Fast Money

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Fast Money

No.1 - Full Recovery

Goodbye correction. Today, the S&P 500 reached its highest level in more than 6 years, fully erasing the violent February sell-off in the market. What sparked the rally and which stocks are surging upward?

Dylan Ratigan explains that drugs and money fueled the rally with Eli Lilly (LLY) surging more than 2% on sales of its psychiatric drugs, and Lehman Brothers (LEH) surging 5% today alone.

OptionMonster, Jon Najarian joins the guys for this conversation via satellite from Chicago.

Jon says the weakest performing sector, financials, got some love today with a lot of money flowing into the Financial Select Sector SPDR (XLF).

He expects East West Bancorp (EWBC) to come out with great numbers and anticipates explosive movement in this sector.

Eric Bolling says the financial sector is the one sector that hasn’t been working – so if that’s working, now – get long anything!  Steel and metals have been great and they will continue to work, he says.

Dylan Ratigan says drugs have done nothing for 3 years and financials were performing terribly.  Should investors own these sectors, now?

Absolutely, says Tim Strazzini. He adds that two “people” are buying healthcare right now… hedge funds manager and asset mangers for solid earnings growth and stability.

Guy Adami warns that investors should own drug companies selectively.  Although Eli Lily had a great day, the stock is flat over the last 3 years, explains Guy.  He likes Merck (MRK), Johnson & Johnson (JNJ), Gilead (GILD) and Genentech (DNA).

Guy adds in the asset management group he likes Affiliated Managers Group (AMG).

Eric Bolling adds these are upside surprises and he expects much higher growth than anyone is predicting.

Questions? Comments?

Trader disclosure:
On APR 16, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Strazzini Owns (POT), (TIN), (YHOO), (WY) Bolling Owns (NMX), Gold, Silver, (SZE), (VE) Najarian Owns (WM), (ETFC), (XLF), (EWBC)