'Fast Money' Recap: Will Oil Kill the Rally?

The markets started the third quarter on the upside Wednesday, aided by improving manufacturing data and an uptick in pending home sales.

The Dow Jones Industrial Average added 57.06, or 0.68% to 8,504.06, while the S&P 500 gained 4.01, or 0.44%, to 923.33. The Nasdaq was up 10.68, or 0.58%, to 1,845.72.

Tim Seymour said on CNBC's "Fast Money" TV show, said the economic data was "fantastic." He said China's latest PMI numbers show that economy is growing, the Institute of Supply Management numbers were the best in 10 months and the latest pending home sales data were impressive. "I thought we had a lot to rally on," he said.

Guy Adami said he understood what Seymour was saying about the data, but he couldn't hide his distrust of the market, especially after it gave away the gains from the early part of the trading session.

Joe Terranova said energy is the problem right now. He said the rally in the equities markets is over if oil can't sustain itself above $70 a barrel.

Pete Najarian said program buying took over during a light trading day, with the market showing no conviction. He disagreed with Terranova about the $70 threshold for oil, saying oil would have to drop to $40 a barrel to be a real problem for the economy.

Seymour said the market could suffer as it awaits the earnings reports from the financials and some evidence of leadership.

Despite upgrades in some technology stocks today, Adami said some stocks such as Intel (INTC Quote) were ahead of themselves.