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Stocks End Volatile Session Higher

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STOCKS END VOLATILE SESSION HIGHER

Stocks made gains on Tuesday after the release of minutes from the last Federal Reserve policy meeting painted a dismal picture of the U.S economy. Though gloomy, the data suggests a robust government stimulus package will become an even greater priority.

Strategy Session with the Fast Money Traders

3 times last week more than 75% of the stocks that trade on the NYSE closed higher, says Guy Adami. The last time that happened was 1938 and there were significant rallies afterward.

I got long Mosaic and Toyota today because both stocks acted well on staggeringly bad news. They’re both good for a trade.

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BANK OF AMERICA TAKES AIR OUT OF RALLY

Kenneth Lewis, Chief Executive of Bank of America Corp , has recommended to his board of directors that he not receive a bonus for 2008, news reports said on Tuesday.

Meanwhile, the firms earning expectations are sliding substantially.

Bank Of America Q4 '08 EPS Estimates

6 Months Ago... 3 Months Ago... 1 Month Ago ...Current

$0.86 $0.67 $0.35 $0.22

Source: S&P

I don’t know if the market is ready to deal with big disappoints, says Karen Finerman. But I certainly expect to see big losses for a time to come.

In the financials I was most impressed with Visa , adds Pete Najarian. I think it’s cheap and I like this stock.

I don’t think financials will be the leadership going forward but overall the market looks okay to me, says Guy Adami.

Estimating bank earnings is a tough call, bristles Jeff Macke. Who knows what’s on their balance sheets?

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STORY OF THE DAY: TECH SURGE

Investors bet technology stocks would be among the biggest beneficiaries of President-elect Barack Obama's proposed stimulus plan and as a result they sent the Nasdaq higher.

Meanwhile, Microsoft made gains after the software maker said it sold 28 million units worldwide of its Xbox 360 video game console through the end of 2008, extending the Xbox's lead over rival Sony 's PlayStation 3.

In the sector, I'd take a look at Hewlett-Packard , says Pete Najarian as well as NVDIA. Both stocks shot up over the last few days. I own NVDA right now and I think they have more upside potential.

I still like HPQ, adds Guy Adami. It’s a buy on any pull back.

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APPLE’S MACWORLD THUD?

Apple shares closed lower on Tuesday with the absence of both Steve Jobs and new products at Macworld leaving investors cold on the stock. Apple did say it was dropping copy protection from songs sold on the Internet and debuted its slimmest 17-inch laptop yet.

They really didn’t announce anything too exciting, says Jeff Macke. I’d like it with a 8-handle.

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AFTER HOURS ACTION: ALCOA

Aluminum producer Alcoa said on Tuesday it will curtail production and cut some 13,500 jobs, or 13 percent of its global work force, to save cash and reduce costs in the current economic downturn.

"These are extraordinary times, requiring speed and decisiveness to address the current economic downturn, and flexibility and foresight to be prepared for future uncertainties in our markets," said President and Chief Executive Officer Klaus Kleinfeld.

It’s a value play, says Guy Adami. I think someone in the M&A world takes a look at these guys.

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COMMODITY STOCKS RED HOT

Commodity stocks continued their winning streak into the first full trading week of the new year. Both Alcoa and Freeport-McMoran closed higher. However oil prices slipped below $49 a barrel on Tuesday as weak U.S. economic data triggered a bout of profit-taking, outweighing rising geopolitical tensions and OPEC production cuts that threaten to tighten supplies.

If you’re not taking gains after a 30% rip in FCX you’re issane, exclaims Jeff Macke.

I wouldn’t chase these commodities names either, concurs Pete Najarian.

Bristow Group popped 10% on Tuesday, reminds Guy Adami. I recommended the stock a few days ago and I think it’s still going higher.




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Trader disclosure: On Jan 6, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (MSFT), (TM), (MOS), (WMT); Najarian Owns (CSCO), (ERTS), (MSFT), (GS), (XLB), (EEM); Najarian Owns Short Calls (MSFT); Najarian Own (NVDA) Long Sread ; Finerman's Firm Owns (MSFT), (EEM), (DNA); Finerman's Firm Is Short (IYR), (IWM), (MDY), (SPY), (USO), (IJR), (BBT), (GNK)

Jon Najarian Owns (VTIV), (BIIB)

Gartman Owns New Zealand Dollar
Gartman Owns Autralian Dollar
Gartmann Owns Canadian Dollar

CNBC.com with wires