'Fast Money' Recap: Losing Lehman

On today's "Fast Money" show, Dylan Ratigan begins with the Word on the Street: Lehman Brothers (LEH Quote) rose after-hours after Morgan Stanley (MS Quote) upgraded the stock to Overweight based on a valuation call.

Pete Najarian said Morgan Stanley is "trying to pick a bottom." Yet he does not believe there is a bottom in the financials as of yet, especially with Lehman Brothers. He said he had to ask himself before thinking of owning them, "Is Lehman at a level to own?" And he answered by saying he does not think it is the right time to own since he doesn't foresee any catalysts.

Guy Adami said he didn't see any capitulation today, that it was simply normal volume. Simply stating he does not see a bottom occurring in the financials or in the market itself as of yet.

Karen Finerman said, "I am curious about this Lehman thing." In other words, wondering the reasoning behind Morgan upgrading the stock at this particular time. She then said, "I'm not ready with the whole financial," not seeing any particular bottom right now in the sector.

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Terranova comments on oil, saying we are "entering a period where oil will soften a bit."

Adami said "oil service stocks were up today, valuation looks a bit rich, but they are still good."

Ratigan directed a question toward Najarian on what he thinks about the oil service.

Najarian said, "I love the oil service sector." He also said this sector should continue to benefit "as long as oil is above the $100 a barrel." He said forget about Schlumberger (SLB Quote), to take a closer look at Diamond Offshore Drilling (DO Quote).