Grasso was also quick to note that shares of
moved higher on Tuesday, as crude rallied.
Brown said he is not a buyer of
despite its legal success against other cable companies and being a potential acquisition target down the road.
Douglas Duncan, who manages Fannie Mae's Economic and Strategic Research Group, said that since World War II the average 30-year mortgage rate is 6.5%, meaning today's rates near 4.6% are favorable from a historic standpoint. He added that the housing recovery is far from robust and still faces a lot of hurdles, but home prices are unlikely to start falling.
Adami said the
SPDR Homebuilders ETF
looks awful on a technical basis, but short-term support should be near $28.
Brown said he really wants to buy some of the homebuilder stocks but if the current housing data woes continue, there's definitely more downside ahead.
The gold miners were the first group on the show's "Trending Trades," which failed to turn green despite the physical metal advancing 2%. Grasso said he wouldn't give up on the
Market Vectors Gold Minters ETF
dropped 2.5% on Tuesday. Brown said the stock got hit with the overall market but is extremely liquid, meaning investors who were looking to raise cash in the selloff could easily sell some of their positions.
dropped 3% and Adami said the company is cheaper than
United Parcel Service
, despite having a smaller dividend. He added that he expects margins to increase.
Grasso said the last time the markets were scared about the debt ceiling and U.S. budget issues, it became a buying opportunity. Brown added that he doesn't think it'll be as big of deal as it was last time.
Tiffany & Co.
was the featured stock on the show's "Street Fight" segment. Seymour said gross margins will begin to improve, there's solid momentum in key international markets, and Asia-Pacific comps increased 13%. He added the company has a cheaper valuation than its peers.
Brown took the bearish side and said the stock looks like it's forming a double top. He added that comps were essentially flat in the United States and the valuation is trading at a 30% premium to its five-year historical average. He concluded it's a bad sign when the stock falls on good news, which it did on Tuesday.
Brown said he would like to see
fall on Wednesday after reporting earnings, so he can buy the stock on a dip.
Adami said he expects
to pop when it reports earnings, which will give traders a favorable short entry.
For their final trades, Grasso said to buy
, Seymour said to short
and Adami was a buyer of
, because of a bullish double bottom.
-- Written by Bret Kenwell in Petoskey, Mich.
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