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. 

Read More: Disney Sees Record Profits With ‘Frozen' Success and Franchises to Come

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. 

Read More: Jim Cramer's 'Mad Money' Recap: It's Russia's Fault

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
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!
SYM TRADE IT LAST %CHG
FB $82.10 0.70%
GOOG $555.09 -1.80%
TSLA $234.29 7.30%
YHOO $44.61 0.20%
AAPL $132.72 1.90%

Markets

DOW 18,096.49 +16.35 0.09%
S&P 500 2,118.71 +1.02 0.05%
NASDAQ 5,086.8730 -5.2120 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs