'Fast Money' Recap: The Market's Nagging Problems

The trading panel discussed the persistent problems plaguing the markets.
Publish date:

The markets sagged Thursday from signs of further economic deterioriation and opposition in the Senate for a bailout for U.S. automakers.


Dow Jones Industrial Average

plunged 196.33, or 2.2%, to 8565.09, while the

S&P 500

fell 25.65, of 2.9%, to 873.59. The


dropped 57.60, or 3.7%, to 1507.88.

Dylan Ratigan, host of


"Fast Money" TV show, said the markets fell from pressure on the financial stocks, rollover of commodity names and clobbering of REITs.

Pete Najarian said it all starts with the jobless number which is getting close to 600,000. At the same time, he said the situation is not as dire as it appears. He said the VIX volality index is "flat" and the action on the commodity stocks amounted to a pullback after some hefty gains.

Karen Finerman agreed, noting REITs have had a "big, big run." The irony is things have not gotten that much better for REITs to go up so high, she said.

Jeff Macke said it was "too late in the game to short" the retailers.

Ratigan observed that the shares of

General Motors

(GM) - Get Report



(F) - Get Report

were down 10% today. Guy Adami said he sees GM going to zero and Ford making it through in terms of the equity. Najarian said he wouldn't touch either.

Najarian tried to some perspective on the slide in commodities and advised investors to be a little patient. Coal, he explained, has had a 50% to 60% run in five days. "Take some profits. If you miss the boat, you'll be a little bit more on the downside," he said.

But, he said, "Don't chase these things. You'll have the opportunity to get them back."

Ratigan asked the trading panel for their comments on statements earlier in the day from Jamie Dimon, chairman and CEO of

JP Morgan Chase

(JPM) - Get Report


Dimon lamented on the terrible trading for financials in November and December, adding the usual culprits being mortgages and high-yielding bonds. He also said the credit situation continues to deteriorate, noting it's "probably a little worse that we thought a month ago."

Finerman said JPMorgan has been hurt because of its large exposure to credit card receivables. She also noted that

Capital One

(COF) - Get Report

was "absolutely massacred today."

Ratigan asked Jon Narjarian to make a bullish case for commodities. Najarian said the commodities have come under a lot of pressure from the liquidation of hedge funds. He said the people who are successful in buying options in commodities think the upside is going to come sometime in January, March and April.

Moving on to the banking crisis, Ratigan noted a hefty increase in Level 3 and Level 2 assets among banks, adding it's no longer the banks' toxic asset problems as it is the U.S. taxpayer.

Ratigan invited Mike Huckman, CNBC's pharmaceutical reporter, to comment on the one sector that was up today: health care.

Huckman said the market mover was

Eli Lilly

(LLY) - Get Report

, which said it remains on track to get FDA approval next year for Byetta, a once-a-week diabetes drug.

According to Huckman,


(GSK) - Get Report

was also up today after announcing in a scientific conference in San Antonio a one-a-day pill called Tykerb that is taken with a pill called Femara from


(NVS) - Get Report

for treatment of breast cancer.

The combination of the two drugs is supposed to prolong life for five months without the need for chemotherapy, he said. "This could be a change in practice."

Huckman said the appointment of the new head of the FDA soon by President-elect Barack Obama could have a big impact on the market, along with developments from the annual JPMorgan Chase healthcare conference in January.

Jeff Terranova spoke briefly about the big investment opportunities for Generation Y. Unlike other age groups, this group has opportunity to operate from a "clean slate" and do well by getting into the market over the next 10 to 15 years.

"Check out

"'Fast Money' Portfolios of the Week" on Stockpickr

every Thursday.

This article was written by a staff member of TheStreet.com.