'Fast Money' Recap: Inflation on the Horizon?

The stock market recovered from some early selling pressure on Thursday to close the day in the green. The Dow finished up 44 points and the S&P 500 closed up 2 points. The crew at CNBC's "Fast Money" took a look at inflation and Lehman Brothers.

Pete Najarian highlighted that the market remains a global story. He also mentioned that the Lehman Brother's numbers weren't that bad and in turn helped the financial stocks. Jeff Macke thinks the financials have been beaten senseless. However, he did see money being put to work in Microsoft and Honeywell on Thursday.

Lehman Brothers Holdings(LEH - Cramer's Take - Stockpickr) reported earnings that fell 12% after the investment bank was hit by mortgage writedowns. Finerman pointed out that Lehman's earnings report didn't address the issue of the firm's level 3 assets. Najarian mentioned he took off his short position in Goldman Sachs Group(GS - Cramer's Take - Stockpickr) on Thursday. Macke thinks the financials are dead trades because Lehman didn't go up after beating estimates. Adami maintains that Lehman just bought themselves another quarter.

Inflation Looming?

Wholesale prices posted their highest reading in 34 years. Finerman expects consumers could see some inflation and she thinks the Federal Reserve cut as little as it did because they're concerned about it. She recommends Wal-Mart(WMT - Cramer's Take - Stockpickr) and iShares Lehman TIPS Bond(TIP - Cramer's Take - Stockpickr). Macke thinks the grocers are the trade and he likes Safeway(SWY - Cramer's Take - Stockpickr) and Procter & Gamble(PG - Cramer's Take - Stockpickr). Adami favors Church & Dwight(CHD - Cramer's Take - Stockpickr) and Unilver(UL - Cramer's Take - Stockpickr).