NEW YORK (

TheStreet

) -- The markets ended on an up note Monday on hopes that the

Fed

might take some action.

The Dow Jones Industrial Average

added 37, or 0.34%, to 10,854.65. The

S&P 500

rose 0.29, or 0.03%, to 1123.82. The

Nasdaq

rose 3.54, or 0.15%, to 2345.38.

Melissa Lee, the moderator of

CNBC

's "Fast Money" TV show, kicked off the discussion by asking the trading panel to discuss the implications of a

Reuters

report that

Goldman Sachs

(GS) - Get Report

CEO Lloyd Blankfein had hired top Washington defense attorney Reid Weingarten. The report sent the stock down more than 4% to $106.51.

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

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Karen Finerman said it was difficult to make anything out of the move. Joe Terranova said the report triggered a lot of options activity and gave investors a chance to pick up the stock on a pullback.

CNBC

reporter Kate Kelly said the matter might have something to do with possible misleading comments Blankfein and other company officials made before the Senate's Permanent Subcommittee for Investigations, which referred its report to the Justice Department for action. She said the matter might have to do Goldman's structured finance and mortgage-backed products during the financial collapse.

Guy Adami advised against "pouring into the stock," saying it's not a buying opportunity. He said he knew Blankfein and vouched for him.

Tim Seymour said the news about the hiring of attorney couldn't have come at a worse time for banks. He said there is little sympathy for banks after the huge bailout for them.

Brian Kelly viewed the hiring of Weingarten as a "non-event." He said the financials are declining now because banks are feeling the impact of a deteriorating economy. "We should be rooting for banks for the sake of the economy."

Anton Schutz, president and CIO of Mendon Capital Advisors, said fear has driven Goldman Sachs stock down even though its capital ratios are "incredibly strong."

Asked about reports of U.S. bank exposure to European debt crisis, he said the banks have done a good job of disclosing information in their regulatory filings. He said the U.S. banks are well capitalized and credited Treasury Secretary Tim Geithner for doing a good job of keeping banks well capitalized.

Lee asked the panel to discuss a hot rumor that

Oracle

(ORCL) - Get Report

might go after

HP

(HPQ) - Get Report

.

Finerman said it's probably a long shot but feasible. She said Oracle would have to come with a slate of nominees by Nov. 23 for HP's board where everyone's seat is up for grabs. She said it has until Nov. 23 to make other proposals.

Terranova said the situation reminded him of

IBM

(IBM) - Get Report

, whose stock didn't recover until 2006 after it decided to get out of the PC business. He said HP will face some margin compression during its transition.

Adami said HP may have hit a capitulation bottom on Friday. He said he would trade against Friday's low for a possible 10%-to-15% gain.

Shifting to a more general discussion of the market, Lee noted that Goldman Sachs had lowered its forecast for the GDP of the U.S. to 0.5% from 1.5%. Seymour said the market is definitely grappling with the forecast as well as the European bank crisis and future of the euro. He said it was also discouraging to see a market leader like

Fedex

(FDX) - Get Report

down 30% since June 1.

Terranova said the coming ISM and non-farm payroll reports will play an important part in the market's direction.

Adami said the fact that the S&P closed unchanged today left him worried. He said he could see the S&P falling through 1100 on its way to 1020.

For a currency trade, Lee brought in Amelia Bordeau, of Westpac Institutional Bank. Because not enough downside risk is priced into the euro, Bordeau said she is shorting the euro against the dollar. She said the dollar was a better currency that either the yen or Swiss franc, which are under pressure.

She said the next hurdle for the Europe is for the governments to vote on giving the rescue fund the muscle to buy government bonds in the secondary market.

Lee shifted to a discussion of a post-Gaddafi oil trade. Terranova said he expects the Brent-WTI spread will begin to narrow and the Mid-Continent Refiners to pull back while refiners such

Valero

(VLO) - Get Report

get support.

Terranova said it will be difficult for Libya to quickly resume normal oil production after the six-month civil war. Dennis Gartman echoed that assessment, saying the damage to the infrastructure will take 12 to 18 months to repair. He said he expects the Brent-WTI spread to rise, adding he wouldn't short oil at $84 a barrel. He said he would be long Brent.

Looking ahead to Friday's speech at Jackson Hole, Wy. by Fed Chairman Ben Bernanke, Dan Greenhaus, BTIG's chief global strategist, said too many people expect Bernanke to come out with a third round of asset purchases to lower interest raets and boost stock prices.

Greenhaus said he would probably say that the Fed will say that it stands ready to provide support for a worsening economy. He said this will probably entail tinkering with the balance sheet, including making interest rate adjustments to keep rates down on the long end.

For a chartist perspective of the markets, John Roque, of the WJP Capital Group, said he sees the market headed downward. He said it was not a good sign for the market not to rebound strongly after last week's oversold conditions.

Instead, he said the 50-day moving average is sloping and the 200-day moving average is starting to curl, adding weight to the downside for the S&P.

He also said

Freeport McMoRan

(FCX) - Get Report

, another important clue for the direction of the market, is a technical risk down to the low 30's. He said the financials have further room to the downside and may retest their March 2009 lows. And he said all the commodities with the exception of gold will be coming under big pressure.

In the tweet section, Anthony Scaramucci acknowledged that hedge funds were shorting the S&P 500 futures, but he said he didn't like the move because it will drag down the beta when the markets return. He favored the more traditional practice of shorting individual stocks.

In the final trades, Seymour said to sell

Direxion Daily Emerging Markets Bull 3X Shares

(EDC) - Get Report

. Adami liked

Goodyear Tire

(GT) - Get Report

. Finerman liked Oracle, while Terranova said he liked mid-continent refiners.

--Written by David Tong in San Francisco.

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.

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.

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.

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