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S&P 500 Closes Above 1200

Monday, 3 May 2010 | 5:19 PM ET

No selling in May today. The Dow jumped by triple digits after Apple said iPads flew off the shelves this weekend and Warren Buffett defended his investment in Goldman Sachs.

Also, economic data pointed to a pick-up in consumer spending and a strength in manufacturing.

Word on the Street
The Fast Money traders take a look at today's top business stories.

How should you ride this bull?

I’m putting together a list of names that I like that were unjustly beat up, says Pete Najarian. Right now, I think Cliffs is attractive on the pullback.

Be careful with miners, counters Brian Kelly. Weakness in this space suggests to me global growth could be slowing.

I’m also cautious Cliffs, echoes Tim Seymour. The valuations just don’t do it for me here. However, long term I’m bullish. My trade is to allow Cliffs (or other miners) to get cheaper, then establish a long position.

In this market, I’m bullish steep yield curve trades, adds Joe Terranova. The market doesn’t think there will be a monetary policy change anytime soon from either our central bank or the EU. But the trade ends when monetary policy gets tighter.

I’m watching Apple, says Karen Finerman. Considering how much this stock has run, I’d take a little off the table.

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GO, GO GOLDMAN

Shares of Goldman Sachs rallied sharply on Monday after Warren Buffett gave his approval to the firm as well as its CEO Lloyd Blankfein at his annual shareholder meeting.

In an interview on Squawk Box here’s the dialogue Buffett had with Fast Money host Melissa Lee.

M. LEE: Is it possible at this point in time in Goldman’s history, when it’s soul searching and trying to signal a culture change at the company, that perhaps it’d be best for the company to have a new CEO?

BUFFETT: I think it would be a terrible mistake to do anything with Lloyd.

M. LEE: You had said earlier to Becky that if Lloyd came to you, you’d say absolutely stay on. If Goldman’s board came to you and said, ‘we’re thinking about replacing Lloyd,’ you would say, ‘no, keep him?’

BUFFETT: I would disagree with them.

Meanwhile, Melissa Lee also spoke with Fast Money contributing editor Gary Kaminksy who said, “I had more confidence in both the numbers and the management of Goldman Sachs… I thought it was the best-run operation. I thought it’s figures were the most solid and I thought they would prosper the most in the future ahead.”

Anthony Scaramucci of Skybridge is also bullish Goldman and offers the following reasons to get long:

1) They are smart enough to change
2) They mint money
3) They will settle with government

*Find out what the desk has to say about this stock. Watch the video now!

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GULF OIL SPILL FALLOUT

The crisis on the coast continued Monday with the latest reports showing more than 2.6 million barrels oil have spilled into the Gulf Of Mexico.

While BP’s stock continues to feel pain, a number of under the radar stocks are seeing big pops.

What’s the trade?

I’d put Nalcoand Clean Harborson the radar, says Steve Grasso of Stuart Frankel on the Halftime Report. I think both could have more upside.

I think onshore energy will become more interesting. I'd play Suncor , SouthWestern Energy and XCO, says Joe Terranova.

I'm sticking by RIG, adds Karen Finerman. I think it's oversold but I'd only play it with options so I can limit the downside.

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UNUSUAL ACTIVITY: MMR

Pete Najarian has spotted unusual options activity in McMoRan Exploration.

The high volume of August 11 calls traded suggests to him the stock could move higher.

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MARKET BUZZKILL: COMMODITY STOCKS HIT

Metal names took a hit on Monday with AK Steel, Freeport McMoRan and others companies falling on the back of this morning's giant deal in which Norway-based Norsk will purchase the aluminum business from the Brazilian mining giant for almost $5 billion.

What must you know?

It makes me wonder if aluminum is no longer a particularly interesting place to play, says Tim Seymour.



