Recession, We Hardly Knew Ya

Wednesday, 2 Apr 2008 | 6:17 PM ET

Does Wednesday’s surprisingly strong ADP jobs report signal that the economy is already rebounding?

Tomorrow's Trades: Market Rebound
The market seems to have been in a recession, but is now in the process of climbing out. The Fast Money traders share their post-recession trades.

The jobs report showed that U.S. payrolls unexpectedly increased in march, adding 8,000 jobs last month after losing 18,000 in February. Jon Najarian is looking at early-cycle names that have been performing strongly as indicators of what, possibly, is going to lead us out of recession.

He found that sectors such as trucking, soft drinks, rails, autos, aerospace and alcohol each show an average of double-digit growth in the year following a recession. Most of those sectors can wait, he said. There’s no need to jump right in. But aerospace is different. Najarian thinks investors can afford to be early in aerospace stocks like Northrop Grumman and Lockheed Martin . NOC is his best pick for the next 12 to 18 months.

While “sin stocks” like those in the alcohol and gambling industries tend to outperform in a recession, they usually scale back right when the economy rebounds, Najarian noted.

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Trader disclosure: On Apr.2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (YHOO), (INTC) Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (CROX),(MSFT), (NYX), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF); Pete Najarian Owns (AAPL), (CSCO), (ETFC), (MU), (NOK), (TSO) , (YHOO), (XLF); Pete Najarian Owns (AA) Calls, (BSC) Calls, (COP) Calls, (MSFT) Calls, (LEH) Puts, (MER) Puts, (OIH) Puts; Pete Najarian Has A Long Diagonal Time Spread In (RIMM)

Jon Najarian Owns (LSTR),(KO), (CSX), (NOC)

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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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