S&P 500 Rises For A Second Day
S&P 500 RISES A SECOND DAY
Stocks rose for a second day on Wednesday after JP Morgan Chase said the bank was profitable in January and February, echoing comments by Citigroup a day earlier.
CEO Jamie Dimon's comments to CNBC reversed a broad decline in the financials with the SPDR KBW Bank closing in positive territory. Dimon "calmed the markets down. He was the voice of reason," says Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets.
Strategy Session with the Fast Money Traders
I thought it was a good day, says Guy Adami. The fact that we didn’t sell-off after yesterday’s rally is a good thing. But we still need to get over 741 in the S&P .
I thought the activity in the financials was phenomenal, adds Pete Najarian.
Imagine if we see big banks being profitable for a quarter, muses Karen Finerman. But there’s a long time between now and earnings.
Some of the data that’s coming out is not eroding at the pace that it had been, adds Zach karabell. That leads me to wonder, is it a sign of stabilization or a pause before the next leg down?
If you’re looking for trades, I think this landscape should set up well for both Morgan Stanley and Goldman Sachs , adds Guy Adami. And I told you about PNC Bank on Tuesday but it’s now climbed so much that I wouldn't chase it.
The April calls in Capital One suggests to me this stock could climb higher, adds Pete Najarian.
Also the mark-to-market hearings on Thursday could provide a tailwind for banks, suggests Zach Karabell.
TECH BEATS MARKET AGAIN
A broker's recommendation that investors buy shares of Hewlett-Packard pushed stocks of computer makers higher and sent the Nasdaq up nearly 1 percent.
Meanwhile, shares of Apple jumped after the firm introduced a smaller version of its popular iPod Shuffle music player on Wednesday with a new feature that enables the user to see what song is playing.
I like Hewlett Packard at current levels, says Guy Adami. The P/E is attractive to me.
Google sets up well too, adds Pete Najarian. And take a look at Amazon, they continue to work day after day. And I’m still bullish on Nokia for their smartphones
On the tech front, I’m still looking at Microsoft , adds Karen Finerman. I'm thinking that there should be a lot more room on the upside.
MORTGAGE REFINANCINGS SURGE
U.S. mortgage applications rose for the first time in three weeks as near record low interest rates spurred demand for home refinancing and purchase loans, data from an industry group showed on Wednesday
Home improvement chain Lowe’s moved to the upside on this news, explains Melissa Lee who’s filling in for Dylan Ratigan.
I think you’ve got to be careful making that kind of jump from mortgage applications to let’s spend a lot of money on a new kitchen, muses Zach Karabell.
It could be a sign that things are getting, at least a little bit better, adds Guy Adami.
OIL TUMBLES 7.4%
Oil fell more than 7 percent to $42 per barrel on Wednesday on further signs of weak global demand and rising inventories. As a result, Exxon was one of the heaviest weights on the Dow, Wednesday.
But don’t expect prices at the pump to tumble anytime soon. Gasoline demand rose further as lower prices encouraged more driving. "It looks like there's a genuine rebound in gasoline demand against a backdrop of extremely weak demand overall," says Antoine Halff, First Vice President of Research at Newedge Group.
If you’re bullish on oil Wednesday’s action is probably positive, says Guy Adami. I think we see crude at $50 before $40.
To play this space I’d go to the engineering stocks, says Pete Najarian. My favorite name is Fluor which I think has a lot more upside.
Other plays include Transocean and National-Oilwell Varco , adds Zach Karabell. Both should be on the receiving end of revenue.
I like McDermott, adds Guy Adami.
BATTLE THE BEAR: GOLD TRADE BACK ON?
Gold bounced above $900 an ounce on Wednesday as bargain hunters entered the market.
Meanwhile the CEO of Barrick Gold says in the long-term the yellow metal should move higher, largely driven by inflation concerns stemming from the massive economic stimulus plans around the world.
We flagged the double top, reminds Guy Adami. I think gold is interesting but I’m not sold on the bounce. If you’ve been short and making money I’d take some off the table.
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Trader disclosure: On Mar. 11th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (GDX), (MSFT); Najarian Owns (COF) Call Spread, (FCX) Call Spread, (GS) Call Spread, (PCU) Call Spread, (X) Call Spread, (XHB) Call Spread, (GLD) Put Spread; Najarian Owns (MS) & (MS) Calls; Karabell Owns (AAPL), (BHP), (FCX), (FXI), (GOOG), (GLD), (GE), (JPM); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Own (RIG); Finerman Owns (WFC) Preferred; Finerman's Firm Is Short (BBT), (IYR), (IJR), (IWM), (MDY), (SPY), (USO)
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