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Halftime: Has Market Hit Ceiling?

Despite gains in the morning, stocks turned lower by afternoon, as traders struggled with the direction of the market. So what's going on here?

Guy Adami points out that the market is struggling against the 1105 level; where prior support has now become resistance. He wonders if there is anyway the markets can rally given most people are already expecting such a strong jobs report to be released Friday.

From the floor of the NYSE, Steve Grasso of Stuart Frankel says those on the floor aren't just focused on 1105. They are also looking at 1110 and 1115. With so much resistance, he doesn't expect the market to rally, either.

Meanwhile, the euro broke below 1.22 level. Mike Gurka of Neural is now watching 1.18. He says if we see those levels again, we're in "no man's land."

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MARKET BUZZKILL: FINANCIALS FALL

The financial sector led the market lower Thursday with shares of JP Morgan , Morgan Stanley and Goldman Sachs dropping.

Host Melissa Lee points out that they seem to crack whenever there’s a concern in the market. Guy Adami says Goldman is leading the market by a couple hours and that doesn't bode well for the afternoon.

Zach Karabell doesn't expect to see market leadership from the financials. With so much uncertainty in Europe, he expects the sector to be weak.


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MARKET BUZZKILL: METAL NAMES HAVE TROUBLE

The materials ETF traded lower with commodities failing to generate gains after yesterday's pop.

In the metals space, Gurka is watching copper which found support at 2.95. He thinks emerging market demand prices in at that level. Karabell adds copper maybe a seasonal play. It tends to lag in December and then pick up after

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NATURAL GAS RALLIES

Another bright spot in the market today: the natural gas ETF rallied sharply with Houston-based Noble Energy among the big winners.

Grasso says anything seen as an alternative to big oil is running. All of energy sold-off on the BP headlines and now investors are looking for plays that don't have exposure to off-shore drilling.

According to the charts, Adami thinks we maybe looking at a technical double bottom in Transocean. From here, Adami thinks it has a 5 to 8% upside, but then pull the cord.

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FAST FOOD TRADE

Fast food giant McDonald's is scheduled to report same store sales on Tuesday. With approximtely 38% of the company's sales coming from Europe how will the recent slide in the euro impact results?

Get all the details from Citi analyst Greg Badiskania. Watch the video above!

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CALL THE CLOSE

Mike Gurka: I’m a seller against 1105 on the S&P.
Zach Karabell: I think it will be a troubling week, but you can still play stock picker
Steve Grasso: I think we go lower.
Guy Adami: I think we go lower.



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Trader disclosure: On June 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; Grasso Owns (ASTM), (ABK), (BP), (BAC), (BGP); Grasso Owns (C); Grasso Owns (DYN); Grasso Owns (JPM); Grasso Owns (LPX); Grasso Owns (NDAQ); Grasso Owns (PRST); Karabell Owns (GS); Karabell Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (AGU); Adami Owns (BTU); Adami Owns (C); Adami Owns (NUE)

For Greg Badishkanian
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (CCL)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed An Offering Of (MCD), (YUM), (RCL) In Past 12 Months
Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (MCD), (YUM), (RCL)
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (MCD), (YUM), (BKC), (CCL), (RCL) In Past 12 Months
(MCD), (YUM), (RCL) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(MCD), (YUM), (BKC), (CCL), (RCL) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities-Related Services)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (YUM), (CCL), (RCL)
Citigorup Global Markets Or Affiliates Owns 10% Or More Of (CCL)

For Steve Grasso
Stuart Frankel And Its Partners Own (AMR)
Stuart Frankel And Its Partners Own (APC)
Stuart Frankel And Its Partners Own (BAX)
Stuart Frankel And Its Partners Own (CUBA)
Stuart Frankel And Its Partners Own (DHR)
Stuart Frankel And Its Partners Own (DYN)
Stuart Frankel And Its Partners Own (GERN)
Stuart Frankel And Its Partners Own (GLW)
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 (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 (SYMC)
Stuart Frankel And Its Partners Own (TLM)
Stuart Frankel And Its Partners Own (TRV)
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 (AAPL)

CNBC.com with wires

Symbol
Price
 
Change
%Change
MCD
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GS
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JPM MLP ETN
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MS
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NBL
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RIG
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UNG
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SPDR MAT SEL
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