'Fast Money' Recap: Copper Trade

NEW YORK ( TheStreet) -- The markets rallied Wednesday on encouraging reports of a eurozone rescue plan.

The Dow Jones Industrial Average jumped 102.55, or 0.90%, to 11,518.85. The S&P 500 added 11.71, or 0.98%, to 1207.25. The Nasdaq rose 21.70, or 0.84%, to 2604.73.

Brian Kelly led off CNBC's "Fast Money" TV show commenting on the rollover in copper on a report of high inventories of copper in China. He said it was difficult to get a handle on the report, but he said it would be a buying opportunity for investors if they are bullish in copper.

Dennis Gartman, though, said it was best to be cautious about the report, especially if it were true. He said the report is based on data at the end of 2010, but that if it were true, the inventory numbers are bigger than anyone expected. "I wouldn't discount it completely."

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

Gartman said a decline in copper prices might draw China to purchase some more copper at lower prices. He also said he was looking for an opportunity to buy US Steel ( X) on weakness.

Joe Terranova said the S&P looks as if it is heading to 1239 as money shifts out of Treasuries and into equities. He said he wanted to play the market from the long side.

But Pete Najarian said it was time to take some money off the table after the rally, especially after the big move in financials.

Melissa Lee, the moderator of the show, alluded to a report that intimated that Google ( GOOG) may be buying Akamai ( AKAM).

CNBC reporter Jon Fortt said there has been a lot of chatter about the possibility but he argued that the deal would make no sense because Google already has much of what Akamai does. Finerman was also skeptical about the reports, adding she would not chase Akamai stock on the hope that Google buys it.

With JPMorgan ( JPM) earnings coming out Thursday, Gerard Cassidy, an analyst with RBC Capital Markets, said its numbers will be materially impacted by the capital markets. He said the third quarter was terrible and expects the numbers to fall below what they were in the prior quarter.

However, he said JPMorgan's core banking trends in areas such as credit cards, corporate lending and commerical banking should be positive. Over the long term, JPMorgan will be a dominant player in investment banking and capital markets. He said the company is in the midst of cyclical downturn and would be a good buying opportunity.

He also said he sees JPMorgan buying back more stock in the future.

What impact will today's Blackberry blackouts have on Research In Motion ( RIMM)?

Mark McKechnie, an analyst for Thinkequity, downplayed the impact of the outage, saying such outages occur every six months. He said the stock's in no man's land and characterized it as a declining asset. He said management hasn't really made a move to address the concerns dogging the company.

Mike Khouw said the high volume of options trading suggests institutional players view RIM as a secular decline story.

Lee shifted to the municipal bond market and the move by Harrisburg to file for bankruptcy protection from the debts and lawsuits related to an incinerator.

Alexandra Lebenthal, CEO of Lebenthal & Co., said the filing was specific to Harrisburg and the unique set of political circumstances surrounding the situation. She said the city council filed for bankruptcy protection, a move that was opposed by the governor of Pennsylvania. She also said it was a situation where the county provided general obligation backing to a revenue bond.

Shifting to tech and a look at Google ( GOOG) before its earnings report Thursday, Mark Mahaney, a Citigroup analyst, said Google doesn't need Akamai. He said the deal would carry not only regulatory risks but also the possibility that a good number of media companies would not use Akamai if it was owned by Google.

Mahaney was optimistic about Google's outlook. He said Google has not felt the recessionary impact on search spend and that it may get a tailwind from Yahoo! ( YHOO) troubles.

For a technical view of the market, Abigail Doolittle, of Peak Theories Research, said she is looking for the S&P index to consolidate back into a range before taking another swipe down. She said the move is being driven by what is happening in Europe.

Commenting on today's USDA crop report that sent corn and wheat prices falling, Kelly said he was bullish for soybeans and neutral on corn.

In the final moves, Khouw liked Andersons ( ANDE). Terranova liked several financials including Wells Fargo ( WFC), US Bancorp ( USB) and PNC Financial Services ( PNC). Kelly said if JPMorgan does well in its earnings, he would get into the SPDR KBW Regional Banking ETF ( KRE). Finerman said she was picking up out-of-the money put spreads in November in the S&P. Najarian liked Dupont ( DD).

-- Written by David Tong in San Francisco.

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

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