'Fast Money' Recap: Rally's On

NEW YORK ( TheStreet) -- The markets extended its rally Thursday for a third consecutive session.

The Dow Jones Industrial Average jumped 120.71, or 1.20%, to 10,038.99, while the S&P 500 added 9.98, or 0.94%, to 1,070.25. The Nasdaq added 15.93, or 0.74%, to 2,175.40.

Pete Najarian said on CNBC's "Fast Money" TV show that one thing that stuck out today was the IMF raising its forecast on China, the strong jobs report out of Australia and the strong options activity in CSX ( CSX) .

Karen Finerman said she was impressed with how the market was ableto extend its rally for another day. She said the market had beenoversold for a long time.

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 onTV

Joe Terranova said the market is building on solid earningsexpectations. He added the downside momentum of the market has beenreversed and that it's time to get into names like Amazon ( AMZN) and Google ( GOOG).

Guy Adami said he expects the rally to continue for a couple of days after the S&P rose above 1,040, before it runs "out of steam." He expects the shorts will be squeezed as investors move to the long side.

In the bear camp, Dennis Gartman said he was using the rally to sell into strength, calling it a short-covering rally. He also said gold is holding impressively at $2,000 an ounce.

Melissa Lee, the moderator of the show, noted crude oil moved up today, settling at its highest level since June 30. Terranova said the oil trade may be range bound. Patty Edwards said she was staying away from BP ( BP), calling it too much of a headline risk.

Najarian said he liked the chemical names, especially Dupont ( DD) for its 10% growth on the topline, 20% annualized earnings growth and 3% to 5% dividend yield.

In the "Call of the Day" segment, Lee noted that bank analyst Meredith Whitney had slashed the earnings estimates for Goldman Sachs ( GS) and JPMorgan ( JPM) for the second quarter.

Adami said he respected her call, adding Goldman shares have been going nowhere and seem to be heading downward. Terranova felt Goldman was going higher, though he acknowledged he sold some today.
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In a "Back to Basics" segment, J.P. Mark, president of Farmerhouse Equity Research, found Chipote Mexican Grill ( CMG) a bridge between the two trends epitomized by Whole Foods ( WFMI) on one side and McDonald's ( MCD) on the other.

He said Chipote offers plenty of the right ingredients and has room to grow.

He also said Apple ( AAPL) is building a huge server farm in North Carolina to handle the largest content library ever, a move that could threaten cable companies.

Finerman said she liked Flir Systems ( FLIR) and the space it is in. Terranova said he liked Abbott Labs ( ABT) and its exposure to the overseas markets. Edwards said she liked Corning ( GLW), which she said is in the middle of all the new tech devices coming out. AndNajarian said he liked McDonald's ( MCD) for its growth and dividend yield.

Lee switched to Alex Hamilton, an analyst with CK Cooper, to talk about the bidding between Boeing ( BA) and EADS on an Air Force tanker contract worth more than $50 billion. Hamilton said Boeing is the odds-on favorite to get the contract. He also remains bullish onBoeing's ability to deliver the Dreamliner.

Looking at today's retail reports, Finerman said she still liked TJX ( TJX), which "traded badly on not particularly bad news."Edwards said she liked American Express ( AXP).

In the "Under the Radar" segment, Michael Mendes, CEO of Diamond Foods ( DMND) said he was pleased with the fundamental philosophy behind his company's food products.

He said the company has exceeded expectations 13 quarters in a row, invested in its brands and demonstrated strong organic growth.

In the final trades, Terranova liked Monsanto ( MON). Adami liked Visa ( V). Finerman liked JPMorgan ( JPM) while Najarian liked Genworth Financial ( GNW).

-- Written by David Tong in San Francisco

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