President Obama's $3.5 trillion budget did not go over well on Wall Street Thursday, especially with health care stocks.

The Dow Jones Industrial Average fell 88.81, or 1.2%, to 7,182.08, while the S&P 500 dropped 12.07, or 1.58%, to 752.83. The Nasdaq lost 33.96, or 2.38%, to 1,391.47.

Karen Finerman said on CNBC's "Fast Money" TV show that the markets were disappointed with the budget. "Some of the health care stocks were blasted by the budget," she said, adding there was great concern about the level and extent of spending.

Joe Terranova said he isn't wedded to any particular trading direction. He did say he is long on oil, noting OPEC cuts are finally taking effect.

Tim Seymour said he liked the commodity space, adding China is doing some strategic buying in copper and zinc.

Meanwhile Jeff Macke said he was staying "nimble and loose" while trading within a technical range in the S&P.

Dylan Ratigan invited Peter Orszag, director of the Office of Management and Budget, to talk about the administration's new budget. Orszag said the budget is an honest attempt to build on what Obama campaigned for. He said the budget is allocating a huge sum to improve health care because it is the key to the country's fiscal future.

Orzsag said the administration's plan to provide universal health care will require a move toward universal health care information technology, investing in research on what works and shifting government incentives to pay for better health care.

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