Why Aren’t We Happy?

With most of the big names reporting, earnings season has been better than expected. So why aren’t we happy?

In what some feared would be a bloody earnings season, Wall Street so far has not merely survived but has thrived, writes CNBC’s Jeff Cox, as banks largely lived up to lowered expectations and confidence grew that the worst may be close to passing.

That’s solid analysis, if we don’t say so ourselves, and we’d like to take Mr. Cox’s observations a step further.

If you remove the financial services sector, S&P 500 earnings surged about 7.8% year over year.

But if you remove the energy sector, S&P 500 earnings contracted around 25.8%. And in the financial services sector, the S&P earnings were expected to go down 60% but instead they actually went down 90%.

The market needs to do more than beat lowered expectation, says Jon Najarian on Fast Money. Companies need to turn themselves around and get themselves into positive territory. But I think Prudential has the potential to do that. Keep your eye on it, he says.

Two others I’d look at are Tesoro and Valero, Najarian counsels. I like the outlook going forward.

I like Valero too, adds Joe Terranova.

Read More:
> Five Things We've Learned From Earnings Season

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Trader disclosure: On July 24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (MSFT); Finerman Owns (GS), (WM); Finerman's Firm Owns (SUN), (TSO), (VLO), (MSFT); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (BBT); Seymour Owns (AAPL), (BAC), (F), (MER), (MSFT), (TSO), (BX); Seygem Asset Management Is Short (MTL); Seygem Asset Management Owns Gazprom

Terranova Owns (YHOO), (INTC), (IYT), (BNI), (GOOG), (CME), (RIMM), (VLO), (SA), (XLF), (FCX), (SU); Terranova Is Long Crude Oil September $154 Calls, Terranova Is Short Crude Oil September $130 Calls, Terranova Is Short Crude Oil September $130 Puts, Terranova Is Long Gold Futures (December)

Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (DBV), (RWX), (LNET), (EXR), (SKT), (DLR), (IGE), (ARE), (DBC), (ABD), (OFC), (CLB), (BLV), (CNTY), (FL), (HPC), (PSPT), (ESS), (OIIM), (BIG),(ENG),(PFD),(DRH)

Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Charles Schwab Is A Sponsor Of "Fast Money"

Jon Najarian Owns (PRU); Jon Najarian Owns (TSO) And (TSO) Call Spreads; Jon Najarian Owns (VLO) And (VLO) Call Spreads