'Fast Money' Recap: A Bottom?

NEW YORK (TheStreet) -- The markets started September with a roar on an encouraging manufacturing report in the U.S. and bullish signs of economic growth from Australia and China.

The Dow Jones Industrial Average jumped 254.75, or 2.54%, to 10,269.47 and the S&P 500 gained 30.96, or 2.95%, to 1,080.29. The Nasdaq soared 62.81, or 2.97%, to 2,176.84.

Jon Najarian said on CNBC's "Fast Money" show today's rally felt like a bottom as a rumor was floating around that macro funds were starting to flip out of the bond trade and into equities.

Simon Hobbs, the moderator of the show, noted the strong rally in the financials, industrials and technology, which were heavily hit in August. He said the turnaroud suggested today's rally was a short squeeze.

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

Tim Seymours insisted the rally was based on strong economic data from other parts of the globe and the U.S.

Guy Adami said he wouldn't be chasing the rally. He said the S&P is technically about in the middle of the range he expected it would be, and he agreed that today's rally had a lot to do with short covering and it being "the first day of the month."

Brian Kelly, in an attempt to put perspective on the market action, reminded the panel there were pockets of weakness and strengths around the world.

The other big story of the day was Apple's new initiatives with its iPod and Apple TV. CNBC reporter Jon Fortt said he was impressed with the new iPod touch and its face-time feature and two cameras. He said that new look will move margins and generate revenue growth.

He said Apple also announced updates for its iTunes, including social networking features, and a shift in Apple TV toward rentals and streaming. He said the $99 price tag will lure impulse-buying consumers.

Seymour said he didn't think Apple's initiatives amounted to a catalyst and was staying on the sidelines. Adami said a better bet might be downstream with SanDisk(SNDK). Kelly said he liked Google(GOOG) at these levels. Finally, Najarian said he liked Cirrus Logic(CRUS) as a derivative play, with its handle on smart grid technology and sound-on-chip technology.

Hobbs brought in Michael Pachter, an analyst with Wedbush Securities, to comment on a Netflix(NFLX) play off Apple's announcement of its TV plans.