NEW YORK (
TheStreet) -- The markets fell again Tuesday despite a comeback in commodities.
Dow Jones Industrial Average fell 25.05, or 0.20%, to 12,356.21. The
S&P 500 dropped 1.09, or 0.08%, to 13216.28. The
Nasdaq slipped 12.74, or 0.46%, to 2746.16.
Brian Kelly on CNBC's "Fast Money" TV show that silver led the commodities with a strong move higher.
Guy Adami said Goldman was spot on in its bullish call on a number of commodities. Tim Seymour said there would have been a further market decline if Goldman and Morgan Stanley had not upgraded commodities and gold. Seymour said the S&P was still in "no-man's land" with 1295 serving as the test for the index.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Joe Terranova said Goldman's call was essentially a reversal of its call on April 12. However, he sees a slowdown in oil, noting oil could drop $3 to $5 a barrel easily. He said going with that selling pressure would be the wrong trade. Rather, he said he still believes in energy, with
as a point of reference.
Zachary Karabell said the demand for copper is quite real. He said China's has been destocking copper for many months and its inventories are at a two-year low.
Melissa Lee, the moderator of the show, asked the panel for derivative trades off the commodity trade. Brian Kelly said he would look beyond the airlines to hotels and car rental companies.
Turning to the financials, Lee referred to Federal Reserve Bank of Kansas City Bank president Thomas Hoenig's comments that banks should stick to deposits and loans if the financial system is to avert its near disasterous plunge in 2008.
Terranova said financial names like
(BX - Get Report)
(KKR - Get Report)
should fare well under that framework. Kelly said he liked the prospects of
(JPM - Get Report)
(MS - Get Report)
if the Fed decides to help increase loan demand by increasing liquidity.
Seymour said he still liked
despite its regulatory problems. Adami said he didn't like the price action in Goldman and sees it headed down further.
Lee noted that the price of Brent oil climbed today on a Goldman Sachs call that oil will hit $130 a barrel by year's end. Daniel Dicker, a senior columnist for TheStreet, said the call, which amounted to a reversal of Goldman's position six weeks earlier, was "weird" in its logic. He said the Goldman's rationale for the call for the earlier correction in oil had little to do with what really caused oil prices to fall.
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