Fast Money Halftime Report

" Organza I don't actually have been having a market that's high. It's fast yeah. She's just outside what is driving -- that yeah. The word on the street today. Fast money. -- Partners Dennis actually judge Karen have excuse me the liquidator in Brian Kelly conundrum research last minute personnel change there let's talk. -- that seems like. It's not doing not that heat and sharing isn't it important that the S&P 500 actually managing to hold -- about 1000 level a fact that it is why and it is not moving much is significant in and of itself."

" Absolutely and I think what's been impressive Melissa's just act of people have been willing to hold the F. 500 -- nearly -- thousand level it just shows you it's not necessarily that people are shorting this market. But it does show you that there's probably people -- want to add to this market or getting in and participate because they feel like they've missed something already I mean yesterday is a great example volatility was up in the marketplace. Trading over 46 the reason for that when you look at the S&P 500 the spiders. It -- to one of racial towards the calls and normally you're going to see that ratio moved towards the side that we're moving we were up on the day you'd think you'd have more -- was more -- so people are putting a protection they want in but they want that protection as well."

" Brian you gotta be wondering what hedge funds out there are doing because what I'm hearing a lot of them are still short this marketing yet to keep on going higher at what kind of force will that be in terms of having these -- sustained."

" Why I think -- two dynamic going on here and he'd hit upon is the I can't miss this rally. You know I mean it's a hard letter right here investors next quarter markets afforded us an awful lot is -- down that about the letter nobody wants the right. And I do think you're seeing a lot of hot frustrated shorts out there talked about got very little -- And if you get those shorts out there at the lids off the -- who knows how high the -- and rise once --"

" Applicants -- you're the expert on consumer of the bunch hearing you're looking at personal income data -- worse than expected the same coming up pending home sales which were -- a sort of a mixed bag. How do you read what the consumer is telling us right now."

" Well there's a couple of things going on that personal income data that you got to remember that that -- two point 6% swing from last month that is huge I think there was a little bit false stimulus back in May. You know the housing -- we're seeing a lot of foreclosures being sold the prices are still down. You know this is a time when people buying homes I'm not looking at this in taking too much comfort from it I'm still really going to play this state. Looking more at Staples socks and at the same time -- we're expecting a raft of retailer earnings out next week or so when he spent you know is there a name -- think we'll beat the expectations at this point. Maybe it. Maybe Nordstrom. I honestly think that wal mart's going to come in better than expected to they did not -- I think it's probably because I shopped there last month the fact they sent me and in math. Another thing I'll let them on the."

" The next -- here in just the last hour. Make her announcing that the US Securities and Exchange Commission. A ban on class trading was imminent this is senator Chuck Schumer of New York saying that as -- chairman Mary Schapiro told him personally. That the agency plans to ban the practice is is interesting he issues a press release on any imminent and that hasn't. Exactly happened yet and we should note this high frequency trading this is essentially. Generally the domain -- trained asked as well as hedge funds. In order to kind of take advantage of instantaneous. Price discrepancy in the markets -- this is computerized algorithmic trading. Keenan Jerry what do you see the impact is because. We know according to the tablet that high frequency trade account for about three quarters or will account for three quarters of US equity flow. In 2009 versus 30%. In 2005 and certainly this is a big force in the market if this goes away what happens."

" Well I think the critical thing really to point out right now is high frequency trading. Actually adds liquidity now what they're more addressing his flash trading in the concern there is a select group of people actually see the flash not everybody gets to see that that's something the people have been frustrated with especially if you look past the last year. People have been disgusted by the idea that somebody has a leg up on them and a leg up on them is coming from the flash folks. Because of the fact that they are seeing something that no one -- is able to see or at least capable deceit because of the speed in which they're doing this not a high frequency. That adds liquidity but the flash I can understand why there are some folks out there that are a little bit disgusted."

" Good to know about Anderson you -- on flash line apologies for -- Gonzalez her for what I know what is impacting in your view on the -- flash trading."

