GO
Loading...

Stocks Close Higher, Despite Oil Gains

Wednesday, 2 Mar 2011 | 6:28 PM ET

Both the Dow and S&P closed in positive territory on Wednesday, but slipped from their best levels late in the session, largely due to reports that Mideast fighting had intensified.

According to Reuters, pro-Gadaffi forces attacked an oil exporting terminal in the rebel-held port of Brega.

On the news WTI surged to $102 and Brent crude, which trades closer to the action, jumped above $117.

Stocks have taken their cue from oil since January when the turmoil in the Middle East started; as one goes higher the other goes lower. The fear is that rising oil prices could derail the recovery.

How should you position now? What’s the trade?

Fast Money, March 2, 2011
CNBC's Melissa Lee and the Fast Money traders discuss the day's top trades and the stocks they'll be watching tomorrow.

Instant Insights with the Fast Money traders

Tim Seymour is focused on the market’s strength. He says, “the market traded okay Tuesday." Seymour points to positive economic data; the Federal Reserve's Beige Book suggesting economic activity picked up in 2011 and a private survey pointing to strong private-sector hiring.

Brian Kelly isn’t buying the bullish argument. “Those economic data points are backward looking,” he says. “If you believe oil will remain high going forward, which I do, I think it may be time to go short,” he says. Kelly is concerned that in two months we’re looking at $4 prices at the pump and he doesn’t think the consumer can handle it.

Joe Terranova remains bullish energy equities “but away from the Mideast,” he says. I’d play Canada long Suncor or Canadian Natural Resources, or Brazil long Petrobras or long Russia.

Karen Finerman agrees with Terranova’s Canada play, but she likes "Canadian Oil Sands for their insulation from world events,” she says. And she adds, “I also like Pride which is being acquired the Ensco.”

--------------

DRILLERS TOPPING THE TAPE

On a related note, drillers topped the tape Wednesday, with Cameron International and Transocean experiencing big gains as the U.S. prepared to issue more deepwater drilling permits.

What’s the trade?

”Rowan is my favorite name in the group,” says Brian Kelly. “I think there’s a little more room. And I also like Dryships,” he says

In the space Tim Seymour suggests Delek Holdings or Western . “Two of the smaller players in the space but they’re pure plays.”

--------------

TABLET TRADE POST IPAD 2

The traders think Apple has generated a slew of trading opportunities due to the release of the new iPad 2 tablet on Wednesday.

The new iPad model will sport the same 10-inch screen but should be lighter, thinner and faster, according to a plethora of analyst and blog reports. Apple is expected to add a camera to enable video chat using the FaceTime application.

Analysts expect Apple to sell more than 30 million iPads this year, as the overall tablet market explodes to more than 50 million units.

What’s the trade?

Brian Kelly thinks the trade is long Apple. Despite a string of new tablets coming onto the market he thinks Apple continues to win, due to its competitive price and because of their extensive app library.

Pete Najarian suggests a few downstream trades. “I’d look at Corning for the gorilla glass or Omnivision for the cameras,” he says.

Both Patty Edwards and Steve Cortes suggest playing the success of the iPad with chip stocks with Cortes advocating a long position in Qualcomm.

Want more insights? Hear from Will Power of RW Baird. Watch the video above!



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com 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 Web site send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On March 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (BP); Seymour owns (F); Seymour owns (FXI); Seymour owns (GE); Seymour owns (GM); Seymour's firm is short (POT); Seymour firm is short (SU); Seymour's firm owns (TTM); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's firm is short (XRT); Finerman's firm is short (IJR); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's firm owns (M); Finerman's Firm And Finerman Own (MSFT); Finerman's firm owns (TGT); Finerman's Firm Owns (WMT); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (ABT); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (SU); Terranova owns (CNQ); Weiss owns (WFT); Weiss owns (BTU); Weiss owns (MEE); Weiss owns (DVN); Weiss owns (COP); Weiss owns (HK); Weiss owns (AAPL); Weiss owns (QCOM); Weiss owns (MSFT); Weiss owns (CSCO); Weiss owns (MXIM); Weiss owns (HBAN); Weiss owns (JPM); Weiss owns (FAS); Weiss owns (AGU); Weiss is short (X); Weiss owns S&P puts; Pete Najarian owns (F) bonds. Pete Najarian owns (GM). Pete Najarian owns (MS). Pete Najarian owns (JPM) calls. Pete Najarian owns (C). Pete Najarian owns (BAC) calls. Pete Najarian owns (GE). Pete Najarian owns (MU) calls. Pete Najarian owns (TCK). Steve Cortes owns (EXC), (SDY) and (PM). Steve Cortes is long Crude. Steve Cortes is short (QQQQ).


For Brian Kelly
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (IAU)
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own U.S. Treasury Bond Futures
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD) calls

For Joe Terranova
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
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 (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DOM)

For Patty Edwards
Edwards owns (SPY) for clients
Edwards owns (XLB) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (AMZN) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (MSFT) for clients
Edwards owns (GE) for clients
Edwards owns (TGT) for clients
Edwards owns (CME) for clients
Edwards owns (COST) for clients
Edwards owns (FXI) for clients

For Doug Kass
Seabreeze Partners Management owns (YHOO)
Seabreeze Partners Management Owns (MSFT), (CL)

For Deborah Weinswig
An employee of Citigroup Global Markets or its affiliates is a trustee of (TGT)
An Associate of Citigroup Global Markets holds a long position in the securities of (HD)
An Associate of Citigroup Global Markets holds a long position in the securities of (JCP)
An Associate of Citigroup Global Markets holds a long position in the securities of (WMT)
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of (SKS), (SVU)
Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of (DG), (HD), (TGT), (WMT).
Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from (DG), (HD), (KR), (TGT), (WMT)
Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) in the past 12 months.
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): (DG), (HD), (KR), (TGT), (WMT)
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: (CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (DWY),
Citigroup Capital Markets is a market maker in the publicly traded equity securities of (CVS), (M), (COST)

For Will Power
Robert W. Baird & Co. Incorporated makes a market in (AAPL)
Robert W. Baird & Co. Incorporated and/or its affiliates expect to receive or intend to seek investment-banking related compensation from (AAPL) within the next three months.

For Todd Gordon
Gordon has no disclosures

For Alexandra Lebenthal
Lebenthal has no disclosures

For Mike Khouw
Khouw has no disclosures on (TLT)

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC




CNBC.com and wires

  Price   Change %Change
DJIA
---
S&P 500
---
CAM
---
CNQ
---
DK
---
DRYS
---
ESV
---
GLW
---
OVTI
---
PETR'
---
QCOM
---
RDC
---
RIG
---
SU
---
WNR
---
AAPL
---

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