NEW YORK (TheStreet) -- The broader market rallied near all-time highs as a resolution to the debt ceiling crisis in Washington finally appears to be near.
Josh Brown, financial adviser at Ritholtz Wealth Management, said equities are cheap and hedge fund managers need to chase stocks to increase their performance. For these reasons, stocks should move higher into the end of the year.
Tim Seymour, managing partner at Triogem Asset Management, said he likes airlines, industrials, cyclical stocks and emerging markets. Equities might consolidate for a week before moving higher for the rest of 2013.
Guy Adami, managing director at stockmonster.com, questioned the valuation of equities, pointing out that the earnings season has been less than enthusiastic so far.International Business Machine (IBM) fell following its earnings results. Adami said the stock has continued to miss earnings and shouldn't be considered a market indicator since it has lagged the indices all year. Bank of America (BAC) beat on earnings, and Steve Grasso of Stuart Frankel said he is staying long as litigation tied to housing begins to fade. Dave Rovelli, managing director of U.S. equity trading at Canaccord Genuity, was a guest on the show and said there was no way that Congress could have let the U.S. default. He thinks investors should keep buying on dips because the Federal Reserve will not taper amid these problems. His top picks include Qualcomm (QCOM), Laredo Petroleum Holdings (LPI) and Gulfport Energy (GPOR). eBay (EBAY) beat earnings estimates but provided weak fourth-quarter guidance. Adami said the stock's valuation is now being questioned and it could trade down to $47.50. Teradata (TDC) was the first stock on the show's "Pops & Drops" segment. Adami said traders could get long if it holds the $41 level. Mattel (MAT) popped 1%. Brown said there's nothing wrong the company's fundamentals, but wouldn't be a buyer unless the stock broke out technically. Advanced Auto Parts (AAP) rocketed 16%, and Grasso said he cannot recommend buying the stock after that kind of move. He suggested waiting a few days before buying.
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