This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Fast Money' Recap: Waiting on the Fed

NEW YORK (TheStreet) -- The S&P 500 climbed 0.22% ahead of Wednesday's Federal Reserve meeting. 

Dan Nathan, co-founder and editor of riskreversal.com, said investors are complacent. With the CBOE Volatility Index (VIX.X) near the lower end of its range, one perceived hawkish comment from the Fed could send markets lower.

Steve Grasso, director of institutional sales at Stuart Frankel, said the run-up in share prices for companies that become more profitable with higher interest rates -- such as E-Trade Financial (ETFC) and Charles Schwab (SCHW) -- is likely to be short-lived. He added the Fed is unlikely to raise interest rates anytime soon, and he is also a buyer of utility stocks. 

Brian Kelly, founder of Brian Kelly Capital, pointed out the three biggest holders of U.S. Treasuries are slowing or selling their purchases: The U.S. Federal Reserve is tapering, China's purchases are at 14-month lows and Russia has started selling its holdings. Hawkish comments could also cause a selloff in the bond market. He sold short the iShares iBoxx High Yield Corporate Bond ETF (HYG)

Guy Adami, managing director of stockmonster.com, said the 10-year Treasury yield still seems likely to decline. He reasoned that inflation is increasing in "the wrong places" and rising rates won't necessarily mean the economy is improving.

Even though many investors seem stuck on the S&P 500's run toward 2,000, Nathan argued the index has yet to have a pullback of 10% in roughly two years. He suggested investors take some profits and wait for better buying opportunities. 

Andrea James, vice president of Dougherty & Company, said Tesla Motors (TSLA) is building its Gigafactory in order to produce the battery supply that it will need going forward. While this buildout is not easy, she said building the Model S production facility was a harder task, and one the company successfully completed. 

Adami said investors can buy Tesla now that it has broken out over $225 but he cautioned them to be "really careful." Kelly said to "buy with both hands" if shares of Tesla pullback to $215. 

Pavel Molchanov, senior vice president at Raymond James, has a buy rating on shares of SolarCity (SCTY) with a $75 price target. Shares shot higher by 18% after the company announced its purchase of Silevo, a Chinese solar panel manufacturer, for $350 million. Elon Musk, who is the company's chairman, says there could be a solar panel shortage as early as three years from now.  

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.31 -0.55%
FB $94.50 -2.60%
GOOG $630.72 -0.19%
TSLA $263.05 -0.29%
YHOO $37.48 -0.49%

Markets

Chart of I:DJI
DOW 17,751.78 +0.39 0.00%
S&P 500 2,107.25 -1.32 -0.06%
NASDAQ 5,123.83 +12.0970 0.24%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs