Stocks notched a fifth straight day of gains on Wednesday as stronger-than-expected corporate results and March retail sales pushed the S&P 500 past 1,200 for the first time in 18 months.
Dow components Intel and JPMorgan paced the market after both posted better-than-expected results.
In fact, more stocks hit a 52-week high on the New York Stock Exchange Wednesday than on any day since the end of December 2003. The Nasdaq recorded its greatest number of 52-week highs since January 2004.
What’s not to like?
I think we’re in a giddy phase of this rally, muses Joe Terranova. But this phase can remain in place for a while and I would not go short.
Considering the number of 52-week highs in this market if you establish a new long position I’d also protect with puts, says Pete Najarian.
It’s a bull market and I think the market still wants to go higher but I wouldn’t get aggressively long, says strategic investor Dennis Gartman. And like Pete says, make sure to protect yourself.
After the market closed on Wednesday UPS surprised the Street by pre-announcing earnings nearly two weeks ahead of the company's scheduled earnings release date. Results were much higher than expected.
The firm reported that its adjusted first-quarter earnings were 71 cents per share, compared with an adjusted 52 cents per share a year earlier.
Analysts on average were expecting earnings of 57 cents per share, according to Thomson Reuters.
UPS is widely watched as an economic bellwether, because of its status as the world's biggest package delivery service.
What’s the take-away?
It’s a great indicator, says Tim Seymour. I like what's going on. This market has been led by transportation, however, we may be getting a little heated.
I hate to rain on the parade, says Guy Adami, but I have to re-examine valuations in this stock. It's trading around 20 times around next year's earnings. Is it starting to get expensive?
I think the derivative trade is longGoodyear , says Brian Kelly. Also I’m bullish on Sealed Air the maker of bubble wrap. Or look at PTV .
JPMORGAN LEADS FINANCIALS TO NEW HIGH
Big banks, brokers and credit card names all enjoyed a nice boost off the back of JPMorgan earnings.
In fact, the Financials ETF hit a level not seen since October 2008.
What’s the bank trade?
> Click here for over a half dozen ‘aftermath of JPMorgan’ plays from the Fast Money traders
INTEL LEADS NASDAQ
Intel led the Nasdaq higher after the world's top chipmaker released a quarterly profit and sales report that trounced expectations, solidifying hopes for an accelerated recovery in the technology sector.
What’s the tech trade?
I love the Intel story long-term, says Guy Adami, but I’d wait to see if the stock can sustain these levels before I’d establish a long position.
I think the trade off Intel is long Marvell, Teradyne and/ or Lam Research, says Joe Terranova. Or look at long the XLK.
Or check out HPQ , adds Guy Adami.
I’m seeing a lot of upside call buying in the space, adds Pete Najarian, especially those companies that report earnings in the next few weeks. And for a downstream trade, I’d look at Corning, adds Najarian.
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Trader disclosure: On Apr 14, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly Owns (DHI), (MS), (GOOG), (IBM), (TXN), (S); Terranova Owns (AXP), (HES), (TER), (APA), (YHOO), (MOS), (SWN), (XCO); Terranova Is Short (LCC); Terranova Owns (C) Calls; Kelly Owns (FXE) Puts ; Kelly Owns (FRE); Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Seymour Owns (BAC), (EEM), (F), (INTC), (LVS), (SBUX), (AA), ( BX), (MGM); Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (FITB) Calls; Najarian Owns (LVS) Call Spread ; Najarian Owns (MOS) Call Spread; Najarian Owns (PCX); Najarian Owns (YHOO) Call Spread; Najarian Owns (YUM) Calls; Gartman Owns (DRI), (PNRA), (CMG); Cortes is Short (LVS) & (WYNN)
For Tim Seymour
Seymour's Firm Owns (POT)
For Brian Kelly
Kelly's Firm Owns (DHI),
Kellys Firm Owns (MS)
Kellys Firm Owns (GOOG)
Kellys Firm Owns (IBM)
Kellys Firm Owns (TXN)
Kellys Firm Owns (S)
Kellys Firm Owns (BX)
Kellys Firm Owns (CCI)
Kellys Firm Owns (TLT)
Kellys Firm Owns U.S Dollar
Kelly's Firm is Short Euro
For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients
Edwards Owns (GS) for Clients
Edwards Owns (MCD) For Clients
Edwards Owns (HD) For Clients
For Mike Khouw:
Cantor Fitzgerald is a Market Maker in (GE)
Cantor Fitzgerald is a Market Maker in (BAC)
For Mark Kalinowski
Janney seeks investment banking business from (MCD) (YUM)
Janney is a market marker in securities of (MCD)
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