'Fast Money' Recap: Post-Election Trades
NEW YORK (
) --The markets traded higher on the expectations of Republican control of Congress.
The
Dow Jones Industrial Average
rose 64.10, or 0.58%, to 11, 188.72 and the
S&P 500
rose 9.19, or 0.78%, to 1,193.57. The
Nasdaq
jumped 28.68, or 1.14%, to 2,533.52.
Joe Terranova said on
CNBC
's "Fast Money" TV show, said that investors are moving into tech, energy and anything with exposure to emerging markets.
Brian Kelly lamented the lack of participation by the financials in today's rally. Karen Finerman said she still liked the financials despite a "lot of noise" in the sector from "exogenous issues."
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> = 657264424001; 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); |
Steve Cortes said everything rallied at the expense of the dollar, adding that trade is "getting long in the tooth."
Kelly said the financials look attractive because the country needs a fully functional financial system, regardless of the outcome of the elections.
Daniel Clifton, head of policy research for Strategas, said the results in the West Virginia Senate race could indicate whether the Republicans will take over the Senate. If that were to happen, he thinks energy, rail, coal and utility stocks will benefit.
The energy trade was active today. Terranova said oil was hitting a six-month high, with integrated names, drillers and oil service names benefitting from a slight uptick in demand from industrialized nations.
Finerman said
BP
(BP) - Get Report
appears to be moving beyond the spill to its underlying business as it returns to some degree of normalization.
Kelly said
Oil Services HOLDRs
(OIH) - Get Report
might be heading for a breakout if it goes above $122. He also said utility stocks have rallied over the possibility of a dividend tax cut.
As a result of QE2, Kelly said he liked
iShares Barclays 20+ year Treasury Bond ETF
(TLT) - Get Report
. Terranova said the easing would be also a positive for copper. Finerman, though, said she is shorting the long-end of the curve, as she expressed concerns about the possibility of uncontrolled inflation.
Daniel Niles, co-CIO of Alpha One Capital Partners, said the big lift will come after the impact of QE2 and the election results have been removed from the market.
He said investors will have to switch to single stock trades instead of relying on the big macro trade. He said his moves have been defensive, favoring disk drives in the PC space and shorting some names in the wireless space.
He told Finerman to expect a more balanced market that will focus on bad news as well, including the problems in Europe and the mortgage putback issues.
Shifting to gold, Richard O'Brien, CEO of
Newmont Mining
(NEM) - Get Report
, said the next round of quantitative easing will send gold higher. He sees gold as a long-term trade, in which prices will rise to $1,500 an ounce in the next several years.
He said gold has risen only 5% for the quarter and has the support of governments which are not selling into the record prices. He told the panel that the floor of gold is about $850 to $900.
In another trade-the-vote segment, Ed Groshans, an analyst with Height Analytics, said he favored the big-cap financials. He said
Wells Fargo
(WFC) - Get Report
fits the bill because it handled the mortgage crisis fairly well.
He said Republican control of the House will put pressure on the big banks to release capital in the form of dividends and buybacks. He also said
Visa
(V) - Get Report
and
Mastercard
(MA) - Get Report
should do well. He said the two credit card companies are seeing accelerating growth rates and expect 20% earnings growth rates the next couple of years.
Finerman noted that trucking data showed that the trucking industry was on the rebound. She said the trucking stocks are cheap.
Shifting to health care,
Allscripts
(MDRX) - Get Report
CEO Glen Tullman said he wasn't worried about tonight's election results because he sees health care IT as a nonpartisan issue.
He said the pressure for more cost-efficient services is driving his business and hiring. He also said the company is reaping the benefits of the spread in the use of iPads and other mobile devices.
Dan Greenhaus, chief economic strategist for Miller Tabak, said the prospects of gridlock is bad for the country, which he insists needs government spending if there is to be an economic recovery. He said the notion of "contractionary expansion is nothing but fiction."
In the final trades, Kelly liked
Home Depot
(HD) - Get Report
. Cortes liked
Clorox
(CLX) - Get Report
. Finerman liked
CVS
(CVS) - Get Report
. Terranova was adding to his position in
Apple
(AAPL) - Get Report
. Clifton said he would get into
Market Vectors Coal ETF
(KOL) - Get Report
if the Republicans gain control of the Senate.
--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
.
To submit a news tip, send an email to:
.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
.
Follow TheStreet.com on
and become a fan on
