'Fast Money' Recap: A Liquidity-Driven Rally

NEW YORK (TheStreet) -- The markets started the week off on a bullish note on a Goldman Sachs upgrade of the financials.

The Dow Jones Industrial Average rose 112.08, or 1.18%, to 9599.75, while the S&P 500 was up 15.25, or 1.49% to 1040.46. The Nasdaq added 20.24, or 0.98%, to 2068.15.

Steve Grasso said on CNBC's "Fast Money" TV show that the rally was fueled by a good Institute for Supply Management number and Goldman's upgrade of the financials.

Guy Adami said it's difficult to argue with the fact that the market wants to move higher.

Joe Terranova said the catalyst in the next couple of weeks will be third-quarter earnings.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Pete Najarian said the only area of the rally that wasn't impressive was the lack of volume in options and equities. "The volume wasn't there to make you think everyone's a believer," he said.

Melissa Lee, the moderator of the show, said it will be difficult for companies to beat the revenue estimates for the third quarter.

Adami noted Goldman's upgrade was late. He said it remains to be seen whether Wells Fargo(WFC Quote) can earn itself out of its TARP problems. "The banks still scare me," he said.

Terranova, though, said the banks showed evidence of normalized earnings growth in the second quarter. Now, he said Goldman's report suggests another quarter of normalized earnings and signs of durability and sustainability.