Word on the Street

" He did and that's one day gain since July -- NASDAQ market site -- that's funny analysts believe these other athletes say they are all over the best way to arrive this rebound plus. Odds are happily joining us tonight. To break out of its markets got -- Jerry and -- Eric and David Rosenberg either and -- gas greener yet to have these -- Maarty Leunen later on -- was just the worst. Honestly today you can you can get -- yeah DP number was not that important yet that ignited a rally today."

" It did -- I. Actually I'd bet that but Steve is open to say about this I think this was back down to buy him. Was what we saw yesterday by a lot of the mutual funds and a lot of guys that were selling in this market and in a buying back today because in fact it was just a year and think the GDP number is backward looking -- left here yesterday with everybody questioning growth going forward so why -- we care about and number that went. That looks backward when we know we had cash for -- when we know we had a housing credit look Ahmad Ahmad understating those -- I'm not one of the guys that says we're going downhill the fourth quarter. But that's what the market was concerned about I'm surprised at the reaction -- give us -- on the floor in terms of how a year and mutual fund. Affects us that while this is the end of their fiscal the fiscal by year so they have to sell they sell right up to the last day of the month. And as Timmy said they've all been waiting for that buying opportunity and get it until they had these last couple of days. -- so they they would definitely buying the consumer inspired across the board. But every time he spoke to somebody they were saying. Not yet not yet it hasn't come in enough we think -- still some room to the downside once it broke they've really started to -- scattered sort of -- stocks --"

" I every activity on this GDP number I mean I'm bullish so I'd wish that it would sort of underscored the bullish thesis I actually don't think it does. The only way it would have physically if the stock market had gotten nowhere during the fourth quarter than we saw a well GDP was released from. But the market had a huge run in the third quarter it was already anticipating. A meaningful return. It's about economic growth so the question still remains the same question that was yesterday. What's going forward what do -- GDP growth going to be."

" And the last 36 hours have been very frustrating a total waste of mental energy to get -- the -- that's something I'm talking about any. You found herself at least I did today saying. Didn't I didn't get out of that yesterday at the price that I'm getting back in today and that's really what it was about yes it was about. Forced selling liquidation -- the marketplace because he broke so many beats tactically critical levels had to get out today. You repositioned you've got back in again and again I think it just underscores. How nervous everyone is on the entire history. About this impending massive correction. And again I don't think we're gonna get."

" In terms of the mental energy Joe's frustrating because because what because he's all the names go back up today that you have liquidated yesterday one -- lead on the sidelines until the next poll that comes. Well or send their fear that it is not coming exactly that."

" Melissa there's this fear that that pullback that we keep anticipating to calm it's just not going to com and the psychology I think. Everyone out there remains perished in the face of -- That is clearly pot but the -- getting squeezing getting crushed and they did today and a lot of guys sold in the hole yesterday which means they're basic shorting stock that were down 8% because they looked at the S&P. And they said there's a lot of air between 104980. And I think a lot of people were we're feeling this one -- not. I do think that these these -- remained to be shallow and like cannot remain -- bullish on this overall environment. You would think with a stronger GDP print that actually people would said the feds back in play you're -- CO stronger conviction to bring rates up and that should roil the markets it it doesn't make sense and it doesn't access to the store I'll coded -- over 9% to one -- There's more of that than a fundamental story and others also -- without color their story that they may be working with the Chinese who are you got a big deal -- begin their new C nineteen project which is an energetic suggest I."

" Across the board -- any name out of there -- copyright import feed him as ten names for every one that wasn't -- a deeper into the GDP report Koreans at least and are seeing your economic supporter. Who's been out looking at Morrison's across 8:30 AM eastern time this morning and Steve I know that -- a lot from -- by eight you know in terms of this notion that most of Obama aliens are watching your -- all stars at the top."

" David Rosenberg -- you definitely didn't you you wouldn't mind gaming habits of personal between you -- me either want to handle escalator. Yeah. I got -- start fires are."

" You're not I'm not yourself does not she's not a good imitation McCormack I don't know honesty and bottom -- and -- you're the first person we bring on thank you very. That brings -- It is time to GDP report is all cropped up because of the stimulus and therefore does doesn't give us a read on the economy -- the matter is that shops on Wall Street. Are raising their right mr. GDP in the future quarters like to banks still -- 15 quarters raising the GDP estimate and that. Should I would imagine in half of the Fed doesn't went."

