The markets staged a late rally Thursday on the strength of financial and tech stocks.
The Dow Jones Industrial Average rose 95.81, or 1.19%, to 8,125.43, while the S&P 500 was up 13.24, or 1.55%, to 865.30. The Nasdaq jumped 43.64, or 2.68%, to 1,670.44. Guy Adami said on CNBC's "Fast Money" TV show that it may be late to get in with the S&P at 865, but he said there may still be time because he doesn't think anyone believes in this rally. "This rally is at the sixth or seventh inning, at best," he said. Melissa Lee, the moderator of the show, switched to Jim Goldman, a CNBC reporter who was listening to the conference call for Google ( GOOG). The stock was rolling over in after-hours trading. Goldman said Google suffered its first sequential revenue and profit decline in the first quarter. However, he said that CEO Eric Schmidt said the company's "good" quarter demonstrated that its business model is strong and works. Pete Najarian said that while it will be a bit of a struggle for the company in the short term, it stands to grow in the long term because growth is to be had in online advertising. Guy Adami said the stock is fairly priced now and investors should look to get in on a dip. Tim Seymour said investors should be getting out of Baidu ( BIDU) which has jumped 100% in the last couple of months. Lee said the chipmakers got a lift from Nokia ( NOK), which reported signs of stability in the cellphone market. Najarian said Nokia still has to do more to make money on in the high-end portion of the market now dominated by Research In Motion ( RIMM) and Palm ( PALM) with their smartphones. Lee asked the panel what they would do if tech stocks dip Friday. Adami said he would look at Oracle ( ORCL) on a pullback, Intel ( INTC) at $15, and take profits on HP ( HPQ) at $36. Karen Finerman said she liked Cisco ( CSCO) at its current valuation. Will JPMorgan Chase's profit beat set the tone for the financials? "You clearly want to buy JPM," said Richard Bove, financial strategist for Rochdale Securities. He said the company actually understated its earnings today because it socked far too much money in its reserves. In particular, he referred to JPMorgan's non-performing assets and outstanding loans. Bove said things are looking good for the banking industry, with record deposits flowing in the fourth quarter, high margins on its deposits, the mortgage refi boom and increased trading activity. As for Citigroup's ( C) earnings Friday, he expects it to make a small profit, primarily from trading and investment banking. He said it's difficult to play the stock until the arbitrage between the preferred and common is settled.