NEW YORK (
) -- The markets rebounded Wednesday on an encouraging jobs report.
Dow Jones Industrial Average
added 44.05, or 0.41%, to 10,680.43, while the
rose 6.78, or 0.61%, to 1,127.24. The
jumped 20.05, or 0.88%, to 2,303.57.
Francesco Guerrera, a reporter for the
, led off
's "Fast Money" TV show, saying that the trading boom that propelled U.S. bank stocks is over. He attributed the falloff to worried institutional investors and scared retail investors.
Tim Seymour was skeptical of the report, saying it's "really taking a big step out there." For example, he noted
, trading earnings were good in the second quarter. Joe Terranova agreed, saying capital markets have been recovering in the second quarter and are performing well.
Melissa Lee, the moderator of the show, noted another
article which reported that hedge fund "whale" John Paulson was reducing his long bullish bet on the U.S. from a net long of 140% to 107%.
More on U.S. Banks July's 5 Worst-Performing Big Bank Stocks
Karen Finerman wondered whether that reduction might have to do with redemptions, while Terranova said Paulson might be just reallocating his capital.
Lee later referred in the show to a
Wall Street Journal
report that confirmed that Paulson was paring his bullish bets as a result of an uncertain outlook on the U.S. economy.
Lee asked the panel to comment on a
was going to spin off its proprietary trading arm to get around the Volcker rule.
Terranova said the move didn't come as a surprise to him and would be good for the company. Finerman said she didn't understand the move and how it would create value.
Shifting to Thursday's retail sales numbers, Finerman reminded viewers that July isn't an important barometer for retail sales. She said that would come with the back-to-school sales numbers in August.
was up 20% on strong earnings and an analyst upgrade. Pete Najarian said the action was lifting other stocks like
as cost-conscious travelers seek deals on airline fares and hotel bookings.
Moving on to
Research in Motion
( RIMM), Lee said the smartphone maker was encountering email security access issues with yet another country, India. Finerman said the situation was making her nervous after
problems in China
For the chart of the day, Lee noted how the U.S. dollar hit a 15-year low against the yen. Terranova said the decline of the dollar is going to a big theme for the rest of the year and how it is going to benefit the resources trade.
Steve Cortes said he got out of the yen trade today. He said the Japanese government will not allow the yen to stay so strong when the country is so reliant on exports.
Shifting to hot grain market, Dennis Gartman said grain prices have shot up as a result of the drought in Russia, which has destroyed most of the wheat crop. He believes prices can still go higher and advised getting into
It's going to be a great year for the U.S. farmer, he said, adding the bean and corn crops have been "fantastic." He also said he liked
and banks in the Midwest.
Looking at Thursday's headlines, Robert Samuels, an analyst with Phoenix Partners Group, downplayed the importance of the monthly retail results.
In addition to Barnes & Noble, others seeking strategic alternatives could include
Abercrombie & Fitch
, he said.
Lee noted today was the fifth anniversary of
listing on Nasdaq. Seymour said Baidu can be called the "king of search," having outperformed Google the past five years and having a lock on the Chinese market.
Barry Ritholtz, CEO for Fusion IQ, told the panel that deflation is a fact in the economy. He said the market has been unchanged for a decade, the housing market is weakening without the support of government subsidies and wages are flat as unemployment remains high.
Lee brought in Jeffrey Holford, an analyst with Jefferies & Co., to comment on his downgrade of
to a hold. He said the stock faces potential shocks from a series of patent court rulings that could go against the company.
Shifting to casino stocks, Steve Cortes said it was a tale of two cities with
Las Vegas Sands
, which hit a 52-week high today, and
, which was down slightly today. He said LVS is an Asian play while MGM relies more on the much weaker U.S. market.
With the cleanup efforts in high gear in the Gulf, Alan McKim, CEO of
said his company, which enjoyed strong second-quarter earnings, still sees a role in the cleanup for the next six to nine months, though he said it would be difficult to provide guidance more than six weeks out.
Seymour said the Gulf situation has change so dramatically that
are starting to talk about normalized earnings.
In the final trades, Seymour liked
while Terranova liked
. Finerman liked
. Najarian liked
-- Written by David Tong in San Francisco
To watch replays of Cramer's video segments, visit the Mad Money page onCNBC
"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.
Follow TheStreet.com on
and become a fan on