In another volatile day for the markets, stocks surged off an 11-year S&P 500 low to a major rally in the last hour of trading. Oversold commodities roared back as well. Even with the Dow up over 6% for the day, it ended the week still down sharply lower.
STOCKS RALLY ON GEITHNER PICK TO TREASURY
As the news came in that Timothy Geithner would be Obama's pick for Treasury Secretary the market made a sharp move upward fueled in part by short covering.
Fast Money had been predicting that Geithner would be the pick for some time now, and that speculation became reality today.
Karen Finerman thinks that Geithner was an "excellent choice". She believes that the market was extremely oversold, and that a hair-trigger event like this would be successful in turning the market to the upside.
ANYONE BUYING INTO THIS RALLY?
With stocks like Alcoa , Microsoft and Disney soaring today, can we expect this momentum to continue?
Guy Adami thought we needed to have the wash-out today followed by a rally up. He was disappointed we didn't quite get the wash-out and it worries him a great deal.
"Bear markets are defined by no one gets out alive" added Jeff Macke. He feels this rally was way overdue, as things were way too easy on the short side.
Talking about Target and Gap , Guy thought that the trade on Target came already on Thursday. However, in terms of Gap, the numbers were good and management seems to be improving. Adami says Gap is ok still, and long term Target looks ok.
Joe Terranova is definitely buying into this rally. He likes Disney shares, especially their prospects long term. Joe also believes this is a moment of opportunity you may not find again for a long time for many of the best of breed names in the market.
SEEKING AN ANSWER AT CITIGROUP
CEO Vikram Pandit said they are not planning to break up Citigroup . Shares were down nearly 20% on Friday and down around 60% for the week. Citigroup stock was beaten down on concerns that more losses are yet to come.
"Citi not imploding on Monday morning, would of course be good for the market" said Jeff Macke.
Zachary Karabell cautioned that even though the Dow rallied, Citigroup did not. This means that Vikram Pandit is not out of the woods, it didn't save Citi and the issues still exist. With that said, he likes Citigroup at these levels, getting in at $3.40 per share.