NEW YORK (

TheStreet

) -- The markets finished mixed Thursday on a volatile day for oil.

The

Dow Jones Industrial Average

dropped 37.28, or 0.31%, to 12,068.50. The

S&P 500

slipped 1.18, or 0.09%, to 1,306.22, while the

Nasdaq

gained 14.91, or 0.55%, to 2,737.90.

Guy Adami said on

CNBC

's "Fast Money" show that he was amazed by the wild price action in oil, which was up $4.50 at one point, then down $8 before a selloff in afterhours. Despite the wild ride, the S&P rallied, he said.

In response to the situation, the

CME

(CME) - Get Report

and

IntercontinentalExchange

(ICE) - Get Report

reportedly were raising margin requirements on WTI crude contracts.

Joe Terranova said the sensitivity in global markets to the pricing of oil was "unbelievable." He said in a span of half-an-hour, Brent went from $113 to $119. He said one would have thought an oil installation in Saudia Arabia had blown up.

Tim Seymour said the market gyration caused a lot of traders to start selling oil today. He said he trimmed his position in

Petrobras

(PBR) - Get Report

, after it jumped 15% in the past four days.

In the midst of all that action, Karen Finerman felt a report showing a drop in initial weekly jobless claims was important because it meant the recovery is intact.

Shifting to some breaking news,

CNBC

reporter Jane Wells said that

Boeing

(BA) - Get Report

had secured a coveted $30 billion contract to build an Air Force tanker.

From a technical perspective, Adami said the S&P appears to be testing the 1,275 level again, while Terranova said the S&P is finding a lot of support below 1,290.

The panelists agreed that it was a trader's market, with a number of stocks performing well despite the headwinds unleashed by the turbulent protests in the Middle East.

Adami noted that

Honeywell

(HON) - Get Report

, was up today, along with

Valero

(VLO) - Get Report

. Karen Finerman said

Target

(TGT) - Get Report

was bullish on its call after reporting "nice" same-store sales in a rough environment.

Terranova said investors were buying tech stocks such as

Oracle

(ORCL) - Get Report

,

Apple

(AAPL) - Get Report

and

IBM

(IBM) - Get Report

.

Seymour said investors should take advantage of the weakness in the auto space, which has been crushed the past five days, to buy names such as

General Motors

(GM) - Get Report

,

Toyota

(TM) - Get Report

and

Tata Motors

(TTM) - Get Report

.

Will the high oil prices derail the market rally? Joe Lavorgna, chief U.S. economist for Deutsche Bank, said oil would need to rise significantly to between $125 to $150 before it would affect his forecast for the country's GDP.

Looking ahead to next week's jobs report, he expects it will show 250,000 jobs were added in February and a decline in the jobless rate.

Finerman briefly touched on

Avon Products

(AVP) - Get Report

and what she called its surprised restructuring announcement, including a search for a new CFO. She said the company, in which she is long, doesn't seem to have a handle on the situation.

Hobbs brought in Joe Sanderson, CEO of

Sanderson Farms

(SAFM) - Get Report

, which suffered a loss in its latest earnings report.

Sanderson said the price of his poultry products were mixed. He also said prices were down because of higher costs and expansion of production in the industry. He said his company will wait under summer before deciding whether to reduce supply.

Terranova said the poultry industry has been slow in working down inventory. Adami said the stock of Sanderson Farms has dropped dramatically and has a 20% short interest.

In afterhours trading,

Deckers

(DEC)

was up 8.94%. Finerman said the retailer hit it "out of the park" in its earnings report, adding it's "not crazy expensive." Deckers 's earnings were better than expected and it forecast its 2011 earnings will be 10 percent higher than those in 2010.

Shifting to housing, Reggie Middleton, editor of bloombustblog.com, said the housing industry still has further to fall, as inventory continues to grow at a faster pace than sales. "Shadow inventory is growing at the same time as housing sales and prices are decreasing."

Shifting to

AIG

's

(AIG) - Get Report

,

CNBC

business reporter Kate Kelly said AIG managed to swing to a profit but took some questionable charges.

AIG CEO Robert Benmosche said the charges would not affect the company's plans later this year for an IPO. He said the success of the IPO will ride on the quality of the company's book and people and what's it's been doing. "We believe we are in good shape."

Seymour said the shareholders were not happy with the company's reverse split, while Terranova said AIG should be broken up.

In the final trades, Terranova said he long energy equities. Finerman liked

JPMorgan

(JPM) - Get Report

. Adami liked

Juniper Networks

(JNPR) - Get Report

, while Seymour said it was time to cover

Mechel Steel

(MTL) - Get Report

.

--Written by David Tong in San Francisco.

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.

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