'Fast Money' Recap: Market Momentum

The trading panel said this week's strong earnings and favorable bank stress test results in Europe provided some badly needed momentum to the markets.
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NEW YORK (

TheStreet

) -- The markets closed the week on an optimistic note on encouraging news from Europe on bank stress tests.

The

Dow Jones Industrial Average

jumped 102.32, or 0.99%, to 10,424.62, while the

S&P 500

gained 8.99, or 0.82%, to 1,102.66. The

Nasdaq

was up 23.58, or 1.05%, to 2,269.47.

Joe Terranova said on

CNBC

's "Fast Money" TV show that what was good about the stress tests was the level of transparency it provided.

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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He said the results will send the euro higher and bring back the risk trades, especially in the commodities. He detected a reversal in market momentum this week, adding 1,140 in the S&P is the place where "people think we will go."

Steve Grasso cautioned about the light volume in today's trading, but Brian Kelly, who's been bearish all along, acknowledged that this week's healthy earnings and outlooks, along with the results of the stress tests, have led him to believe the economy is stronger than he thought.

Kelly said the important thing for him about the stress tests was the level of certainty it gives investors to assume risks.

Grasso said there are still plenty of negatives in the market, including the threat of more foreclosures, less loan modifications and less stimulus.

Both Seymour and Melissa Lee, the moderator of the show, found it difficult to believe that the capital shortfall of the 91 banks that took the tests was a paltry 3.5 billion euros.

For that reason, Seymour said he believes there will be a pullback on European bank stocks on Monday and a shift to the U.S. banks. He favored taking profits in some European bank names like

Banco Santander

(STD)

, which has enjoyed a big run-up this year.

Terranova, though, said money managers are finally getting some confidence from this week's strong earnings to redeploy money in the equity markets.

Patty Edwards said she was worried about the extension of unemployment from an average of 10 weeks to 25 weeks now for consumers.

Shifting to the commodities in which copper has been a big winner, soaring 9% this week, Joe Terranova said the rise in copper is a strong sign that the global economy is not going to double dip.

Kelly found it strange that gold was down today, but Grasso said investors are selling their gold and going into coal and steel.

Charles Biderman, of Trim Tabs Investment research, said investors still are not putting money in the markets.

A day after

Amazon.com

's

(AMZN) - Get Report

disappointing earnings, Terranova was buying some shares today. He said he looked at the earnings and still sees a 25% growth rate and prospects for ecommerce growth in China and Europe.

Lee brought in Sen. Christopher Dodd, D-Conn., to talking about the implementation of the financial overhaul bill that was signed into law on Wednesday. He said it's going to take some time to go through the process of finalizing the regulations.

He said the new regulatory structure will help release up pentup capital and get credit flowing again. He said he was not in favor of extending the Bush tax cuts. However, he did favor tax relief for small businesses.

In the final trades, Seymour said to sell

Banco Santander

(STD)

Kelly liked

Pro Shares Ultra Short 20 Year Treasury

(TBT) - Get Report

. Grasso liked

Altria Group

(MO) - Get Report

, while Terranova liked

Mosaic

(MOS) - Get Report

-- Written by David Tong in San Francisco

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

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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