'Fast Money' Recap: Market Shrugs Off Terrorist Threat

The trading panel said there was little market reaction to the discovery of suspicious air-cargo packages with explosive materials.
Author:
Publish date:

NEW YORK (

TheStreet

) -- The markets closed Friday virtually unchanged ahead of next week's midterm elections.

The

Dow Jones Industrial Average

was up 4.54, or 0.04%, to 11, 118.49 while the

S&P 500

slipped 0.52, or 0.04%, to 1,183.26. The

Nasdaq

added 0.04, or 0.00%, to 2,507.41.

The trading panel on

CNBC

's "Fast Money" TV show, focused on reports of the interception of two air-cargo packages carrying explosive materials that were bound for the U.S. from Yemen.

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

var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 652601087001; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

Melissa Lee, the moderator of the show, asked the panel to comment on the market reaction to the reports.

Steve Grasso said there was no dumping of stocks as the market took a wait-and-see approach to the developments.

Guy Adami said the incident added fuel to what he suspects will be a down week along with other events such as the mid-term elections and a

Fed

meeting.

Karen Finerman said the explosive packages reports alone wouldn't make her a buyer of puts. Brian Kelly said he thought the markets looked stronger during the day than he had expected.

Adami said there some stocks that hung in there quite well, such as

IBM

(IBM) - Get Report

and

Oracle

(ORCL) - Get Report

.

Will the indicent raise security costs for air cargo carriers like

UPS

(UPS) - Get Report

and

Fedex

(FDX) - Get Report

?

Arthur Hatfield, an analyst with Morgan Keegan, downplayed the impact of the terrorist threat on the carriers. He said it was remarkable that the packages were flagged so quickly and removed from the system. He said the carriers are always on the lookout for suspicious packages and do a lot of work internally.

He said Fedex could benefit from low inventories over the holiday season.

Lee shifted the discussion to the impact of the upcoming elections and the Fed's meeting. Kelly said he was going to buy what the Fed is buying: long-term bonds through

iShares Barclays 20+

(TLT) - Get Report

.

Grasso and Finerman said the market was ripe for a pullback. Finerman said the market has been trading for weeks on the same news on the elections and quantitative easing. Adami said he sensed a correction is coming but conceded the market has shrugged off every reason to go lower. Weiss said the Fed's move will impact the earnings powers of the banks which are focused on the yield curve.

As for the impact from midterm elections and a Republican takeover of the House, Grasso said he would focus on companies in the health care space that rely on Medicare and Medicaid funding.

He said the prospects of cuts have him selling stocks such as

Pfizer

(PFE) - Get Report

and

Merck

(MRK) - Get Report

.

Kelly said he would be a buyer of

Tidewater

(TDW) - Get Report

on the prospects of the lifting of the oil drilling moratorium. Weiss said he liked

Allscripts

(MDRX) - Get Report

, which he believes will do well regardless of the election results.

In the final trades, Kelly liked

TD Bank Financial Group

(TD) - Get Report

. Adami liked

L3 Communications

(LLL) - Get Report

. Finerman liked

Carefusion

(CFN)

. Grasso liked

Raytheon

(RTN) - Get Report

. Weiss liked

UPS

(UPS) - Get Report

--Written by David Tong in San Francisco.

To contact the writer of this article, click here:

David Tong

.

To follow the writer on Twitter, go to

http://twitter.com/davidtong

.

To submit a news tip, send an email to:

tips@thestreet.com

.

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

.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.