'Fast Money' Recap: Next Week's Outlook

Joe Terranova said the market could fall or rise depending upon whether the S&P moves down to 991 or up to 1027.
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NEW YORK (

TheStreet

) -- The markets rode an encouraging unemployment report and finished the week on a high note.

The

Dow Jones Industrial Average

rose 96.66, or 1.03%, to 9441.27, and the

S&P 500

added 13.16, or 1.31% to 1016.40. The

Nasdaq

was up 35.58, or 1.79%, to 2018.78.

Steve Grasso said on

CNBC

's "Fast Money" TV show that traders started buying stocks once they saw today's jobless number.

Looking ahead to Tuesday, Joe Terranova said that there will be selling pressures if the S&P dips below 991. On the other hand, he said the market could move up once the S&P hits 1027. He said investors also should keep in mind the VIX, which was down substantially today.

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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Guy Adami said the jobless situation is much greater than the 9.7 percent posted by the Labor Department. He said it's more like 17%, adding that's not great for consumers, banks, or the market.

Tim Seymour disagreed, arguing a jobless recovery is still a recovery. He said the U.S. economy is recovering along with other economies around the world, and that speaks well for the earning power of companies.

Terranova said it's been a tough week for a market that was clearly on the defensive. "You'll know more next week," he said.

Melissa Lee, the moderator of the show, shifted the discussion to tech stocks, which performed well today. Terranova said tech companies should benefit from the upgrade cycle. Grasso said technology figures to be strong going forward if the economy moves in the direction of a jobless recovery.

Moving to the commodity space, Terranova said it's tough to dissect what is happening, with oil "going nowhere," the grain market under substantial pressure and gold rallying. He said there's been a lot of action in copper, with

Freeport McMoRan

(FCX) - Get Report

being the "hottest" stock in the commodity space.

Terranova said Freeport is drawing a lot of attention of investors because it's perceived as the only way to invest in coppen given the regulatory crackdown on commodity ETFs.

Seymour expressed concerns for the weak dollar. He said China is responding to that with its move this week to diversify away from the U.S. currency by buying $50 billion worth of new IMF bonds.

Lee shifted the discussion to gold, which made a big move toward $1,000 this week. Grasso said there's a lot of funds that he knows that weren't in gold and are now getting into it.

How high will gold go? Jim Iuorio, managing director TJM Institutional Services, said gold is going to "blast through 1000," but is not sure whether the same can be said about the S&P. He said gold is not just a trade but an investment on every level. He noted China has encouraged its populace to hold more gold and gone out to purchase more gold.

Guy Adami was pessimistic about the outlook for the financials. He noted a

Wall Street Journal

article that said that prime borrowers are now falling behind on their payments. That coupled with reports of growing bank failures and 500,000 adjustable mortages resetting to higher rates in next couple of years leads him to believe that financials have had their run.

Grasso said financials will continue to get support for another month from funds that have been chasing the trash financial stocks in order to boost their year-end performance levels. He said the major problem with this sector is that it's running on technicals, with no evidence of loan growth.

Shifting to Obama's health care reform plan, Charles Boorady, Citi healthcare providers analyst, believes something will be done to expand health insurance to those who don't have it. He said the managed care stocks are discounting something worst that is going to come out of health reform.

He likes

Aetna

(AA) - Get Report

and

Unitedhealth Group

(UNH) - Get Report

in this space. He said Aetna has 20% worth of upside once "we get past this period of uncertainty."

Grasso said if they don't pass anything, all these stocks are going to fall off the table.

What happens now to the auto industry with end of the cash-to-clunkers program? John Krafcik, acting CEO for Hyundai Motor America, said the program was a "true shot in the arm." He said his company found that 40% of the people who bought Hyundai's under the program said they weren't intending to buy a vehicle. He said that statistic is encouraging for sales going forward.

In the final trades, Grasso said he liked

Apple

(AAPL) - Get Report

. Terranova said he liked

EOG Resources

(EOG) - Get Report

. Seymour and Adami did not have picks.

-- Written by David Tong in San Francisco

"Check out

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

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