" I think it's important -- to point out there what's going on a lot of the investment back into the capital markets back -- names Goldman Sachs is still strong in the wake of that news you would think that this would negatively impact. Goldman Sachs or Morgan Stanley and it is the financials today. That are actually reading in the market higher look at JPMorgan above forty books since god knows how long Morgan Stanley pressing thirty. The regional the stronger -- read more percent across the board Wells Fargo US Bancorp. So the financials are strong and you would think that it would be built capital market main that would be weak in the faces news."

" Absolutely good and -- tested the strength in this market to mean six months ago the market would have been down 300 points on things like that right absolutely okay let's move on -- talking to tape today shares of Caterpillar machinery giant rally more than 4% rain after reiterating -- 1009 earnings outlook saying it is well positioned along -- office under various. Scenarios although it's not willing to timeout the economic recovery saying the timing is a little bit un certain here -- what -- Like very very good news."

" It is good news big -- remember they're going to be selling into the areas they're getting the stimulus money to so. You know they come and weighed down from where they were at their highest. They have. Gone in and -- I think that they probably -- do well going forward and that is going to be one of the drivers. Long term. But they're not telling us that they're seeing the bottom yet either."

" Right then as part and you popped up in the screen that the theatrics I think that's a bad -- me. Traffic here Virginia Beach is absolutely a what's your feeling and I -- is there an ancillary bike. -- out there and catch shares are up 4% 5% right now may -- don't want by the --"

" Well I don't think you want to buy -- up 45% on the day but what I think -- just telling you is that things are getting better around the world. When they go -- tell you that for the next several months they see things getting better that they are positioned you're going to see other ancillary is doing exactly the same thing the miners. That's sort of thing I think Caterpillar sets it sets a trend sets a pattern. And it's it's obviously supportive."

" Right and and."

" Well I think what excited the Pitts was -- Jim Owens said it wasn't just the 2009 outlook he talked about five years down the road. Raising it to get your ten dollars I mean these are magnificent numbers and they're projecting. If things are able to stabilize their you can see it right there the September 50 calls incredibly active now will tie this together with something this is a role from the August calls. Going out into September but wanted to get some of that bank for their buck from the upside of September so people are betting Dennis that they think there's even more -- not just 1% today but there -- expecting to see this stock go even higher over the next couple weeks."

" Why they get to try to get any correction are all in in Caterpillar to get a dollar two or three you want to be a buyer. Okay I'll let to much and next we mentioned as -- home sales up for this Crane I'm fine. -- you know we're watching -- homebuilders found AB you're watching specifically those lumber futures yeah. Yeah I like the watch lumber futures as a leading indicated -- 4% today those home sales numbers fifth month in a row. Fantastic but I don't trade the lumber futures but -- And start looking at some of the timber name's -- names like long drink timber one of the largest timber I companies in the US. Not only do they sell the Timberland -- the kicker here they also sell pulp which is going to be -- wood pallets on to burn in utilities and a call last week. Plum creek CEO talked about European and US utilities coming -- and placing orders or at least looking to secure what. For what -- if indeed cap and trade out legislation does not."

" Time for your power lines -- and go out and happy your license Foster Wheeler. Well I like this named Melissa and you know I love these engineering stocks that I like this thing going forward. Got earnings tomorrow KBR given nice report last week. This name along with floor I think could produce some pretty strong numbers when you're looking at power generation engineering stocks they've performed. They're still well below where they have been over a year ago I think there's plenty -- talk about infrastructure spending and all the rest. Foster Wheeler I think if -- you want to keep your eye on trading in the low mid twenties. So if you got no money in this naming your sitting on the sidelines now has a good time to buying your opinion. I think so I think it's ready for a break out I think there's some more upside to calm I think especially not just because of their earnings but when you look at Florida on the road I think both are very very cheap when you look at the balance sheets you've -- like these names going forward."

" All right I'm not a public club let's go around -- Barney buyer seller had a 4 PM eastern time -- yeah like a party at Jonestown but I'm not drink in the cool hey I'm. -- As a as an Agatha Ambien no luck I'm Dennis Farrell I think expect it."

" If you fight this take the going to carry you out of your own shield so I guess you have to hide except for Brian. I'll. I'm a buyer of the on the -- I can't miss that now rally I bet -- The protection is their Melissa the sellers are running out of fuel they just can't push this thing down and just look at the reaction today I think you've got to be a -- to the close Aaron that doesn't press here at halftime report."