BABA) first day of options trading. A trade that struck him involved someone selling $95 calls and $85 puts in November, suggesting the stock seems likely to remain rangebound between $77.70 and $102.30 through November expiration. 

Seymour likes Alibaba on the long side, calling it a value play based on next year's earnings. He reminded investors that China's Singles Day, which is on Nov, 11, is roughly twice the size of Black Friday and falls within that November expiration.

For their final trades, Seymour is taking profits in ICICI Bank (IBN) , Nathan is selling PepsiCo and Adami is a buyer of Lions Gate Entertainment.


-- 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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