Strategy Session with the Fast Money Traders
I don’t think Larry Summers’ comment had a lot to do with the rally, says Pete Najarian. It was much more about that momentum in the market.
The S&P looks like it's going to 900, adds Guy Adami, and it could get there by the end of the week.
Once we held above 740, a critical technical level, it said to me the rally is for real, says Joe Terranova.
I hate to crash your party but sell this rip, counsels Jeff Macke.
FINANCIAL ‘LAND OF CONFUSION’
As banks continue to rebound, comments from analysts leave many investors lost in a land of confusion. Just take a look.
Stock Move Analyst Firm
JPMorgan Upgrade to ‘Buy’ Bank of America/Merrill
Morgan Stanley Downgrade to ‘Underperform’ Bank of America /Merrill
Morgan Stanley “May See More Upside” KBW
Morgan Stanley Estimates Lowered UBS
Goldman Sachs Downgrade to ‘Market Perform’ KBW
Goldman Sachs Estimates Raised UBS
And here’s the kicker. The replacement at Oppenheimer for the legendary Meredith Whitney started coverage on the financials today. He rates Goldman and Morgan Stanley at 'Outperform' and Bank of America, Citi and JPMorgan Chase at 'Perform'. Whitney had been -- and remains -- much more bearish on banks.
It’s hard for me to reconcile that Oppenheimer is now much more positive on Goldman and Morgan just because Meredith Whitney left, muses Guy Adami. If you’re looking at Goldman, I think it’s a little rich at these levels, he adds.
Goldman was a $74 stock a little over a week ago and now it’s trading over $100, reminds Pete Najarian. In my book it’s a hold, not a buy.
Goldman and Morgan and great places to trade, adds Jeff Macke. But they’re purely trading vehicles.
TOPPING THE TAPE: TECH SNAPS BACK
The Nasdaq reversed a 1.9 percent slide on Monday after Goldman said investors should buy Cisco Systems on the view a new server will increase the company's profits.
Shares of Apple also gained after the firm unveiled an iPhone software upgrade with new features ranging from copy-and-paste and message notifications to picture messaging, as the company pursued further growth in a hotly contested cellphone market.
In the space, I’m keeping an eye on Oracle, says Guy Adami. Valuations look interesting.
Options action in the SMH suggests the Street is getting more encouraged by what they’re seeing in the chip sector, reveals Pete Najarian.
OIL NEARS $50
U.S. crude oil futures settled at their highest level since December, supported by a surge in heating oil and gasoline futures and on options expiration play for the front-month April crude contract.
Oil went higher on bad news Tuesday and that suggests to me it has more room to run, says Guy Adami.
Action in nat gas suggests to me that it could have bottomed, adds Joe Terranova.
And in commodities, I’d keep an eye on the steel names, counsels Pete Najarian. Nucor was absolutely slammed on Tuesday but maybe that was the whoosh we needed. In other words, maybe it’s time to start looking at these names.
TOPPING THE TAPE: HOUSING & THE CONSUMER
Shares of Home Depot climbed after data showed housing starts jumped 22.2 percent in February, the biggest percentage rise since January 1990, and also the first increase since last April
I still think Home Depot is an interesting looking stock, muses Guy Adami. At current valuations it’s interesting.
Building permits aren’t up enough for me to get excited about housing, counters Joe Terranova.