NEW YORK ( TheStreet) -- The broader markets closed near session lows as worries increased over the ongoing budget deficit debate.
Josh Brown said Wal-Mart (WMT) refuted a report Wednesday that it is cutting orders; the report had sent the stock lower. He added traders should avoid J.C. Penney (JCP) and that high-end retail still looks to be in good shape.
Dan Nathan disagreed on the high-end retailers, pointing out earnings misses from Coach (COH) and Polo Ralph Lauren (RL). He said consumers aren't buying Apple's (AAPL) iPads, which shows their spending power is softening.Mike Khouw said that while Wal-Mart does repurchase a lot of shares, the top-line growth has been unimpressive and U.S. consumers are not in great shape. Amazon (AMZN) is not focused on making profits on its tablets and instead is focusing on driving sales from the actual device, Nathan said -- a plan that may not work out in the end. He would not commit new money to the stock now because it is near all-time highs. Jon Najarian said he doesn't like Amazon's price cut on its lower-priced tablet, which is not as good as many of its competitors. He called it a losing strategy that will hurt the company's profits even more. He called it a losing strategy. Adami argued the stock has been in a strong uptrend and that he isn't going to fight it until that changes. He said the $300 level would be important. Larry McDonald, senior director and U.S. equity and policy strategist at Newedge, was a guest on the show and said he expects equity markets to rally on Friday in anticipation that the budget deficit will be resolved on Monday. Taking it one step further, he said nimble traders could look to fade the ensuing rally for the debt ceiling debacle on Oct. 15. From there, if there is a "grand bargain" between both political parties, he would consider that very bullish for stocks.