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Dow Back Above 10,000

For the first time in two weeks, the Dow closed above the psychologically important 10,000 level after strong earnings from a tech bellwether and positive economic data buoyed investors sentiment.

Cisco , a maker of routers, switches and other networking equipment, lit a fire under technology shares after the company reported revenue rose more than expected, and CEO John Chambers made bullish comments about the firm’s prospects going forward.

And on the economic front, U.S. non-farm productivity rose more than expected in the third quarter as companies squeezed more output from a smaller pool of labor.

Now all eyes are on the employment number out Friday before the bell. How should you put money to work?


Strategy Session with the Fast Money traders

I would not be all in – ahead of the employment numbers, counsels Steve Grasso. I feel like we’re on the edge of something and I’m not sure it’s something good. I didn’t like the light volumes in this rally.

Thursday’s rally caught me by surprise, admits Guy Adami. I thought we were going lower. But it’s very hard for me to feel bullish right now.

I thought the market went out strong, counters Joe Terranova. I think S&P 1100 is much more likely than S&P 990. I expect to start seeing money mangers drive the market higher on a chase for performance through the end of the year.

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TOPPING THE TAPE: CONSUMER SHARES

Consumer shares closed higher ahead of Friday’s all-important jobs reports. The move comes after better than expected same-store sales results buoyed investor sentiment.

Over all, the industry reported a 1.8 percent increase at stores open at least a year, according to Thomson Reuters. Retailers have not reported a sales increase that large since June 2008.

What’s the retail trade?

I like the Gap , reminds Guy Adami. Inventories are down and the stock is trading at attractive valuations. I’m a buyer.

In the space, I’d look at Nordstrom, says Joe Terranova. It seems to me affluent consumers are spending more than people think.

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STARBUCKS SURGING AFTER HOURS

Shares of Starbucks surged as much as 5% in extended trade after the java giant reported a quarterly profit that outstripped analysts' forecasts, and provided a bright earnings outlook.

Starbucks also says more customers visited its coffee shops in the fourth quarter this year than last year, and spent more money when they did.

What’s the trade?

I don’t think the valuations make sense in this name, says Guy Adami. If you want to play it for a short squeeze that’s fine but I wouldn’t go long, long-term.

>For complete coverage of Starbucks earnings click here

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TOPPING THE TAPE: CISCO LEADS TECH

The tech heavy Nasdaq traded higher on Thursday after Cisco posted a stronger-than-expected profit and said customers are buying more network equipment again after cutting back for the past year.

Cisco is the world's top vendor of routers, switches and other network equipment used by global businesses, including telephone companies, as well as governments.

Many of those customers had put off large investment over the past year as tighter credit and an uncertain economic outlook made it hard for them to invest in big ticket items like high-end routers. Cisco's CRS-1 router, for example, costs around $500,000 to $1 million each.

But CEO John Chambers said many were beginning to invest again to cope with growing Internet traffic, which Cisco has forecast to grow fivefold from 2008

What’s the tech trade?

As far as I’m concerned the tech play right now is Hewlett-Packard ahead of earnings, counsels Guy Adami.

I’d look at Google and Apple, counsels Joe Terranova. I’d go long in both names.

I’m watching NVIDIA, adds Pete Najarian. Their earnings report released after hours crushed. I think that’s a name to own.

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TOPPING THE TAPE: TAX CREDIT BOOSTS HOUSING SHARES

It's official. In landslide votes, the extension/expansion of the first time home buyer tax credit passed both houses of Congress and is now on its way to the President's desk for signing tomorrow.

The credit now goes through May 1st, which means you can sign a contract to buy a house through May 1st, as long as you close on the property by June 30th.

It gives up to $8000 for first time buyers (defined as not having owned a home for the past three years) and up to a $6500 credit to move-up buyers who have owned and occupied their current homes for at least five years.

What’s the trade?

I expect the news continues to push housing stocks higher, muses Pete najarian.

I’d play it with Home Depot, adds Guy Adami. I think it’s heading into the next leg higher

I like DR Horton, adds Joe Terranova. I think the tax credit sets up perfectly.

But don’t forget that unemployment is ticking higher, counters Steve Grasso. If you don’t have a job you’re not buying a house.

> For more on these developments click here



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Trader disclosure: On November 5th, 2009, 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); Terranova Owns (GS), (OIH), (CAM), (MA), (JOYG), (RIMM); Najarian Owns (LAZ), Is Short (LAZ) Calls, Owns (LAZ) Puts; Najarian Owns (RIMM) Call Spread; Najarian Owns (SBUX), Is Short (SBUX) Calls; Najarian Owns (UUP) Calls; Najarian Owns (YHOO), (YHOO) Puts; Najarian Owns (ESI) Calls; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (C), (COST), (CSCO), (FAZ), (PFE), (PRST), (WMT), (V)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
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 (XLY)
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 (UA)

For Steve Grasso
Stuart Frankel Corp. And/Or Partners Own (AIZ)
Stuart Frankel Corp. And/Or Partners Own (CMCSK)
Stuart Frankel Corp. And/Or Partners Own (CUBA)
Stuart Frankel Corp. And/Or Partners Own (DVN)
Stuart Frankel Corp. And/Or Partners Own (GERN)
Stuart Frankel Corp. And/Or Partners Own (HSPO)
Stuart Frankel Corp. And/Or Partners Own (NWS.A)
Stuart Frankel Corp. And/Or Partners Own (NXST)
Stuart Frankel Corp. And/Or Partners Own (NYX)
Stuart Frankel Corp. And/Or Partners Own (PDE)
Stuart Frankel Corp. And/Or Partners Own (PRST)
Stuart Frankel Corp. And/Or Partners Own (RDC)
Stuart Frankel Corp. And/Or Partners Own (ROK)
Stuart Frankel Corp. And/Or Partners Own (TLM)
Stuart Frankel Corp. And/Or Partners Own (XRX)
Stuart Frankel Corp. And/Or Partners Own (SDS)
Stuart Frankel Corp. And/Or Partners Are Short (QQQQ)
Stuart Frankel Corp. And/Or Partners Are Short (CL)


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