'Fast Money' Recap: A Big Day All Around

The trading panel says that buyers disregarded any bad news.
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Stocks in New York logged substantial gains Thursday. The Nasdaq ticked up 1.9%, the S&P 500 added 2% and the Dow jumped 1.7%.

On

CNBC's

"Fast Money" TV show, the traders observed that the bond insurers suffered a downgrade today but nonetheless went higher. Crude also went up today.

Pete Najarian said today's action was "unbelievable." He said the rally today wasn't like yesterday's rotation into technology. He said he can't explain why every sector participated in the bullish action.

Guy Adami said that in May there was record short interest on the

New York Stock Exchange

. He said that money is flowing back into commodities and equities. He said that the market feels as though it will go higher.

Jeff Macke said people are tired of negative headlines and decided to buy in the face of bad news.

3 Stocks I Saw on TV

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The price of oil jumped 4.5% today. Adami said that the rally isn't short-covering. He said oil will probably go higher, but investors might still see a pullback. Macke said speculators are playing in oil, because there was no supply or demand disruption to justify oil's major move upward.

Financials' Endgame

In the financials, Karen Finerman said there might be a bottom in

Lehman Brothers

(LEH)

shares. She said the company will be able to raise capital if it needs to. She acknowledged that Lehman hasn't been completely forthright about the state of its business, but she predicted the stock would rally if the company raised capital.

Najarian pointed out that Lehman is in a different position from

Bear Stearns

. He said Lehman has more access to liquidity and can access the

Federal Reserve's

discount window.

Macke said the financials are trading vehicles. He said that those stocks are leaps of faith and investors should sell the banks into strength.

Adami said that today was a good day to get out of short positions, but there's no reason to get long the financials. He said there may be a bottom in Lehman but he thinks there's still one more downward move left.

Najarian pointed out that

Merrill Lynch

(MER)

lagged the rest of the sector. He said he's not a buyer of that stock.

Adami said that

Wachovia

(WB) - Get Report

had a huge volume day but closed unchanged. He said there hasn't been capitulation in the stock. He said investors can buy Wachovia when it cuts its dividend.

Tech Works

In tech, Najarian said

Cisco

(CSCO) - Get Report

shares are working. He also said he likes management at

Hewlett-Packard

(HPQ) - Get Report

and praised the company's acquisition of

EDS

(EDS)

.

Adami said he likes

Western Digital

(WDC) - Get Report

, which should benefit from 2008 PC growth forecast by Goldman Sachs.

Macke urged investors to take gains today, because it's a trader's market.

Widening Verizon

Verizon

(VZ) - Get Report

is on its way to becoming the biggest wireless company in the U.S. after its Alltel acquisition.

Najarian said that the deal is also good for

Research In Motion

(RIMM)

,

Apple

(AAPL) - Get Report

,

Qualcomm

(QCOM) - Get Report

and Cisco.

Adami said he likes

AT&T

(T) - Get Report

at these levels.

Short Takes

Sam Zell, CEO of

Tribune

(TXA)

, announced that the company is reducing staff and page count at the company's print publications. Finerman said the news is not encouraging. Macke agreed. He said Zell is a good takeover guy taking on a tough industry.

Take-Two

(TTWO) - Get Report

boosted earnings guidance on strong sales for its

Grand Theft Auto IV

. Finerman pointed out that the company announced formal discussions, which she said are just shy of negotiations, meaning discussion of an actual price. She said that language is a message to would-be acquirer

Electronic Arts

(ERTS)

that Take-Two is going to merge with someone else, so EA should pay up.

Macke said he prefers

Activision

(ATVI) - Get Report

.

National Semiconductor

(NSM)

shares climbed today. Adami said the company reported a great quarter and the news should bode well for

Intel

(INTC) - Get Report

. He said National Semi is probably cheap at these levels but he prefers Intel.

Pfizer

(PFE) - Get Report

hit an 11-year low today. Najarian said the company should do an acquisition to try to turn around the company. He said he likes the direction

Eli Lilly

(LLY) - Get Report

is taking.

The Lehman Watch

CNBC

on-air editor Charlie Gasparino joined the show to talk about Lehman Brothers. He said executives are weighing whether to preannounce the brokerage's second-quarter earnings to dispel market rumors. He also said the company is contemplating a rights offering of shares that might limit dilution to the stock.

The traders then welcomed

Nasdaq

I:IXIC

CEO Robert Greifeld to the show to discuss the prospects for his company. He said Nasdaq is offering retail investors free real-time data on the Web but will charge companies such as

Yahoo!

(YHOO)

and

Google

(GOOG) - Get Report

for the service. He said the stock will go higher as the company continues to execute.

MKM Partners chief economist Mike Darda joined the show to discuss the jobs report slated for Friday. Darda said that he thinks the data will be better than disastrous. He said he's combed over data including jobless claims and the productivity number, and concluded that the economy added 20,000 jobs. Things are not that bad, he said.

Of the airlines, Macke said that as the companies fix their businesses, it's time to stop shorting and selling them. He said that the airlines are better than the automakers, and he would buy airline stocks on a dip.

The Fed approved a merger between

Bank of America

(BAC) - Get Report

and

Countrywide

(CFC)

. Countrywide shares jumped on the news.

The traders discussed climate for their "When God Moves Markets" segment. Macke said that investors can sell any retail stock when management complains about the weather. He said

Wal-Mart

(WMT) - Get Report

is a good stock because the company doesn't discuss the weather.

The traders then spoke with Ben Reitzes, IT hardware analyst at Lehman Brothers, about the release of Apple's next-generation iPhone. Reitzes predicted a $200 to $300 price range for end users. He said the phone will probably have download capabilities for adding new software from the Internet. He said Apple shares are a buy here.

Fast Messages

A viewer asked Adami about Wachovia. Wachovia couldn't rally today, Adami said. He instructed the viewer to wait for capitulation or a dividend cut.

Final Trade

Jeff Macke picked

Microsoft

(MSFT) - Get Report

. Adami selected Intel. Finerman chose

J. Crew

(JCG)

. Najarian chose

Excel Maritime

(EXM)

.