NEW YORK ( TheStreet) -- The markets ended in the red Wednesday spurred by a drop in oil prices, a decline in Chinese stocks and a weak Treasury auction.

The Dow Jones Industrial Average fell 26.00, or 0.29%, to 9070.72, while the S&P 500 lost 4.47, or 0.46%, to 975.15. The Nasdaq rose 7.75, or 0.39%, to 1967.76.

Pete Najarian said on CNBC's "Fast Money" TV show, that upside call speculation and put protection kept the market where it is now. He said the protection is holding investors from a selloff.

Joe Terranova said the market is hanging in there, despite having to digest a lot of negative news in the last three to four days.

For a breakout of some stocks mentioned recently in "Fast Money," check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour said the first cracks in China have started to appear and that had an impact on the markets. The Shanghai composite index fell 5%.

Terranova said most of the money was made on the short side. He said the oil and resource names rolled over because of a rising dollar.

Rick Santelli, the moderator of the show, asked the panel where oil is heading. Guy Adami said crude is heading to the sub-$60 range. Seymour said it was clear going into earnings that the integrated oil companies were going to suffer but what wasn't clear until today was how bad the refining numbers were going to be.

Najarian said when oil is down, investors start to look at the utilities for dividend plays.

Shifting to the decline in Chinese stocks, Santelli said industrial names like Caterpillar ( CAT) CAT and Alcoa ( AA) suffered.

Seymour added the cutback in lending in China is affecting those who were stockpiling in aluminum and copper as well as the dollar.

Najarian said an investment in ProShares UltraShort China ( FXP) might be the way to play China's pullback, if you believe it has some more room to go.

Santelli brought in Mark Mahaney, Citigroup's U.S. Internet analyst, evaluate the search deal between Microsoft ( MSFT) and Yahoo! ( YHOO). Mahaney said Microsoft was the biggest winner because the deal gives it the scale in Internet advertising and search it needs, at a decent price. He said Yahoo! should have gotten more out of the deal.

Mahaney said Yahoo! should channel more of its efforts to display advertising, its strength. He said the stock should bounce around $15.

On a day when financial names like Morgan Stanley ( MS) and Goldman Sachs ( GS) were down slightly on downgrades, Najarian said he liked what Morgan Stanley had to say in a note about Bank of America ( BAC). He said the bank is about to write off $40 billion and trades at five times next year's earnings.

Moving outside of stocks, Santelli lamented the weak demand for the Treasury auction of five-year debt. That has Santelli nervous because the two- and five-year Treasury debt auctions are usually lay-ups.

Dennis Gartman, the noted commodities trader, appeared on the show to talk about the beating gold is taking. He said he thought he was long on gold "until they started hitting every stop known to man, until crude started selling off dramatically, until grain markets made new lows and there were no bids anywhere"

He said it's difficult for gold to go anywhere but down when oil is going down, adding gold can sink to 915 without too much difficulty. Asked what commodity he would buy, he said he would rather buy copper than either gold or crude.

With Walt Disney ( DIS) about to report earnings, David Bank managing director at RBC Capital Markets, said he believes Disney is the best play on leverage to a cyclical recovery in diversified media.

Because Disney doesn't guide, Bank said he is looking for "tone" in the earnings report that would suggest stability and modest sequential quarterly improvement.

Can the stock get north of $30? Bank has a price target of $27 on the stock, adding he may roll the price forward as 2010 nears.

With Dow Chemical ( DOW) reporting Thursday morning, Najarian wondered whether there was anything left in the tank in the stock, which is up threefold. He said he would wait for the earnings to come out and a pullback before making any move.

Hartford Financial ( HIG) was up in after-hours action after an earnings beat. Adami said the stock is "ridiculously cheap if you think the financial disaster is behind us." Terranova says he likes the fact that it has corporate bonds in its portfolio.

Steve Liesman, a CNBC reporter, said a "central bank guy" had told him that the Fed would raise rates if there was a rise in the so-called "five-year inflation expectations."

In the final trades, Seymour said he would short Petrobras ( PBR) while Adami was for Hartford Financial. Terranova liked Nike ( NKE). Najarian liked Metlife ( MET) if it goes above $35.

-- Written by David Tong in San Francisco.

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