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NEW YORK (

TheStreet

) -- The markets picked off Monday where they left on in July as the

S&P 500

and

Nasdaq

broke through two psychological milestones.

The

Dow Jones Industrial Average

added 114.95, or 1.25%, to 9286.56, while the S&P 500 rose 15.15, or 1.53%, to 1002.63. The Nasdaq jumped 30.11, or 1.52%, to 2008.61.

Joe Terranova said on

CNBC

's "Fast Money" TV show, the surprising S&P rally puts pressure on the portfolio managers to be in the market. Steve Grasso said today's rally was different from others in the past two weeks because of an absent of shorts piling on in an attempt "to break the back of the markets."

Karen Finerman said it's hard to stay underinvested when the S&P moved above 1,000.

For an analysis of some stocks mentioned in a recent "Fast Money" show, check out Dan Fitzgerald's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

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Tim Seymour also pointed out several catalysts moving the market, including the

Bank of America

(BAC) - Get Bank of America Corp Report

settlement with the SEC, the Treasury's upcoming refunding at a level that indicates it's getting a handle on the deficit and an orderly weakening of the dollar.

Terranova also alluded to other factors that lifted the markets, including China's impressive PMI number and upbeat ISM numbers, which led him to believe that GDP will grow in the third quarter. "We are clearly turning the corner from the recession to a mild recovery," he said.

Seymour said rally is causing people to buy calls at a premium to get back into the market.

With the Senate debating whether to extend the cash for clunkers program, the panel debated its merits. Finerman downplayed the importance of the program, arguing it was just a short, one-time gain that would leave the industry saddled again with the problem of producing too many cars.

Seymour, though, said the situation was different this time around. He said the auto companies are leaner and meaner and that the pent-up demand triggered by the cash-for-clunkers program is going to feed into the commodity trade. He said inventories are a lot tighter than they were a year ago.

Terranova said it was time for investors long on

Ford

(F) - Get Ford Motor Company Report

, which was up 5% today, to move to the sidelines after the stock slipped in intra-day trading.

Erin Burnett, the moderator of the show, shifted the discussion to the BofA-SEC settlement and how it was deftly handled.

Terranova liked BofA, noting a decline in its non-performing assets and improving balance sheet. "There's every reason to be long BofA," he said.

Finerman said the hire of Sallie Krawcheck as head of global wealth and investment management at BofA will make a big difference. And Grasso said his clients are starting to use BofA as a barometer for the market. He said they look at how BofA reacts before making their moves in the market.

The Nasdaq soared past 2000, with

Apple

(AAPL) - Get Apple Inc. Report

,

Google

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and

Microsoft

(MSFT) - Get Microsoft Corporation Report

leading the way.

Terranova said all three have a lot of money to spend and this bodes well for the entire space. Seymour says Google is winning the most relevant market share with its Android operating system.

Gene Munster, a senior analyst at Piper Jaffray, said the stepping down by Eric Schmidt from Apple's board is long overdue and will allow Apple and Google to compete aggressively.

He sees the iPhone duking it out with the Android, and the Mac going head to head against the Chrome operating system.

According to Munster, the balance sheet battle will be between Microsoft and Google over search. He said Apple has a better chance of minimizing Google apps on its products.

Munster gave Apple the nod over Google in terms of the tech stock that will have the most upside the next six months. He said he spoke with a components source in Hong Kong who said Apple's Tablet is coming out late this year or early next year.

Terranova said Microsoft will surprise people by spending a lot of money to go after Google.

Shifting to Las Vegas and casinos, Burnett invited Jim Murren, chairman and CEO of

MGM Mirage

(MGM) - Get MGM Resorts International Report

, whose stock jumped 4% on better-than-expected profits.

Murren said occupany rates are starting to improve and people are spending more money when they arrive in Las Vegas. He said business bookings are not normal yet although businesses are booking conventions for 2010 and 2011.

Jon Najarian and Guy Adami, who were in Las Vegas, offered their comments. Najarian said people indeed are shopping for deals and not gambling. Adami talked about

Las Vegas Sands

(LVS) - Get Las Vegas Sands Corp. Report

as a short-covering play but said he would rather own it above $11.50.

Shifting to retail, Finerman said she is short

Whole Foods Market

(WFMI)

ahead of its earnings on Tuesday for two reasons: the valuation is very stretched at 32 times and it faces stiff competiton from the likes of Safeway where consumers are trading down. "I don't see how Whole Foods can come in and beat earnings," she said.

Burnett shifted the discussion to

Molson Coors Brewing

(TAP) - Get Molson Coors Beverage Company Class B Report

, which was up 5% after it beat estimates with second-quarter earnings that were more than doubled what they were a year ago.

Seymour said Molson and others in the space are using consolidation to wring inefficiencies out of the system.

Peter Swinburn, president and CEO of Molson, said the second quarter continued a trend in the first quarter, with cautious consumers looking for valued propositions. He said the company's broad brand portfolio allows it to play in every category.

In a segment called the "slow money" trade, Seymour suggested Ford as the "last one and only carmaker in America" and one that the government will stand by. He said a lean, mean Ford is doing a good job of selling better fuel-efficent cars. He also likes its international exposure in Latin America, where it has increased its market share from 5 percent to 10 percent and in the Asia-Pacific region where it has pushed its market penetration from 6 percent to 10 percent.

In the final trades, Terranova liked

MacDonald's

(MCD) - Get McDonald's Corporation Report

and

Wal-Mart

(WMT) - Get Walmart Inc. Report

. Finerman suggested buying puts on Whole Foods. Grasso liked

Occidental

(OXY) - Get Occidental Petroleum Corporation Report

, while Seymour liked

Potash

(POT)

, while

"Check out

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

-- Written by David Tong in San Francisco.