NEW YORK ( TheStreet) -- The markets coughed up moderate gains and closed on the lows of the day from news of a potential U.S. intervention in Syria.
Josh Brown said on CNBC's "Fast Money" TV show that equities and bonds have been highly correlated, (0.88), over the past 30 days, until Monday's session. When Secretary of Defense John Kerry was speaking about possible action in Syria, bonds rocketed higher while stocks fell to session lows. Brown added this bears watching.
Dan Nathan said the stock move doesn't seem that bad and that it could have been a lot worse. He reminded everyone that it was a low-volume Monday in August.
Scott Wapner, the show's host, added that without great earnings results and more debt ceiling issues looming, an announcement of a later bond tapering date by the Federal Reserve might be the only positive catalyst for stocks.Guy Adami agreed, adding that the markets should have been down more on a day like this if it were that bad. He has been under the impression that September would be too early of a tapering date and any indication of that from the Fed was just a test. Michael Hanson, senior U.S. economist at Merrill Lynch, was a guest on the show and said the housing market and consumer confidence have been damped by rising mortgage rates. He added that they will likely slow down the housing market but not stop it from moving forward. He believes the Fed will not taper in September. Hedge fund manager Bill Ackman has indicated he will be liquidating his entire 18.1 million share stake in J.C. Penney (JCP). Adami and Steve Grasso said they would take a shot on the stock after it finally settles down a bit. Tesla Motors (TSLA) made more new highs on Monday and is up 395% on the year. Brown said he is definitely not a buyer of the stock, although he has been mostly bullish until now. Grasso added that investors have to factor in growth, the great abilities of CEO Elon Musk and the new appeal of electric cars. He bought more shares on Monday and said the stock needs to hold the $160 level.