NEW YORK (TheStreet) -- In a volatile session, the broader market closed near the lows of the day after Washington once again failed to agree on a resolution to the debt ceiling crisis.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the S&P 500 is likely to trade up to roughly 1,730 before falling on a disappointing earnings season.
Tim Seymour, managing partner at Triogem Asset Management, said the markets have already priced in a resolution but could rally into November. He suggested selling into the strength.
Brian Kelly, founder of Brian Kelly Capital, said we'll likely be in the same situation two months from now and that because of that, companies will likely be quite conservative in what they do until a longer-term solution is found.
Stuart Frankel's Steve Grasso suggested that traders focus on some of the other discussions such as the Keystone pipeline, which would be positive for Valero (VLO) and other Gulf Coast refiners, while being negative for railroad stocks such as Canadian Pacific Railway (CP) and Union Pacific (UNP).
Mike Khouw, managing director and primary strategist at DASH Financial, said a resolution will be a sell-the-news type of event because equities are fully valued.
Edward Mills, senior analyst on financial policy at FBR, was a guest on the show and said there is a very good chance a deal will get done. Ultimately, the two sides aren't as far apart as many people think and the U.S. government will not default.
Intel (INTC) beat on earnings but provided weaker-than-expected fourth-quarter guidance. Adami said the stock is struggling with the $24 level and looks like it could trade down to $22.
Seymour said investors won't get hit hard here because of Intel's nice dividend yield, but added that there's no reason to chase it.
Twitter announced that it will list on the NYSE rather than the Nasdaq and will start its roadshow on Oct. 25. It is expected to begin trading on Friday, Nov. 15.
Kelly said if the Nasdaq OMX Group (NDAQ) is weak Wednesday morning, traders could look to short it with a stop at $34. He added that this is not likely the last tech IPO that Nasdaq will lose.
Eric Jackson, founder of Ironfire Capital, was a guest on the show and said that it appears Twitter wants to do everything the opposite of Facebook (FB). Switching to Yahoo! (YHOO), he said it makes sense to continue owning it because of the company's core business and underdeveloped assets, mainly Alibaba. He suggested Alibaba could be worth upwards of $140 billion rather $100 billion.
Khouw said he is absolutely not a buyer of Green Mountain Coffee Roasters (GMCR), especially as hedge fund manager David Einhorn increased his short position citing questionable accounting metrics.
eBay (EBAY) was the featured company on the show's "Street Fight" segment. Kelly defended the stock, saying that international sales have been a real growth driver for the company. He added eBay is trading at the low end of its valuation range based on nearly every metric.Adami disagreed, arguing that second-quarter revenue and operating margins were disappointing. He added the stock has continually struggled with the $58 level, countries in which eBay does most of its international sales have had decelerating e-commerce trends, and that the stock does not deserve a forward PE ratio of 14.
For their final trades, Grasso was a buyer of Yahoo! into the Alibaba IPO and Adami said to buy Honeywell International (HON) into earnings on Friday. Seymour was a buyer of Avon Products (AVP) and Kelly was buying SPDR S&P 500 Trust ETF (SPY) puts for protection.
Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook. Edward Mills
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV