The markets started on an upbeat note Monday, boosted by some encouraging earnings and signs of an improving economy. The Dow Jones Industrial Average rose 104.21, or 1.19%, to 8,848/15, while the S&P 500 rose 10.75, or 1/14%, to 951.13. The Nasdaq was up 22.68, or 1.2%, to 1,909.29. Joe Terranova said on CNBC's "Fast Money" TV show that the market is going to get a "massive buy order" when the people sitting on the sidelines get into the market. Tim Seymour said the market is performing well because the earnings are coming through and companies are beating on the top line. Steve Grasso said the difference between this earnings season and others is that this earnings season came "out of the blocks strong." He said the return of mutual fund and pension fund money from the sidelines will make a difference in whether the market continues to rally. Pete Najarian noted that investors saw a "global push" on the market from the upgrades of Caterpillar ( CAT) and Peabody Energy ( BTU) that is going to entice people on the sidelines to come in. Melissa Lee, the moderator of the show, wondered whether Goldman Sachs' call of 1060 for the S&P essentially was a market bottom. Terranova stressed that the hand being played out right now is very under-invested as people are cautiously trying not to be too optimistic. Moving on to tech, Seymour said he was concerned that Cisco ( CSCO), Intel ( INTC) and some other names were selling down after running up against some resistance levels with respect to their relative strength indicators.
Terranova took the bullish view, saying the tech names have the cash, balance sheet, a "fundamental story" and the wherewithal to push the sector and market higher. Jim Goldman, a CNBC reporter who was on the conference call Texas Instruments ( TXN) said the company's strong earnings and guidance was a case of less bad news than it was "actual good news." Shifting to commodities which moved higher today, Seymour said there is some inventory tightness in copper. He said some of the largest copper and zinc names are reporting later this week, and the expectation is that they will report top-line growth. Najarian said a stock to watch is Freeport McMoRan ( FCX), because it is cheap with a low volatility that indicates it's priced for not much of a move coming into its earnings report. He said that the company should report "staggering numbers" in the wake of the rise in copper prices. Youssef Squali, managing director for Jefferies & Co., appeared on the show to talk about Yahoo! ( YHOO), which has had quite a runup going into its earnings. Squali said he expects an in-line quarter and muted expectations, leading to a sell-off back to the mid-teens. He said he likes the stock long term. He said it will be tough for Yahoo! to compete without a search deal with Microsoft ( MSFT). With the deal, Yahoo! can work toward being the largest display advertiser, he said. Lee shifted the panel's attention to President Obama's comments on his massive healthcare reform bill. Grasso said healthcare stocks like Unitedhealth ( UNH) will benefit as the poll ratings on Obama drop. However, if the bill passes, all these stocks will go one way: south, he said.
Neil Soss, chief economist for Credit Suisse, appeared briefly to talk about Fed Chairman Ben Bernanke's monetary policy speech tomorrow. Soss expects Bernanke to say a recovery is underway and that the Fed had a lot to do with it. On the eve of Apple's ( AAPL), Tavis McCourt, managing director of Morgan Keegan, told the panel that he expects Apple to beat estimates and offer lower guidance. His guess is that the stock will trade off for a few days before people realize the company's September-quarter guidance is ridiculously low and all the great reasons to own the stock, including the launch of a new Windows operating system and a camera for the iPod line. He also said Research In Motion ( RIMM) has benefited from the iPhone because it is causing carriers to subsidize and support the BlackBerry. Lee invited Hasbro> ( HAS) CEO Brian Goldner to talk about the company's better-than expected earnings, cost-cutting moves and success of its Transformers toy line. Goldner said the company's movie-tie business is only part of the picture. He said its boys and girls business is growing along with its preschool and core business. He said the next year's major movie ties include Iron Man 2 from Marvel and Toy Story 3 from Disney. Lee asked Grasso's for his observations about where the cash is going. He said investors are taking a safe approach after last week's 7% rally. He said they've been dumping their money into ETFs and doing micro homework when the market settles in.
In the final trades, Seymour was long Nokia ( NOK) while Grasso was long Occidental Petroleum ( OXY). Terranova liked Amazon ( AMZN). Najarian liked Dow Chemical ( DOW) "Check out "'Fast Money' Portfolios of the Week" on Stockpickr every Thursday.