'Fast Money' Recap: An Encouraging Rally

Wall Street endured another topsy-turvy day on Tuesday with a rally that took some of the sting from Monday's brutal market collapse.

The Dow Jones Industrial Average jumped 270, or 3.3%, to 8419.1, while the Nasdaq gained 51.7, or 3.7%, to 1449.8. The S&P 500 was up 32.60, or 3.9%, to 848.8.

Guy Adami said on CNBC's "Fast Money" TV show that he expects the market to head higher and extend its gains.

Pete Najarian called the "most incredible part" of today's rally was the "big move" in the shares of Apple (AAPL Quote), HP (HPQ Quote) and IBM (IBM Quote) at the end of the trading session.

Daylan Ratigan shifted the discussion to the plight of the automakers who are scheduled to testify again in Washington on Thursday and Friday. The trading panel was extremely skeptical of the gains of the General Motors and Ford today.

Jeff Macke said it's foolish for anyone to believe that the stocks are worth anything. Karen Finerman said she would "in no way buy the equity" of the companies.

Adami, though, said he would short GM, noting that "might be the right trade here."

Ratigan asked Finerman to comment on Sears Holdings'(SHLD Quote) plans to buy back $500 million worth of stock. Finerman said the buyback made no sense at all and that the company would be much better off buying back its debt. "I just think they are trying to manipulate the stock to go higher."

Najarian, though, saw some merit in the move. He said "there's a huge short interest" in the "badly beaten" stock and "they are trying to squeeze this thing back up."