NEW YORK (

TheStreet

) -- The markets rallied Wednesday despite more dismal economic data.

The

Dow Jones Industrial Average

added 19.61, or 0.20%, to 10,060.06. The

S&P 500

rose 3.57, or 0.33%, to 1,055.39, while the

Nasdaq

gained 17.78, or 0.84%, to 2,141.54.

Pete Najarian said on

CNBC

's "Fast Money" show that the market started to rally when oil and volatility turned. He said it was a good sign when the volatility index retreated from a high of 28 and finished under 27.

Joe Terranova said it was encouraging to see tech stocks come back, although he expressed concerns for the initial jobless claims report coming out on Thursday.

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 onTV

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Tim Seymour said there were still a lot of headwinds for the market, which he sees heading to 1,040 on the S&P, with very little support at that level.

Steve Cortes said it was encouraging to see homebuilder stocks rebound off the bad housing data point. He said

Toll Brothers

(TOL) - Get Report

has rallied 10% since Tuesday's low.

Najarian was unimpressed with Toll Brother's results, saying today's bounce had more to do some short covering than the company's earnings report. Seymour added investors were buying homebuilders stocks because they have become so cheap.

Melissa Lee, the moderator of the show, brought in Gene Munster, an analyst with Piper Jaffray, to comment on a special event

Apple

(TOL) - Get Report

is holding on Sept. 1.

Munster said Apple will probably use the event to talk about a new iPod touch, "some cloud iTunes edition," and Apple's new TV. He said Apple will use the so-called "mystery event" to lay out its compelling themes for the fall and holiday season. He noted that Apple stock has gone up 12% in September for the past five years.

According to the analyst, the Street estimates for Apple's numbers for the fourth quarter are too low. It's going to be an "impressive" quarter for Apple, he said.

CNBC

tech reporter Jon Fortt said he believes Apple will come out with an enhanced iPod that will allow it to compete with

Google

's

(GOOG) - Get Report

Android and

Research In Motion

( RIMM). He said he doesn't expect the iPods will generate huge revenue during the holiday season.

Seymour also expressed his doubts, saying he doesn't think Apple will be able to impress people this time. He said people just don't have the kind of money to spend on consumer discretionary items.

Najarian talked about derivative trades off the mystery event. He particularly liked

Akamai

(AKAM) - Get Report

and

F5 Networks

(FFIV) - Get Report

.

Lee noted that oil exploration names were rallying today. Najarian noted unusually strong call activity in

McMoRan Exploration

(MMR)

, which was up 7% today.

Terranova said he was still bearish about the sector with the inventory buildup in oil. However, he said he wouldn't short the trade. Instead, he said he would go with the integrated names.

Lee brought in Dennis Gartman to comment on gold which hit its highest level since June 30. Gartman noted that silver is actually stronger than gold. He said gold has become the third reserve currency of the world, behind the dollar and euro.

He said it was time to cash in on profits in the bond market with the turn in oil and the markets bouncing off their lows today. He said the bond market has been stretched to the upside and is due for a correction.

Lee shifted the discussion to the flat Treasury yield curves that are hurting the banks. Moshe Orenbuch, a Credit Suisse analyst, said he's recommending

Bank of America

(BAC) - Get Report

, which has fallen dramatically in valuation.

Lee asked Peter Boockvar, an equity strategist with Miller Tabak, to comment reports of a government stimulus in Japan to revive the economy and check the rise of the yen.

Boockvar dismissed the idea of the stimulus and argued the country needed to take some radical steps like cutting taxes and encouraging immigration to get the economy going again.

Lee cited a report that August has been a monster month for deals globally. Cortes said the deal-making is here to stay in a slow-growth economy when companies use the acquisitions to grow. "The smartest companies are doing it first," he said.

Eric Jackson, president of Ironfire Capital, said cash-rich companies should not be overpaying for deals. Instead, he said they should be rewarding their shareholders with dividends and stock buybacks.

For the pitch of the day, Terranova selected

Occidental Petroleum

(OXY) - Get Report

for its great resources and its operations in California and Texas.

In the final trades, Kelly liked

ProShares Ultrashort 20+ Year Treasury

(TBT) - Get Report

. Seymour liked

Toyota

(TM) - Get Report

while Cortes liked

iShares Silver Trust

(SLV) - Get Report

. Terranova liked

Broadcom

(BRCM)

. Najarian liked McMoRan.

--Written by David Tong in San Francisco.

To contact the writer of this article, click here:

David Tong.

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tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC

.

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