'Fast Money' Recap: Market Slide

NEW YORK (TheStreet) -- The markets were down again Wednesday on disappointing new-home sales data.

The Dow Jones Industrial Average fell 119.48, or 1.21%, to 9,762.69 while the S&P 500 dropped 20.78, or 1.95% to 1,042.63. The Nasdaq lost 56.48, or 2.67%, to 2,059.61.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, led off with some news that a deal had been struck in Congress to extend the homebuyers tax credit.

Joe Terranova said D.R. Horton(DHI Quote) is the best play among the homebuilders stocks to capitalize on this extension.

However, he said investors may move from D.R. Horton to other stocks because the credit will be available to more than just first-time homebuyers. He said the impact of the extended credit will be felt in the spring selling season.

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

Karen Finerman expressed doubts about the impact of the tax credit on the housing industry. She said considerable political good will had been extended toward the program, and she expressed concerns about employment as a factor in any revival of the industry.

Tim Seymour said the market is still worried that the Fed may be taking steps to remove stimulus from the economy.

Lee shifted the discussion to the breakdown in Nasdaq today. Terranova said the market moved to the defensive after the Nasdaq broke below its 50-day moving average. Seymour said SAP(SAP Quote) issued a "terrible" fourth-quarter outlook. "I don't see emerging markets stepping up to the plate," he said.