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: Geopolitical Pressures Weigh on Stocks

NEW YORK (TheStreet) -- The S&P 500 and Dow Jones Industrial Average hit their lowest levels since May while the CBOE Volatility Index (VIX.X) jumped 12%. 

Brian Kelly, founder of Brian Kelly Capital, pointed out that the bond market sold off on Tuesday morning despite the positive economic news. However, geopolitical issues continue to weigh on stocks, which is why he sold-short German equities.  

Guy Adami, managing director of stockmonster.com, said geopolitical issues haven't helped the stock market but neither have the transport sector or small-cap indices. He said the S&P 500 could decline to 1,860. 

Dan Nathan, co-founder and editor of riskreversal.com, argued that small-cap stocks actually held up relatively well on Tuesday compared to the broader market. However, it's concerning that the financial sector has not participated in the rally. 

Karen Finerman, president of Metropolitan Capital Advisors, said markets seem poised to rally once the "noise" of the Ukraine-Russia situation is in the past.

The energy sector declined 2%. Adami and Finerman said Eaton (ETN) is beginning to look attractive on a valuation basis, but could decline further before becoming a buy.

Kelly said a lot of good news is already priced into shares of Intel (INTC) and he is not a buyer at current levels.

Nathan agreed with Kelly, adding the company has a great balance sheet and solid dividend yield but the stock has moved too much to the upside. Adami added that when margins peak at Intel, typically the stock price does, too. That may be the case today.

Sucharita Mulpuru, vice president and principal analyst at Forrester Research, discussed the brutal selloff in shares of Groupon (GRPN) in the after-hours session. 

She said the company's move into fashion items and its acquisition of Ideeli have been a drag on the overall business. She added that Groupon's "goods" business is also very capital-intensive but has promise over the longer term.

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 $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs