Bernanke Whispers Sweet Rate-Cut Nothings To Traders' Ears, Sending S&P 500 Higher for Year
Stocks made huge advances today, jumping 2%, their biggest gain in 8 months after The Fed opened the door for a possible economy-saving rate cut, later this year. Big Ben Bernanke abandoned language suggesting he might raise rates to fight inflation - and now there's hope he will go a-chopping this summer, so more consumers can afford cars and homes. Has Bernanke effectively purged the market of its correction ghost?
(Before we go any further, note that Karen Finerman, a world respected hedge fund manager and President of Metropolitan Capital Advisors filled in today for Tim Strazzini.)
Eric Bolling says markets love Bernanke and showed a picture of Ben riding a bull. Karen Finerman agrees and says she won’t fight the Fed.
Pete Najarian joins the guys via satellite to talk about Morgan Stanley (MS) earnings. He says everything worked today for Morgan Stanley and CEO John Mack is unbelievable. Since Mack took over the company, MS is up 60%.
Dylan asks if it’s time to buy. Pete says he loves MS, but be patient. Don’t buy it yet. He adds that Goldman Sachs (GS), Merrill Lynch (MER), and Lehman Brothers (LEH) are all winners in his book. One note of caution, Pete says he’s not a fan of the Financial Select SPDR ETF (XLF). He prefers individual names over the broad scope of a financials ETF.
Eric Bolling echoes the two best traders on the street are Goldman and Morgan Stanley. Eric says either buy now – or definitely, on a dip.
Guy Adami adds that he hopes Fast Money viewers bought when the guys said to buy Wall Street stocks a few weeks ago. Guy feels that buying now is chasing these stocks and recommends waiting for dip, which he says will come. But Guy urges investors, “own the brokers in ’07.”
Karen likes Bank of America (BAC) because they have a big investment business. She says investors still fear their sub-prime exposure which she believes they will weather unscathed.
Jeff Macke turns to the consumer names. He says the Retail HLDRS (RTH) popped to $103 today. He likes Zumiez (ZUMZ), Home Depot (HD) and PetSmart (PETM) which are all up. He expects to see more upward momentum, - but Jeff warns investors to be cautious. Don’t chase them.
On MAR 21, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money tradersBolling Owns Soybeans, Gold, Silver, Is Short Corn Finerman's Firm And Finerman Own (HD), (WMT), (ABN), (BAC), (C), (MO), (NYX) On 2/27/07 Finerman's Firm And Finerman Owned (HD) Najarian Owns (MS), (C), (BAC), (XLF)