'Fast Money' Recap: Political Gridlock

NEW YORK ( TheStreet) -- The markets closed mixed Tuesday as President Obama pressed ahead on health care reforms.

The Dow Jones Industrial Average sank 9.22, or 0.09%, to 10,396.76, while the S&P 500 added 0.48, or 0.04%, to 1,118.79. The Nasdaq edged down 0.11, or 0.00%, to 2,280.68.

Tim Seymour said on CNBC's "Fast Money" TV show that the market continues to move up, with encouraging data from the U.S.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Steve Grasso said the money that is coming is moving into industrials and not tech or financials.

The panel debated at length whether the rally in the commodities was a head fake. Seymour argued the rally was genuine, while Brian Kelly said the trade has shifted to where money is being made charging for storage of commodities.

Melissa Lee, the moderator of the show, wondered whether the copper trade had reached a point where there is still demand but that consumption may be the issue.

Lee noted that the transports did well today. Guy Adami noted Goldman's initiation of coverage of CSX ( CSX) with a sell rating. He advised taking profits on the stock.

Lee said financials were in the dumps today with the threat of federal regulation looming. Daniel Clifton, head of policy research for Strategas, said it's important that the Obama administration is sticking with its proposal, but he doubted whether there will be much teeth in the bill after it gets through Congress.

He said much of the Volcker Plan won't go through but he added the bill could give the Fed the power to take away the ability for proprietary trading if it is worried about "systemic risk."

Jon Najarian agreed with the assessment but he noted that the financials also face troubles in Europe where companies were caught up in opaque trades with huge contra-party risks that were accelerated by credit default swaps.

Pfizer ( PFE) was down 1.5% today on a report that an Alzheimer's drug the company is developing with Medivation ( MDVN) failed to show effectiveness in a late-stage study.

CNBC reporter Mike Huckman said Pfizer is struggling to fight something to replace its blockbuster drug Lipitor, which is about to go off patent. "It has nothing to fill the hole," he said.

In addition to finding another drug, Pfizer is looking at acquisitions and partnerships to fill the gap, he said.

Lee asked Dennis Gartman, of the Gartman letter, for his assessment of the debt crisis in Europe. He said the trend is clearly down for the euro. He expects Portugal and Spain to follow in the footsteps of Greece.

Shifting to Washington and Obama's late-inning push to pass a health care reform bill, Clifton said the effort will run aground because the House simply does not have the votes to pass the bill.

In the fast funds segment, Lee noted that ETFs continue to grow with $777 billion in assets at the end of 2009. She said the industry continues to move aggressively forward with a push into actively managed ETFs.

Brian Posner, founder and president of Point Rider Group, said traditional funds are coming under assault from these actively managed ETFs. He said it will be a game-changer if T Rowe Price ( TR1.MU) gets into the business.

In the final trades, Seymour liked Agrium ( AGU). Adami liked Transocean ( RIG), while Finerman said to sell Children's Place ( PLCE). Grasso said to sell Mastercard ( MA) and buy Visa ( V).

-- Written by David Tong in San Francisco

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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