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Fast Money HomeFast Money Rapid RecapAbout Fast MoneyFast Money BiosFast Money Web ExtraFast Money Disclaimer
Text Size
Jul.22
5:44 PM ET
Wednesday, 22 Jul 2009
Will Rally Get More Gas This Week?

Entry Point

Earlier in the month positive manufacturing data buoyed stocks after the New York Fed's Empire State index for July showed business conditions in the state at their strongest since April 2008.

If signs of economic improvement are fueling gains in the stock market, could we get a little more gas this week after we hear from industrials?

Perhaps --  three of the biggest names in the space report on Thursday; they are Danaher [DHR  Loading...      ()   ], Cooper Industries [CBE  Loading...      ()   ] and 3M [MMM  Loading...      ()   ] . Make no mistake, investors will pour over every word looking for signs that the recovery is in tact -- or weaker than expected. And what's said, implied and inferred could bring in money from the sidelines or send it seeking a safer haven.

What should you be watching for?

As the maker of Scotch tape and Post-it notes, 3M’s fortunes are tied to the consumer markets and according to Frost & Sullivan analyst Dilip Sarangan “they should see some signs of increasing growth in the next few months."

Sarangan believes 3M should have completed their restructuring efforts and also be experiencing a pick up in orders from business customers.

If 3M meets or beats these expectations, it could be overall bullish for the market. And if you're looking for a trade, Deane Dray of FBR tells Fast Money, “I think investors should be in defensive early cycle names and 3M is a prototypical early defensive cycle name.”

Meanwhile over a Danaher, Deutsche Bank analyst Nigel Coe upgraded the company to "Buy" from "Hold" earlier in the month. Although the second quarter "will likely be tougher than expected," Coe sees a "clear path" to earnings growth in 2010 and the potential for a significant increase in profit and revenue from mergers and acquisitions through 2011.”

We'll be watching. And we'll have the play-by-play on Fast Money at 5pm ET.

______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .

Trader disclosure: On July 22nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Owns (MSFT), (PBG), (TYC), (YUM), (NOK), (WMT), (TGT); Finerman's Firm And Finerman Own (BAC) Preferred Shares, Finerman Owns (BAC); Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (USO), (MCO); Seymour Owns (AAPL), (MSFT), (SBUX), (UNG); Grasso Owns (BAC); Terranova Owns (MCD), (QCOM), (AMZN), (AXP), (MSFT), (SUN), (FTO); Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

For Steve Grasso:
Stuart Frankel Clients Own (V), Grasso Owns (V)
Stuart Frankel ClientsOwn (OXY), Grasso Owns (OXY)
Stuart Frankel Clients Own (WMT), Grasso Owns (WMT)
Stuart Frankel Clients Own (GS), Grasso Owns (CSCO)
Stuart Frankel Clients Own (UNH)
Stuart Frankel Clients Own (DD)
Stuart Frankel Clients Own (INTC)
Stuart Frankel Clients Own (JPM)
Stuart Frankel Clients Own (MS)
Stuart Frankel Clients Own (AXP)
Stuart Frankel Clients Own (MHP)

For Joe Terranova:
Virtus Investment Partners Owns More Than 1% Of  (ABD)
Virtus Investment Partners Owns More Than 1% Of  (CBL)
Virtus Investment Partners Owns More Than 1% Of (CAL)
Virtus Investment Partners Owns More Than 1% Of  (CLB)
Virtus Investment Partners Owns More Than 1% Of  (DLR)
Virtus Investment Partners Owns More Than 1% Of  (EXR)
Virtus Investment Partners Owns More Than 1% Of  (IGE)
Virtus Investment Partners Owns More Than 1% Of (MEE)
Virtus Investment Partners Owns More Than 1% Of  (DBC)
Virtus Investment Partners Owns More Than 1% Of  (DBV)
Virtus Investment Partners Owns More Than 1% Of  (DBA)
Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co
Virtus Investment Partners Owns More Than 1% Of  Seagate Tax Refund Rights
Virtus Investment Partners Owns More Than 1% Of  (SKT)
Virtus Investment Partners Owns More Than 1% Of  (TNB)
Virtus Investment Partners Owns More Than 1% Of  (UA)
Virtus Investment Partners Owns More Than 1% Of  (WBMD)

For Deane Dray:
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ROP)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ATU)

© 2009 CNBC

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