'Fast Money' Recap: Early Santa Rally

NEW YORK ( TheStreet) -- The markets rallied Wednesday for a second consecutive trading session.

The Dow Jones Industrial Average jumped 106.63, or 0.95%, to 11, 362.14 and the S&P 500 added 15.46, or 1.28%, to 1,221.53. The Nasdaq rose 29.92, or 1.17%, to 2,579.35.

Brian Kelly said on CNBC's "Fast Money" TV show that the markets were spurred by the decision by the ECB to do its own form of quantitative easing as well as good pending housing sales numbers that came out today.

Tim Seymour concurred, saying the ECB is bringing liquidity to the markets that need it. He said that action might have been disappointing to some who expected stronger action.

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

Seymour said it is easy to get caught up in all the geopolitical news and lose sight of valuations. He said stocks are cheap and "that's what you need to focus on."

Melissa Lee, the moderator of the show, said financials is one space that looks attractive, with a steeper yield curve and loan growth demand working in the favor of banks. Guy Adami said he liked the medical devices and health care names.

Joe Terranova said he was going out on a limb with Comerica ( CMA) on the theory that the economy is recovering and that the financials will play a big role in the rebound.

He also liked Goldman Sachs ( GS) and the work its trading desk has done in the past quarter.

Lee noted that oil broke above $90 a barrel. Terranova said he's very bullish on crude the next two weeks.

Richard Ilczyszyn, senior market strategist at Lind-Waldock, also was bullish on crude as well as natural gas, which he recommended buying on dips. He sees copper heading to $4 if the market continues to rally.

Looking ahead to Friday's jobs report, Joe Lavorgna, an economist with Deutsche Bank, expects an above consensus figure of 150,000 jobs created. He said he would be buying equities ahead of the report not so much because of the jobs report but because it comes along with a string of earlier data that support the belief of an economic recovery.

He said he's looking for the jobless rate to drop to 8% in 2011, adding the jobless rate usually overshoots to the downside when the labor market starts to get healthy.

Shifting to retail, Patrick McKeever, an analyst with MKM Partners, offered some possible takeover targets in the sector in the wake of the recent buyout of JCCrew ( JCG). Based on a screen he ran, he came up with three takeover candidates: Citi Trends ( CTRN), Big Lots ( BIG) and 99 Cents Only ( NDN).

In the trading the globe segment, Seymour said Pepisco's ( PEP) $3.8 billion deal for a two-thirds stake in Wimm-Bill-Dann ( WBD) is a smart emerging markets trade. He said the companies like Wimm-Bill-Dann are attractive because of their strong sales and margin expansion.

For the hedge pick of the week, Skybridge Capital's Anthony Scaramucci chose Kirkland's ( KIRK), a smallish-cap home décor business that operates primarily in the Sun Belt.

He called Kirkland's, which trades at 5.4 times earnings, a great turnaround story. He said the stock is held by some value-based hedge funds.

With the yield curve getting steeper, Terranova commented on the rise in 30-year rates and how that seemed to be driving home sales. Adami said he liked Home Depot ( HD), while Seymour told viewers to check out Cemex ( CX) if housing takes off.

Simon Baker took the panel to the movies, saying there's reason to be optimistic about Hollywood these days, with the strong showing by such movies as Harry Potter and the Deathly Hallows and the upcoming lineup of 3-D movies.

His favorite picks are Cinemark ( CNK) and Regal ( RGC).

Shifting to the auto trade and the comeback of Toyota ( TM), Seymour said the Japanese automaker is storming back with its lowest inventory ever, highest mileage driven and age of fleet. He said Toyota is well positioned in the U.S. auto market where it gets 50% of its revenue.

Cortes liked Toyota, too. He said the company was dogged by a currency issue, but he believes that's turning around.

In the final trades, Seymour liked Trinity Industries ( TSL). Adami liked FedEx ( FDX). Kelly liked Penske Automotive Group ( PAG) And Terranova liked Radio Shack ( RSH).

--Written by David Tong in San Francisco.

To contact the writer of this article, click here: David Tong.

To follow the writer on Twitter, go to http://twitter.com/davidtong.

To submit a news tip, send an email to: tips@thestreet.com.

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

Follow TheStreet.com on Twitter and become a fan on Facebook.

More from Jim Cramer

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

Snap, Gilead Sciences, Cronos Group: 'Mad Money' Lightning Round

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

The Trouble With Trump's Tariffs: Cramer's 'Mad Money' Recap (Friday 6/22/18)

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer: Some Industrials Stocks Are Becoming Great Values

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note

Jim Cramer Reacts to Toni Sacconaghi's Latest Tesla Note