'Fast Money' Recap: Along for the Ride
NEW YORK (
) -- The markets roared higher after digesting the
Fed
's quantitative easing move and the shift in power in Congress.
The
Dow Jones Industrial Average
jumped 219.71, or 1.96%, to 11, 434.84 and the
S&P 500
rose 23.10, or 1.93%, to 1,221.06. The
Nasdaq
gained 37.07, or 1.46%, to 2,577.34.
Melissa Lee, the moderator of
CNBC
's "Fast Money" TV show said the Dow has retraced to the point where it was when Lehman Brothers collapsed in September, 2008. She said 25% of the companies on the S&P hit 52-week highs today.
Brian Kelly, who enjoyed a great trading day, said he was going along for the ride even though he doesn't know how it's going to end.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
3 Stocks I Saw on TV |
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Steve Cortes called it a personally painful day because he's been negative toward the market. He said he remained skeptical of the unbridled enthusiasm moving through the market.
Karen Finerman said there was a disconnect between the market and economic reality. She said unemployment was dramatically lower at the time of Lehman's collapse. She said the market now is more about fiscal and monetary policies than it is about fundamentals.
Guy Adami said there was no denying the force of the rally despite his bearish views. Among the stocks that hit 52-week highs today, he liked
Akamai
(AKAM) - Get Report
and
Eastman Chemical
(EMN) - Get Report
.
Kelly expressed concerns that
Bank of America
's
(BAC) - Get Report
putback mortgage problems may snowball and make it increasingly difficult for it to raise capital.
Will there be more rounds of quantitative easing? Paul Ashworth, of Capital Economics, said the
Fed
would have to go to QE3 or QE4 if QE2 does not succeed lowering the unemployment rate. He said the Fed will stick with Treasury securities as long as it can before looking possibly at corporate bonds or mortgage-backed securities.
Patty Edwards said it would make sense to buy municipal bonds because municipalities will find it difficult to borrow in a high interest rate environment.
For a chartist view of the markets, Carter Worth, a chartist from Oppenheimer, said the S&P might be better off to "stop and rest" after such a dramatic rise. He also pointed out the divergent paths between the S&P and the financials, saying the financials would have to come to life, if the rally is to continue.
In the wake of the cold shoulder given to
BHP Billiton
(BHP) - Get Report
over its attempt to land
Potash
(POT)
, Finerman said Potash is in a position where it is "un-buyable." Cortes said he was shorting the Canadian dollar and wondered whether a resource war was in the offing.
Shifting to today's mixed retail sales report, Finerman said the one trend that was obvious was the impact of affluent consumers in such names as
Saks
(SKS)
and
Whole Foods Market
( WFMI).
Lee brought in Bill Brodsky, CEO of
CBOE Holdings
(CBOE) - Get Report
to comment on the regulatory landscape after the midterm elections.
He urged the SEC not to apply solutions on the stock side to the options side, adding any approach taken should be in a piecemeal fashion.
Lee shifted to a chart of the showing today's top ETFs and the dramatic runs in the precious metals and silver. Kelly said the moves have been massive with still a lot of momentum there. Cortes cautioned against the enthusiasm in this space.
Looking ahead to Friday's unemployment report, Joe Lavorgna Lavorgna, chief economist for Deutsche Bank, expects 90,000 jobs were added in the private sector in October and a jobless rate of 9.5%.
He said he expects companies to do more hiring on the back on a healthy round of corporate profits this quarter.
Lee brought in Whitney Tilson, managing partner of T2 Partners, to comment on his short position in
Open Table
(OPEN)
, which is up 17% since Tuesday.
Tilson defended his move, saying the company is doing well but its valuation is extreme. He said he didn't think the company had such a great quarter and said the laws of gravity will eventually catch up with it.
In the final trades, Edwards liked
Herbalife
(HLF) - Get Report
. Cortes liked
Kraft
( KFT). Adami liked
CSX
(CSX) - Get Report
. Finerman liked
St. Jude Medical
(STJ)
. And Kelly liked
Molycorp
(MCP)
.
--Written by David Tong in San Francisco.
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