'Fast Money' Recap: Financials Lead Once Again

Stocks rebounded Monday on a rally that was led by the financials.

The Dow Jones Industrial Average soared 235.44, or 2.85%, to 8,504.08, while the S&P jumped 26.83, or 3.04%, to 909.71. The Nasdaq climbed 52.22, or 3.11%, to 1,732.36.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said bank stocks were led by Bank of America (BAC Quote) and Goldman Sachs (GS Quote).

Jeff Macke said he was ambivalent about the action in the bank stocks in view of the recent large secondary offerings. "Is the dilution of these banks that bullish? Today the answer is 'yes.' "

Pete Najarian was impressed with Goldman Sachs which he said has been "right on" about with its call on the commodities and its upgrade of oil, as well as Canadian stocks, coal stocks and specialty chemical stocks, all of which have moved higher. "That's why Goldman is trading at $143."

Karen Finerman said Bank of America was helped by Goldman's upgrade of the bank to $15, saying it will help the bank raise the capital it needs.

Najarian said technology stocks also moved the markets today, especially the comments of John Chambers, CEO of Cisco(CSCO Quote) on how the company's participation in the smart grid will reap billions of dollars.

Najarian also sounded a cautious note about the rally. He said people are getting too comfortable and wondered whether the rally could be sustained.

Lee, though, said the market, despite being down 5% last week, responded relatively well to the dilution issue. Finerman, however, said dilution is not the issue as it is the earnings power of the banks and how the secondary offerings will provide them with some more life.