This Day On The Street
Continue to site right-arrow
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

'Fast Money' Recap: Falling Markets and Employment Data

NEW YORK (TheStreet) -- The S&P 500 dropped 2% in Thursday's trading. 

On CNBC's "Fast Money" TV show, Steve Grasso, director of institutional sales at Stuart Frankel, said investors didn't seem to be panicked when selling. He added that short-sellers were also covering, likely because of Friday's non-farm payrolls report. He said 1,910 should be support for the S&P 500. 

Brian Kelly, founder of Brian Kelly Capital, said the employment results from the non-farm payrolls report needs to be very close to economists' expectations. Otherwise, it will likely add pressure to the selloff. 

Read More: 8 Stocks George Soros Is Buying in 2014

Dan Nathan, co-founder and editor of riskreversal.com, said the Russell 2000 has formed a bearish technical pattern known as a "double top." He added that it would be perfectly natural for the U.S. stock market to selloff 7% to 10%. 

Guy Adami, managing director of stockmonster.com, said the iShares Russell 2000 ETF (IWM) seems poised to decline to $108. If it fails to find support at that level, it could drag the rest of the market lower.

Dennis Gartman, editor and publisher of The Gartman Letter, said the S&P 500 seems poised to decline to 1,875 or 1,860, the latter being the index's 200-day moving average. Nothing has fundamentally changed, he said, but investors are worried psychologically. He is still neutral on equities and suggested that WTI crude oil is headed lower. 

If the non-farm payrolls results are better than expected, Adami said bonds are likely to to decline, while equities move higher. Kelly said both bonds and stocks seem poised to decline. Grasso said stocks should react positively to a better than expected result. Nathan argued that a good labor result is already priced into the market. 

Nathan added that the PowerShares QQQ Trust ETF (QQQ) is a "dangerous asset" right now. He reasoned that 35% of the fund is comprised of four stocks -- Apple (AAPL), Google (GOOGL), Microsoft (MSFT) and Intel (INTC) -- that all have really positive sentiment. If that sentiment changes quickly, the ETF could selloff quickly. 

Ben Kallo, senior research analyst at R.W. Baird, has a buy rating on shares of Tesla Motors (TSLA) with a $275 price target. He said the company reported a very good earnings result, beating on top and bottom line expectations. 

However, guidance for the third quarter was a little below analysts' expectations. But, delivery expectations for next year of 100,000 units is vastly higher than everyone expected, Kallo said, which should outweigh the negative news about the third quarter. He is a buyer at current levels.

Nathan said Tesla will be a good stock to own for the long term, but it's too hard to buy near current levels. Adami said investors should either buy Tesla on a breakout over $230 or on a pullback to $185. Kelly said Tesla is hard to trade, but should be a solid long-term hold 10 years from now. 

Adami said GoPro (GPRO) had "very strong" gross margins compared to year ago figures. He is a buyer on a pullback. Kelly is also a buy of GoPro, but in the low-$30s. 

Read More: Warren Buffett's Top 10 Dividend Stocks

Nathan pointed out that the SPDR Homebuilders ETF (XHB) hit nine-month lows. The exchange-traded fund is not acting well, he said. Kelly added that the housing market will be under even more pressure when interest rates rise. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,802.34 -7.72 -0.04%
S&P 500 2,067.67 +4.17 0.20%
NASDAQ 4,748.9550 +35.9850 0.76%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs