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'Fast Money' Recap: Market Defies Skeptics

The trading panel discussed the market's rally in the face of the Fed's discount rate hike.
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) -- The markets held steady Friday after the Fed raised the discount rate.

Joe Terranova said on


's "Fast Money Halftime Report" that the Fed's move leaves equities in a "sweet spot." He said the Fed's rate hike leaves private sector borrowing costs alone and low. He also said the financial systems are flushed with liquidity and the capital markets are functioning.

Guy Adami said it's difficult to "turn a blind eye" to today's price action, with the

Dow Jones Industrial Average

up 30 points at the time of the show, especially when skeptics feared the night before there might be as much as a 200-point market plunge today.

However, he said the Fed's move will eventually lead to a tightening of rates and the start of a bearish move on the market, especially with the events going on in China and Europe.

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 onTV

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Peter Schiff called Fed's action too little, too late, saying the market is rallying today because inflation fears are leading investors to put money in equities.

Gary Kaminsky said it was good to see the markets respond positively to the first step by the Fed to tighten monetary policy. He disagreed with Terranova's point about the health of the capital markets, saying there is no evidence to support it.

Schiff said gold remains a solid investment as it continues to do well against every currency in the world because of inflationary fears. He said he's looking for an "explosive move" in gold to the upside, and "it could happen soon."

Adami said he's seeing a rally in

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but was not as bullish as Shiff on gold.

Shifting to oil, which was up today, Terranova said oil is being influenced by obvious geopolitical concerns, including the possibility of more sanctions against Iran and a "strike against Israel." He said there was heavy institutional buying in oil overnight.

Schiff explained the move to oil as a way for investors to get out of currencies. Terranova said the play off of oil would be in ag names like





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Lee brought in Curtis Arledge, who manages $600 billion in fixed income assets for


(BLK) - Get BlackRock, Inc. Report

to get his take on the Fed's rate hike.

Arledge said the move wasn't suprising but it came earlier than he had expected. He said the market will be looking for higher rates. He said he would be a buyer of long-term U.S. debt, calling it a very liquid market.

Arledge said the economic recovery is going to be choppy but he sees no evidence of runaway of inflation. He also said he doesn't believe the Fed will make a move on the fed funds rate this year.

According to Arledge, there is a "tremendous amount of money" in the front end of the yield curve looking for a home.

Schiff reiterated his belief that investors should not be buying long-term U.S. Treasuries. He said the government has only two options: default or print more money.

Lee brought in Patrick Doyle, the new CEO of

Domino's Pizza

(DPZ) - Get Domino's Pizza, Inc. Report

to talk about the company's unusual ad campaign that is critical of the company's pizza.

Doyle said the ad is working because it is grabbing the attention of consumers and telling them that "we are listening to them and making changes."

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC


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