'Fast Money' Recap: Trading Dow 13,000
NEW YORK ( TheStreet) -- The markets pulled back Monday after the Dow Jones Industrial Average briefly touched 13,000 before retreating.
The Dow rose 15.82, or 0.12%, to 12,965.69. The S&P gained 1.03, or 0.08%, to 1362.26. The Nasdaq retreated 3.21, or 0.11%, to 2948.57.
Melissa Lee, the moderator of CNBC's "Fast Money" TV show, turned the trading panel's attention to Dell(DELL) , which was down 4.67% after an earnings miss.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV
Stephen Weiss said Dell was hurt by western Europe and a slowdown in federal government spending. He said the stock trades like a commodity business and that he would rather be in newer tech names.
But Guy Adami said he believes Dell's story remains intact and its valuation compelling. He said the stock looks interesting at $16.75 and $17.
Joe Terranova also said Dell looks interesting at $16.25, its 50-day moving average. He said the company should use some of its plentiful cash to make an acquisition, preferably in software.
CNBC reporter Jon Fortt, who was listening to the Dell conference call, said the company took a hit from the floods in Thailand, which prevented it from getting the mix of drives it needed, as well as price competition in the public sector and lower federal government spending. On the other hand, Dell reported gains in services and IP storage.
Does the Dow 13,000 carry much significance? Weiss said the milestone is an important psychological level for retail investors that could signal the flow of money into stocks and stock funds. He said it's certainly more interesting than investing in a 2% 10-year bond.
Guy Adami detected a double-top pattern emerging in the S&P, which is pushing toward 1370, and certain stocks that sets up for a short position in both.
Jeff Weiss, chief technical analyst for Tejas Securities Group, said he liked the look of this year's rally and sees it heading toward 1425. He noted that 1,000 issues or more have advanced in 34 out of the past 35 sessions.
Jim O'Shaughnessy, founder of O'Shaughnessy Asset management, also had an upbeat view on stocks. He said the last time Dow was at 13,000, investors were paying 17 times earnings for stocks compared to 14 times earnings now.