'Fast Money' Recap: The Fed's Challenge

The markets ended mixed Tuesday, still feeling the lingering effects of the huge sell-off the day before.

The Dow Jones Industrial Average was down 16.10, or 0.19%, to 8,322.91, while the S&P 500 added 2.05, or 0.23%, to 895.09. The Nasdaq lost 1.27, or 0.07%, to 1,764.92.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, honed in on Oracle (ORCL Quote), which was up 3% in after-hours trading.

Pete Najarian said the company had a good quarter with impressive operating margins of 51%. He said Oracle is different from companies like Microsoft (MSFT Quote) because it can grow inorganically through acquisitions.

Tim Seymour said the company has benefited from conservative guidances. He said the fourth quarter has always been its best quarter, noting the first quarter will be tougher.

Lee said energy and financials led the markets today. She asked the panel for their thoughts about what the Federal Reserve might say at its meeting on Wednesday.

Karen Finerman said rate hikes are unlikely. Chris Thornberg, principal at Beacon Economics, said the challenge for the Fed will be to devise an exit strategy that will allow it to continue quantitative easing but not create the potential for inflation in a year and a half.

Joe Terranova said today's trading session saw the resumption of the weak-dollar trade, with the resource names benefiting.

Seymour said the trading pattern for today and the next few weeks will be dictated by profit taking by institutional investors that don't want to be perceived to be in risky sectors.