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Trader disclosure: On May 3, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (GS) Call Spreads; Najarian Owns (RIMM) Call Spreads; Najarian Owns (TEX) Call Spreads; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (JPM), Is Short (JPM) Calls; Najarian Owns (BAC), Is Short (BAC) Calls; Najarian Owns (C), Is Short (C) Calls; Najarian Owns (WFC), Is Short (WFC) Calls; Najarian Owns (AAPL), Is Short (AAPL) Calls; Najarian Owns (MMR) Call Spreads; Najarian Owns (AMZN) Call Spread; Najarian Owns (AKAM) Call Spread; Najarian Owns (CAT); Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (F) Calls; Najarian Owns (MMR) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (NSC) Calls; Najarian Owns (NRG) Calls; Najarian Owns (PFE); Najarian Owns (SOA) Call Spread; Najarian Owns (TEX) Call Spread; Najarian Owns (YHOO) Call Spread; Seymour Owns (F), (BAC), (MPEL), (DRYS);(AAPL), (MSFT); Karabell Owns (GS), (C), (AAPL), (VALE), (RIMM); Grasso Owns (NDAQ), (DYN), (LPX), (ASTM), (ABK), (BAC), (BGP), (C), (CVGI), (JPM), (NEM), (PRST), (PFE), (BA), (T), (CSCO), (X)Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Finerman's Firm Is Short (IYR), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Fim Owns (BAC), (BAC) Calls; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finemran's Firm And Finerman Own (JPM); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (RIG), (RIG) Calls; Finerman's Firm Is Short (USO); Finerman Owns (WFC) Preferred; Finerman's Firm Owns (PLCM); Terranova Owns (SWN), (XCO), (HES), (AXP), (TER); Terranova Is Short (CMA); Terranova Owns (PFE) May Calls; Terranova Owns (C) May Calls; Terranova Is Long June Gold 2010 Futures; Cortes Is Long U.S. Dollar; Cortes Is Short Crude Oil; Cortes Is Short (IWM) On Spread vs. Long (SPY)

GE Is The Parent Company Of CNBC

For Tim Seymour
Seygem Asset Management Is Short (CLF)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owned (PBR) On 4/1/10
Seygem Asset Management Is Short (PBR)
Seygem Asset Management Owns (POT)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Is Short (X)
Seygem Asset Management Is Short (FCX)

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 (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Steve Grasso
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (HSPO)
Stuart Frankel And Its Partners Own (MERC)
Stuart Frankel And Its Partners Own (NWS.A)
Stuart Frankel And Its Partners Own (NYX)
Stuart Frankel And Its Partners Own (PALM)
Stuart Frankel And Its Partners Own (PDE)
Stuart Frankel And Its Partners Own (PFE)
Stuart Frankel And Its Partners Own (PRST)
Stuart Frankel And Its Partners Own (RDC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (XRX)
Stuart Frankel And Its Partners Own (SDS)
Stuart Frankel And Its Partners Are Short (QQQQ)
Stuart Frankel And Its Partners Are Short (CL)
Stuart Frankel And Its Partners Are Short (AAPL)

For Brian Kelly
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (AUY)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short (FXI)
Kanundrum Capital Is Short (USO)
Kanundrum Capital Is Short (HES)
Kanundrum Capital Is Short (XOM)
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short British Pound

For Anthony Scaramucci
Scaramucci Owns (GS), Skybridge Owns (GS)
Scaramucci Owned (PFE), Skybridge Owned (PFE) On 4/29/10

For Hamzah Mazari
(CLH) Is Or In Past 12 Months Was A Client Of Credit Suisse
Credit Suisse Provided Investment Banking Services To (CLH) In Past 12 Months
Credit Suisse Has Managed Or Co-Managed A Public Offering For (CLH) In Past 12 Months
Credit Suisse Has Received Investment Banking Compensation From (CLH) In Past 12 Months
Credit Suisse Expects To Receive/Seek Investment Banking Compensation From (CLH) In Next 3 Months
Credit Suisse Is A Market Maker Or Liquidity Provider In (CLH)


CNBC.com with wires

  Price   Change %Change
DJIA
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AKS
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BP.
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CLF
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CAH
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FCX
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GS
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MCMOP
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RIG
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SU
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LUV
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XCO
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AAPL
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Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.