'Fast Money' Recap: Second-Half Picks

The quarter ended with a thud Tuesday as an unexpected drop in a consumer confidence index rattled investors.

The Dow Jones Industrial Average fell 82.38, or 0.97% to 8,447, while the S&P 500 lost 7.91, or 0.85%, to 919.32. The Nasdaq was down 9.02, or 0.49%, to 1,835.04.

Despite the dropoff in the S&P fell today, Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said the index posted its best quarterly gain in a decade.

Pete Najarian attributed the pause in the S&P index to a weakness in consumer confidence. Guy Adami remained negative about the market, noting transports were down for a second consecutive day.

Joe Terranova said today was a reminder that the second half is going to be more difficult than the second quarter, where everything was easy because of the reflation trade. He said investors should expect more of a trading environment in the second half, adding earnings will be a key to keeping things afloat.

Karen Finerman said she believes banks will be a positive catalyst, with a nice sloping yield curve that will widen their margins. While she has been optimistic about the economy in the past quarter, she said the market has been "wildly optimistic."

In reviewing the best sectors for the quarter, Lee said financials were up 43%, followed by technology, up 20% and consumer discretionary, up 19%.

Najarian said he expects a strong show in earnings from the financials including Goldman Sachs(GS Quote) as well as some improvement in the utilities, which were among the quarter's laggards.