Stocks Up On Fed Announcement

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AFTER HOURS ACTION: CISCO

A wild day on the market today, as it opened strong and got stronger. The Federal Reserve decided not to change interest rates, sparking the rally. Commodities continued to pull back for a second day.

Cisco beat expectations by a penny, guidance was better than hoped and it led to a rally in the stock and other tech shares.

Modest optimism.. but outright caution. Jeff Macke found John Chambers' statement ambiguous & will have to read it over. Guy Adami's not running out to buy Cisco today.

A hearty thanks to Ben Bernanke for his actions today... the statement warns of inflation but doesn't threaten high rates right away. Well done, Ben!


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FINANCIALS FLY IN FACE OF FED DECISION

Dylan Ratigan says that interestingly, the market was up even before the Fed released the results of its meeting, but really accelerated when the results were announced. Jeff Macke says that inflation is the Fed's primary concern.

Steve Liesman says that there is no direct precedent for the Fed's actions, Morgan Stanley is the only bank for the job, and that "Only two of the guys on Fast Money are worth listening to, and those are the guys to follow." Everyone on the panel thanks him for the compliment. He doesn't think inflation concerns are paramount.

The Fed is focused on the banking system and is doing the right thing.

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On Aug 5, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (IYR) (IJR) (MDY) (SPY) (IWM) (COF) (BBT) (XLF), Finerman's Firm And Finerman Own (C) Leaps, Finerman Owns (GS), Finerman's Firm Owns (MSFT) (PM) (RIG) (SUN) (TSO) (VLO) (WLP) (UNH) (AET), Finerman's Firm Owns (ANF) Call Spreads, Finerman's Firm And Finerman Own (FLS), Macke Owns (MSFT) (WMT) (COST) (DIS), Macke Is Short (TM), Adami Owns (AGU) (C) (BTU) (GS) (INTC) (MSFT) (NUE), Seymour Owns (AAPL) (CSCO) (INTC) (MER) (MSFT) (TSO) (EEM) (F) (SHLD), Seygem Asset Management Owns Gazprom OAO, Adami Owns (C) (AGU) (BTU) (INTC) (MSFT) (NUE), Jay Pestricelli has no holding in (CSCO), TD Ameritrade has no disclosures