The markets rallied Thursday on a better-than-expected Treasury auction of 30-year bonds and a decline in jobless claims.
Dow Jones Industrial Average
added 31.90, or 0.36%, to 8770.92, while the
gained 5.74, or 0.61%, to 944.89. The
rose 9.29, or 0.50%, to 1,862.37.
Melissa Lee, the moderator of
's "Fast Money" TV show, attributed the market run-up to falling Treasury yields that eased concerns about higher interest rates on the fragile economy.
Joe Terranova, though, said the run-up was more about short covering than new money entering the market.
Guy Adami didn't find the market close inspiring. He admitted he had been "clearly wrong" on the last 25 to 30 points of the S&P rally. Still, he was apprehensive about the market. "I don't trust it here. I think people are buying something that is not there," he said.
Karen Finerman said the rally is getting a little long in the tooth. She was worried about a number of sectors that have become laggards, including consumer and restaurant names. She said the energy names are working but it's getting "frothy." "You have to take some off the table," she said.
Terranova said "fear and greed" are behind investors piling into the resource and energy names. He said the commodity space is much smaller than the financial and retail sectors and can't handle the huge amount of money coming in.
Shifting to the financials, Lee said shares of
Bank of America
were up despite the grilling that CEO Ken Lewis received from a congressional committee.
Jeff Macke said the stock was a buy because Lewis was impervious to the grilling. Finerman said she expects to see some huge earnings power from the banks, despite a decline in refinancings in recent weeks.
In a segment called the "New Normal" that has been running this week, Steve Cortes, founder of Veracruz, sees a return to the 1970s. He expects inflation and a range-bound market between 750 and 1000 on the S&P, with a lot of volatility.
He said he would buy inflation-sensitive names in agriculture and energy on dips. He doesn't see a breakout rally above 1,000 because there are too many headwinds, including problematic interest rates and energy costs.
Lee shifted the discussion to President Obama's ambitious health care overhaul. Finerman said she was concerned about the fate of HMOs if these reforms go through.
Daniel Clifton, director of policy research for Strategas, said the overhaul faces major hurdles, including the $1 trillion needed to pay for it and the 60 votes needed in the Senate to pass it.
He believes all healthcare providers are going to take a haircut if the plan passes. He said the extent of the cuts will depend upon on the aggressiveness of the plan.
In the final trades, Macke said to take money out of the market. Adami liked
. Finerman recommended going long
SPDR S&P Retail
. Terranova said to "get flat" on energy and resource names.
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