Fast Money

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Fast Money

No.1 - What Me Worry?

Stock Market Poised to Break Out to New High Despite Recession Fears, Plunging Earnings Growth

The resilient stock market is boldly rising from a February swoon, despite data pointing to a housing recession, weaker spending, and profits at their peak. If the stock market truly is a crystal ball, what is it seeing that the government, economists and nightly news anchors aren't?

Tonight, options trader Pete Najarian fills in for Jeff Macke. We call him “The Pit Boss.” Karen Finerman, a world respected hedge fund manager and President of Metropolitan Capital Advisors filled in today for Tim Strazzini. We call her “The Chairwoman.”

CNBC Senior Economics reporter Steve Liesman joins the guys for this conversation.

Steve says corporate profits are down, corporate spending is down and economic growth forecasts are plunging. And then there’s the housing downturn. Dylan Ratigan calls Steve, the wall of worry.

Eric Bolling bristles and tells Steve that corporate spending is down, because corporations are buying back stocks. And growth is slowing at the hands of the housing recession.

Karen Finerman asks as the U.S. moves away from a manufacturing economy and toward a service sector economy – doesn’t it make sense that capital expenditures would go down?

What’s the trade, asks Dylan.

Eric Bolling says if investors are worried about the domestic economy – consider PowerShares International Dividend Achievers Portfolio. ETF (PID) which is made up of high dividend stocks outside of the U.S.

Dylan explains the fund Eric recommends is the equivalent of the iShares Dow Jones Select Dividend Index Fund (DVY) for companies outside the US.

Guy Adami prefers iShares MSCI Taiwan Index Fund(EWT).

Karen Finerman likes home builders, especially USG Corp (USG). She’s also long puts against Eagle Materials (EXP) and adds she thinks housing stocks are nearing the bottom.

Pete Najairan likes seed company Mosaic (MOS) for its exposure in Latin America as well as Archer Daniels (ADM),Caterpillar (CAT) and Deere & Co. (DE).

Questions? Comments?

Trader disclosure:
On APR 5, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Bolling Owns (EP), Gold, Silver Finerman's Firm And Finerman Own (HD) Finerman's Firm Owns (CTX), puts in (EXP), (TOL), (USG) , Najarian Owns (ANR), (CNX), (PXD), (BJS), (PAAS), (NEM),