'Fast Money' Recap: A Nasty Selloff?

NEW YORK (TheStreet) -- The markets retreated Thursday despite some encouraging economic data.

The Dow Jones Industrial Average fell 7.79, or 0.08%, to 9783.92, while the S&P 500 slipped 3.27, or 0.31%, to 1065.49. The Nasdaq dropped 6.40, or 0.30%, to 2126.75.

The rally stalled even as the federal government reported a decline in initial jobless claims and a rise in housing starts in August to the highest levels in nine months.

CNBC's "Fast Money" TV show started with a look at Palm(PALM Quote) that was dipping in after-hours.

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

Melissa Lee, the moderator of the show, said the stock was hit with a double-whammy from a disappointing second-quarter outlook and the announcement of a large secondary offering.

Jim Goldman, a CNBC reporter, said the company had a lot of good news in its earnings report. He said the company's earnings exceeded expectations and smartphone shipments were far above analysts' expectations.

Tim Seymour, though, said Palm still has a lot to prove, especially with its distribution system. "That's the reason why the stock isn't being rewarded," he said.

Pete Najarian said Palm's distribution arrangement with Sprint isn't working, and that it needs to hook up with someone else.