" You know I'm going to spend some time here and take what I think is good about there's -- present mayor David Rosenberg coming up who is an All-Star and he'll tell you I think what what's wrong with a report. Let's look at the straits and I want you to look beyond. The big numbers the numbers that we're pumped up. By the stimulus forget about the 22% durables number that's cash for clunkers and forget about the bottom number the residential that's probably first time home buyer numbers but that's important to. The look at the nondurables the services and equipment and software three numbers that did show some growth that word not apparently affected by the government life support. At least directly so those -- the things I like about it -- want to look at the weaknesses. Okay I see the residential and commercial realistic -- is actually in the toilet but that number. Inventories actually -- GDP because of the funky method GDP it fell less than the last quarter but we are still. Liquidating inventories the mismatch between the growth in consumer demand. And the inventory numbers suggest that we still have in our future. An inventory bounced back and that's one of the reasons I think why -- is significantly. Raising his job GDP forecast for next couple quarters at all that together. And he gets the armed quantifiable thing for you all traders out here -- really quick and important right which is when you start these animal spirits go where people -- what. The economy is going here it is growing we we didn't forget how to grow and I think that becomes an X-Factor."

" In figuring out why all this now are we going to start -- economists come out saying that their timeline and terms of the Fed raising rates is going to be much sooner than."

" Here's my thinking I think the idea that they remain exceptionally low and other -- 57 to 500 higher would -- session -- I think extended period is the endangered language here -- the stuff that could be amended to give the Fed some flexibility. It depends on where the market is relative to where the Fed wants it to be. And I don't think there's a whole lot of difference right now the market is looking for some kind of meaningful 25 basis points fifty basis points next spring. I kind of think that's where the Fed is right now to do so as we get closer there yet we start getting rid of extended period that would be the first in the go."

" But -- would remain Aristide got to leave it there thanks so much testing at least an hour also are economists. On the GDP numbers."

" Stop superstar I don't need any command by -- That was that was the problem that we're worried about the language even to change the knee jerk reaction as you said is going to be bad for the markets and on how you slice or care what anyone says even if were prepared for it. Once they start -- he detours and that is not extended periods of time this market gets a little pullback."

" Is that a concern of yours Karen defense to start talking about the exit strategy earlier and no I want to play devil's advocate for a minute with you let's say that we do you really strong economic growth and that is the impetus for the Fed to start reading it and I think that's a positive for the market different different story I think if that's the case but all we didn't -- jobs getting. He's not -- otherwise they won't they won't do it why bring it -- and."

" Not getting rid of the cops aren't getting better that's the problem so -- everything else around jobs seems to be getting better at that sounds like an oxymoron but it everything else around jobs seems to -- getting that it won't then."

" Johnny jobs get a better idea yeah."

" The jobless recovery in today's jobless claims told you that in fact we're still where we were were losing jobs. The continuing claims in the insurance claims the other side of the number that were more positive today but labor's not get."

" Because there's a -- though they don't it doesn't happen right away they have the productivity improvements because they have like a smaller. And labor force of men -- your shorts and TLT I am -- at the time he and I am IRI and long and that's it -- did their -- the TV the LT -- TVT it's the same trade right basically."

" Short the long and I think the trade off this is the same trade as we saw back in March this is about to move. From the great recession to the great reflation. And that's what all this is it is -- waiting. I -- prices it's a fight against deflation. Read today's GDP Melissa tells the Fed is actually winning a plus remember how they can over the word recession because they increase rates. Too close to the depression and that's how we receive it back into it."

" Okay let's move on here I talk I was talking to tape today global growth yeah. -- I'll tell us that management tasks among the Dow's biggest gainers on metals to oil to act on these up across the board pretty much. I'm lady is this just snap back that we're seeing here don't they did and does what we saw over the past thankful to."

" I think right now this is probably the most fertile environment for natural resource names because you have this massive liquidity. That won't remain out there in the system the government. Will provide the stimulus it'll try to briefly asset prices and natural resource is will be the beneficiary it's not necessarily about. Natural resource demand right now it's actually about having the paper -- the ownership of those natural resource is because a lot of what we seem to he'll -- is its common from the emerging world. And they want to have a better and a."

" Living yet and the emerging world had -- the biggest or companies -- the biggest resource companies will report today doing what they're supposed to do which is telling you. There are more shipments are up 36% their prices up 18% volley in Brazil -- a great day today and it is a great company showing growth. Yes like any of those names metals miners commodity else. Alcoa you do like Alcoa down I I'd I think there's definitely that it's going to be a little bit of Iraqi relative -- like anything else these days. But I think if your and it have a longer time -- if you're betting -- recovery I think that's the place -- you -- some money going to be a country that really were today we talked about -- being overdone while they outperformed even the outperforming today -- still companies went bananas and they were -- done."

" A lot of the commodities the underlying demise they came right back today oil back above eighty bucks sustainable bid that was very good institutional buying an oil. It looks now like oil once actually go to 85 versus -- they would think about go to 75."

" Let's move on to another -- that was rock and ultimate consumer stocks higher hopes the recession is okay. CNG electing the Japanese -- up leading to retail sector higher PG was interesting because in September they announce pretty much 10% price cuts across the board. When it comes -- household products and as a result they saw increases. In volume. Month to month increases in volume which would seem to be very very positive terms the consumer actually willing to buy. More toilet paper and only cream."

