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‘Still Looking for Slowdown’: Meyer

Better-than-expected retail sales numbers suggest that tailwinds from consumer confidence are getting stronger, Michelle Meyer of Bank of America Merrill Lynch Global Research said Wednesday.

Retail sales increased 1.1 percent in February, according to the U.S. Commerce Department. Economists in a Reuters poll expected an increase of 0.5 percent.

On CNBC's "Fast Money," Meyer said the report was unexpected.

(Read More: Retail 'Something Spectacular': Jon Najarian)

"We were looking for a weak report, and we were surprised by it," she said.

" I think to me it tells us a bit more fundamental about the consumer, which is the tailwinds are maybe a little stronger than we had thought, which is healthier labor income because job growth has done better, wealth appreciation, which is helping to boost consumer confidence."

Still, headwinds from the sequestration could factor in, Meyer added.

"The consumer's still in a challenging place, but they're receiving some cushion from the labor market.

So we still think that second-quarter growth is going to be weaker. We're still looking for that slowdown. We think that, yes, there's more momentum," she said. "But we're not completely discounting these fiscal cuts."

Trader disclosure: On March 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long NOK; Tim Seymour is long UA; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long BTU; Guy Adami is long NUE; Jon Najarian is long JPM; Jon Najarian is long GT; Jon Najarian is long BX; Jon Najarian is long FIG; Jon Najarian is long KKR; Jon Najarian is long TJX; Jon Najarian is long SLV; Jon Najarian is long ATVI; Brian Kelly is long S&P FUTURES; Brian Kelly is long GLD FUTURES; Brian Kelly is long SILVER FUTURES; Brian Kelly is long T-NOTES; Brian Kelly is long EURO FUTURES; Brian Kelly is short Copper; Brian Kelly is short Mexico; Brian Kelly is short Swiss Franc;

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Oppenheimer & Co. Inc. makes a market in the securities of AAPL.

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