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Halftime: Investors Wallowing in Negative, Missing Bright Spots?

On Friday, caution was the watchword on Wall Street with investors sending the S&P lower, spooked by a dismal jobs report; many people took the results as a sign the economy was in trouble.

Looking at the data, according to the Labor Department, the economy added only 54,000 jobs in May, far less than expected. Earlier in the week, regional manufacturing also triggered chatter about economic softness.

However if you’re placing bets largely based on these data points, the Fast Money traders think you may be missing something.

The pros feel that economists can only tell you what happened in the past and not what will happen in the future. “We’re listening to guys who have no idea until it’s in the rear view mirror,” comments trader Steve Grasso.

And that’s a reason, adds trader Zach Karabell, to pay attention to what companies are saying on the ground. “Pay attention to rising iron ore prices," he counsels. "That shows real world economic activity that’s been priced without financial speculation.”

Pete Najarian sides with Karabell and suggests investors almost seem predisposed right now to wallow in the negative and ignore the positive.

He points to the latest data from JoyGlobal. Second-quarter results topped market estimatesas rising demand for metals spurred sales of its giant shovels and draglines. The mining equipment maker also raised its 2011 outlook for the second time.

In addition, Najarian says look at Arch Coal, which came out with a secondary earlier this week and at Mosaic which came out with a secondary last week. "“There’s still plenty to the global growth story," he says.

On top of that, Najarian also points to the Vix which spiked but then pulled back – a bullish move. “If pros were fearful of a double dip the Vix would be much higher,” he adds.

That's not to say Najarian doesn't think the economy may be entering a soft patch - it's just that he does not think we're anywhere near a double dip.

”I see many more bright spots than all this negative stuff,” he says. “When I see a pullback, I see an opportunity.”

Trader Patty Edwards agrees that the economy probably is not in a double dip. "I think it's more like a rocky road," she says. "But it's still going to be a rough road until we can get employment up."

Trader Steve Grasso concedes that there are bright spots in the market. He likes AK Steel. But he adds a serious caveat about corporate balance sheets, ”Maybe margins have peaked," he says.

Also he reminds that last year summer was a tough time for stocks. Unlike Najarian, Grasso sees no reason to establish new positions anytime soon. "Wait until June and July pass,” he says.

What do you think? We want to know!

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Trader disclosure: On June 3, 2011, 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 (ACI); Najarian Owns (AAPL); Najarian Owns (GE); Najarian Owns (C); Najarian Owns (MS); Najarian Owns (MSFT); Najarian Owns (MOS); Karabell Owns (AGQ); Karabell Owns (GS); Karabell Owns (GOOG); Karabell Owns (AAPL); Karabell Owns (RIMM); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)

For Patty Edwards
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (ORCL) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (NLY) For Clients
Edwards Owns (ACI) For Clients

For Steve Grasso:
Stuart Frankel & Co and it’s partners own(CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own RDC
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own UAL
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are SHORTS (QQQQ)
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and its partners Are Short (AAPL)

For Zachary Karabell
River Twice Capital Is Short (GS) Puts
River Twice Capital Is Short (XLF)
River Twice Capital Is Short (CAT) Puts
River Twice Capital Owns (AMT)
River Twice Capital Is Short (RIMM) Puts
River Twice Captial Is Short (SPY)
River Twice Capital Is Short (QQQ)
River Twice Capital Is Short (FXE)

GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC






CNBC.com with wires.

Symbol
Price
 
Change
%Change
S&P 500
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ACI
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AKS
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MOS
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VIX
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