" But that's a little bit surprising actually had yesterday was is -- on talking to balance companies like P&G B beneficiary if the dollar -- to improve. So actually that -- improved did the stocks did better today even without that. I like this space I've liked -- for awhile but. I think you know we get another buoyant tape it's not going to be the place to go."

" Well I think -- us a very good numbers today and the thing they talked about were also the the improving cost environment for -- that worries -- and that worries me going forward because Kellogg's and I think -- the ones that are going to suffer from all the strength we're talking about an emerging markets and commodity prices going up so it's not just the products they're making which -- cereals that are coming from the bolts that a black and I think you're going up but also packaging and everything related distribution. I think is the best is here right now for Kellogg's and and and and craft and some of these companies that have had fantastic earnings of the last couple quarters I think that change what I have been helped by is that people going back to those big name brands. Not going to the secondary tertiary stocks. Our short -- the company so they're going into the Kellogg it's all over the news they would you see people take the polls they're buying these names they're going to the bigger brand names again. But he's he would you say that that consumer names -- is that rally today Amy because we still have questions about what what -- and what consumers actually spending and what. The consumer actually will spend at the snap back rally that we saw today. Little bit of fallacy I don't know."

" I actually think fourth quarter Consumer Spending and actually going to be strong I think consumer balance sheets have gotten better consumer credit has actually gotten another quality of that -- has gotten better and is actually this kind of pent up demand from the could -- that they actually want to spend. What they -- spend on -- spend differently and has been war. About necessities versus these discretionary prisoner up purchases but I think they will actually go out and you will see spending in the fourth quarter so I still think they're all lanes of a lot of these consumer names."

" I -- let's move on and do one more top -- because -- so. -- test that can make you come back after it stopped yesterday. Yeah in NASDAQ broke below its fifty day moving average so he's a tech trade alive and well you're at your answer Johnny -- about monster.com. Doctor GA. Always nice to speak with -- yesterday -- an investor pointed to other nasdaq's breaking that fifty day moving average apples breaking down your brother said he. And we also as a cent to stop the stock creating you know key levels here looks like the breakdown and then also today 24 hours later we're all Guinea. Because we snap back -- where are."

" Well Bob first let me just hit that. Discussion about the GDP very very quickly. We we all know that its cash for conquers we haven't seen that over on the technology side of the world. But it the sectors that it did impact like Goodyear tire for instance. When you took stimulus a way that just fell flat on their face I mean look at where that stock is now and I think it's a lot like a cortisone shot. Where can make the athlete run faster or -- harder and that may have a big problem later on you know they can throw -- arm out. That's one of the concerns that people like me and I think a lot of the traders on the desk. Are concerned about about the stimulus now as far as about technology. Like I say this is real this is organic this is an external. That somebody's giving them a shot of cortisone to make them run through the pain. Intel has led with it's earnings reports the last two quarters it's -- and then it's pulled back. And -- this pullback after getting up to 22. I've back down to nineteen today and aggressive buying many times the normal volume and Intel same thing and Advanced Micro Devices so. That's socks or semiconductor index that you spoke to. We broke with technically. Trade and right back up above it and I'm bigger volume -- are -- of those strikes -- 22 ended December to 23 dollars or thereabouts and an advanced micro. Back call the -- ratio today it was staggering was about 27 to one. On the call side so again. You pushed through yesterday on a classic. Unfortunately. -- don't know and that is you don't want to be sellers into a tape like yesterday you want to be a seller into a tape like today. You want to be a buyer on a tape like yesterday. That's what the pros on your desk right they're trying to do that's what I try to do but unfortunately as many times you tell people that they don't take profits when the market's move and up. They instead take losses what is going down yesterday was the time to be shop and the people that did in particular in technology are very happy today."

" is our question is wasn't a bear trap I hereby you're. Your -- now that you don't think it was but you don't think there was a bear trap yesterday when they just were forced to cover today."

" Oh I think there's certainly contributing factor Stephen I mean great call there there there absolutely was some of that where you know they've -- as a broke down through that number. People wanted to just pylon and stay short. And then they just got cleaned out today as it traded right back above whether we're talk in the socks or the NASDAQ and I think that sort of activity just shows you. The we were waiting for that wash out you kept telling me about your clients that kept waiting for the better opportunity to get them. And the reason we haven't been CNN it is too many folks are -- import and you know it just doesn't go that direction all."

" That's gonna benefit and the nasdaq's up one point 8% the dust settled for today what is the one trade that you're looking to put on tomorrow."

" The of the of the -- that I did right before the bell was Las Vegas Sands because unusual call buying and that's stock blew up to the upside I like it. I think it continues to trade up. And I'm not on the conference call unfortunately but then that's that's one area of technology. Gambling but I think continues to move -- negotiate but Jack hackers got actual value pleasure."