NEW YORK (TheStreet) -- In a volatile up-and-down trading session, the S&P 500 ended lower by 0.14%, while the Dow Jones Industrial Average closed up 0.20% and the Nasdaq slipped for the third straight session, ending lower by 0.40%.
On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, pointed out the Russell 2000 broke below its 200-day moving average. He added the weakness in the Nasdaq and Russell 2000 are not surprising given the high valuations compared to the S&P 500.
Guy Adami, managing director of stockmonster.com, agreed with Seymour. He added the stock market's strong performance over the past year would have investors thinking the economy is doing much better than it is. However, until bond yields go higher to confirm the improved economic activity, something isn't adding up, he reasoned.
Dan Nathan, co-founder and editor of riskreversal.com, agreed with Seymour that at 16 times next year's earnings, the S&P 500 is not expensive. However, he admitted that it could be too expensive, if economic growth slows too much.Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, said that it's hard for stocks to move higher when investor sentiment is so bad. It's even harder for certain stocks to rally when the fundamentals are poor. Missouri is looking to join Texas, Arizona and New Jersey as states that ban direct auto sales to consumers. The move could be another blow to Tesla Motors (TSLA), which solely relies on direct sales. Matt Hardigree, editor-in-chief of Jalopnick, an auto industry blog, was a guest on the show. He said the auto dealers have a "political clout" in their states but no public support. On the other hand, Tesla has plenty of public support but no political clout. He reasoned that Tesla and the auto dealers will meet somewhere in the middle by limiting the number of Tesla showrooms in the state. He argued that customers will find a way to get a Tesla Model S or Model X if they want it, but this infrastructure will hinder the automaker from selling as many vehicles as it hopes in the future. Nathan said he would be a buyer of Tesla near $150 or $160. Seymour said he wouldn't buy the stock until it is closer to $80, pointing out the increasing competition in the space. Nathan was a seller of Netflix (NFLX), saying that increasing competition will ultimately hurt the stock price.