Weak economic news sent the markets downward Wednesday.

The

Dow Jones Industrial Average

fell 52.81, or 0.62%, to 8,422.04, while the

S&P 500

was off 4.66, or 0.51%, to 903.47. The

Nasdaq

lost 6.70, or 0.39%, to 1,727.84.

Image placeholder title

Melissa Lee, the moderator of

CNBC

's "Fast Money" TV show, said the markets saw a 100-point rally fizzle as the financial stocks fell in the final hour.

Joe Terranova said today's trading session is what a "consolidating" market looks like, with declining volatility and energy names holding.

Pete Najarian said the commodities were soaring, with the ag names on fire and copper, steel and coal names looking very strong.

Guy Adami wasn't encouraged by today's market action and said the market is heading lower. Terranova picked up on Adami's comments, saying that market could head lower if the rug is pulled from the energy sector.

Pete Najarian said he was concerned about oil prices heading above $60 a barrel because that is when it starts hitting people's pockets and causing a decline in the personal savings rate, which had been around 8%. He said he would rather see oil at $50 to $60 a barrel.

Lee brought on Tim Seymour to talk more about the run-up in the commodities. Seymour said the numbers from the API and DOE show there are signs of demand for oil. He said the incidents of supply disruption also tell you that investors are back, and that gold and oil, two prominent trades last year, are starting to make a move.

Adami said he believes the run by

Potash

(POT)

is over after the stock closed today at $114.23, after reaching a high of $118.32 during the day. He said it's especially rich now.

Similarly, Macke said he sold his shares of

Agrium

(AGU)

, which has soared from $29.79 on March 2 to $50.95 at the close of trading Wednesday.

Both Terranova and Seymour said the commodities are breaking out, with Seymour adding commodities "are not expensive here."

Shifting to the financials, which sold off late in the session, Adami said the financials did not trade well, adding he was particularly discouraged by the performance of

Goldman Sachs

(GS) - Get Report

and

Wells Fargo

(WB) - Get Report

.

He also touched on

Jefferies

(JEF) - Get Report

, which has enjoyed a nice run-up, but he said he wouldn't chase the stock at these levels.

Commenting on the tech stocks, Najarian noted a lot of activity in the chips, in particular

Analog Devices

(ADI) - Get Report

, up 15.65%. He said a common theme among Analog Devices,

Cisco

(CSCO) - Get Report

and

IBM

(IBM) - Get Report

has been the development of the smart grid.

He also had an eye on

NetApp

(NTAP) - Get Report

and its move to buy

Data Domain

(DDUP)

for $1.5 billion. He saw the move as further sign of consolidation in the tech industry.

Steve Liesman, a

CNBC

reporter gave a brief rundown on the

Fed

's report today. He said the Fed downgraded its economic forecast for 2009 and 2010 and made some guarded optimistic comments on a "tentative rebound" and "signs of stability."

Margaret Brennan, another

CNBC

business reporter, provided a preview of

Gap

(GPS) - Get Report

before its earnings report Thursday. She said she doesn't expect an earnings surprise. She did say investors will be looking where the growth will be for the retailer and whether its Old Navy division will play a role in that. She said the company has done a good job of cutting expenses.

Adami said the Gap story is one of efficiency and advised against initiating a trade on the stock, which is up 19% this year.

Lee shifted the discussion to coffee futures, which hit a 7-month high and is putting price pressures on

Starbucks

(SBUX) - Get Report

and

McDonald's

(MCD) - Get Report

. Terranova says coffee can move even higher.

Whitney Tilson, of T2 Partners, came on the show and painted a dire picture of the housing meltdown. He doesn't see any relief in sight, saying the unwinding of the credit crunch is in the fifth inning and the housing meltdown in the seventh inning.

Tilson said commercial real estate is in serious trouble because of refinancing problems.

In the Rising Star segment, Bahram Akradi, CEO and founder of

Life Time Fitness

(LTM) - Get Report

talked about the resiliency of his company, which hasn't seen a decline in membership during the tough economic times.

In the final trades, Macke was long Life Time Fitness. Terranova was for

Genzyme

(GENZ)

and Najarian liked

Pfizer

(PFE) - Get Report

.

"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.