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) -- The markets were down again Wednesday on disappointing new-home sales data.


Dow Jones Industrial Average

fell 119.48, or 1.21%, to 9,762.69 while the

S&P 500

dropped 20.78, or 1.95% to 1,042.63. The


lost 56.48, or 2.67%, to 2,059.61.

Melissa Lee, the moderator of


's "Fast Money" TV show, led off with some news that a deal had been struck in Congress to extend the homebuyers tax credit.

Joe Terranova said

D.R. Horton

(DHI) - Get D.R. Horton, Inc. Report

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is the best play among the homebuilders stocks to capitalize on this extension.

However, he said investors may move from D.R. Horton to other stocks because the credit will be available to more than just first-time homebuyers. He said the impact of the extended credit will be felt in the spring selling season.

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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Karen Finerman expressed doubts about the impact of the tax credit on the housing industry. She said considerable political good will had been extended toward the program, and she expressed concerns about employment as a factor in any revival of the industry.

Tim Seymour said the market is still worried that the


may be taking steps to remove stimulus from the economy.

Lee shifted the discussion to the breakdown in Nasdaq today. Terranova said the market moved to the defensive after the Nasdaq broke below its 50-day moving average. Seymour said


(SAP) - Get SAP SE Report

issued a "terrible" fourth-quarter outlook. "I don't see emerging markets stepping up to the plate," he said.

Pete Najarian said it was disheartening to see market leaders such as

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report



(AAPL) - Get Apple Inc. Report



(FCX) - Get Freeport-McMoRan, Inc. Report

going "lower, lower and lower."

Terranova said he took the opportunity to buy shares of


(IBM) - Get International Business Machines Corporation Report



(QCOM) - Get Qualcomm Inc Report

, which he said displayed some resiliency in the face of the tech meltdown.

Lee shifted to another trade, steel, which was getting hit hard. Commenting on the decline in

Archelor Mittal

(MT) - Get ArcelorMittal SA Report

, Seymour said demand isn't going to recover anywhere near pre-crisis levels in China, adding the dynamics for steel companies have not improved.

Still, he said he would use to chance to buy

US Steel

(X) - Get United States Steel Corporation Report

as it heads down toward its 200-day moving average.

Terranova said he's betting on a comeback for reformulated gasoline in the energy markets.

Najarian said he liked

Smith international

( SII) and


( PDE).

Lee noted that

First Solar

( MOT) got slammed today, down more than 14% and taking down the sector with it. Najarian said the biggest problem for these companies is finding financing.

Lee brought in Brian Kelly, president of Kanundrum Research, to comment on the market's decline. Using Apple as a barometer, he said the market is heading down and expressed concerns about the consumer side of the tech sector. He said the fundamentals of some of the companies aren't bad but the market had been up "awfully" high.

Is a strong dollar good for stocks? That's the question Lee posed to Gary Kaminsky, former managing director of Neubeurger Berman. Kaminsky said he doesn't believe a correction is going on. Rather he believes portfolio managers are rotating their stocks off the short-dollar, long-equity trade into consumer-related stocks and airline stocks, as oil prices come down.

Lee brought in Jim Goldman,


reporter, to comment on



( MOT) Droid smartphone that will be released on the


(VZ) - Get Verizon Communications Inc. Report


Goldman downplayed it being a "iPhone killer." Rather he said the company just wants the Droid to do well in the marketplace.

The release of the Droid comes on the heels of the co-CEO Sanjay Jha's efforts to get the company to execute better by lowering costs and delivering two smartphones as promised in the fourth quarter.

With the great health care debate going on in Congress, Terranova said he likes the chances of



to do well when pent-up demand kicks in for its products. Finerman said she liked the prospects of

CR Bard


, a devicemaker.

Lee brought in Citi analyst Deborah Weinswing who reversed her call on


(TGT) - Get Target Corporation Report

from sell to buy. She said the company has shifted to a direct sourcing model, cut its operating costs and seen their traffic turn positive in September. She said it has done a good job of pricing, setting its prices just 1% above



(WMT) - Get Walmart Inc. Report

prices. She has raised her price target for the stock from $44 to $61. The stock closed slight down at $48.24 today.

Rich Repetto, an analyst for Sandler O'Neill analyst, said the NYSE and Nasdaq stand to gain modestly from any moves by the SEC to create more transparency in dark pools in market trading.

In the final trades, Seymour said to sell


(PTR) - Get PetroChina Co. Ltd. Report

. Terranova liked


(QCOM) - Get Qualcomm Inc Report

. Finerman



, and Najarian said he liked


( MOT).

-- Written by David Tong in San Francisco

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


"Check out

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

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