This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: Ugly Reversal for Stocks

NEW YORK ( TheStreet) -- Stocks rallied early Monday on news of the death of Osama Bin Laden but there was little follow-through as the major U.S. equity indexes finished in the red, right around their lows for the day.

The Dow Jones Industrial Average settled 3 points, or 0.02% lower, at 12,807. The S&P 500 fell 2 points, or 0.2%, to 1361, while weakness across the tech sector weighed on the Nasdaq Composite, which fell 9 points, or 0.3%, to 2864.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

Melissa Lee, the moderator of CNBC's "Fast Money" show, began Monday's show asking the panel to try to quantify the significance of Bin Laden's demise for Wall Street.

Joe Terranova said he believed the news had both social and market consequences, and that the market consequences weren't sustainable. Noting stocks have been trading mostly on momentum of late, he called today's reversal "ugly" and possibly an indication that the market is running out of steam.

Tim Seymour pointed out that the economic data from abroad was favorable but the market didn't rally, while Guy Adami said so far every reversal has been a buying opportunity.

"We'll see about this one," he added, noting a number of stocks, including Cerner (CERN), Eastman Chemical (EMN), and IBM (IBM - Get Report) were sitting at or near 52-week highs.

Karen Finerman characterized the Bin Laden news as noise as far as the market is concerned, although the potential for retaliation is a slight negative. She was optimistic about the deal activity that took place on Monday, referencing Arch Coal's (ACI) deal to acquire International Coal Group (ICO) for $3.4 billion; Teva Pharmaceutical's (TEVA) agreement to buy Cephalon (CEPH) for $6.2 billion; and Community Health Systems' (CYH) decision to boost its bid for Tenet Healthcare (THC).

Oil prices gained Monday on the lower dollar, rather than concerns about Mideast turmoil, according to Joe Terranova, who said he sold some of his long position in Apache (APA) and that it may be time to take some of Occidental Petroleum (OXY) off the table as well.

Tim Seymour chimed in here, saying the weakness in the integrated oil names was notable today and suggesting ConocoPhilips (COP) could be bought on the dip. Joe Terranova added that Tesoro (TSO) and Valero (VLO) were worth a look here as well.

Monday's action in silver was the next topic of conversation as the metal dove following news that Nymex is lifting margin requirements to trade silver futures. Joe Terranova felt the change squeezes out weaker hands but that the fundamental reason for buying silver remained intact.

Guy Adami said he wasn't sure silver was really even trading on fundamentals at this point, while Tim Seymour said he believes $42.14 is the real test for silver's rally. Silver prices for July shed $2.51 to settle at $46.08 an ounce, after plummeting 13% earlier in the session and bouncing off the $42.20

Anthony Scaramucci of SkyBridge Capital pointed out that negative real interest rates make it much easier for hedge funds to carry these commodities on their balance sheets.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SAI $16.03 0.00%
AA $11.17 0.00%
BBY $32.08 0.00%
CBR $2.32 0.00%
IBM $145.94 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs