'Fast Money' Recap: Tired Market?

The trading panel debated whether the market is exhausted.

Author:: David Tong
Publish date:: Apr 21, 2010 8:34 PM EDT

NEW YORK (

TheStreet

) -- The markets were mixed Wednesday as the latest earnings failed to imipress investors.

The

Dow Jones Industrial Average

was up 7.8, or 0.07%, to 11,124.92, while the

S&P 500

sagged 1.23, or 0.10%, to 1,205.94. The

Nasdaq

added 4.30, or 17%, to 2,504.61.

Melissa Lee said on

CNBC

's "Fast Money" TV show, that investors were unimpressed with the outlooks for

eBay

(EBAY) - Get Report

and

Qualcomm

(QCOM) - Get Report

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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Pete Najarian said that investors will slam stocks if companies just report in-line earnings and so-so guidance.

Gary Kaminsky said the guidance was so bad on

eBay

(EBAY) - Get Report

that the company should have come out earlier and dealt with it in a pre-earnings release.

Lee shifted the discussion to a news report that said that SEC Chair Mary Schapiro had denied any connection in the timing between her agency's action against

Goldman Sachs

(GS) - Get Report

and the White House's push for financial reforms.

Lee said that denial actually raised suspicions that there may be a connection. Terranova said the SEC's action against Goldman has had a negative impact on the retail investor. He said the market is sagging because "risk has been taken off the table" and the earnings of the companies have been priced for perfection.

Najarian said the SEC's action has raised the volatility in Goldman, giving options investors a chance to jump in and own shares of the investment bank.

Anthony Scaramucci said he did not think Schapiro's comments were politically motivated. He said attorneys in the SEC's enforcement unit wanted to bring the case. He said that Goldman has to figure a way to settle this case. "You can't be in litigation with your regulator," he said.

Tim Seymour said the market appears "exhausted" despite a round of good earnings. Najarian sensed a shift in the markets out of the financials.

Najarian took issue with the negative comments about the market. He said the market is just rewarding companies like

SanDisk

(SNDK)

and punishing those whose performances are lacking.

Kaminsky told the panel that there were 90 new highs in today's session, hardly a sign of a weak market. He said the money will come out of weak stocks like

Freeport McMoran

(FCX) - Get Report

and be redeployed elsewhere.

Lee asked Brian Kelly to comment on the reversal in

Netflix

(NFLX) - Get Report

, which ended up higher after being down earlier in the day. Kelly said the market reacted negatively to the lower guidance but then swung to the other side when it saw a higher-than-expected guidance for the year.

Shifting to the commodities, Seymour said Freeport McMoran was down today because China's stockpiles are high and demand could come off the table. Najarian said he would be very selective in choosing stocks in the met coal and copper spaces.

Seymour said he would short

Cliffs Natural Resources

(CLF) - Get Report

but stay long in FCX. Meanwhile Najarian said he liked the integrated names like

Exxon Mobil

(XOM) - Get Report

Lee noted that

Starbucks

(SBUX) - Get Report

was moving higher on higher profits and a good outlook. Kelly said the stock could break out at $26. He said the company is turning things around by cutting costs, slowing the opening of new stores and focusing on profitable ones.

Lee asked Scaramucci to comment on a press conference that

John Paulson

is holding Thursday to deal with the criticism directed at him from the SEC's action against Goldman.

Scaramucci said Paulson should be given credit for "open communications" and trying to allay fears and stem redemptions. "It's a brilliant strategy," he said.

Scaramucci also provided his hedge fund trade of the week. It's

CIT Group

(CIT) - Get Report

, which he said is under a new management team, trading below book value and is positioned well in the middle market lending recovery.

Is the job market dead on Wall Street? Scott Page, founder and co-CEO of Solomon Page, a global executive search and staffing firm, said hiring has rebounded strongly in credit areas that have been dead for two years.

In particular, he mentioned opening in such areas as high-grade credit, high yield, sub-prime and mortgage-backed securities. He said the demand is strong domestically and globally and among both buy- and sell-side firms.

In the final trades, Terranova said it's been a week and

Google

(GOOG) - Get Report

still hasn't recovered from its drop. Seymour said he liked

Monsanto

(MON)

. Kaminsky liked

Apple

(AAPL) - Get Report

and Najarian liked Exxon Mobil.

-- Written by David Tong in San Francisco

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