The financial stocks held up Wednesday as the markets eked out a rare gain for the second day.
The Dow Jones Industrial Average gained 3.91, or 0.06%, to 6,930.40, while the S&P 500 rose 1.76, or 0.24%, to 721.36. The Nasdaq added 13.36, or 0.98%, to 1,371.64. Guy Adami said on CNBC's "Fast Money" TV show it was a "very good day" but that the S&P still needs to get up to 741. Pete Najarian added the financial and agricultural stocks continued to perform well. Meanwhile, Karen Finerman said bank stocks could get a boost after Jamie Dimon, the CEO of JPMorgan Chase ( JPM), said his firm was profitable in the first two months. "Imagine if we see the big banks profitable for the quarter, they have huge earnings power," she said. Melissa Lee, the moderator of the show, wondered whether the bank stocks can go higher after Goldman Sachs noted the continued deterioration of consumer credit conditions in its upgrade of Morgan Stanley ( MS). Pete Najarian said the congressional subcommittee hearing Thursday on mark-to-market accounting rules could be significant for bank stocks if it results in some changes. Zachary Karabell, though, said changes in those rules are not so more important as the changes in the reserve capital requirements that banks have to have against the accounting losses from toxic assets. Lee shifted the discussion to tech stocks, which have been doing well in the rally. Adami said he likes HP ( HPQ) because its PE is very compelling. "This is an environment where Mark Hurd (HP's CEO) does well. He starts to cut things and make things more efficient."