'Fast Money' Recap: Looking at Lehman

Dylan Ratigan hosted CNBC's "Fast Money" Tuesday night. He stated the show off by discussing FedEx(FDX Quote - Cramer on FDX - Stock Picks), which raised its first-quarter earnings guidance for next year, and Texas Instruments(TXN Quote - Cramer on TXN - Stock Picks), which narrowed its third-quarter outlook. Guy Adami said don't race out and buy FedEx, but if crude stays at current levels, "their headwinds will become tailwinds."

Ratigan moved the conversation on to the general market action. Jeff Macke explained that the Lehman Brothers(LEH Quote - Cramer on LEH - Stock Picks) news was hanging over the market all day.

The "Chart of the Day" was Lehman Brothers. The stock had a huge volume spike at midday, and shares finished sharply lower by 44%. Pete Najarian said the market is concerned about Lehman right now with all the activity in the put options.

"The more the government has to be involved, the less healthy by definition the system is," Macke added. He pointed out that skepticism is running high and said it will remain a "trader's market." Karen Finerman mentioned that she sold her bullish option LEAPs on Citigroup(C Quote - Cramer on C - Stock Picks) today.

Najarian told viewers that if you want to play the financials, use the Financial Select Sector SPDR(XLF Quote - Cramer on XLF - Stock Picks). He also said he added to his put options position in Lehman Brothers today. Finerman said that Lehman needs to say something to Wall Street by Wednesday morning

Funds and Commodities

Ratigan switched the discussion toward the material sector. Adami said the action today in commodity and material stocks was due to forced liquidations in some unknown hedge funds. He said that Freeport-McMoRan(FCX Quote - Cramer on FCX - Stock Picks) has value here. Najarian said don't be a hero right now in the ag names like Potash(POT Quote - Cramer on POT - Stock Picks) until they show some signs of recovery. Finerman pointed out that AK Steel(AKS Quote - Cramer on AKS - Stock Picks) has been cut in half, and she said the stock intrigues her here.

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