'Fast Money' Recap: Market Bounces Back

The markets enjoyed a broad-based rally Thursday, despite some discouraging economic data.

The Dow Jones Industrial Average jumped 172.54, or 2.08%, to 8,472.40, while the S&P 500 rose 17.15, or 1.9%, to 918.09. The Nasdaq added 37.20, or 2.08%, to 1,829.54.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said the rally was aided in part by Fed chairman Ben Bernanke's smooth and deft handling of the grilling he received in a congressional meeting that was looking into the Bank of America (BAC Quote)-Merrill Lynch merger.

Lee started the show off with Palm(PALM Quote), which was up in after-hours trading following its earnings report.

Pete Najarian said the 13.6% jump in Palm shares was due to the intense interest in its Pre smartphone as well as a 25% short interest in the stock. Tim Seymour agreed, calling the short squeeze the principal for the sharp rise in the stock.

Guy Adami wondered when Palm was going to be profitable. He said the company is scheduled to have another loss next year, with some people talking about the company not turning a profit until 2011.

Najarian was a bit more optimistic, citing a RBC analyst who predicted the company could turn a profit as early as next year on higher-than-expected sales of the Pre.

Jim Goldman, the CNBC Silicon Valley Bureau chief on the conference call, said CEO Jonathan Rubinstein noted the enterprise adoption of the Pre. Goldman said the company's margins "were off to the races." He also noted there was no mention about the end of the exclusive contract with Sprint(S Quote).