'Fast Money' Recap: A Tired Market?
The markets rallied Friday and ended the week on a positive note for the seventh time in the past eight weeks.
The
Dow Jones Industrial Average
added 44.29, or 0.54%, to 8,212.41, while the
S&P 500
rose 4.71, or 0.54%, to 877.52. The
Nasdaq
edged 1.91 higher, or 0.11%, to 1,719.20.
Guy Adami said on
CNBC
's "Fast Money" TV show that the market looks like it's getting tired. "It's getting a little long in the tooth," he said.
Joe Terranova, though, said he didn't think there is any reason to get off the bandwagon, especially if the S&P moves above 900.
Karen Finerman said it's hard for her to be jumping in and out of the market. She said she pays more attention to individual stocks. In particular, she thinks it's time to get into
Mastercard
(MA) - Get Report
, which fell today 10.5% on earnings that "weren't that bad."
Adami said that there's an opportunity to get into Mastercard, which has made a big move up from $113 in January to $172.90 at the close of trading today, on a pullback at $151.
Terranova didn't dismiss the notion of a correction but he believes that people are going to have to chase this market if they want to get back in.
With the bank stress tests delayed until Thursday, Melissa Lee, the moderator of the show, brought in Steve Liesman, CNBC business reporter, to discuss the situation. He said the test results will provide aggregate bank data, individual bank data and information on how certain banks will have to raise capital.
He said the delay was given to provide banks the chance to challenge the decision of the regulators and more time for them to get their capital plans in place.
Moving to the beleaguered auto industry, Finerman said she believes
General Motors
(GM) - Get Report
will file for bankruptcy sometime around June 30. That's based on a hunch she has that bondholders will throw the auto giant into bankruptcy following the grace period of a missed bond payment.
Oil jumped 4% today to $53 a barrel. Seymour said the commodities group has been waiting for oil to assume the leadership again. He said companies like
Caterpillar
(CAT) - Get Report
,
Deere
(DE) - Get Report
and
Joy Global
(JOYG)
look like interesting plays if the commodities group does make a big move from global growth.
Adami said the price action on gold, which fell today, indicates people may be moving out of it and into real commodities. Finerman noted a big move in natural gas today.
Lee invited Maynard Um, a UBS analyst, to comment on
Research In Motion
(RIMM)
, which was up 4% today.
Um, who upgraded the stock to a buy today, said the catalyst for RIM might be pent-up corporate replacement demand for aging Blackberrys.
Adami, though, cautioned investors to take a pause on the stock, which has doubled since the beginning of March.
Private equity firms like
Fortress Investment
(FIG)
,
Blackstone
(BX) - Get Report
,
Och-Ziff Capital Management
(OCH)
and
KKR Financial
(KFN)
were up sharply today.
Finerman said there are opportunities for investors to get into these companies, which were oversold by as much as 90% at the worst. "They have huge assets," she said.
Adami attributed the sharp rise in the shares to a short squeeze.
Lee invited Michael Morris, an analyst for UBS, to comment on
Disney
(DIS) - Get Report
, which is down 30% for the year and reports earnings next week.
Morris, who's a buyer of the stock over the long term, said he thinks it will be a soft quarter for Disney which is facing tough challenges at its theme parks and film studios.
He believes Disney is about a quarter away from stabilization in consumer trends. He also said investors will be looking at the impact of discounting on profits from the theme parks.
Jim Delany, a vice-president for Saratoga Capital, appeared on the show to talk about today's breakout of the
SPDR S&P Homebuilders ETF
(XHB) - Get Report
to a five-month high.
Delany said the equities are rising because the CDS, which Lee described as the "perceived risks of defaults," spread is narrowing and homebuyers are starting to see the benefits of federal housing credits and lower long-term mortgage rates.
Adami faced off against Seymour on
US Steel
(X) - Get Report
, which was up 7% today.
Adami said today's price action validated a call he made earlier this week based on the company's decision to raise the price of its secondary offering.
Seymour said it will be difficult for US Steel to grow because 77% of its sales are in the U.S. and it can't compete with other companies that are dumping steel on the market. He preferred instead cheaper steel producers in Brazil and Russia.
In the final trades, Terranova said to take some profits off the table and maybe even short
Wynn Resorts
(WYNN) - Get Report
. Adami liked
IBM
(IBM) - Get Report
. Finerman said to sell a little
UltraShort 20+ Treasury ProShares
(TBT) - Get Report
. Seymour said he's long on
Pietroleo Brasileiro
(PBR) - Get Report
.
"Check out
"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.
