'Fast Money' Recap: Tech Rally Slowing?

The markets continued to rally higher Thursday with the help of tech stocks and a forecast from a famed economist that the worst is over.

The Dow Jones Industrial Average jumped 95.61, or 1.11%, to 8,711.82, while the S&P 500 added 8.06, or 0.86%, to 940.74. The Nasdaq rose 22.12, or 1.19%, to 1,885.03.

Tim Seymour said on CNBC's "Fast Money" TV show that IBM ( IBM) was a little lackluster in after-hours trading despite an impressive earnings report. He said that shows that some of these names are getting tired.

Both Karen Finerman and Jared Levy, though, disagreed, saying that Big Blue's guidance was impressive.

Seymour said he was a little worried that Google ( GOOG), which was down in afterhours trading after a good top line in its earnings and encouraging guidance, isn't showing the kind of momentum to take it to the next level.

Jim Goldman, a CNBC reporter who sat on in the Google conference call, said its CEO Eric Schmidt said business is stabilizing with large advertisers returning to the fold. He also said the search giant sees big opportunities in mobile.

Terranova sees the momentum players leaving Google, causing a sell-off and offering an tremendous opportunity for investors to pick it up on a pullback.

Shifting to JPMorgan Chase ( JPM), which was down 13 cents despite reporting a 36% profit increase, down 13 cents, Finerman said what was interesting to her about JPMorgan's conference call was what it said about credit losses and continuing credit losses.

She said JPMorgan has built up a pretty big cushion to handle non-performing assets. She said that provision is important going forward in helping the company build its earnings power.

Lee shifted the discussion to famed economist Nouriel Roubini who was credited for helping fuel today's rally when he said the recession would end this year and that the worst of the financial crisis is over.

Roubini later said his comments were taken out of context. He said the recession will continue until the end of this year and that the recovery will be weak with the risk of a double dip.

Terranova took a swipe at Roubini's call, saying it had little, if any impact, on the rally. He called Roubini's comments "complete nonsense" and an attempt to average a bad position after making a bad call in March. "It has nothing to do with earnings and improving landscape," he said.

Lee shifted the attention to CIT ( CIT), which is in limbo as it tries to get funding from private equity groups. Finerman said the demise of CIT will hurt retailers that have relied on it to purchase their receivables.

But she said the credit markets have improved and believes other factors will step in to fill CIT's shoes, if necessary.

Michael Pento, chief economist of Delta Global Advisors, painted a dire picture of the economy. He said the country is a long way off from solving its problems. "No way the worst is over," he said.

He said it can't be with total non-financial debt growing at a 4.1% annual rate and total debt as a percentage of GDP at 361%, an all-time record high.

He sees interest rates rising because of Treasury issuance and a debt problem that will be compounded with the costs of a national health plan and higher taxes.

Shifting the topic to General Electric ( GE), which is about to report earnings, Peter Jacobs, director of research for Ragen Mackenzie, said the market is very pessimistic about its financial services business. However, if the company says it can make it through another quarter, the stock will start to strengthen, he said.

In its condition, GE probably cannot take advantage of CIT's demise. "It's a wash," he said. He did say the company's industrial side of the business will benefit from the stimulus.

Moving on to the casual dining stocks, Finerman said investors should take advantage of a down day for Yum! Brands ( YUM) and Burger King ( BKC)to pick up some shares.

She finds them more attractive than U.S. casual dining names which have had a huge runup in the second quarter.

Jon Najarian appeared on the show to talk about reports from a Brazilian newspaper that Vale ( VALE) making a bid for Mosaic ( MOS).

Najarian said heavy options activity on Friday and Monday created a huge buying opportunity. He said he got out of the trade and sees better opportunities in Agrium ( AGU), Potash ( POT) and Intrepid Potash ( IPI).

Pete Najarian told the panel to keep their eyes on Texas Instruments ( TXN) next week. He said investors will looking to see what the company says on its earnings call about its growth strategy. He said it could be in China, where it is deeply involved in the cellphone market.

In the final trade, Seymour was long Stillwater Mining ( SWC) while Terranova was long natural gas. Finerman was long Walmart ( WMT). Levy liked playing Mosaic ( MOS) on the 55-60 December call spread.

"Check out "'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.

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