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
TheStreet Open House

'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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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