'Fast Money' Recap: Second-Quarter Playbook

NEW YORK ( TheStreet) -- The markets were flat Thursday ahead of Friday's jobs report.

The Dow Jones Industrial Average fell 30.88, or 0.25%, to 12,319.73. The S&P 500 lost 2.43, or 0.18%, to 1,325.83. The Nasdaq added 4.28, or 0.15%, to 2,781.07.

Brian Kelly said on CNBC's "Fast Money" show that he didn't think much of comments from Narayana Kocherlakota, president of the Federal Reserve Bank in Minneapolis, about higher interest rates later this year.

Kelly said he didn't that scenario wouldn't have a huge impact on the market.

Tim Seymour stressed the importance of Friday's jobs report. He said he doubts the Fed will raise interest rates until there is a "seismic" shift in the labor market. For the time being, he sees Fed Chairman Bernanke leaving interest rates near zero for the foreseeable future.

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 on TV

Joe Terranova argued the normalization of rates is a good thing for the markets, which he sees going higher.

Zachary Karabell noted that the Fed raised interest rates 17 times between 2004 to 2008 and that such steps were consistent with a rising market. He said higher interest rates may come in 2012 or late 2011.

For second quarter outlook, the panel looked at the winning plays in the first quarter. Terranova said investors should stay in the energy space, where he is overweighted. He said April historically is a good month for energy in the past several years with the exception of a blimp in 2010. He said he would stick with integrated names like Exxon Mobil ( XOM) that have proven reserves and Canadian energy names.

Seymour said he liked the current price level for oil. He sees the oil supply disruptions in Europe helping out Gazprom, adding Petrobras ( PBR) will do fine with oil at $115.

Kelly said he sees oil moving to $125 if the economic recovery picks up and there is peace in Middle East.

The grains trade worked in the first quarter, and Kelly said grain prices should continue to go higher in the second. He said with low levels of crop inventories, Monsanto ( MON) and PowerShares DB Agriculture Fund ( DBA) were good picks.

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