'Fast Money' Recap: Second Quarter Preview
NEW YORK (
) -- The markets rallied Thursday ahead of the long-awaited jobs report.
The
Dow Jones Industrial Average
jumped 70.44, or 0.65%, to 10,927.07, while the
S&P 500
gained 8.67, or 0.74%, to 1,178.10. The
Nasdaq
was up 4.62, or 0.19%, to 2,402.58.
Pete Najarian said on
CNBC
's "Fast Money" TV show that everything in the commodity space was up today, with a lot of names hitting new highs.
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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Tim Seymour said there has been a lot of strong growth numbers from around the globe that is going to lead the emerging markets and resource space higher in the second quarter.
He said his company has started to get excited about some of the underperforming names in the energy space like
Petrobras
(PBR) - Get Report
and
Exxon
(XOM) - Get Report
.
Najarian said the chemical, coal and rail names continued to move to the upside.
felt the employment number was less important to her than the other pieces of macroeconomic information that the other panelists mentioned. She also said the coming earnings season will play an important role in the direction of the market.
Brian Kelly expressed concerns about the market reaction to the jobs report. He believes the market is "price for perfection" and needs the jobs report to come in a tight range between the high and low estimates.
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Patty Edwards, founder of Storehouse Partners, shared that pessimism, saying she was worried about the impact of raising oil prices and unemployment on the retail sector. As a result, she said she was thinking of shorting one of the big indexes like the
SPDR S&P Retail
(XRT) - Get Report
or the
Retail HOLDRS Trust
(RTH) - Get Report
.
Finerman took a different view of the retail sector, saying that it has returned from the "abyss" and manged to cut back inventory and produced some "excellent balance sheets."
With
Apple
(AAPL) - Get Report
set to launch the iPad on Saturday, Lee asked Tavis McCourt, an analyst with Morgan Keegan, if the iPad can match the hype.
He said there hasn't been as much hype as there was for other notable Apple products like the iPhone and iPod. He said one of the overlooked beneficiaries of the success of the iPad will be the "devastated" newspaper and magazine industries.
All told, he said the iMac remains the top story for Apple, followed by the iPhone. "The iPad is icing on the cake," he said.
Najarian said some good derivative plays off the iPad would be
Broadcom
(BRCM)
and
JDS Uniphase
(JDSU)
.
Finerman said
Best Buy
(BBY) - Get Report
, which will be selling the iPads, should benefit as well.
Adami said one of the victims might be
Dell
(DELL) - Get Report
, which he is shorting.
Najarian said the iPad is targeting the space taken up by netbooks and laptops.
Edwards offered up
Electronics Arts
(ERTS)
GP/> as another derivative play, while Lee said there was a rumor that
Netflix
(NFLX) - Get Report
may get involved.
Lee brought in Joe Lavorgna, the U.S. economist at Deutsche Bank, to preview Friday's jobs report. Lavorgna's forecast of an addition of 350,000 nonfarm jobs in March is much more bullish than the consensus estimate of 182,000.
Lavorgna defended his estimate, saying temp hiring has exploded to the upside while the ISM survey results continue "to accelerate." He also said about 1 million jobs were distorted by weather-related factors in the Bureau of Labor Statistics report for February.
He said the March report will be the starting point for "meaningful job growth to come." He also said the jobs number will benefit equities, despite rising interest rates.
With shares in
Research In Motion
(RIMM)
down 7% today on a disappointing quarter, Carter Worth, chief market technician for Oppenheimer Asset Management, noted the stock stopped exactly at its 100-moving day average and said it was good time to buy the stock. "It a low-risk reward," he said.
Is April going to see more investors moving into the markets? Charles Biderman, CEO of Trim Tabs Investment Research, believes retail investors will get in, in a big way this month. He said April usually sees one of the strongest inflows of funds into equities for the year.
He said there was a huge outflow of fund out of money market funds into bond funds. Now, he sees that flow moving into equities in April as interest rates rise.
Worth singled out
Abbott Labs
(ABT) - Get Report
as a laggard that is poised for a comeback.
In the "pitch" for the day, Edward touted
Herbalife
(HLF) - Get Report
. She said the company enjoyes a 15% growth rate, draws only 20% of revenue from North America, takes in 63% of its revenue out of weight management, and finally is the kind of product that will appeal to new entrepreneurs in emerging markets who are looking for ways to make money.
In the final trades, Seymour liked Petrobras. Adami liked
Yum! Brands
(YUM) - Get Report
Finerman liked Best Buy while Najarian went with
Banco Popular
(BPOP) - Get Report
.
-- 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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"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.
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